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 0.90 1.85 0.10 1.05 1.75 Debt $0 750 11,923 4,500 Answer is complete but not entirely correct. Asset beta 1.331 X ($ millions) Market Value of Equity $ 3,040 7,430 805 26,370 13,980 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 0.90 1.85 0.10 1.05 1.75 Debt $0 750 11,923 4,500 Answer is complete but not entirely correct. Asset beta 1.331 X ($ millions) Market Value of Equity $ 3,040 7,430 805 26,370 13,980 a. Estimate an asset beta for Sinaloa Appliance. Note: Round intermediate calculations and final answer to 3 decimal places.

Business/Professional Ethics Directors/Executives/Acct

8th Edition

ISBN:9781337485913

Author:BROOKS

Publisher:BROOKS

Chapter3: Ethical Behaviour- Philosophers Contributions

Section: Chapter Questions

Problem 5Q

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• Choose a publicly traded company. • Note: Be sure to choose a company that no other classmate has chosen. • Determine its beta from a published source. • Hint: Use Yahoo!Finance or NASDAQ to find the company's beta. ▪ Find the company's financial information by putting the company's name in the search bar. . Calculate the company's cost of equity using the CAPM formula and the short-term risk-free rate assumptions. ▪ Use 8.5 percent as the market risk premium. ▪ Use the current 90-day yield (3-month yield) on U.S. Treasuries as the risk-free rate. Hint: Use the U.S. Department of the Treasury's Resource Center to look up current 90-day (3-month) Treasury Yield Curve Rates. ▪ Provide your calculations in a table in your post. ▪ How Do I Insert a Table Using the Rich Content Editor? B • Calculate the company's cost of equity using the CAPM formula and the long-term risk-free rate assumptions. ▪ Use 7.0 percent as the market risk premium ▪ Use the current 20-year yield on U.S.…
You are interested in estimating a beta for Digital Universe Company. Since they are a privately held firm, you do not have access to the necessary data. If you want to estimate a beta for DUC, you will have to work with some comparable firm data. Un levered Beta for companyJS =1.20 Un levered Beta for company YS= 1.07 Un levered Beta for company ER= 0.84 Un levered Beta for company HMH= 0.82 b) Estimate an equally-weighted and sales-weighted average unlevered betas using the data from the unlevered beta above.
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Suppose you work for an investment bank where you are assigned to track EchoStar's stock and create reports that brokers can distribute to investors. Investors can then use these reports and decide whether they want to invest in a particular stock. In this scenario, you are working as a _____ analyst.
Estimate the weighted-average cost of capital for Home Depot (HD), Altria (MO), Caterpillar (CAT), and Intel (INTC). You can estimate the expected stock returns for these companies by using the betas shown on finance.yahoo.com. You can also use Yahoo! Finance to find the relative proportions of equity and debt for each company. Remember, though, to use the mar- ket value of the equity, not its book value. Finding the yield on the debt is a little trickier. One possibility it to log on to the Federal Reserve Bank of St. Louis site at https://fred.stlouisfed .org/ to find the current level of Treasury yields and the yield spreads (i.e., the extra yield for bonds with different ratings). An alternative is to view recent transactions at www.finra.org /industry/trace/corporate-bond-data. Note: As we write this, Moody's provides an A rating for all four companies.
So I need to estimate a beta for Digital Universe Company. Since they are a privately held firm, I do not have access to the necessary data. I want to estimate a beta for DUC, I will have to work with some comparable firm data. Calculate the unlevered betas for each of the four basic comparable firms shown below I added a picture of the comparable firms
You have some funds that you would like to invest. Do some internet research to find two publicly traded companies in the same industry and compare their earnings per share. Would the earnings per share reported by each company influence your decision in selecting which company to invest in?
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Jill needs to determine a beta for a private company for its valuation. She found a public comparable with a beta of 1.2. As of the valuation date, the public comparable has 40% of debt and 60% equity. The private company is 20% funded by debt and 80% funded by equity. Assume both companies' debt is high quality. In your written response, please start with question numbers such as a) or b) before showing your work and answer to the question. a) What is the unlevered or asset beta for the public company? b) What is the levered beta or the estimated beta of the private company?
.Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: rRF = 4.10%; RPM = 5.25%; and b = 0.70. Based on the CAPM approach, what is the cost of equity?
Hello Bartleby Experts. Need help figuring out this question. See screenshot attached. Thanks so much for your kind assistance :-) The question is: What is the Dividend you expect Yum! Brand can pay in FY T+1? The balance sheet and income statement is attached.