a. Estimate an asset beta for Sinaloa Appliance. Note: Round intermediate calculations and final answer to 3 decimal places.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Bb.25.

 

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.
Firm
iRobot
Middleby's
National Presto
Newell Brands
Whirlpool
Beta
Asset beta
0.97
1.92
0.17
1.12
1.82
($ millions)
Debt
$0
771
0
11,958
4,535
Market Value
of Equity
$ 3,390
7,570
882
27,070
14,470
a. Estimate an asset beta for Sinaloa Appliance.
Note: Round intermediate calculations and final answer to 3 decimal places.
Transcribed Image Text: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. Firm iRobot Middleby's National Presto Newell Brands Whirlpool Beta Asset beta 0.97 1.92 0.17 1.12 1.82 ($ millions) Debt $0 771 0 11,958 4,535 Market Value of Equity $ 3,390 7,570 882 27,070 14,470 a. Estimate an asset beta for Sinaloa Appliance. Note: Round intermediate calculations and final answer to 3 decimal places.
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