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28 views

Levered beta with changing equity/debt ratios

I know how to calculate a bottom up levered beta for a privately held and not publicly traded company with Hamada (Proof of Hamada's Formula (Relationship between levered and unlevered beta)) and ...
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0answers
38 views

Option based approach to real capital structures

Has anyone made a serious attempt to apply option theory to real assets and capital structures, taking into account all the messy details ?
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30 views

Beta in Capital Structure [closed]

Can anyone please explain how do I get this: $$\beta_e = \beta_a +(\beta_a - \beta_d) \times D/E$$ from $$K_e =K_a +(K_a − K_d) \times D/E.$$
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1answer
39 views

Optimal Financing Mix: Cost of Capital Approach

According to Cost of Capital approach to optimal financing mix we can calculate Cost-of-Capital-minimizing $\frac{D}{E}$ ratio as follows: $\frac{D}{E}_{opt} = argmin_{\frac{D}{E}}WACC$, where $...
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0answers
31 views

Working Capital Change vs. Working Capital Changes-Total

I am working with compustat data and I can't figure out difference between 2 columns: Working Capital Changes - Total Working Capital Change / Other / Increase/(Decrease) For the same date columns ...
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0answers
18 views

In what way are capital increases usually advertised?

I am currently trying to better understand capital increases and dilution. I came across a few presentations of companies. I am trying to find out, if there are any standards, which are commonly part ...
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1answer
56 views

Data on banks’ leverage

Does someone know free resources to estimate the leverage of the banking and financial sector at an aggregate level? In particular I would be interested in something like Federal Reserve’s Flow of ...
2
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1answer
46 views

How do derivatives affect capital structures?

Yesterday, I was at a lecture where the speaker said that the impact of derivatives was often to make senior debt, in effect, subordinated debt (in terms of priority, recovery rates, etc.)? How do ...