Chapter $8$ Problem $21$

Information about Kroger Company and four industry competitors in $2017$ is shown below $($dollar values in millions$).$

a$.$ Estimate the industry asset beta, weighting each competitor by its proportion in the total market value of equity of all four competitors.

b$.$ Relever the industry asset beta to reflect Kroger's capital structure to estimate an industry$-$based equity beta for Kroger.

$\backslash$table$[[$Company$,\backslash$table$[[$Equity$],[$beta$]],\backslash$table$[[$Interest$-],[$bearing debt$]],\backslash$table$[[$Market value$],[$equity$]]],[$Sprouts Farmers Market,$0\mathrm{.}28,$$$385,$$$3,270$