Look back at Section 2.3 and then answer the following questions:
a. The price of Estee Lauder stock has risen to $90. What is the market value of the firm's equity?
b. The rating agency has revised Catalytic Concept's bond rating to A. What interest rate, approximately, would the company now need to pay on its bonds?
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?