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Question 11 Dome Appliance, Inc.,'a private firm that manufactures home appli- ances, has hired you to estimate the company's beta. You have ob- tained the

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Question 11 Dome Appliance, Inc.,'a private firm that manufactures home appli- ances, has hired you to estimate the company's beta. You have ob- tained the following equity betas for publicly traded firms that alsc manufacture home appliances. S millions) Market Value of Equity Debt 4,100 Firm Beta Black & Decker Fedders Corp. Helen of Troy Corp Salton, Inc. Whirlpool 1.19 1.20 2.14 3.25 1.83 375 0,600 115 9,100 a. Estimate an asset beta for Dome Appliance b. What concerns, if any, would you have about using the betas of these firms to estimate Dome Appliance's asset beta

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