Question
Ethier Enterprise has an unlevered beta of 1.3. Ethier is financed with 55% debt and has a levered beta of 1.8. If the risk free
Ethier Enterprise has an unlevered beta of 1.3. Ethier is financed with 55% debt and has a levered beta of 1.8. If the risk free rate is 6.5% and the market risk premium is 6%, how much is the additional premium that Ethier's shareholders require to be compensated for financial risk? Round your answer to two decimal places. %
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Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Judith J. Baker, R.W. Baker
3rd Edition
076377894X, 978-0763778941
