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

question 88

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 enterprise value is closest to:

• A)$90 million.
• B)$510 million.
• C)$600 million.
• D)$690 million.

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Definitions:

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Cold, often powerful winds originating from the Arctic regions, affecting climate and weather patterns.

Montane Successional Gradient

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Eutrophication

An increase in the concentration of chemical nutrients in an ecosystem to an extent that increases the growth of algae and higher plants, often resulting in the depletion of oxygen.

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A group of cone-bearing seed plants, mostly evergreens, that include pines, spruces, and firs, known for their needle-like or scale-like leaves.