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:

Private Speech

The act of talking to oneself, often seen in young children as a way of guiding their own behavior.

Telegraphic Speech

The early speech phase in children where sentences are formed with only essential words, omitting smaller ones or grammatical elements.

Bilingual Education

An educational approach that involves teaching academic content in two languages.

Bilingualism

The ability of an individual to speak and understand two languages.