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

question 20

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 debt as a put option,the strike price of the put option is:

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

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Definitions:

Economic Independence

A condition in which an individual, region, or country has sufficient resources to support itself without relying on external assistance.

Chesapeake Area

refers to the region around the Chesapeake Bay, encompassing parts of Maryland and Virginia, known for its unique cultural and natural history.

Tobacco Industry

The sector of the economy involved in the production, marketing, and sale of tobacco and tobacco-related products, historically significant for its economic impact and controversial for its health implications.

Puritan Reforms

Changes implemented primarily in the 16th and 17th centuries aimed at purifying the Church of England of Roman Catholic practices.