Question: please assist with these two Consider the table shown below to answer the question posed in part a. Parts b and c are independent of

please assist with these two


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 Market Share Stock Capitalization (millions) x Price ($ millions) Callaway Golf (ELY) 94.6 X $ 16.36 1547.66 Alaska Air Group 123. 4 X $ 61.96 S 7645.86 (ALK) Yum! Brands (YUM) 332.5 x $ 85. 13 $ 28, 305.73 Caterpillar Tractor 147. 4 X $597. 63 = $ 88, 090.66 (CAT) Microsoft (MSFT) 7, 705.0 $ 91.27 = $703, 235.35 a. The price of Yum! Brands stock has risen to $170. 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 BBB (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 %TABLE 2.2 Interest rates on Credit Rating Interest Rate long-term corporate bonds, May 2018. The interest rate is lowest AAA 3.5% for top-quality (AAA and AA) AA 3.5 issuers. The rate rises as credit quality declines. A 3.8 BBB 4.3 BB 5.1 B 6.5 Source: ICE Bank of America Morrill
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