Which of the following approaches is similar to NOI approach of capital structure decisions ?
The Modigliani-Miller approach is similar to the net operating income approach in its original capital-structure irrelevance proposition. Both treat the overall value of a…
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Which of the following approaches is similar to NOI approach of capital structure decisions ?
Answer and explanation
Correct answer B
The Modigliani-Miller approach is similar to the net operating income approach in its original capital-structure irrelevance proposition. Both treat the overall value of a firm as independent of its financing mix under their assumptions.
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Maharashtra and Goa SET (MH SET)