tory Bookmarks Window Help 40% rm () Priciples of Finance Chapters 1 &2 HW Table 2.2jpg 428179 plsels rs 1& 2 HW Help Sav Problem 2-18 Functions of Financial Markets (LO3) Consider the table given below to answer the first question (shares and market values in millions Number of Stoek Prices Capitaliz Callavay Golf (ELY Alaska Air Group (ALK) Entergy ER Yum! Brands (YUN) Ceneral Electrie (GE 93.8 x #8.76 821 124.7$ 80.77 10,074 178.5$75.9213.55 408.7$77-7731.875 $30.34- 9,331.. $283,091 a. The price of Entergy stock has risen to $90. 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 Cotalytic Concept's bond rating to A (use Table.221 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) 8 9 5 Chapters 1 &2 HW Table 2.2.jpg 428x179 rixels TABLE 2.2 Interest rates on long-term corporate bonds, March 2016. The interest rate is lowest for top-quality (AAA) issuers. The rate rises as credit quality declines. Credit Rating Interest Rate 2.59% 2.62 3.03 4.32 5.62 8.32 Source: Thomson Reutors