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

question 90

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 WACC is closest to:

• A)10.6%.
• B)11.2%.
• C)11.8%.
• D)12.5%.

---

Definitions:

Local Economy Dominance

The significant influence or control of a particular area's economy by one or more entities.

Technology Transfer

The process of sharing or distributing technology between different organizations, or from research institutions to industry, facilitating innovation and application.

New Industries

Emerging sectors of the economy that arise from technological advancements, innovation, or societal changes, offering new opportunities for business and employment.

Economic Domination

A condition where a single entity or a group of entities holds significant control or influence over the economic policies, resources, or markets of a region or country.