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The stock of Sonnaa Co . has a beta of 1 . 1 1 . The company has an outstanding debt of 4 5 0

The stock of Sonnaa Co. has a beta of 1.11. The company has an outstanding debt of 450 Cr and shareholder equity of 50,000 Cr. Calculate business risk and financial risk for investor if the current market premium is at 12.50% the One year government bond yield is 8.5%.(Tax rate =25%)

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