Business, 14.04.2020 23:20 iris7324

Ethier Enterprise has an unlevered beta of 1.0. Ethier is financed with 50% debt and has a levered beta of 1.6. If the risk free rate is 4.5% and the market risk premium is 5%, how much is the additional premium that Ethier's shareholders require to be compensated for financial risk?

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Ethier Enterprise has an unlevered beta of 1.0. Ethier is financed with 50% debt and has a levered b...