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