Spread between S&P 500 Composite Returns and Long-Term U.S. Government Bond Returns is 9%.
U.S. Government Interest Rates on 30-year bond is 3%.
UNR inc.s Debt Rate Premium above Government is 7%.
UNRs equity beta is 2.
Tax rate is 25%.
Target capital structure has 30% debt and 70% equity.
Data from UNR inc. Balance Sheet	2020
Capitalization and Returns (in millions)
Total assets	$25,000
Long-term debt	$16,000
Shareholders equity	$8,000
Per Share and Other Data
Market price (year-end)	$25
Shares outstanding (millions)	1000
c) What is the premium for financial risk attached to Nevada Inc.s equity, given its current (actual) leverage?