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
Question : Directions: Six soldiers A, B, C, D, E, and F are standing in a row next to each other. F is at the immediate left of C. F and E are at the extreme ends of the row. C is exactly between F and B. A is at the immediate left of D. E is at the immediate right of D. Which soldier is at the fourth position from the right?
Option 1: A
Option 2: B
Option 3: C
Option 4: D
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