The denominator of Tobin’s Q represents ______

4 The denominator of Tobin’s Q represents ________________________________

5 T or F: A growth stock guarantees a continuous dividend.

6 The reason some stocks do not pay dividends and others do is ____________________________.

Expert Solution

Q4) Replacement cost of assets

Explanation: Tobin Q = market value of equity / replacement cost of assets

Q5) False

Explanation: A growth stock will never guarantee a dividend because it would need money for growing further. It would rather retain the profit for investment rather than distributing it as dividend.

Q6) Because they would reinvest those profits to earn higher profits for the shareholders than what they could receive in the form of dividend.

jeff jeffy answered 2 years ago

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