Question
Premium for Financial Risk Ethier Enterprise has an unlevered beta of 0.5. Ethier is financed with 50% debt and has a levered beta of 0.8.
Premium for Financial Risk
Ethier Enterprise has an unlevered beta of 0.5. Ethier is financed with 50% debt and has a levered beta of 0.8. If the risk free rate is 6.5% 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 one decimal place.
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Social Work Policy Practice Changing Our Community Nation And The World
Authors: Jessica A Ritter
3rd Edition
179354087X, 9781793540874
