Dome 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.

a. Estimate an asset beta for Dome Appliance.
b. What concerns, if any, would you have about using the betas of these firms to estimate Dome Appliance€™s asset beta?

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$ millions) Market Value of Equity $8,300 200 530 115 ,100 irm Beta Debt Black & Decker Fedders Corp Helen of Troy Corp. Salton, Inc. Whirlpool $4,100 1.19 1.20 2.14 3.25 1.83 380 375 10,600