Accountancy, asked by nimraashraf245, 28 days ago

Q: increase in capital

Answers

Answered by qroyal022

Answer:

Intuitively, the higher is q, the higher the value of capital relative to its current purchase price will be, and the higher investment will be. When Tobin's q is greater than 1, it is profitable to acquire additional capital because the value of capital exceeds the cost of acquiring it.

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