You are trying to estimate the beta of a private firm that manufactures home appliances. You have managed to obtain betas for publicly traded firms that also manufacture home appliances

Firm	Beta	Debt(in millions)	MV of Equity(in millions)
Black & Decker	1.5	$2,000	$3,000
Fedders Corp.	1.3	$5	$200
Maytag Corp.	1.2	$650	$2,250
National Presto	0.9	$10	$300
Whirlpool	1.7	$3,100	$4,000

The private firm has a debt equity ratio of 35% and faces a tax rate of 36 %. The publicly traded firms all have marginal tax rates of 27%, as well.

1. Estimate the beta for the private firm.
2. What concerns, if any, would you have about using betas of comparable firms?