Estimate equity beta for their common stock

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Reference no: EM131980692

Terlingua Energy Resources is a privately held, all equity firm. Managers at Terlingua need to estimate equity beta for their common stock. Here is data on four competitors. The four companies are publicly traded, all equity firms.

Company Beta Book value of equity ($ million) Share price ($) Shares outstanding (millions)

Hallibuddy Co. 1.15 500 17.44 40

Schlumbertime Ltd. 1.30 1,000 66.71 30

Felix Energy Inc. 1.50 750 62.5 25

Suferior Energy Co. 1.75 2,000 76.98 20

Estimate the Terlingua’s equity beta using the best procedure described in the lecture. Do not round at intermediate steps in your calculation. Express your answer in decimal form. Round to two decimal places.

Reference no: EM131980692

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