Question

Sinaloa Appliance, Inc., a private firm that manufactures home appliances, has hired you to estimate the company’s beta. You have obtained the following equity betas for publicly traded firms that also manufacture home appliances.

($ millions) | |||||||

Firm | Beta | Debt | Market Value of Equity | ||||

iRobot | 0.97 | $0 | $ | 3,390 | |||

Middleby's | 1.92 | 771 | 7,570 | ||||

National Presto | 0.17 | 0 | 882 | ||||

Newell Brands | 1.12 | 11,958 | 27,070 | ||||

Whirlpool | 1.82 | 4,535 | 14,470 | ||||

a. Estimate an asset beta for Sinaloa Appliance. **(Round
intermediate calculations and final answer to 3 decimal
places.)**

Answer #1

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 8 minutes ago

asked 14 minutes ago

asked 15 minutes ago

asked 16 minutes ago

asked 20 minutes ago

asked 29 minutes ago

asked 35 minutes ago

asked 35 minutes ago

asked 36 minutes ago

asked 41 minutes ago

asked 43 minutes ago

asked 45 minutes ago