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

question 67

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 asset beta (i.e.the beta of its operating assets) is closest to:

• A)1.1.
• B)1.2.
• C)1.3.
• D)1.4.

---

Definitions:

Organizational Politics

Organizational politics is the management of influence to obtain ends not sanctioned by the organization or to obtain sanctioned ends through nonsanctioned means and the art of creative compromise among competing interests.

Self-serving

Behaviors or attitudes focused on one's own advantage, often at the expense of others or ethical principles.

Social Capital

A capacity to get things done due to relationships with other people.

Intellectual Assets

Intellectual assets are valuable intangible resources of an organization, such as patents, trademarks, and employee expertise.