Question
Because SB only recently went public (its IPO was roughly 6 months ago), there is insufficient return data for you to come up with a
Because SB only recently went public (its IPO was roughly 6 months ago), there is insufficient return data for you to come up with a reasonable estimate of SB's equity beta.Instead, you can use information on the firm's competitors as a basis for your beta estimation (no additional risk adjustments are necessary). You observe that:
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
11th Canadian Edition
1259024970, 978-1259265921
