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

question 66

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%.
-The beta on Galt's assets is closest to:

• A) 1.1
• B) 1.2
• C) 1.3
• D) 1.4

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Definitions:

Need For Structured Knowledge

The desire or requirement for organized and coherent information to understand concepts or make decisions.

Right-Wing Authoritarianism

A personality and ideological framework characterized by adherence to conventionalism, authoritarian submission, and authoritarian aggression.

Social Dominance Orientation

A personality trait which predicts social and political attitudes, and is characterized by a preference for hierarchy within any social system.

Socially Deviant

Behavior that violates the normative rules, understandings, or expectations of a society or a social group.