Comparable Firms Sales Levered Beta 1.45 1.33 Total Debt Ratio 22.0% Таx Rate ($ Mill) 25% 35% 30% 28% Judy in the Sky, Inc. Yellow Submarine, Ltd. Eleanor Rigby, Co. Hold My Hand, LLC 54.86 312.29 18.90 27.0% 1.12 32.0% 1.23 75.35 45.0%
Comparable Firms Sales Levered Beta 1.45 1.33 Total Debt Ratio 22.0% Таx Rate ($ Mill) 25% 35% 30% 28% Judy in the Sky, Inc. Yellow Submarine, Ltd. Eleanor Rigby, Co. Hold My Hand, LLC 54.86 312.29 18.90 27.0% 1.12 32.0% 1.23 75.35 45.0%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
So I need to estimate a beta for Digital Universe Company. Since they are a privately held firm, I do not have access to the necessary data. I want to estimate a beta for DUC, I will have to work with some comparable firm data. Calculate the unlevered betas for each of the four basic comparable firms shown below
I added a picture of the comparable firms
Transcribed Image Text:Comparable Firms
Sales
Levered
Beta
1.45
1.33
Total
Debt Ratio
22.0%
Таx
Rate
($ Mill)
25%
35%
30%
28%
Judy in the Sky, Inc.
Yellow Submarine, Ltd.
Eleanor Rigby, Co.
Hold My Hand, LLC
54.86
312.29
18.90
27.0%
1.12
32.0%
1.23
75.35
45.0%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education