Steel Corp. Industries has no debt, total equity capitalization of $600 million, and an equity beta of 1.2. Included in Steel Corp'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%. Steel Corp.'s asset beta (ie the beta of its operating assets) is closest to:

Steel Corp.s WACC is closest to:

Steel Corp. Industries has no debt, total equity capitalization of $600 million, and an equity beta of 1.2. Included in Steel Corp'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%. Steel Corp.'s asset beta (ie the beta of its operating assets) is closest to: A. 1.0 B. 1.1 C. 1.2 D. 1.3 E. 1.4 Continuing from the Question 5, Steel Corp.'s WACC is closest to: A. 10.6% B. 11.2% C. 11.8% D. 12.5% E. 14.0%