(Solved): Problem 2-18 Functions of Financial Markets (LO3) Consider the table shown below to answer the que ...

Problem 2-18 Functions of Financial Markets (LO3) Consider the table shown below to answer the question posed in part a. Parts $$b$$ and $$c$$ are independent of the given table. a. The price of Yumt Brands stock has risen to \$175. What is the market value of the firm's equity if the number of outstanding shares does not change? Note: Enter your answer in dollars not in billions of dollars. b. The rating agency has revised Catalytic Concepts' bond rating to AA (use Jabie 2.2). What interest rate, approwimately would the company now need to pay on its bonds? Notei Enter your answer as a percent rounded to 1 decimal place. c. A farmer and a meatpacker use the commodity markets to reduce their riak. One agrees to buy ive catcle in the future at a fined price, and the other agrees to seli. Which one sells? TABL. $$2.2$$ Interest rates on long-term corporate bonds, October 2020 . The interest rate is lowest for top-quality (AAA and AA) issuers. The rate rises as credit quality declines. Source; ICE Bank of America Merrill Lynch indices. Problem 2-18 Functions of Financial Markets (LO3) Consider the table shown below to answer the question posed in part a. Parts $$b$$ and $$c$$ are independent of the given table. a. The price of Yuml 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? Note: Enter your answer in doltars not in bllitons of dollars. b. The rating agency has revised Catalytic Concepts' bond rating to A fuse What interest rade, opprosimatey, would the company now need to pay on its bonds? Note: Enter your answer as a percent rounded to 1 decimal place. c. A farmer and a meatpacker use the commodity markets to reduce their risk: One agrees to buy live cattle in the future at a find price and the other agrees to sell, Which one sells?