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Quotes of the day:
Truth may be stretched, but cannot be broken, and always gets above falsehood, as does oil above water.
The Hamada equation is a fundamental analysis method of analyzing a firm’s cost of capital as it uses additional financial leverage, and how that relates to the overall riskiness of the firm. The measure is used to summarize the effects this type of leverage has on a firm’s cost of capital—over and above the cost of capital as if the firm had no debt.
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