Which of the following two are irrelevance theories of capital structure decision of a corporate?
The net operating income approach and the Modigliani–Miller irrelevance approach treat capital structure as irrelevant to firm value under their theoretical assumptions. The…
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Which of the following two are irrelevance theories of capital structure decision of a corporate?
Answer and explanation
Correct answer C
The net operating income approach and the Modigliani–Miller irrelevance approach treat capital structure as irrelevant to firm value under their theoretical assumptions. The net income and traditional approaches allow financing choices to affect firm value.
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Telangana SET (TG SET)