McqMate
| Q. |
A critical assumption of NOI (Net operating income approach) to valuation is that… |
| A. | Debt and equity levels remain unchanged. |
| B. | Dividends increase at constant rate |
| C. | Overall cost of capital is independent of the degree of leverage |
| D. | Interest expenses and taxes are included in calculation |
| Answer» C. Overall cost of capital is independent of the degree of leverage | |
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