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Determine the unlevered beta of a firm

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The Hamada equation tries to determine the unlevered Beta of a firm by looking at the following variables: T = Tax Rate; D= Debt; E=Equity. Please discuss Professor Hamada's assumption that the D/E ratio can be used to Unlever the Beta? Also, what does it mean to Unlever the Beta? What is Leverage?

Reference no: EM13748257

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