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

	Number of Share (millions)					Stock Price				=		Market Capitalization ($ millions)
Callaway Golf (ELY)	94.6					$	16.36			=		$	1547.66
Alaska Air Group (ALK)	123.4					$	61.96			=		$	7645.86
Yum! Brands (YUM)	332.5					$	85.13			=		$	28,305.73
Caterpillar Tractor (CAT)	147.4					$	597.63			=		$	88,090.66
Microsoft (MSFT)	7,705.0					$	91.27			=		$	703,235.35

a. The price of Yum! Brands stock has risen to $180. 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.)

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.)

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?

multiple choice

• A farmer

• A meatpacker

please answer all parts of the question to receive a good review.

TABLE 2.2 Interest rates on long-term corporate bonds, May 2018. The interest rate is lowest for top-quality (AAA and AA) issuers. The rate rises as credit quality declines. Credit Rating Interest Rate AAA 3.5% AA 3.5 A 3.8 BBB 4.3 5.1 BB B 6.5 Source: ICE Bank of America Mernill Lynch indices