Under which of the following approaches, the cost of equity is assumed – McqOptions

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1.	Under which of the following approaches, the cost of equity is assumed to increase linearly with leverage, i.e, the average cost of capital remains constant with increased use of leverage? 1. Net Operating Income Approach2. Net Income Approach3. Traditional Approach4. Walter Approach
A.	1
B.	2
C.	3
D.	4
Answer» B. 2

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