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 Golf
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
| x | $8.76 | = | $821`
|
|
| Alaska Air Group (ALK) | 124.7 | x | $80.77 | = | $10,074 |
|
| Entergy (ETR) | 178.5 | x | $75.92 | = | $13,551 |
|
| Yum! Brands (YUM) | 408.7 | x | $77.77 | = | $31,875 |
|
| General Electric (GE) | 9,331.0 | x | $30.34 | = | $283,091 |
|
A. The price of Entergy stock has risen to $90. 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.) Market value
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.) interest rate %
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