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Require to be compensated for financial risk

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Ethier Enterprise has an unlevered beta of 1.05. Ethier is financed with 50% debt and has a levered beta of 1.35. If the risk free rate is 6% and the market risk premium is 4%, how much is the additional premium that Ethier's shareholders require to be compensated for financial risk? Round your answer to two decimal places.

Reference no: EM132346986

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