Assertion (A): NI approach to capital structure implies maximum Ko when the degree of financial leverage is equal to zero.
Reason (R): NI approach to capital structure implies maximum Vf when the degree of financial leverage is equal to one.
1
Both (A) and (R) are correct
2
Both (A) and (R) are incorrect
3
(A) is correct but (R) is incorrect
4
(A) is incorrect but (R) is correct