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Premium for Financial Risk Ethier Enterprise has an unlevered beta of 1.0. Ethier is financed with 40% debt and has a levered beta of 1.4.

Premium for Financial Risk Ethier Enterprise has an unlevered beta of 1.0. Ethier is financed with 40% debt and has a levered beta of 1.4. If the risk free rate is 5.5% 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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