Looking for the answer to the question below related to Financial Management?

The Traditional Approach to Value of the firm m that:

 Options:

A. There is no optimal capital structure
B. Value can be increased by judicious use of leverage
C. Cost of Capital and Capital structure are m dent
D. Risk of the firm is independent of capital structure

 

The Correct Answer Is:

  • B. Value can be increased by judicious use of leverage

 

Conclusion

I hope you got the answer to your question.

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