Hamada formula - Revision history

Dirkjan at 19:24, 27 August 2020

2020-08-27T19:24:36Z

Dirkjan: Replaced content with "Hamada formula Category:finance Category:M12 Category:Term"

2020-08-27T18:38:56Z

Replaced content with "Hamada formula Category:finance Category:M12 Category:Term"

Dirkjan at 17:12, 27 August 2020

2020-08-27T17:12:02Z

Dirkjan at 18:16, 26 August 2020

2020-08-26T18:16:16Z

Dirkjan at 07:41, 25 August 2020

2020-08-25T07:41:08Z

Dirkjan at 07:40, 25 August 2020

2020-08-25T07:40:53Z

Dirkjan: Created page with "Levered Beta is the beta that reflects a capital structure that does include debt. The Unlevered Beta is the Beta of a company wi..."

2020-08-25T07:40:18Z

Created page with "Levered Beta is the beta that reflects a capital structure that does include debt. The Unlevered Beta is the Beta of a company wi..."

New page

[[Levered Beta|Levered Beta]] is the beta that reflects a capital structure that does include debt.
The [[Unlevered Beta|Unlevered Beta]] is the [[Beta|Beta]] of a company without any debt. Unlevering a beta removes the financial effects from leverage.

<html><img src = "/static/files/MBI/Module%2012/leveredbeta.PNG" width="600"/></html>

<math> \text{Unlevered beta}</math> = <math>\huge \frac{B^L}{1+(1-T_c)*\frac{D}{E}}</math>

Where:
* <math>{B^L}</math> is the levered, published beta
* <math>{D}</math> is the companies debt
* <math>{E}</math> is the companies equity
* <math>{T_c}</math> is the corporate tax rate.

==+ The point of the unlevered beta is to ''''remove'''' the debt risk from a publicly known company in a sector comparable to your own company ('unlever the beta') add your own debt risk and 'lever' the beta.==

[[Category:finance]]

[[Category:M12]]

[[Category:Term]]

← Older revision		Revision as of 18:38, 27 August 2020
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−	~~[[Levered Beta\|Levered Beta]] is the beta that reflects a capital structure that does include debt.~~	+	Hamada formula
−	~~The [[Unlevered Beta\|Unlevered Beta]] is the [[Beta\|Beta]] of a company without any debt. Unlevering a beta removes the financial effects from leverage.~~
−
−
−
−	~~<html><img src = "/static/files/MBI/Module%2012/leveredbeta.PNG" width="600"/></html>~~
−
−
−
−	~~<math> \text{Unlevered beta}</math> = <math>\frac{B^L}{1+(1-T_c)*\frac{D}{E}}</math>~~
−
−	~~Where:~~
−	* <math>{B^L}</math> is the levered, published beta
−	* <math>{D}</math> is the companies debt
−	* <math>{E}</math> is the companies equity
−	* <math>{T_c}</math> is the corporate tax rate.
−
−	==+ The point of the unlevered beta is to ''''remove'''' the debt risk from a publicly known company in a sector comparable to your own company ('unlever the beta') add your own debt risk and 'lever' the beta.==
−
−
	[[Category:finance]]		[[Category:finance]]

← Older revision		Revision as of 17:12, 27 August 2020
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−	<math> \text{Unlevered beta}</math> = <math>~~\huge~~ \frac{B^L}{1+(1-T_c)*\frac{D}{E}}</math>	+	<math> \text{Unlevered beta}</math> = <math>\frac{B^L}{1+(1-T_c)*\frac{D}{E}}</math>

	Where:		Where:

@@ Line 8: / Line 8: @@
-<math> \text{Unlevered beta}</math> = <math>\frac{B^L}{1+(1-T_c)*\frac{D}{E}}</math>
+<math> \text{Unlevered beta}</math> = <math>\huge \frac{B^L}{1+(1-T_c)*\frac{D}{E}}</math>
 Where:
@@ Line 16: / Line 16: @@
 * <math>{T_c}</math> is the corporate tax rate.
-== The point of the unlevered beta is to ''''remove'''' the debt risk from a publicly known company in a sector comparable to your own company ('unlever the beta') add your own debt risk and 'lever' the beta.==
+==+ The point of the unlevered beta is to ''''remove'''' the debt risk from a publicly known company in a sector comparable to your own company ('unlever the beta') add your own debt risk and 'lever' the beta.==

← Older revision		Revision as of 07:41, 25 August 2020
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	* <math>{T_c}</math> is the corporate tax rate.		* <math>{T_c}</math> is the corporate tax rate.

−	==+ The point of the unlevered beta is to ''''remove'''' the debt risk from a publicly known company in a sector comparable to your own company ('unlever the beta') add your own debt risk and 'lever' the beta.==	+	== The point of the unlevered beta is to ''''remove'''' the debt risk from a publicly known company in a sector comparable to your own company ('unlever the beta') add your own debt risk and 'lever' the beta.==

← Older revision		Revision as of 07:40, 25 August 2020
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−	<math> \text{Unlevered beta}</math> = <math>~~\huge~~ \frac{B^L}{1+(1-T_c)*\frac{D}{E}}</math>	+	<math> \text{Unlevered beta}</math> = <math>\frac{B^L}{1+(1-T_c)*\frac{D}{E}}</math>

	Where:		Where:

← Older revision		Revision as of 19:24, 27 August 2020
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−	~~Hamada formula~~	+	[[Levered Beta\|Levered Beta]] is the beta that reflects a capital structure that does include debt.
		+	The [[Unlevered Beta\|Unlevered Beta]] is the [[Beta\|Beta]] of a company without any debt. Unlevering a beta removes the financial effects from leverage.
		+
		+
		+
		+	<html><img src = "/static/files/MBI/Module%2012/leveredbeta.PNG" width="600"/></html>
		+
		+
		+
		+	<math> \text{Unlevered beta}</math> = <math>\frac{B^L}{1+(1-T_c)*\frac{D}{E}}</math>
		+
		+	Where:
		+	* <math>{B^L}</math> is the levered, published beta
		+	* <math>{D}</math> is the companies debt
		+	* <math>{E}</math> is the companies equity
		+	* <math>{T_c}</math> is the corporate tax rate.
		+
		+	==+ The point of the unlevered beta is to ''''remove'''' the debt risk from a publicly known company in a sector comparable to your own company ('unlever the beta') add your own debt risk and 'lever' the beta.==
		+
		+
	[[Category:finance]]		[[Category:finance]]