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

question 36

Multiple Choice

Use the following information to answer the question(s) below.
Galt Industries is trading for $20 per share and has 25 million shares outstanding.Galt Industries has a debt-equity ratio of 0.4 and its debt is zero coupon debt with a ten-year maturity and a yield to maturity of 8%.
-In describing Galt's equity as a call option,the strike price of the call option is:

• A)$200 million.
• B)$300 million.
• C)$500 million.
• D)$700 million.

---

Definitions:

Global Catch

The total mass of fish and other sea animals captured from the world's water bodies each year.

Commercial Extinction

A condition in which a species exists in such low numbers that it is no longer profitable to harvest.

Coral Reefs

Diverse underwater ecosystems held together by calcium carbonate structures secreted by corals, providing habitat and shelter for many marine species.

Biodiversity Of Oceans

The variety of life in the world's oceans and seas, including the ecosystems, species, and genetic diversity found within marine environments.