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

Question 55

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Use the following information to answer the question(s) below.Consider the following information regarding corporate bonds: Use the following information to answer the question(s) below.Consider the following information regarding corporate bonds:   -Galt Industries has a market capitalization of $50 billion,$30 billion in BBB rated debt,and $8 billion in cash.If Galt's equity beta is 1.15,then Galt's underlying asset beta is closest to: A) 0.83. B) 0.92. C) 1.00. D) 1.15.
-Galt Industries has a market capitalization of $50 billion,$30 billion in BBB rated debt,and $8 billion in cash.If Galt's equity beta is 1.15,then Galt's underlying asset beta is closest to:


A) 0.83.
B) 0.92.
C) 1.00.
D) 1.15.

Correct Answer:

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