Question
Please use the following information for the next 3 questions. FUFU is a private company. The company currently has a D/E ratio of 2/3. Name
Please use the following information for the next 3 questions. FUFU is a private company. The company currently has a D/E ratio of 2/3.
Name Debt Equity Stock Price # Shares Beta
Company A 15 30 9 20000 1.2
Company B 30 25 5 12000 2
Company C 10 15 3.5 50000 1.9
Company D 40 20 11 130000 2.5
Company E 20 50 15 300000 3
What is the total market cap of surveyed companies?
What is the approximate industry asset beta?
What is the estimated equity beta for FUFU company?
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Corporate Finance For Dummies
Authors: Michael Taillard
2nd Edition
1119850312, 978-1119850311
