Use the information for the question(s) below.
Luther Industries has no debt, a total equity capitalization of $20 billion, and a beta of 1.8. Included in Luther's assets are $4 billion in cash and risk-free securities.
-Considering the fact that Luther's cash is risk-free,Luther's unlevered beta is closest to:
A) 1.90
B) 2.25
C) 1.50
D) 1.45
Correct Answer:
Verified
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