Question
Sinaloa Appliance, Incorporated, a private firm that manufactures home appliances, has hired you to estimate the companys beta. You have obtained the following equity betas
Sinaloa Appliance, Incorporated, 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.
| Firm | Beta | ($ millions) | |
|---|---|---|---|
| Debt | Market Value of Equity | ||
| iRobot | 0.93 | $ 0 | $ 3,190 |
| Middleby's | 1.88 | 759 | 7,490 |
| National Presto | 0.13 | 0 | 838 |
| Newell Brands | 1.08 | 11,938 | 26,670 |
| Whirlpool | 1.78 | 4,515 | 14,190 |
a. Estimate an asset beta for Sinaloa Appliance.
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Quality Auditing Journal Notes Checklists Observations Evidence Questions Log
Authors: Leon Edward
1st Edition
1729431569, 978-1729431566
