Problem 2-18 Functions of Financial Markets (L03) Consider the table shown below to answer the question posed in part a. Parts and care independent of the given table Callaway Golf (ELY) Alaska Air Group (ALK) Yum! Brands (YUM Caterpillar Tractor (CAT) Microsoft (MSFT) Number of Share (millions) 94.6 123.4 332.5 147.4 7,705.0 * Stock Price - X $16.36 $ 61.96 $ 85.13 $597.63 $ 91.27 Market Capitalization ($ millions) $ 1547.66 $ 7645.86 $ 28,305.73 $ 88,090.66 $703,235.35 a. The price of Yum! Brands stock has risen to $180. 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 Concepts 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 1 decimal place.) Market value b. The rating agency has revised Catalytic Concepts bond rating to A (use Table 22). What interest rate. approximately, would the company now need to pay on its bonds? (Enter your answer as a percent rounded to 1 decimal place.) 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 O A meatpacker TABLE 2.2 Interest rates on long-term corporate bonds, May 2018. The interest rate is lowest for top-quality (AAA and AA) issuers. The rato rises as credit quality declines. Credit Rating Interest Rate AAA 3.5% AA 3.5 A 3.8 BBB 4.3 BB 5.1 B 6,3 Source: ICE Bank of America Mori Lynch indicos