Manag., December-2019 – Q72
0. The net income approach to valuation is based on which of the following assumption?
- A
There are taxes and the cost of debt is less than the cost of equity
- B
There are taxes and use of debt does not change the risk perception of investors
- C
There are no taxes and use of debt changes the risk perception of investors
- D
There are no taxes and cost of debt is less than the cost of equity and the use of debt does not change the risk perception of investors.
