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Sinaloa Appliance, Inc., a private firm that manufactures home appliances, has hired you to estimate the companys beta. You have obtained the following equity betas

Sinaloa Appliance, Inc., a private firm that manufactures home appliances, has hired you to estimate the companys beta. You have obtained the following equity betas for publicly traded firms that also manufacture home appliances.

($ millions)

Firm

Beta

Debt

Market Value of Equity

iRobot

0.87

$0

$

2890

Middleby's

1.82

741

7,370

National Presto

0.07

0

772

Newell Brands

1.02

11,908

26,070

Whirlpool

1.72

4,485

13,770

a. Estimate an asset beta for Sinaloa Appliance.

I have tried everything and can't get the correct answer. Help please.

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