MCQOPTIONS
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| 1. |
_ According to traditional approach, the average cost of capital _______________.$? |
| A. | Remains constant up to a degree of leverage and rises sharply thereafter with every increase in leverage |
| B. | Rises constantly with increase in leverage |
| C. | Decrease up to certain point, remains unchanged for moderate increase in leverage and rises beyond a certain point |
| D. | Decrease at an increasing rate with increase in leverage |
| Answer» D. Decrease at an increasing rate with increase in leverage | |