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Question 1 (40 Marks) a) Discuss different types of risks faced by companies and explain how companies can mitigate such risks? (10 marks each) b)

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Question 1 (40 Marks) a) Discuss different types of risks faced by companies and explain how companies can mitigate such risks? (10 marks each) b) What are the determinants of company's Weighted Average Cost of Capital (WACC)? Explain in detail. (15 marks each) c) Discuss the Value at Risk (VaR) approach for measuring the market risk and highlight the key shortcomings of this approach? (15 marks each)

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