English, asked by tusharkumar4977, 1 day ago

What is traditional approach in financial management for bba

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Answered by believeyourself

Answer:

The traditional approach explains that up to a certain point, debt-equity mix will cause the market value of the firm to rise and the cost of capital to decline. But after attaining the optimum level, any additional debt will cause to decrease the market value and to increase the cost of capital.

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