What does the term independence hypothesis mean as it, Finance Basics

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What does the term independence hypothesis mean as it

Question: 1. What does the term independence hypothesis mean as it applies to capital structure theory?

2. Many CFOs believe that the firm's composite cost of capital is saucer-shaped or U-shaped. What does this mean?

3. Define the EBIT-EPS indifference point.

4. Explain how the financial manager might use industry norms in the design of the company's financing mix.

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