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) | 367.5 | $ | 75.92 | = | $ | 27,899 | ||||||||||
| 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 $75. 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 AA (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.)
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?
A farmer
A meatpacker
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