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متابعة

Judicious use of leverage' is suggested by?

a- Net Income Approach

b- Net Operating Income Approach

c- Traditional Approach

d- All of the above

 

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تم إضافة السؤال من قبل Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town
تاريخ النشر: 2015/01/15
mohamed Hakim CMA CPA Candidate
من قبل mohamed Hakim CMA CPA Candidate , Accounting Manager , Andersen saudi arabia

Answer c

Traditional approach 

Basit Ali
من قبل Basit Ali , Director of Engineering , Laverda Suites & Villas / Blue Bay Resorts

Opt C

BASKAR SUNDARAM
من قبل BASKAR SUNDARAM , Manager - Accounts & Finance , at the 3 Decades Experienced & the largest Industrial Contracting Company in Middle East.

C. Traditional Approach.

Traditional approach to capital structure advocates that there is a right combination of equity and debt in the capital structure, at which the market value of a firm is maximum.

 

 

It means that there exists an optimum value of debt to equity ratio at which the WACC is the lowest and the market value of the firm is the highest.

georgei assi
من قبل georgei assi , مدير حسابات , المجموعة السورية

The correct answer is C

Sahar Alech
من قبل Sahar Alech , Auditor / Financial Manager , Accounting Services Office

Trad. App

مستخدم محذوف‎
من قبل مستخدم محذوف‎

c- Traditional Approach

 

Thank you

Waqas Raza Khan
من قبل Waqas Raza Khan , Accountant , Cold Store Group of Saudi Arabia

Answer: Option C-----Traditional Approach

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