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Marcam Development, Inc. (MDI) is a small, privately held company that develops custom electronic components. MDIs debt-to-equity ratio is 1.55. Silicom Systems (S2) is a
Marcam Development, Inc. (MDI) is a small, privately held company that develops custom electronic components. MDIs debt-to-equity ratio is 1.55. Silicom Systems (S2) is a publicly traded company and a direct rival of MDI; their debt-to-equity ratio is 1.80, and the beta on their common stock is 1.35.
Calculate an appropriate beta for MDIs common stock.
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