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Estimate an asset beta for sinaloa appliance

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Reference no: EM132644994

Sinaloa Appliance, Inc., 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                                         Beta                 Debt                     Market Value of Equity
iRobot                                0.87                $0                       $ 2890
Middleby's                           1.82                741                      7,370
National Presto                    0.07                   0                          772
Newell Brands                     1.02               11,908                     26,070
Whirlpool                            1.72                4,485                    13,770

Question a. Estimate an asset beta for Sinaloa Appliance.

Reference no: EM132644994

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