explain q theory in qbm
Answers
Answered by
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
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.
Similar questions