Question: Consider the table given below to answer the first question (shares and market values in millions). Number of Shares Stock Price = Market Capitalization Callaway
Consider the table given below to answer the first question (shares and market values in millions).
| Number of Shares | Stock Price | = | Market Capitalization | |||||||||||||
| Callaway Golf (ELY) | 93.8 | $ | 8.76 | = | $ | 821 | ||||||||||
| Alaska Air Group (ALK) | 124.7 | $ | 80.77 | = | $ | 10,074 | ||||||||||
| Entergy (ETR) | 346.5 | $ | 75.92 | = | $ | 26,305 | ||||||||||
| Yum! Brands (YUM) | 408.7 | $ | 77.77 | = | $ | 31,875 | ||||||||||
| General Electric (GE) | 9,331.0 | $ | 30.34 | = | $ | 283,091 | ||||||||||
a. The price of Entergy stock has risen to $95. What is the market value of the firms 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 BBB (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.)
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
Study Help