Question: Consider the table given below to answer the first question (shares and market values in millions) Number of Shares Market x Stock Price= Capitalization Callaway

 Consider the table given below to answer the first question (shares

Consider the table given below to answer the first question (shares and market values in millions) Number of Shares Market x Stock 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 80.7710,074 178.5 x $ 75.9213,551 408.7x 77.7731,875 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 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 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? O A farmer A meatpacker

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!