. If the market value of a firm registers consistent increase, we can reasonably conclude that ________________, (a) Marginal of capital is greater than the cost of capital (b) Tobin’s q measure is greater than 1 (c) Value of its stock is over priced (d) None of the above (e) (a) and (b)
. If the market value of a firm registers consistent increase, we can reasonably conclude that ________________, (a) Marginal of capital is greater than the cost of capital (b) Tobin’s q measure is greater than 1 (c) Value of its stock is over priced (d) None of the above (e) (a) and (b)
Chapter31: Capital Markets
Section: Chapter Questions
Problem 2E
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1. If the market value of a firm registers consistent increase, we can reasonably conclude that ________________,
(a) Marginal of capital is greater than the cost of capital
(b) Tobin’s q measure is greater than 1
(c) Value of its stock is over
(d) None of the above
(e) (a) and (b)
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