McqMate
| Q. |
The traditional approach towards the valuation of a company assumes: |
| A. | that the overall capitalization rate holds constant with changes in financial leverage. |
| B. | that there is an optimum capital structure. |
| C. | that total risk is not altered by changes in the capital structure. |
| D. | that markets are perfect. |
| Answer» B. that there is an optimum capital structure. | |
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