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 0.86 1.61 0.06 1.01 1.71 Debt 50 738 0 11,903 4,450 (5 millions) Market Value of Equity $ 2,840 7,350 761 25,970 13,700 a. Estimate an asset beta for Sinaloa Appliance Note: Round intermediate calculations and final answer to 3 decimal places.

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 0.86 1.61 0.06 1.01 1.71 Debt 50 738 0 11,903 4,450 (5 millions) Market Value of Equity $ 2,840 7,350 761 25,970 13,700 a. Estimate an asset beta for Sinaloa Appliance Note: Round intermediate calculations and final answer to 3 decimal places.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 2CP

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