cost of capital of state-owned enterprises

1. The questions below are for partially state-owned enterprises that are publicly listed

a) Can the government fund its debt indefinitely? if so what would be the impact on the cost of capital? do we use only CAPM or WACC?
b) Which cashflow method would be suitable for its valuation?
c) Can the government assume/absolve its debt, making it completely debt free?

2. The questions below are for completely state-owned enterprises

a) Suppose a highly leveraged state-owned company goes for an IPO, can the government absolve its debt before the IPO? If so, what would be the impact on its cost of capital and its valuation?
b) If it is a profitable enterprise at the EBIT level but in order for it to expand quickly the government funded the projects with debt, if the projects turn out to be profitable at the EBIT level, what would be the impact on its valuation?
c) What about the taxes and interest payments of state-owned enterprises? Applicable or not, in their day to day running and on projects? --- though I realize that textbook capital budgeting for projects ignores interest cost

General modelling question
Would it be a good idea to show the capital budgeting of a project a company is launching, when we model for the company's valuation?
Or do we just input the effect of the project into the capex, depreciation, interest, debt and the expected revenue growth (as a result of the project), etc in the forecasting?