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. ($ millions) Firm iRobot Middleby's National Presto Newell Brands Whirlpool Beta Debt Market Value of Equity 0.99 $ 0 $ 3,490 1.94 777 0.19 0 1.14 11,968 1.84 4,545 7,610 904 27,270 14,610 a. Estimate an asset beta for Sinaloa Appliance. Note: Round intermediate calculations and final answer to 3 decimal places. Asset beta
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. ($ millions) Firm iRobot Middleby's National Presto Newell Brands Whirlpool Beta Debt Market Value of Equity 0.99 $ 0 $ 3,490 1.94 777 0.19 0 1.14 11,968 1.84 4,545 7,610 904 27,270 14,610 a. Estimate an asset beta for Sinaloa Appliance. Note: Round intermediate calculations and final answer to 3 decimal places. Asset beta
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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![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.
($ millions)
Firm
iRobot
Middleby's
National Presto
Newell Brands
Whirlpool
Beta
Debt
Market Value of
Equity
0.99
$ 0
$ 3,490
1.94
777
0.19
0
1.14
11,968
1.84
4,545
7,610
904
27,270
14,610
a. Estimate an asset beta for Sinaloa Appliance.
Note: Round intermediate calculations and final answer to 3 decimal places.
Asset beta](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F95ea96fb-17c9-4f05-b9b8-3431ba2409f6%2Fad478b5a-8391-4a92-b9e3-8d2388d41cbc%2Fefpm189_processed.jpeg&w=3840&q=75)
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.
($ millions)
Firm
iRobot
Middleby's
National Presto
Newell Brands
Whirlpool
Beta
Debt
Market Value of
Equity
0.99
$ 0
$ 3,490
1.94
777
0.19
0
1.14
11,968
1.84
4,545
7,610
904
27,270
14,610
a. Estimate an asset beta for Sinaloa Appliance.
Note: Round intermediate calculations and final answer to 3 decimal places.
Asset beta
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