Consider the table given below to answer the first question (Shares and market values in millions.):
| |
Number of Shares |
|
× |
|
Stock Price |
|
= |
|
Market Capitalization |
|
| Callaway Golf (ELY) |
|
71.00 |
|
|
× |
|
$ |
6.58 |
|
|
= |
|
$ |
467 |
|
|
| Alaska Air Group (ALK) |
|
70.34 |
|
|
× |
|
$ |
57.50 |
|
|
= |
|
$ |
4,045 |
|
|
| Estée Lauder (EL) |
|
513.25 |
|
|
× |
|
$ |
65.70 |
|
|
= |
|
$ |
33,721 |
|
|
| Yum! Brands (YUM) |
|
450.73 |
|
|
× |
|
$ |
67.72 |
|
|
= |
|
$ |
30,523 |
|
|
| General Electric (GE) |
|
10,398.00 |
|
|
× |
|
$ |
23.77 |
|
|
= |
|
$ |
247,160 |
|
|
| a. |
The price of Estée Lauder stock has risen to $70. What is the market value of the firm's equity? (Enter your answer in billions rounded to 3 decimal places.) |
| Market value |
mce_markernbsp; billion |
| b. |
The rating agency has revised Catalytic Concept's 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 2 decimal places.)
|