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 1.01 1.96 0.21 1.16 1.86 Debt $0 783 0 11,978 4,555 ($ millions) Market Value of Equity $ 3,590 7,650 926 27,470 14,750 a. Estimate an asset beta for Sinaloa Appliance. Note: 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
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am. 11.

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
1.01
1.96
0.21
1.16
1.86
Asset beta
Debt
$0
783
0
11,978
4,555
($ millions)
Market Value of
Equity
$ 3,590
7,650
926
27,470
14,750
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 1.01 1.96 0.21 1.16 1.86 Asset beta Debt $0 783 0 11,978 4,555 ($ millions) Market Value of Equity $ 3,590 7,650 926 27,470 14,750 a. Estimate an asset beta for Sinaloa Appliance. Note: Round intermediate calculations and final answer to 3 decimal places.
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