Critically evaluate the main approaches that companies should consider when determining their cost of equity and debt capital, and the weighted average cost of capital. Your discussion should also make reference to the choice of company, industry and project beta in determining the market risk of the project. (20 marks) Question You observe that 10 years ago a company stock was trading with a forward PE ratio of 80. Today that same stock trades at a PE of 5. Explain the determinants of a firm's PE ratio in practice and whether the decline in PE ratio described above reflects poor performance by the company. (20 marks)