Question: Consider the table given below to answer the first question (shares and market values in millions). Number of Market Shares xStock Price Capitalization Callaway Golf
Consider the table given below to answer the first question (shares and market values in millions). Number of Market Shares xStock Price Capitalization Callaway Golf (ELY) Alaska Air Group (ALK) Entergy (ETR) Yum! Brands (YUM) General Electric (GE) 93.8 x $8.76 $ 821 124.7 x $80.77 $10,074 178.5 x S75.92- $13,551 408.7 x $77.77 S 31,875 9, 331.0 $30.34$283, 091 a. The price of Entergy stock has risen to $90. What is the market value of the firm's 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 Concept's 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
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
