Sinaloa Appliance, Inc., 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 0.95 1.90 0.15 1.10 1.80 Asset beta ($ millions) Debt $0 765 0 11,948 4,525 Market Value of Equity $3,290 7,530 860 26,870 14,330 a. Estimate an asset beta for Sinaloa Appliance. (Round intermediate calculations and final answer to 3 decimal places.)
Sinaloa Appliance, Inc., a private firm that manufactures home appliances, has hired you to estimate the company's beta. You have obtained the following equity betas for publicly traded firms that also manufacture home appliances. Firm iRobot Middleby's National Presto Newell Brands Whirlpool Beta 0.95 1.90 0.15 1.10 1.80 Asset beta ($ millions) Debt $0 765 0 11,948 4,525 Market Value of Equity $3,290 7,530 860 26,870 14,330 a. Estimate an asset beta for Sinaloa Appliance. (Round intermediate calculations and final answer to 3 decimal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A 256.
Transcribed Image Text:Sinaloa Appliance, Inc., a private firm that manufactures home appliances, has hired you to
estimate the company's beta. You have obtained the following equity betas for publicly traded
firms that also manufacture home appliances.
Firm
iRobot
Middleby's
National Presto
Newell Brands
Whirlpool
Beta
0.95
1.90
0.15
1.10
1.80
Asset beta
($ millions)
Debt
$0
765
11,948
4,525
Market Value
of Equity
$ 3,290
7,530
860
26,870
14,330
a. Estimate an asset beta for Sinaloa Appliance. (Round intermediate calculations and final
answer to 3 decimal places.)
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