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.

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Definitions:

Medicare Tax

Medicare Tax is a federal payroll tax used to fund the Medicare program, which provides health insurance for eligible elderly and disabled individuals.

Social Security Tax

Social Security Tax is a tax levied on both employers and employees to fund the Social Security program, which provides retirement, disability, and survivorship benefits.

Medicare Tax

A federal tax deducted from an individual’s earnings to fund the Medicare program, typically as part of payroll taxes.

Time And A Half

The rate of pay that is 1.5 times the employee's regular hourly rate, often paid for overtime work.