Looking for the answer to the question below related to Financial Management?
The Traditional Approach to Value of the firm m that:
|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
I hope you got the answer to your question.