In the Traditional Approach, which one of the following remains constant?

Cost of Equity

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Cost of Debt

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WACC

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None of the above

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Solution

The correct option is D None of the above
The rate of interest on debt remains constant for a certain period and thereafter with an increase in leverage, it increases.

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In the Traditional Approach, which one of the following remains constant?

The correct option is D None of the aboveThe rate of interest on debt remains constant for a certain period and thereafter with an increase in leverage, it increases.

The correct option is D None of the above
The rate of interest on debt remains constant for a certain period and thereafter with an increase in leverage, it increases.