STION $7$

Rating

AAA

AA

A

BBB

BB

B

CCC

Average Default Rate

$0\mathrm{.}0\%$

$0\mathrm{.}1\%$

$0\mathrm{.}2\%$

$0\mathrm{.}45\%$

$2\mathrm{.}2\%$

$5\mathrm{.}5\%$

$12\mathrm{.}2\%$

Recession Default Rate

$0\mathrm{.}0\%$

$1\mathrm{.}0\%$

$3\mathrm{.}0\%$

$3\mathrm{.}0\%$

$8\mathrm{.}0\%$

$16\mathrm{.}0\%$

$48\mathrm{.}0\%$

Average Beta

$0\mathrm{.}05$

$0\mathrm{.}05$

$0\mathrm{.}05$

$0\mathrm{.}10$

$0\mathrm{.}17$

$0\mathrm{.}26$

$0\mathrm{.}31$

Company

Market

Capitalization

$($$mm$)$

Total

Enterprise

Value $($$mm$)$

Equity

Beta

Debt

Rating

Taggart Transcontinental

$4500$

$8000$

$1\mathrm{.}1$

BBB

Rearden Metal

$3800$

$7200$

$1\mathrm{.}3$

AAA

Wyatt Oil

$2400$

$3800$

$0\mathrm{.}9$

A

Nielson Motors

$1500$

$4400$

$1\mathrm{.}75$

BB

Your estimate of the asset beta for Taggart Transcontinental is closest to:

A$.$

$0\mathrm{.}42$

B$.$

$0\mathrm{.}59$