Under which of the following approaches cost of equity capital is assumed to be constant with the change in leverage?

Under which of the following approaches cost of equity capital is assumed to be constant with the change in leverage? Correct Answer Net income approach

Net income approach of the following approaches cost of equity capital is assumed to be constant with the change in leverage. Net Income Approach suggests that value of the firm can be increased by decreasing the overall cost of capital (WACC) through higher debt proportion.
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