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.
Illustrate the term Positive and Normative Economics?
Why private goods are produced through the market?
Describe four important areas to emphasize Expenditures?
Transaction costs are decreased and economic efficiency is enhanced by: (1) long-term wage and price controls. (2) monopolies which cooperate with central planners. (3) blacklists and yellow dog contracts. (4) bureaucratic tendencies
Give a brief introduction of the term combined leverage? And in what manner it is calculated?
Explain how Entrepreneurs are risk-takers?
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Elucidate the various trade which enacted by governments?
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