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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 | 0.99 | $0 | $ | 2,740 | |||
Middleby's | 2.10 | 732 | 7,310 | ||||
National Presto | 0.12 | 0 | 739 | ||||
Newell Brands | 1.16 | 11,893 | 25,770 | ||||
Whirlpool | 1.69 | 4,470 | 13,560 | ||||
A. Estimate an asset beta for Sinaloa Appliance. |
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