Under which of the following approaches, the cost of equity is assumed to increase linearly with leverage, i.e., the average cost of capital remains constant with increased use of leverage?
A. Net Operating Income Approach
B. Net Income Approach
C. Traditional Approach
D. Walter Approach
Answer: Option A
Related Questions on Miscellaneous in Commerce
A. Expenditure for the business
B. Cost for the business
C. Gain for the business
D. None of the above
Which of these items would be accounted for as an expense?
A. Repayment of bank loan
B. Dividend to stock holders
C. The purchase of land
D. Payment of current period rent
Debit the receiver credit the giver rule for:
A. Real a/c
B. Personal a/c
C. Nominal a/c
D. None of these
Join The Discussion