Consider the table given below to answer the first question (shares and market v

Question

Consider the table given below to answer the first question (shares and market values in millions).

210.5

15,980

a. The price of Entergy stock has risen to $90. 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.)

Whats the Market Value %

Number of Shares × Stock Price = Market Capitalization Callaway Golf (ELY) 93.8 × $ 8.76 = $ 821 Alaska Air Group (ALK) 124.7 × $ 80.77 = $ 10,074 Entergy (ETR)

210.5

× $ 75.92 = $

15,980

Yum! Brands (YUM) 408.7 × $ 77.77 = $ 31,875 General Electric (GE) 9,331.0 × $ 30.34 = $ 283,091

Explanation / Answer

Market value of the firm’s equity = (Increased price of stock * Outstandings shares) Market value of the firm’s equity = (90*210.50) Market value of the firm’s equity = $ 18945 Market value of the firm’s equity = $ 18.945 Billion

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