Question: Question B1 a) Discuss the difference between an aggressive, conservative, and matching working capital policy regarding the level of investment and financing of working capital.

Question B1 a) Discuss the difference between an aggressive, conservative, and matching working capital policy regarding the level of investment and financing of working capital. (15 marks) b) Define cost of capital and explain why firms need to know their cost of capital. (10 marks) [25 marks in total]

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