“The cost of capital declines when the degree of financial leverage increases.” Who advocated it?
A. Net operating income approach
B. Net income approach
C. Modigliani-Miller approach
D. Traditional approach
Answer:B
“The cost of capital declines when the degree of financial leverage increases.” Who advocated it?
A. Net operating income approach B. Net income approach C. Modigliani-Miller approach D. Traditional approach