Tobin's Q Relates the Market Value of a Firm's Assets

question 63

Multiple Choice

Tobin's Q relates the market value of a firm's assets to which one of the following?

• A)initial cost of creating the firm
• B)current book value of the firm
• C)average asset value of similar firms
• D)average market value of similar firms
• E)today's cost to duplicate those assets

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Definitions:

Armature Resistance

Resistance within the armature of an electric machine, such as a motor or generator, which can affect efficiency and performance by opposing current flow.

Mechanical Rectifier

A device that converts alternating current (AC) into direct current (DC) through mechanical means, historically used before electronic rectifiers became common.

AC

Alternating current, a type of electrical current where the flow of electrons periodically reverses direction.

DC

Direct Current, characterized by the unidirectional flow of electric charge, typically used in batteries, solar cells, and as the output of rectifiers.