Consider the following airline industry data from mid-2009: a. Use the estimates in table to estimate the debt beta for each firm (use an average if multiple ratings are listed). b. Estimate the asset beta for each firm. c. What is the average asset beta for the industry, based on these firrns? a. Use the estimates in table to estimate the debt beta for each fim (use an average if multiple ratings are listed). The beta of the debt for each company is: (Round to three decimal places.) Market Total Enterprise Capitalization Value Company Name ($ million) (5 million) Delta Air Lines (DAL) 4,969.1 16,989.4 Southwest Airlines (LUV) 4,861.1 6,331.7 JetBlue Airways (JBLU) 1,209.9 3,855.6 Continental Airlines (CAL) 1,074.4 4,389.2 Debt Beta Equity Beta 1.925 0.904 1.969 Debt Ratings BB A/BBB B/CCC B B 2.007 Data table Data table 15 Yr Average beta 0.01 0.06 0.07 0.14 Source: S. Schaefer and I. Strebulaev, "Risk In Capital Structure Arbitrage." Stanford GSB working paper, 2009 (Click on the following icon in order to copy its contents into a spreadsheet.) a ) Market Total Capitalization Enterprise Company Name ($ million) Value ($ million) Equity Beta Delta Air Lines (DAL) 4,989.1 16,999.4 1.925 Southwest Airlines (LUV) 4,861.1 6,331.7 0.904 JetBlue Airways (JBLU) 1,209.9 3,855.6 1.969 Continental Airlines (CAL) ( 1,074,4 4.389.2 2.007 Debt Ratings BB A/BBB B/CCC B Print Done Print Done