Question: 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
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) | 94.2 | 27.30 | = | $ 2,572 | |
| Alaska Air Group (ALK) | 123.7 | 50.70 | = | $ 6,272 | |
| Yum! Brands (YUM) | 301.7 | 103.07 | = | $ 31,096 | |
| Caterpillar Tractor (CAT) | 543.3 | 186.66 | = | $ 101,412 | |
| Microsoft (MSFT) | 7,560 | 242.12 | = | $ 1,830,427 |
The price of Yum! Brands stock has risen to $185. What is the market value of the firms equity if the number of outstanding shares does not change?
Note: Enter your answer in dollars not in billions of dollars.
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?
Note: Enter your answer as a percent rounded to 1 decimal place.
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?
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