Tobin's Q

CFA Level II
#1

First off, I’ll be surprised to see it tomorrow. Very obscure. The formula = (mvD + mvE)/replacement cost of E — correct? What is “the replacement cost of E”? would that just be = mvE

#2

if tobin’s Q comes up, i might just draw a huge middle finger in the middle of my exam booklet

#3

lol - I presume pointing to A B or C though, right?

#4

I believe its replacements costs of assets. kind of like Market value added. I think the major problem with this was finding the replacement cost of assets

#5

Good enough for me. Thanks. So, replacement cost of A (NOT E) it is.

#6

Many formulas of Tobins Q. Most common is MVD + MVE / Replacement Cost of Assets. Another common is MVD + MVE / BVD + BVE (which is assumed to be current cost of assets). Basically is a measurement of MVA.

#7

What section was this in???

#8

Equity-Residual Income

#9

smileygladhands Wrote: ------------------------------------------------------- > if tobin’s Q comes up, i might just draw a huge > middle finger in the middle of my exam booklet LMAO…