Q.1. Being Chief Financial Officer (CFO) of Dhufar Beverages, Justify the role of CFO in short- term and long-term decision making. Each justification should be discussed separately 10 Marks Q. 2. Justify the purpose of following qualitative reports, which are considered an integral part of audited financials of a public limited company Chairman / Board of Directors' Report Management Discussion and Analysis Report Remuneration Report Corporate Governance Report Auditors' Report 10 Marks (6x2) Q. 3. Calculate the weighted Average Cost of Capital for OMR 45,000 if debt portion is 20% of total capital. Use following costs for each capital component: Average Debt cost = 7.5% Tax rate = 24% Equity cost = 11.5% 8 Marks Q4. (A) Consider. Sohar Aluminum eams an Earning Before Tax (EBT) for OMR 132,000 in financial year end 2020. Calculate the average taxes with the help of the following table Taxable income 0-25,000 25,001-50,000 50,001-100.000 100,001-125.000 125,001-500.000 500,001 and above Amounts in OMR Marginal Tax Rate 10% 15% 22% 30% 38% 40% 8 Marks Q.4 (B) Keeping in mind the result of question 4(A), Justify which tax rate is beneficial for the company i.e. corporate tax rate or average tax rate? Use an EBT for OMR 132,000 with a corporate tax rate 38% 4 Marks 1 Q. 2. Q.1. Being Chief Financial Officer (CFO) of Oman Cement Company, Justify the role of CFO in short-term and long-term decision making. Each justification should be discussed separately 10 Marks Justify the purpose of following qualitative reports, which are considered an integral part of audited financials of a public limited company Chairman / Board of Directors Report Management Discussion and Analysis Report Remuneration Report 1. Corporate Governance Report Auditors' Report 10 Marks (542) Q. 3. Calculate the weighted Average Cost of Capital for OMR 50,000 it debt portion is 22% of total capital. Use following costs for each capital component Average Debt cost = 7.2% Tax rate = 25% Equity cost = 12% 8 Marks Q4. (A) Consider, Sohar Aluminum earns an Earning Before Tax (EBT) for OMR 125,000 in financial year end 2020. Calculate the average taxes with the help of the following table Taxable income 0-25,000 25,001-50,000 50,001-100,000 100,001-125,000 125,001-500 000 500,001 and above Amounts in OMR Marginal Tax Rate 10% 15% 22% 30% 38% 40% 8 Marks Q.4 (8) Keeping in mind the result of question 4(A). Justify which tax rate is beneficial for the company i.e. corporate tax rate or average tax rate? Use an EBT for OMR 126,000 with a corporate tax rate 38% 4 Marks