Question
Economics Question on Economics and economic theories
Tobin's q ratio refers to
A
the ratio of the market value of the firm's assets to the cost of producing those assets
B
the ratio of the cost of producing assets to the market value of the assets
C
the ratio of the PBT (profit before taxes) to the market value of the firm's assets
D
the ratio of the PBT (profit before taxes) to the cost of producing those assets
Answer
the ratio of the market value of the firm's assets to the cost of producing those assets
Explanation
Solution
The correct answer is (A) : the ratio of the market value of the firm's assets to the cost of producing those assets.