Hamada's equation
id:
hamada-s-equation-291-14420464
title:
Hamada's equation
text:
In corporate finance, Hamada’s equation is an equation used as a way to separate the financial risk of a levered firm from its business risk. The equation combines the Modigliani–Miller theorem with the capital asset pricing model. It is used to help determine the levered beta and, through this, the optimal capital structure of firms. It was named after Robert Hamada, the Professor of Finance behind the theory. Hamada’s equation relates the beta of a levered firm to that of its unlevered counter
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wiki
category slug:
encyclopedia
description:
original url:
https://en.wikipedia.org/wiki/Hamada%27s_equation
date created:
date modified:
2024-03-28T12:45:24Z
main entity:
{"identifier":"Q5643961","url":"https://www.wikidata.org/entity/Q5643961"}
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13
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