Sinaloa Appliance, Incorporated, a private firm that manufactures home appliances, has hired you to estimate the company's beta. Youhave obtained the following equity betas for publicly traded firms that also manufacture home appliances.PirmRobotMiddleby'sNational PrestoNevell BrandsWhirlpoolBeta0.941.89Asset beta0.141.091.79Debt(5 millions)50762D11,9434,520Market Value ofEquity3,2407,51084926,77014,260a. Estimate an asset beta for Sinaloa Appliance.Note: Round intermediate calculations and final answer to 3 decimal places.

FirmBetaDebtEquityiRobot0.9403240Middleby'21.897627510National Presto0.140849Newell…

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. Pirm Robot Middlaby's National Presto Nevell Branda Whirlpool Beta 0.94 1.89 Asset beta 0.14 1.09 1.79 Debt (8 millions) 80 762 D 11,943 4,520 Market Value of Equity 3,240 7,510 849 26,770 14,260 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. Pirm Robot Middlaby's National Presto Nevell Branda Whirlpool Beta 0.94 1.89 Asset beta 0.14 1.09 1.79 Debt (8 millions) 80 762 D 11,943 4,520 Market Value of Equity 3,240 7,510 849 26,770 14,260 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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