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. The private firm has a debt-to-equity ratio of 25% and faces a tax rate of 40%. The publicly traded firms all have marginal tax rates of 40% too. Estimate the beta for the private firm (use beta_E = 1 - D(1 - T_C)/E] beta_UA). What concerns, if any, would you have about using betas of comparable firms