Problemethier enterprises have an unlevered beta of 10, Ask an Expert

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Problem:

Ethier enterprises have an unlevered beta of 1.0. Ethier is financed with 50% debt bad 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 Ethier's shareholders require to be compensated for financial risk?

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Category:- Basic Finance
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