Ethier is financed with 40 debt and has a levered beta of


Ethier Enterprise has an unlevered beta of 1.5. Ethier is financed with 40% debt and has a levered beta of 2.2 If the risk-free rate is 3.0% and the market risk premium is 7%, how much is the additional premium that Ethier's shareh olders require to be compensated for financial risk?

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Finance Basics: Ethier is financed with 40 debt and has a levered beta of
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