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 maturity of this option is:
A) 5 years.
B) 10 years.
C) 20 years.
D) infinite.
Correct Answer:

Verified
Correct Answer:
Verified
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