Use the Following Information to Answer the Question(s)below

question 36

Multiple Choice

Use the following information to answer the question(s) below.
Galt Industries is trading for $20 per share and has 25 million shares outstanding.Galt Industries has a debt-equity ratio of 0.4 and its debt is zero coupon debt with a ten-year maturity and a yield to maturity of 8%.
-In describing Galt's equity as a call option,the strike price of the call option is:

• A)$200 million.
• B)$300 million.
• C)$500 million.
• D)$700 million.

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A government or private program designed to provide financial or other support to individuals or groups in need.

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Money received for work performed such as wages, salaries, or professional fees.

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A direct reduction in tax liability (not merely a reduction of taxable income) that taxpayers receive for certain expenditures or investments.

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