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When Tobin's Q Is __________,The Market Is Signalling a Firm

Question 2

Multiple Choice

When Tobin's q is __________,the market is signalling a firm should __________.


A) greater than one;invest in more capital
B) equal to zero;shut down
C) infinity;sell its stock holdings
D) less than one;raise dividend payments
E) equal to one;try to take over a firm with a Tobin's q = 0.

Correct Answer:

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