Shareholders require to be compensated for financial risk

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Ethier Enterprise has an unlevered beta of 1.05. Ethier is financed with 45% debt and has a levered beta of 1.45. If the risk free rate is 4.5% and the market risk premium is 7%, 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: EM13947147

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