Explain Operating income approach. Who proposed this theory?

Explain Operating income approach. Who proposed this theory?


Operating income approach is the approach which suggests the decision of capital structure towards a firm is irrelevant and change in leverage or debt doesn't result in change of total and market price of the firm. It tells that overall cost of capital is independent of degree of leverage. This approach was also proposed by David Durand.
What does capital market mean? How does the company raise funds in capital market?
Capital market is the market in which financial securities have been traded between the individuals and the institutions…
What "rights issue" do the shareholders of a company have under Companies Act, 1956?
The rights and duties of shareholders are defined from time to time of issue of shares. ….
What are the eligibility criteria for an unlisted company to make public issue?
The eligibility criteria which have to be satisfied by the Unlisted Company to make public issue are as follows:…
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