The Traditional Approach to Value of the firm m that: | Faculties

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Q. 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

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✅ Correct Answer: (B) Value can be increased by judicious use of leverage

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