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Hamada's equation is a formula used in finance to evaluate the effects of leverage on a company's cost of equity. It arises from the Modigliani-Miller theorem and is particularly useful in understanding how the cost of equity changes with varying levels of debt in a firm's capital structure.

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  1. Financial economics
  2. Actuarial science
  3. Applied mathematics
  4. Fields of mathematics
  5. Mathematics
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