Determine the additional premium


Ethier Enterprise has an unlevered beta of 1.0. Ethier is financed with 50% debt and has a levered beta of 1.6. If the risk free rate is 5.5% and the market risk premium is 6 %, how much is the additional premium that Either's shareholder require to be compensated for finanical risk?

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Finance Basics: Determine the additional premium
Reference No:- TGS027700

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