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Which of the following statements regarding Tobins q is (are) correct? I. Ceteris paribus, if the interest rate decreases, Tobins q increases. II. Ceteris paribus,

Which of the following statements regarding Tobins q is (are) correct? I. Ceteris paribus, if the interest rate decreases, Tobins q increases. II. Ceteris paribus, if the replacement cost of capital increases, Tobins q decreases. Answer: _________ a) None of the above. b) I only. c) II only. d) I and II.

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