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

question 88

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 enterprise value is closest to:

• A)$90 million.
• B)$510 million.
• C)$600 million.
• D)$690 million.

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Definitions:

Oblique Circles

Circles on an oblique plane to the observer, appearing as ellipses in technical drawings and perspectives.

Cavalier Oblique

A form of oblique drawing where the depth is represented at full scale without foreshortening, often used for industrial drawings.

Receding Axes

Axes that appear to converge in the direction away from the viewer in a perspective drawing, illustrating depth.

Pictorial View

A three-dimensional representation of an object, used in technical drawing to give a realistic view and help in understanding the shape and features.