Assertion (A) : Arbitrage keeps the cost of capital constant despite change in the capital structure.
Reason (R) : It ensures compensating inverse change in cost of equity capital with a change in the cost of debt capital.
| A. | Assertion (A) and Reason (R) both are correct and (R) is correct explanation of (A). |
| B. | Assertion (A) and Reason (R) are correct, but (R) is not correct explanation of (A). |
| C. | Assertion (A) is correct, but Reason (R) is incorrect. |
| D. | Assertion (A) is not correct, but Reason (R) is correct. |
Answer : A Explanation : |
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Option: A Explanation : Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. |
