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

question 55

Multiple Choice

Use the following information to answer the question(s) below.Consider the following information regarding corporate bonds:
-Galt Industries has a market capitalization of $50 billion,$30 billion in BBB rated debt,and $8 billion in cash.If Galt's equity beta is 1.15,then Galt's underlying asset beta is closest to:

• A)0.83.
• B)0.92.
• C)1.00.
• D)1.15.

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Definitions:

Marginal Costs

The increase or decrease in the total cost that arises when the quantity produced is incremented by one unit.

Complementary Resources

Assets or inputs that, when used together, enhance the productivity or effectiveness compared to using each separately.

Native-born Workers

Employees who were born in the country where they are working, as opposed to immigrant or foreign workers.

Wage-gap

is the difference in average earnings between different groups of workers, often used to discuss disparities based on gender, race, or education.