Define Operating income approach
Describe briefly Operating income approach?
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Operating income approach is the approach that proposes the decision of capital structure in the direction of a firm is immaterial and change in leverage or debt does not result in change of total and market price of the firm. It tells that entire cost of capital is independent of degree of leverage. This approach was also formed by David Durand.
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Illustrate the term Positive and Normative Economics?
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