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Consider the table given below to answer the first question (shares and market values in millions). Number of Market Shares x Stock Price-Capitalization Callaway Golf
Consider the table given below to answer the first question (shares and market values in millions). Number of Market Shares x Stock Price-Capitalization Callaway Golf (ELY) Alaska Air Group (ALK) Entergy (ETR) Yum! Brands (YUM General Electric (GE) 8.76 = $ 821 124.7 80.77-10,074 178.5 x $75.92 $ 13,551 408.7 x $77.77 = $ 31,875 9,331.0x 30.34 283,091 93.8 x $ 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 Consider the table given below to answer the first question (shares and market values in millions). Number of Market Shares x Stock Price-Capitalization Callaway Golf (ELY) Alaska Air Group (ALK) Entergy (ETR) Yum! Brands (YUM General Electric (GE) 8.76 = $ 821 124.7 80.77-10,074 178.5 x $75.92 $ 13,551 408.7 x $77.77 = $ 31,875 9,331.0x 30.34 283,091 93.8 x $ 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
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