Estimate the terlinguas equity beta using the best


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 61.02 40 Schlumbertime Ltd. 1.30 1,000 19.84 30 Felix Energy Inc. 1.50 750 10.47 25 Suferior Energy Co. 1.75 2,000 24.57 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.

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Financial Management: Estimate the terlinguas equity beta using the best
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