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Consider the table given below to answer the first question (shares and market values in millions) Number of Shares Market x Stock Price= Capitalization Callaway
Consider the table given below to answer the first question (shares and market values in millions) Number of Shares Market x Stock Price= Capitalization Callaway Golf (ELY Alaska Air Group (ALK) Entergy (ETR) Yum! Brands (YUM) General Electric (GE) 93.8 x 8.76$821 124.7 x 80.7710,074 178.5 x $ 75.9213,551 408.7x 77.7731,875 9,331.0 x 30.34$283,091 a. The price of Entergy stock has risen to $90. What is the market value of the firm's equity if the number of outstanding shares does not change? (Enter your answer in billions rounded to 3 decimal places.) Market value b. The rating agency has revised Catalytic Concept's bond rating to A (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? O A farmer A meatpacker
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