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Commerce · Q696

Business Finance

Graduate and Post Graduate · Commerce · question 696

Q696

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

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
Answer
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

Solution

Answer: Option A
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