2200 5500 Copy of You collected the below information from Yahoo Finance about firms in the Home Appliance industry to estimate the bete of National Presto industries (NP) which currently has a debt to equity ratio (market values) of 25. subject to a tax rate of 40% and its reported beta on Yahoo finance is 1.64. However, you believe you will have a better estimate of the beta for NPK if you estimate the levered beta from similar firms in the market. Firm Beta Debt MV of Equity 1.3 Black & Decker | 250 680 Fedders Co. 450 Maytag Co. 300 National Presto 2900 4000 Whirlpool Is NPK beta estimated from similar firms equal to the beta estimated by regressing past returns of NPK stock on the returns of the market? 2250 No, because NPK has entered into the electrical industrial equipment just last year No, because interest on debitis tax deductible and NPK es signant level of debt No, because NPK is operating in a unstable industry Yes, because the division bets are the levered bats of similarms No, because NPK is a multi-division firm rather than focused in one industry