Business Studies, asked by shauryavermaa, 1 year ago

explain q theory in qbm​

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Answered by gauravarduino
0

Answer:

Economics theory of investment behavior where 'q' represents the ratio of the market value of a firm's existing shares (share capital) to the replacement cost of the firm's physical assets (thus, replacement cost of the share capital).

Answered by SelieVisa
0

Answer:

James Tobin was the first person to explain this relation between the stock market and investment and that is why it is also referred as “Tobin's q” theory. q = market value of the firm/ Replacement cost of capital. Or. q = Value the stock market places on the firm's asset /Cost of producing those assets.

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