Ch. 14 · Lesson 42 of 45
Hamada, the Optimal Capital Structure & Theory
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Ch. 14 · Lesson 42 of 45 · 14 min
Hamada, the Optimal Capital Structure & Theory
Unlever and relever beta to price equity at any debt level, find the WACC-minimizing mix, and know the theories behind real financing choices.
Inside this lesson
- Why this matters
- The core idea
- The formula
- Worked example 1: relevering a known beta
- Worked example 2: exam style, moving to less debt
- Your turn
- Calculator steps
- Common mistakes
- Quick check
- Key takeaways
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