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When Tobin's Q Is Equal to Zero, the Market Is

question 58

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When Tobin's q is equal to zero, the market is signaling a firm should buy more capital.

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Definitions:

Discontinued Operations Section

A section in the financial statements that reports the results of operations that have been discontinued by a company.

Net Of Tax

This refers to the amount left after taxes have been subtracted from the total or the calculation made taking taxes into account.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits or losses over a particular period of time.

Linkage

The connection or relationship between two or more factors, objects, or systems.

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