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) 0.84
B) 0.92
C) 1.00
D) 1.15

Question

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) 0.84 
B) 0.92 
C) 1.00 
D) 1.15

Quizplus · Accepted Answer

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