1471. Financial break-even level of EBIT is ________.

A. Intercept at Y-axis
B. Intercept at X-axis *
C. Slope of EBIT-EPS line
D. None of the above

1472. Which of the following is true for Net income approach?

A. Higher equity is better
B. Higher debt is better *
C. Debt ratio is irrelevant
D. None of the above

1473. In case of Net income approach the cost of equity is _______.

A. Constant *
B. Increasing
C. Decreasing
D. None of the above

1474. In case of net income approach when the debt proportion is increased, the cost of debt_______.

A. Increases
B. Decreases
C. Constant *
D. None of the above

1475. Which of the following is true of net income approach ?

A. VF = VE+VD *
B. VE = VF+VD
C. VD = VF+VE
D. VF + VE-VE

1476. Net operating income approach , which one of the lowing is constant?

A. Cost of equity
B. Cost of Debt
C. WACC & KD *
D. KE and KD

1477. NOI approach advocate that the degree of debt financing is _______.

A. Relevant
B. May be relevant
C. Irrelevant *
D. May be irrlevant

1478. “Judicious use of leverage” is suggested by _________.

A. Net income approach
B. Net operating income approach
C. Traditional approach *
D. All of the above

1479. Which one is true for net operating income approach ?

A. VF = VE+VD
B. VE = VF-VD *
C. VD = VF+VE
D. VF + VE-VE

1480. In the traditional approach , Which one of the following remains constant ?

A. Cost of equity
B. Cost of Debt
C. WACC
D. None of the above *