Question
Gorilla Surgical Instruments (GSI) has a total debt of $300 million and 4 million shares trading at $50 a share. GSI's conservative CFO holds $80
Gorilla Surgical Instruments (GSI) has a total debt of $300 million and 4 million shares trading at $50 a share. GSI's conservative CFO holds $80 million in cash and $20 million in 3-month US Treasury bills. The CFO also estimates that Gorilla;s equity and debt beta amount to 0.6 and 0.4, respectively. Based on this information, please estimate Gorilla's unlevered beta?
| a. | 0.48 | |
| b. | 0.47 | |
| c. | 0.50 | |
| d. | 0.52 |
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The Economics Of Financial Markets
Authors: Roy Bailey
1st Edition
051111415X, 9780511114151
