Tobin's Q May Be Interpreted as a Measure of

question 65

Multiple Choice

Tobin's q may be interpreted as a measure of

• A) the quantity of a firm's output
• B) the optimal quantity of output for a monopolist
• C) the relative importance of bond financing to equity financing
• D) the rate of return on capital divided by the cost of capital
• E) the useful life of physical capital

---

Definitions:

Hundredth Unit

The hundredth unit refers to the specific position or measure of something that is one hundred in a sequence or collection.

Future Price

The predicted price of a commodity, security, or currency in the future, often determined by future contracts in the marketplace.

Demand Curve

A chart illustrating the connection between an item's price and the amount buyers are prepared to buy at different price levels.

Shift

A change in the position of a demand or supply curve, indicating a change in the quantity demanded or supplied at various prices.