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Delta Corporation has an unlevered beta of 0 . 8 . Now Delta is financed by 5 0 % debt and has a levered beta

Delta Corporation has an unlevered beta of 0.8. Now Delta is financed by 50% debt and has a levered beta of 1.4. If the risk-free rate is 5% and the market risk premium (that is (IM - IRFI) is 6%, how much is the additional premium that Delta's shareholders require to be compensated for financial risk?

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