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 Asset betal Beta 0.92 1.87 0.12 1.07 1.77 1.065 Debt ($ millions) $0 756 0 11,933 4,510 Market Value of Equity $3,140 7,470 827 a. Estimate an asset beta for Sinaloa Appliance. Note: Round intermediate calculations and final answer to 3 decimal places. 26,570 14,120
Sinaloa Appliance, Incorporated, a private firm that manufactures home appliances, has hired you to estimate the company's beta. You have obtained the following equity betas for publicly traded firms that also manufacture home appliances. Firm iRobot Middleby's National Presto Newell Brands Whirlpool Asset betal Beta 0.92 1.87 0.12 1.07 1.77 1.065 Debt ($ millions) $0 756 0 11,933 4,510 Market Value of Equity $3,140 7,470 827 a. Estimate an asset beta for Sinaloa Appliance. Note: Round intermediate calculations and final answer to 3 decimal places. 26,570 14,120
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Sinaloa Appliance, Incorporated, a private firm that manufactures home appliances, has hired you to estimate the company's beta. You
have obtained the following equity betas for publicly traded firms that also manufacture home appliances.
Firm
iRobot
Middleby's
National Presto
Newell Brands
Whirlpool
Asset beta
Beta
0.92
1.87
0.12
1.07
1.77
1.065
Debt
($ millions)
$0
756
0
11,933
4,510
Market Value of
Equity
$ 3,140
7,470
827
a. Estimate an asset beta for Sinaloa Appliance.
Note: Round intermediate calculations and final answer to 3 decimal places.
26,570
14, 120
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