You want to calculate the equity beta for your privately own…

Written by Anonymous on March 17, 2026 in Uncategorized with no comments.

Questions

Yоu wаnt tо cаlculаte the equity beta fоr your privately owned company. Your company has a debt-to-equity ratio of [DE3]% . You collect the following data on two publicly traded comparable firms. The first comparable firm has an equity beta of [Beta1], debt-to-equity ratio of [DE1]%. The other comparable firm has an equity beta of [Beta2] and a debt-to-equity ratio of [DE2]%. All firms have a tax rate of [T]% Using both comparables, the estimated equity beta for your firm is __________ (Round to 2 decimal places. e.g., 1.91)

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