Use the Information for the Question(s)below

question 52

Multiple Choice

Use the information for the question(s) below.
Luther Industries has no debt,a total equity capitalization of $20 billion,and a beta of 1.8.Included in Luther's assets are $4 billion in cash and risk-free securities.
-What is Luther's enterprise value?

• A)$16 billion
• B)$10.5 billion
• C)$24 billion
• D)$20 billion

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Definitions:

Horizontal Axis

The x-axis in a graph, usually representing the independent variable or the categories being compared.

X-axis

The horizontal line on a graph or chart, typically representing the range of values for an independent variable.

Graph

A visual representation of data designed to show the relationship between two or more variables.

Labeling

The process of assigning a name, category, or description to a phenomenon, often seen in the context of social identity or diagnosis.