Consider the following information regarding corporate bonds Rating AAA AA A BBB BB B CCC Average Beta 0 05 0 05 0 05 0 1 0 17 0 26 0 31 Galt Industries has a market capitalization of $50 billion, $30 billion in BBB rated debt, and $8 billion in excess cash If Galt 's equity beta is 1 15, then what...

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Consider the following information regarding corporate bonds: Rating AAA AA A BBB BB B CCC Average Beta

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Consider the following information regarding corporate bonds:

Rating	AAA	AA	A	BBB	BB	B	CCC
Average Beta	0.05	0.05	0.05	0.1	0.17	0.26	0.31

Galt Industries has a market capitalization of $50 billion, $30 billion in BBB rated debt, and $8 billion in excess cash. If Galt's equity beta is 1.15, then what is the beta of Galt's underlying business enterprise?

Posted Date: May 20, 2024 02:08 AM

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Consider the following information regarding corporate bonds: Rating AAA AA A BBB BB B CCC Average Beta

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