Shareholders are required to compensated for financial risk

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Reference no: EM13731369

Company has an Un levered beta of 1.1. Financed with 50% debt and levered beta of 1.6. If the risk free rate is 5.5% and the market risk premium is 5% how much is the additional premium that shareholders are required to be compensated for financial risk?

Reference no: EM13731369


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