Ethier enterprise has an unlevered beta of 115 ethier is


Premium for Financial Risk

Ethier Enterprise has an unlevered beta of 1.15. Ethier is financed with 60% debt and has a levered beta of 1.45. If the risk free rate is 5% and the market risk premium is 6%, how much is the additional premium that Ethier's shareholders require to be compensated for financial risk?

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Financial Management: Ethier enterprise has an unlevered beta of 115 ethier is
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