How much additional premium would wolfpacks stockholders

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Wolfpack Company has a unlevered beta of 1.0. Wolfpack is financed with 50% debt and has a levered beta of 1.2. If the risk free rate is 3.0% and the market risk premium is 5%, how much additional premium would Wolfpack's stockholders require to be compensated for financial risk?

Reference no: EM13334945

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