Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

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?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M927700

Have any Question? 


Related Questions in Basic Finance

Sixx am manufacturing has a target debt-equity ratio of 065

Sixx AM Manufacturing has a target debt-equity ratio of 0.65. Its cost of equity is 15 percent, and its cost of debt is 10 percent. If the tax rate is 32 percent, what is the company's WACC?

If futures prices are less than spot prices the explanation

If futures prices are less than spot prices, the explanation usually given is the convenience yield. Explain what the convenience yield is. Then identify certain assets on which convenience yields are more likely to exis ...

Common stock of pr co has an expected return of 12 the

Common stock of pr Co. Has an expected return of 12% . The expected market return is 14% and risk free rate is 2%. What is pr Co.s Beta coefficient?

1 what does a deficiency judgment mean2 what is a land

1. What does a deficiency judgment mean? 2. What is a land contract? 3. How can mechanics' liens achieve priority over first mortgages that were recorded prior to the mechanics' lien?

Why is a combination of torque and angle measurement or

Why is a combination of torque and angle measurement or control so popular in mass production operations? What is meant by window control? What is meant by yield control in mass production applications? Does tightening a ...

Why is there a doppler effect when the source of sound is

Why is there a Doppler effect when the source of sound is stationary and the listener is in motion? In which direction should the listener move to hear a higher frequency? A lower frequency?

Flip a set of ten coins one hundred times and record the

Flip a set of ten coins one hundred times, and record the number of heads and tails each time. Construct a frequency distribution of the observed data. Check whether the observed frequency distribution appears to match t ...

What is the price of a t-bond with exactly 245 years to

What is the price of a T-Bond with exactly 24.5 years to maturity and coupons with rate 5.875% paid semi-annually? Its yield is 6.5% BEY (Bond Equivalent Yield is semi-annually compounded).

1 why can the current movement toward establishing supply

1. Why can the current movement toward establishing supply chains be characterized as a revolution? 2. Compare the concept of a modern supply chain with more traditional distribution channels. Be specific regarding simil ...

The following excerpts are taken from dividend policy

The following excerpts are taken from "Dividend Policy Determinants: An Investigation of the Influences of Stakeholder Theory" by Mark E. Holder, Frederick W. Langrehr, and J. Lawrence Hexter, published in the Autumn 199 ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro