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.

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Definitions:

Incomplete Tetanus

A state of muscle contraction characterized by rapid cycles of contraction with partial relaxation in between.

Treppe

A phenomenon in muscle physiology where successive contractions become increasingly more forceful after several stimuli, often referred to as the "staircase effect."

Wave Summation

The phenomenon where muscle contractions become stronger due to the frequency of stimulation without allowing the muscle to fully relax between successive stimuli.

Treppe

A phenomenon observed in cardiac muscle, where successive stimuli result in increasingly stronger contractions, described as the "staircase effect."