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17 Assume that your company is considering buying a private company, Rocket The closest comparable companies that your M&A team can find are Kinston and

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17 Assume that your company is considering buying a private company, Rocket The closest comparable companies that your M&A team can find are Kinston and Techcom. Your M&A team has run regressions to estimate their equity betas using 2-year weekly returns. Assume that debt beta is zero and Rocket has $50million net debt and $50million equity. Equity beta Net debt ($million) 1.1 40 1.2 30 Equity (Smillion) 60 Kinston Techcom 70 Required: Complete all questions below by filling in your answers. Note: Please provide your answer with two decimal points in the format of xxx.xx a. The asset beta of Kinston is b. The asset beta of Techcom is c. The average asset beta is d. Rocket's equity beta is

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