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 market value of the assets underlying the call option is:
A) $200 million.
B) $300 million.
C) $500 million.
D) $700 million.
Correct Answer:

Verified
Correct Answer:
Verified
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