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How does a company's use of financial leverage impact its risk premium (cost of equity). What does Hamada equation describe? Give References please
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This is a word document about the MS word which details about the company options to utilize the various financial leverages which are judged on the basis of the risk elements. This can be calculated on the basis of the various risk premiums which is defined as the investing minimum money and getting a future expected or unexpected returns upon it. One needs to in-depth study about the debt & the equity before processing it within an organization.This paper details out how we can use the equity or debt or both in order to maintain our financial leverages within an organization.
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