For this question, the problem must be done in an excel spreadsheet. Thank you!

9. You are trying to estimate the beta of a private firm that manufactures home appliances. You have managed to obtain betas for publicly traded firms that also manufacture home appliances. The private firm has a debt equity ratio of 25% and faces a tax rate of 40%. The publicly traded firms all have marginal tax rates of 40%, as well. a. Estimate the beta for the private firm. b. What concerns, if any, would you have about using betas of comparable firms