Discussion
You are the chief financial officer (CFO) of a multiphysician clinic. Do you see weaknesses or strengths in the capital asset pricing model (CAPM)? Explain your response and support it with examples. Include what the small market line (SML) involves.
Your chief executive officer (CEO) asks you to decide the best option between debt and equity financing. Explain your choice, covering the factors that influence your decision.
Provide reasons for and evidence in support of your responses.