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Problem 16-3 Premium for Financial Risk Ethier Enterprise has an unlevered beta of 1, Ethier is financed with 40% debt and has a levered beta

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Problem 16-3 Premium for Financial Risk Ethier Enterprise has an unlevered beta of 1, Ethier is financed with 40% debt and has a levered beta of 1.1. If the risk free rate is 4% 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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