The traditional approach towards the valuation of a company assumes: – McqOptions

MCQOPTIONS

1.	The traditional approach towards the valuation of a company assumes:
A.	that the overall capitalization rate holds constant with changes in financial leverage.
B.	that there is an optimum capital structure.
C.	that total risk is not altered by changes in the capital structure.
D.	that markets are perfect.
Answer» C. that total risk is not altered by changes in the capital structure.

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