a) What are the three components of Weighted Average Cost of Capital? Also write down the equation of weighted average cost of capital.

Marks: 04

b) A company has a weighted average cost of capital (WACC) of 20%. What does it mean? (Simply interpret: what does 20% WACC for the company show in one or two lines).

Marks: 05


a) What do you understand by Capital Asset Pricing Model (CAPM)? (Describe in minimum three lines and maximum six lines.)

Marks: 02

b) Just list down in points the main criticisms that have been raised against CAPM.

Marks: 03