Question
Ethier Enterprise has an unlevered beta of 1.86. Ethier is financed with 28.00% debt and has a levered beta of 2.15. If the risk-free rate
Ethier Enterprise has an unlevered beta of 1.86. Ethier is financed with 28.00% debt and has a levered beta of 2.15. If the risk-free rate is 6.00% and the market risk premium is 8.00%%, how much is the additional premium that Ethiers shareholders require to be compensated for financial risk?
| 1.3600% | ||
| 1.4400% | ||
| 2.0800% | ||
| 2.3200% | ||
| 2.4800% |
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
18th Edition
126409762X, 9781264097623
