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In order to get the market value, I know that we multiply the number of shares X stock price. In this specific question it asks
In order to get the market value, I know that we multiply the number of shares X stock price. In this specific question it asks if the stock price changes to $165. I get my answer but it is wrong. How do I change the answer to be in dollars instead of billions as stated on red letters?
the answer needed is from A which is independent as it says on original post.
Problem 2-18 Functions of Financial Markets (LO3) Consider the table shown below to answer the question posed in part a. Parts b and c are independent of the given table. a. The price of Yum' Brands stock has risen to $165. What is the market value of the firm's equity if the number of outstanding shares does not change? (Enter your onswer in dollars not in billions of dollort.) b. The rating agency has revised Catalytic Concepts' bond rating to AA (use fahle 2. 2) What interest rate, approximately, would the company now need to pay on its bonds? (Enter your answer os a percent rounded to 1 decimal place.) 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 selis? TABLE 2.2 Interest rates on long-term corporate bonds, Source: ICE Bank of America Merrill Lynch indices Step by Step Solution
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