Question: Consider the table given below to answer the first question (shares and market values in millions). Callaway Golf (ELY) Alaska Air Group (ALK) Entergy (ETR)

 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). Callaway Golf (ELY) Alaska Air Group (ALK) Entergy (ETR) Yum! Brands (YUM) General Electric (GE) Number of Shares 93.8 124.7 178.5 408.7 9,331.2 X X * * Market Stock Price = Capitalization $ 8.76 = $ 821 $ 80.77 = $ 10,674 $ 75.92 = $ 13,551 $ 77.77 = $ 31,875 $ 30.34 = $283, 691 * 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.) * Answer is complete but not entirely correct. Market $16.085.000 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.) Answer is complete and correct. Interest rate 3.03 %

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!