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(7) (10 points] You have the following data about a firm: (i) MPK = 3%; (ii) capital stock = 17.5 units; (iii) Stock market value

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(7) (10 points] You have the following data about a firm: (i) MPK = 3%; (ii) capital stock = 17.5 units; (iii) Stock market value = $1,743; and (iv) price per unit of capital = $110.. (a) [5 points] Compute the firm's Tobin's q. (b) (5 points] Should the firm invest in more capital or divest (sell) capital? Explain. (7) (10 points] You have the following data about a firm: (i) MPK = 3%; (ii) capital stock = 17.5 units; (iii) Stock market value = $1,743; and (iv) price per unit of capital = $110.. (a) [5 points] Compute the firm's Tobin's q. (b) (5 points] Should the firm invest in more capital or divest (sell) capital? Explain

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