Match the following.
List-I | List-II |
a. Net income approach | 1. Also known as 'Intermediate Approach' |
b. Net operating income approach | 2. Change in the capital structure of a company does not affect the market value of the company and overall cost of capital |
c. Traditional approach | 3. It provide analytical sound and logically consistent behavioural justification for their hypothesis |
d. Modigliani Miller approach | 4. A firm can minimise the overall cost of capital by using debt financing to the maximum extent |
A. a-4, b-2, c-1, d-3
B. a-2, b-1, c-4, d-3
C. a-3, b-4, c-1, d-2
D. a-2, b-1, c-3, d-4
Answer: Option A
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