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Yellowhammer Enterprise has an unlevered beta of 1.2. It is financed with 20% debt and has a levered beta of 1.425. If the risk-free rate

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Yellowhammer Enterprise has an unlevered beta of 1.2. It is financed with 20% debt and has a levered beta of 1.425. If the risk-free rate is 4% and the market risk premium is 6%, how much is the additional premium that Yellowhammer's shareholders require to be compensated for financial risk? 0 1.65% 1.35% % 3.60% 3.30% Albula Company's beta is 1.4 and its tax rate is 25%. If it is financed with 20% debt, what is its unlevered beta? 0.93 1.22 1.09 1.18

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