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How much is the additional premium

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Ethier Enterprise has an unlevered beta of 0.5. Ethier is financed with 25% debt and has a levered beta of 0.6. If the risk free rate is 4.5% and the market risk premium is 6%, how much is the additional premium that Ethier's shareholders require to be compensated for financial risk? Round your answer to one decimal place.

Reference no: EM132478188

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