In the Net Operating Income approach to cost-of-capital analysis,a firm's value depends on:

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In the Net Operating Income approach, a firm's value is determined by calculating its net operating income (NOI) and dividing it by the cost of capital. Therefore, the firm's value depends on its NOI. The use of debt, size of the firm, and retained earnings as a proportion of debt may all have an impact on the cost of capital, but they are not the primary factors on which the firm's value is based in this approach.

In the Net Operating Income Approach to Cost-Of-Capital Analysis,a Firm's