Question: Consider the table shown below to answer the question posed in part a. Parts b and c are independent of the given table. Callaway Golf

 Consider the table shown below to answer the question posed inpart a. Parts b and c are independent of the given table.

Consider the table shown below to answer the question posed in part a. Parts b and c are independent of the given table. Callaway Golf (ELY) Alaska Air Group (ALK) Yum! Brands (YUM) Caterpillar Tractor (CAT) Microsoft (MSFT) Number of Share (millions) 94.6 123.4 332.5 147.4 7,705.0 Stock Price = $ 16.36 $ 61.96 $ 85.13 $597.63 $ 91.27 Market Capitalization ($ millions) $ 1547.66 $ 7645.86 $ 28,305.73 $ 88,090.66 $703,235.35 a. The price of Yum! Brands stock has risen to $165. 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 Concepts' bond rating to AAA (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 1 decimal place.) Interest rate % Consider the table shown below to answer the question posed in part a. Parts b and care independent of the given table. Callaway Golf (ELY) Alaska Air Group (ALK) Yum! Brands (YUM) Caterpillar Tractor (CAT) Microsoft (MSFT) Number of Share (millions) 94.6 123.4 332.5 147.4 7,705.0 Stock Price - $ 16.36 $ 61.96 $ 85.13 $597.63 = $ 91.27 Market Capitalization ($ millions) $ 1547.66 $ 7645.86 $ 28, 305.73 $ 88,090.66 $703,235.35 = a. The price of Yum! Brands stock has risen to $180. 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 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 1 decimal place.) Interest rate

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