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The Vuvuza Corporation Currently Has 10 Million Shares of Stock

Question 19

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The Vuvuza Corporation currently has 10 million shares of stock outstanding,the stock is trading for $42 per share,and its stock of capital goods is valued at $70 million.Based on the Tobin's q value for the Vuvuza Corporation,we would expect Vuvuza to


A) increase its capital stock.
B) depreciate more of its assets.
C) issue more shares of stock to be able to afford to finance investment expenditures.
D) cut back on current production.

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