Problem 2-18 Functions of Financial Markets (L03) Consider the table given below to answer the first question (shares and market values in millions). Number of Shares 93.8 124.7 294. 5 408.2 9,331.0 X Callaway Golf (ELY) Alaska Air Group (ALK) Entergy (ETR) Yum! Brands (YUM) General Electric (GE) * Stock Price $ 9.76 $ 80.77 - 7 5.92 - 77.77 30.34 - Market Capitalization $ 821 $ 10,074 $ 22.357 $ 31.875 $ 283,091 x a. The price of Entergy stock has risen to $70. 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 AAA (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 2.59% Problem 2-18 Functions of Financial Markets (L03) Consider the table given below to answer the first question (shares and market values in millions). Number of Shares 93.8 124.7 294. 5 408.2 9,331.0 X Callaway Golf (ELY) Alaska Air Group (ALK) Entergy (ETR) Yum! Brands (YUM) General Electric (GE) * Stock Price $ 9.76 $ 80.77 - 7 5.92 - 77.77 30.34 - Market Capitalization $ 821 $ 10,074 $ 22.357 $ 31.875 $ 283,091 x a. The price of Entergy stock has risen to $70. 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 AAA (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 2.59%