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) | 71.00 | $ | 6.58 | = | $ | 467 | ||||||||||
| Alaska Air Group (ALK) | 70.34 | $ | 57.50 | = | $ | 4,045 | ||||||||||
| Este Lauder (EL) | 386.65 | $ | 65.70 | = | $ | 25,402 | ||||||||||
| Yum! Brands (YUM) | 450.73 | $ | 67.72 | = | $ | 30,523 | ||||||||||
| General Electric (GE) | 10,398.00 | $ | 23.77 | = | $ | 247,160 | ||||||||||
a. The price of Este Lauder stock has risen to $90. What is the market value of the firms equity? (Enter your answer in billions rounded to 3 decimal places.)
b. The rating agency has revised Catalytic Concepts bond rating to A (use Table 2.2). 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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