Shareholders require to be compensated for financial risk

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Ethier enterprises has an ulevered beta of 1.0. Ethier is financed with 50% debt abd 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?

Reference no: EM13720783

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Shareholders require to be compensated for financial risk : Ethier enterprises has an ulevered beta of 1.0. Ethier is financed with 50% debt abd 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 ..

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