Question: Use the debt beta table to estimate the asset beta of Southwest Airline. By rating A and above BBB BB B CCC Average beta <

Use the debt beta table to estimate the asset beta of Southwest Airline.

By rating A and above BBB BB B CCC
Average beta < 0.05 0.1 0.17 0.26 0.31

Company Name Market Capitalization ($ million) Total Enterprise Value ($ million) Equity Beta Debt Ratings
Delta Air Lines (DAL) 4962.1 16995.7 1.999 BB
Southwest Airlines (LUV) 4885.9 6324.4 0.965 A/BBB
JetBlue Airways (JBLU) 1258.3 3898.7 1.929 B/CCC
Continental Airlines (CAL) 1130.2 4448.6 2.062 B

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