Ethier enterprise has an unlevered beta of 125 ethier is, Financial Management

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Ethier enterprise has an unlevered beta of 125 ethier is

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Ethier Enterprise has an unlevered beta of 1.25. Ethier is financed with 45% debt and has a levered beta of 1.45. If the risk free rate is 5.5% 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: Ethier enterprise has an unlevered beta of 125 ethier is

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Financial Management: Ethier enterprise has an unlevered beta of 125 ethier is

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