table.

Number of Share

$($millions$)\backslash$times Stock Price $=$ Market

Capitalization

$($$ millions$)$

Callaway Golf $($ELY$)94\mathrm{.}6\backslash$times $ $16\mathrm{.}36=$ $ $1547\mathrm{.}66$

Alaska Air Group $($ALK$)123\mathrm{.}4\backslash$times $ $61\mathrm{.}96=$ $ $7645\mathrm{.}86$

Yum! Brands $($YUM$)332\mathrm{.}5\backslash$times $ $85\mathrm{.}13=$ $ $28,305\mathrm{.}73$

Caterpillar Tractor $($CAT$)147\mathrm{.}4\backslash$times $ $597\mathrm{.}63=$ $ $88,090\mathrm{.}66$

Microsoft $($MSFT$)7,705\mathrm{.}0\backslash$times $ $91\mathrm{.}27=$ $ $703,235\mathrm{.}35$

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.$)$

b$.$ The rating agency has revised Catalytic Concepts' bond rating to A $($use Table $2\mathrm{.}2).$ 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.$)$

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?

multiple choice

A farmer

A meatpacker