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

question 90

Multiple Choice

Use the following information to answer the question(s) below.
Galt Industries has no debt,total equity capitalization of $600 million,and an equity beta of 1.2.Included in Galt's assets is $90 million in cash and risk-free securities.Assume the risk-free rate is 4% and the market risk premium is 6%.
-Galt's WACC is closest to:

• A)10.6%.
• B)11.2%.
• C)11.8%.
• D)12.5%.

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Definitions:

Social Cues

Nonverbal or environmental signals that guide social interactions by influencing one's behavior in the presence of others.

Natural Selection

The process by which biological traits become either more or less common in a population due to the effect on the survival and reproduction of organisms.

Evolutionary Process

The natural development and adaptation of organisms over time through mechanisms like natural selection and genetic drift.

Common Ancestors

Refers to an ancestor that two or more descendants or species have in common from their family tree or evolutionary path.