Match the following :
|
List I |
List II |
||
|
(a) |
NI model |
(I) |
Cost of equity increase rapidly under extreme leverage |
|
(b) |
NOI model |
(II) |
Cost of equity decrease under extreme leverage |
|
(c) |
Traditional hypothesis |
(III) |
Cost of equity is constant for all leverage |
|
(d) |
MM’s hypothesis |
(IV) |
Cost of equity increase with increase in leverage |
| (V) | Cost of equity decrease with an increase in leverage | ||
1
a - V, b - IV, c - I, d - II
2
a - I, b - V, c - III, d - IV
3
a - III, b - IV, c - I, d - II
4
a - IV, b - III, c - I, d - II
5
None of the above