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(a) Discuss the role of CAPM model in the calculation of WACC and where we use the concept of WACC? Discuss the major reason why

(a) Discuss the role of CAPM model in the calculation of WACC and where we use the concept of WACC? Discuss the major reason why the cost of debt is less than the cost of equity.

(b) How can we measure the working capital efficiency of a firm? What is your choice from the Flexible current asset management strategy and Restrictive current asset management strategy? Also discuss the working capital tradeoffs.

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