Consider the following information regarding corporate bonds: Rating AA A Average Default Rate Recession Default Rate Average Beta Company Transcontinental AAA 0.0% 0.0% 0.05 0.1% 1.0% 0.05 Market Capitalization ($mm) $4500 0.2% 3.0% 0.05 BBB 0.5% 3.0% 0.10 $8000 BB Rearden Metal $3800 $7200 Wyatt Oil $2400 $3800 Nielson Motors $1500 $4400 None of these companies hold cash. The asset beta for Rearden Metal is 2.2% 8.0% 0.17 B 5.5% 16.0% Total Enterprise Value ($mm) 0.26 CCC 12.2% 1.3 0.9 1.75 48.0% 0.31 Equity Beta 1.1 Debt Rating BBB AAA A BB