1 Consider the table given below to answer the first question (Shares and market values in millions.): Number of Shares Stock Price Market Capitalization $ 467 71.00 01:57:31 $ 6.58 70.34 X $57.50 = Callaway Golf (ELY) Alaska Air Group (ALK) Este Lauder (EL) Yum! Brands (YUM) General Electric (GE) 387.25 X $65.70 $ 67.72 $ 4,045 $ 25,442 $ 30,523 450.73 x 10,398.00 X $23.77 $ 247,160 a. The price of Este Lauder stock has risen to $70. What is the market value of the firm's equity? (Enter your answer in billions rounded to 3 decimal places.) Market value billion b. The rating agency has revised Catalytic Concept's bond rating to AA (Use Table_2.2). What interest rate, approximately, would the company now need to pay on its bonds? (Enter your answer as a percent rounded to 2 decimal places.) Interest rate % c. A farmer and a meatpacker use the commodity markets to reduce their risk. One agrees to buy live cattle in the future at a fixed price, and the other agrees to sell. Which one sells? A farmer A meatpacker TABLE 2.2 Interest rates on long-term corporate bonds, July 2013. The interest rate is lowest for top-quality (AAA) issuers.The rate rises as credit quality declines. Credit Rating AAA AA A BBB BB B Interest Rate 3.35% 3.93 4.28 5.08 5.27 6.35 Source: Thomson Reuters