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Sinaloa Appliance, Incorporated, a private firm that manufactures home appliances, has hired you to estimate the company's beta. You have obtained the following equity

 

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Sinaloa Appliance, Incorporated, a private firm that manufactures home appliances, has hired you to estimate the company's beta. You have obtained the following equity betas for publicly traded firms that also manufacture home appliances. ($ millions) Firm iRobot Middleby's National Presto Newell Brands Whirlpool Beta Debt Market Value of Equity 1.03 $ 0 $ 3,690 1.98 789 0.23 0 1.18 11,988 1.88 4,565 7,690 948 27,670 14,890 a. Estimate an asset beta for Sinaloa Appliance. Note: Round intermediate calculations and final answer to 3 decimal places. Asset beta

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Answer To estimate the asset beta for Sinaloa Appliance we can use the Hamada equation which relates ... blur-text-image

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