Python - Hamada's Equation

by matt392 in Circuits > Software

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Python - Hamada's Equation

HamadasEquation.jpg

# Code below and attached
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print ("Using Hamada's Equation")
print ("Separates the financial risk of a levered firm from its business risk")

# Hamada's Equation: LeveredBeta = UnleveredBeta * (1+ (1-TaxRate) * RatioOfDebtToEquity )

EnteredUnleveredBeta = input ("Enter the Unlevered Beta: ")
EnteredTaxRate = input ("Enter the tax rate: ")
EnteredRatioOfDebtToEquity = input ("Enter the ratio of debt to equity: ")

# Cast entered unlevered beta as float number
UnleveredBeta = float(EnteredUnleveredBeta)

# Divide tax rate by 100 to get decimal representation
TaxRate = (float(EnteredTaxRate))/100

# Cast entered ratio of debt to equity as float
RatioOfDebtToEquity = float(EnteredRatioOfDebtToEquity)

OneMinusTaxRate = 1-TaxRate
RightSide = (OneMinusTaxRate * RatioOfDebtToEquity)
LeveredBeta = (UnleveredBeta * (1 + (RightSide)))

print ("The Levered Beta is: ", LeveredBeta)
print ("Thank you to fxsolver.com for assistance with this equation.")