Find additional premium that ethiers shareholder require

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Ethier Enterprise has an unlevered beta of 1.25. Ethier is financed with 40% debt and has a levered beta of 1.75. If the risk free rate is 4% and the market risk premium is 7%, how much is the additional premium that Ethier's shareholders require to be compensated for financial risk?

Reference no: EM13333354

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