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Ethier Enterprise has an unlevered beta of 1.3. Ethier is financed with 35% debt and has a levered beta of 1.5. If the risk free rate is 6.5% and the market risk premium is 5%, how much is the additional premium that Ethier's shareholders require to be compensated for financial risk? Round your answer to two decimal places.

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Financial Management, Finance

Category:- Financial Management
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