Harsha Asked a Question
September 11, 2020 12:11 pmpts 30 pts
according to net income approach the cost of capital of a firm means
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  • Rucha rajesh shingvekar Best Answer
    Net income (NI) approach as this is also called as traditional approach. This is an approach in which both cost of debt, and equity are independent of capital structure. The compon...
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  • Priya gulani thankyou
    EXAMPLE Consider a fictitious company with below figures. All figures in USD. Earnings before Interest Tax (EBIT)=100,000 Bonds (Debt part)=300,000 Cost of Bonds issued (Debt)=10...
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  • Rucha rajesh shingvekar
    Refer this image
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  • Priya gulani
    see if it helps you
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