Tobin's q is equal to:
A) S divided by PI.
B) S multiply by PI.
C) PI multiply by S.
D) PI divided by S.

Name: Tobin's q is equal to: A) S divided by PI. B) S multiply by PI. C) PI multiply by S. D) PI divided by S.
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Question

Quizplus · Accepted Answer

Tobin's q is a measure of the market value of a firm's assets relative to its replacement cost. It is calculated as the ratio of the firm's market value of equity (S) to its replacement cost of capital (PI).

Tobin's Q Is Equal To