Question: The only part that needs to be solved is part B. Thank you Problem 2-18 Functions of Financial Markets (L03) Consider the table shown below

 The only part that needs to be solved is part B.Thank you Problem 2-18 Functions of Financial Markets (L03) Consider the table

The only part that needs to be solved is part B. Thank you

Problem 2-18 Functions of Financial Markets (L03) 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 X Stock Price - x $ 16.36 $ 61.96 = X $ 85.13 X $597.63 X $ 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.) Answer is complete and correct. Market value $ 59.850 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.) Answer is complete but not entirely correct. Interest rate 3.1 % % Credit Rating Interest Rate AAA 3.5% 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. 3.5 A 3.8 BBB 4.3 BB 5.1 6.5 Source: ICE Bank of America Merrill Lynch Indices

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