91 Views

net income approach the value provided is a)ko b)ki c)kd d)ke


Hari 20th Jun, 2020
Answer (1)
Sk Student Expert 21st Jun, 2020

Hi

As according to the question Net income technique indicates that the fee of the firm may be expanded

by lowering the usual value of capital (WACC) through better debt proportion.

Net income approach is also called constant K

e

theory. WACC remains constant and with the increase in debt the price of equity increases. The

average capitalization fee remain steady irrespective of the diploma of leverage.

From the following question the answer is D

Related Questions

Amity University-Noida B.Tech...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
Amity University-Noida M.Tech...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
Amity University-Noida MBA Ad...
Apply
Ranked among top 10 B-Schools in India by multiple publications | Top Recruiters-Google, MicKinsey, Amazon, BCG & many more.
Amity University-Noida BBA Ad...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
RV University, Mysuru | B.Tec...
Apply
World-class and highly qualified engineering faculty. High-quality global education at an affordable cost
New Horizon College BBA Admis...
Apply
UG Admissions 2026 open| NAAC ‘A’ grade | Merit-based Scholarships available.
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books