Question
Galt Industries has no debt, total equity capitalization of $600 million, and an equity beta of 1.2.Included in Galt's assets is $90 million in cash
Galt Industries has no debt, total equity capitalization of $600 million, and an equity beta of 1.2.Included in Galt's assets is $90 million in cash and risk-free securities.Assume the risk-free rate is 4% and the market risk premium is 6%.Galt's enterprise value is closest to:
$90 million
$510 million
$600 million
$690 million
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Introduces Quantitative Finance
Authors: Paul Wilmott
2nd edition
470319585, 470319581, 978-0470319581
