what does Tobin's Q do?

CFA Level II
#1

[original post removed]

#2

http://en.wikipedia.org/wiki/Tobin's_q

See “Application”.

#3

from that link High Tobin’s q values encourage companies to invest more in capital because they are “worth” more than the price they paid for them. On the other hand, if Tobin’s q is less than 1, the market value is less than the recorded value of the assets of the company. This suggests that the market may be undervaluing the company. so is a high q good or a low q?

#4

bro, I also need help on making a definitive list of components for the total pension costs (expense + OCI) components under gaap and ifrs. I’ve seen schweser, elan and cfai have some slightly different equations. I want to see your version.

#5

?

#6

?

#7

is this in curriculum?

#8

2000 posts and a CFA candiadate. Are you serious you dont know this?