a.Counts Accounting has a beta of 1.25. The tax rate is 35%, and Counts is financed with 60% debt. What is Counts' unlevered beta? Do not round intermediate calculations. Round your answer to two decimal places.

b.Ethier Enterprise has an unlevered beta of 1.25. Ethier is financed with 40% debt and has a levered beta of 1.35. If the risk free rate is 5% 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.