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QUESTION THREE Discuss the following capital structure theories and their implication to the value of the firm. The traditional Theory (3 marks) The Net Income

QUESTION THREE

Discuss the following capital structure theories and their implication to the value of the firm.

  1. The traditional Theory (3 marks)
  2. The Net Income Approach (3 marks)
  3. The Net Operating Income Approach (3 marks)
  4. Modigliani and Miller (MM) Approach (3 marks)

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