If the Market Value of a Firm Is $6 Billion

question 13

Multiple Choice

If the market value of a firm is $6 billion and Tobin's q is equal to 2,then the replacement cost of installed capital must be ________.

• A)$2 billion
• B)$3 billion
• C)$9 billion
• D)$18 billion

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Definitions:

Unobservable Mental States

Internal psychological conditions, such as thoughts, beliefs, and desires, that cannot be directly observed by others.

Consciousness

The state of being aware of one's own existence, sensations, thoughts, surroundings, and the external world.

Cognitive Process

The collection of mental activities and operations involved in processing information, including thinking, memory, and perception.

Reflex

A simple, automatic response to a specific stimulus, such as the knee-jerk reaction.