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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:
Principal
The original sum of money borrowed in a loan or put into an investment, excluding any interest or dividends.
Market Wage
The prevailing wage rate for labor in a particular market, determined by supply and demand for workers.
Agent
An individual or entity authorized to act on behalf of another person or company in commercial transactions.
High-End
Products or services that are considered to be of the highest quality and price within their category.
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