What is the market value of the firm''s equity

Reference no: EM13948230

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

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.)

Interest rate

Reference no: EM13948230

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