In the traditional approach to cost-of-capital analysis,firm's value will be highest when it uses no debt in its capital structure.

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The traditional approach to cost-of-capital analysis assumes that a firm's value will be highest at the optimal capital structure, which typically includes some level of debt. This is because debt provides tax benefits and can lower a firm's cost of capital, but too much debt can also increase financial risk and lead to higher costs of debt financing. Therefore, the optimal capital structure balances the benefits and risks of debt financing with the cost of equity financing, to maximize the value of the firm.

In the Traditional Approach to Cost-Of-Capital Analysis,firm's Value Will Be