Explain Operating income approach. Who proposed this theory?
Submitted by: AdministratorOperating income approach is the approach which suggests the decision of capital structure towards a firm is irrelevant and change in leverage or debt doesn't result in change of total and market price of the firm. It tells that overall cost of capital is independent of degree of leverage. This approach was also proposed by David Durand.
Submitted by: Administrator
Submitted by: Administrator
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