Q.
1

List I

List II

a. The Net Income Approach i. The market value of the firm is not affected by changes in the capital structure
b. The Net Operating Income Approach ii. Declining weighted-average cost of capital

 

c. The Modigliani & Miller Proposition – I iii. The firms prefer to rely on internal accruals followed by debt finance and external finance
d. The Pecking Order Theory iv. The value of the firm depends on the earnings and risk of its assets rather than the way the assets have been financed
  • A

    a          b         c       d

    i           iii       ii        iv

     

     

     

  • B

    iv         ii        iii        i

  • C

    ii          i         iv       iii

  • D

    iii         iv       i         ii