Problem
Given the following information, calculate Tobin's q statistic: Let's suppose that a company has one million outstanding shares of stock, each valued at $25. Let us suppose also that the replacement cost of its physical capital stock is $18 million.
a. Should this firm invest (net) in more physical capital?
b. Would your answer change if the replacement cost of its physical capital stock at this time was $25 million? $28 million?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.