Question
Please help me with the following questions: Consider the table given below to answer the first question (Shares and market values in millions.): Number of
Please help me with the following questions:
Consider the table given below to answer the first question (Shares and market values in millions.):
Number of SharesStock Price=Market CapitalizationCallaway Golf (ELY)71.00$6.58=$467Alaska Air Group (ALK)70.34$57.50=$4,045Este Lauder (EL)481.75$65.70=$31,651Yum! Brands (YUM)450.73$67.72=$30,523General Electric (GE)10,398.00$23.77=$247,160
a.The price of Este Lauder stock has risen to $85. What is the market value of the firms equity?(Enter your answer in billions rounded to 3 decimal places.)
Market value$ -------billion
b.The rating agency has revised Catalytic Concepts bond rating to AA (UseTable_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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