Use the Information for the Question(s)below

question 52

Multiple Choice

Use the information for the question(s) below.
Luther Industries has no debt,a total equity capitalization of $20 billion,and a beta of 1.8.Included in Luther's assets are $4 billion in cash and risk-free securities.
-What is Luther's enterprise value?

• A)$16 billion
• B)$10.5 billion
• C)$24 billion
• D)$20 billion

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Definitions:

Eye Lens

A transparent structure in the eye that focuses light on the retina, enabling vision.

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A common name for a genus of snakes known as Thamnophis, marked by their distinct longitudinal stripes.

Australian Inland Taipan

A highly venomous snake native to central East Australia, considered one of the most venomous snakes in the world based on its LD50 rating in mice.