What does hamada equation describe

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Reference no: EM131435055

Please help with the following questions. Please answer the questions separately and each question should have 1 reference.

Q1: The cost of capital formula is theoretically sound but how easy / difficult is to implement in practice?

Q2: How does a company's use of financial leverage impact its risk premium (cost of equity). What does Hamada equation describe?

Q3: How would you respond to a firm's decision to cut dividends?

Reference no: EM131435055

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What does hamada equation describe : How does a company's use of financial leverage impact its risk premium (cost of equity). What does Hamada equation describe? How would you respond to a firm's decision to cut dividends?
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