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

question 90

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 WACC is closest to:

• A)10.6%.
• B)11.2%.
• C)11.8%.
• D)12.5%.

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Definitions:

James-Lange Theory

A theory of emotion proposing that emotions arise from physiological responses to external events or stimuli before they are interpreted.

Asthma

A chronic lung condition characterized by episodes of airway inflammation and narrowing, causing difficulty in breathing.

Physiological Changes

Alterations in the body's normal biological functions, which can result from health conditions, environmental factors, or developmental stages.

James-Lange Theory

A theory of emotion suggesting that physiological arousal precedes the experience of emotion.