Question: Rating AAA AA A BBB BB B CCC Average Default Rate 0.0% 0.1% 0.2% 0.5% 2.2% 5.5% 12.2% Recession Default Rate 0.0% 1.0% 3.0% 3.0%

Rating AAA AA A BBB BB B CCC

Average Default Rate 0.0% 0.1% 0.2% 0.5% 2.2% 5.5% 12.2%

Recession Default Rate 0.0% 1.0% 3.0% 3.0% 8.0% 16.0% 48.0%

Average Beta 0.05 0.05 0.05 0.10 0.17 0.26 0.31

Company Market Capitalization ($mm) Total Enterprise Value ($mm) Equity Beta Debt Rating

Co-continental $4500 $8000 1.1 BBB

Kiki Metal $3800 $7200 1.3 AAA

Lee's Oil $2400 $3800 0.9 A

Nehi Motors $1500 $4400 1.75 BB

None of these companies hold cash. The asset beta for Kiki Metal is ? (round two decimal places)

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