Consider the following airline industry data fram mid-2008 E a. Use the estimates in table to estimate the deathinta far cach firm (use an average if multiple ratings are lisind) b. Estimate the assat bera for each firm. c. What is the average asset heta for the industry, based on these firms? a. Use the estimates in table to estimate the debt beta for each firm (use an average If multiple ratings are listed) The beta of the debt for each company is. (Round to three decimal places. Debt Bata Company Name Delta Air Lines (DAL) Sauthwest Airlines (LLM) JetBlue Allwey (JBLU) Continental Airlines (CAL) Equity Beta 1.931 Market Capitalization is million) 4.992.9 4,921.5 1.277.5 1.133.2 Total Enterprlee Value ($ million) 16,962.3 8,370.3 3854,5 Debt Ratings BB ABBD B/CCC 0.972 1.584 1.955 4,406.6 b. Estimate the assat beta for each im The bata of the asset for each company is: (Round to three decimal places.) Asset Beta Company Name Delta Air Lines (DAL) Southwest Arlines ILUV) JetBlue Airways (JBLU) Continental Airlines (CAL) Equity Beta 1.931 Total Enterprise Value (5 million) 16,962.3 6.370,3 3,864.5 Market Capitalization (5 million) 4,0929 4,821.5 1,277.5 1-322 Debt Beta 0.170 0.075 0.295 0.260 0.972 1984 1956 i Data Table i Data Table c. What is the average asset bela for the industry, based on these finns The average asset bets for the industry is. (Round to three decimal Market Capitalization (8 million) TULAI Enterprise Value ($ million) Equity Beta 16.862.3 1.931 6,2703 0.972 3,654.5 1.984 4,406.6 1.956 Company Name Delta Ar Lhes IDAL) Southwest Airlines (LUV) JetBlue Airways (JBLU) Continental Airlines (CAL) Enter your answer in each of the answer boxes. 4,925 1,277.5 1,1332 Debt Rating BB A/BAP B'OCC (Click on the following inon in ander to copy its contents into a sprearshnet. Average Debt Betas by Rating and Maturity By rating A and above BBB B Average bete 15 Yr Average beta 0.01 0.06 0.07 0.14 Source S. Schanfar and I.Strabu anv, "Risk in Capital Structure Arhitrage, Stanford GSB working