Counts accounting has a beta of 150 the tax rate is 35 and


(1) Counts Accounting has a beta of 1.50. The tax rate is 35%, and Counts is financed with 40% debt. What is Counts' unlevered beta? Round your answer to two decimal places.

(2) Ethier Enterprise has an unlevered beta of 1.05. Ethier is financed with 45% debt and has a levered beta of 1.15. If the risk free rate is 5% and the market risk premium is 5%, how much is the additional premium that Ethier's shareholders require to be compensated for financial risk?

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Financial Management: Counts accounting has a beta of 150 the tax rate is 35 and
Reference No:- TGS02142863

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