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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
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 strike price of the call option is: A) $200 million. B) $300 million. C) $500 million. D) $700 million
A is the answer I need to calculation. NO Excel. Please provide a good answer because someone posted a the quetion before and it was not answered correctly. Thank you!
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