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If the market value of corporate financial assets is ₹ 1,50,000 and the replacement cost of corporate…

Tobin's \(q\)-ratio is the ratio of the market value of corporate financial claims (equity and debt) to the replacement cost of corporate real assets: \(q =…

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If the market value of corporate financial assets is ₹ 1,50,000 and the replacement cost of corporate real assets is ₹ 75,000. What will be the value of Tobin q-ratio ?

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Tobin's qq-ratio is the ratio of the market value of corporate financial claims (equity and debt) to the replacement cost of corporate real assets: q=1,50,00075,000=2q = \frac{1,50,000}{75,000} = 2.

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