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In case of Net Income Approach, when the debt proportion is increased, the cost of debt: ?

<p><strong><span>(a) Increases, </span></strong></p> <p><strong><span>(b) Decreases, </span></strong></p> <p><strong><span>(c) Constant, </span></strong></p> <p><strong><span>(d) None of the above.</span></strong></p>

Accounting Cost Accounting Financial Management
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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/09/20
Upvote (6) Views (9) Followers (8) Answers (5) Report Question
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Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

c. constant (in percentage terms)

Ahmed Abdi Mahad
by Ahmed Abdi Mahad , Director of Internal Auditing Directorate , Jigjiga University

In case of Net Income Approach, when the debt proportion is increased, the cost of debt remains constant.

So, choice C, is the right answer

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

Answer C correct answer

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