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Question 1 Bank Sohar SAOG has 200,000 shares at the current market price of OMR 2 each. It also has OMR 100,000 worth of debt.

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Question 1 Bank Sohar SAOG has 200,000 shares at the current market price of OMR 2 each. It also has OMR 100,000 worth of debt. The expected return on equity is 8%. The debt is estimated to be relatively risk free and has a return of 3%. Corporate tax rate is 30% per annum. Bank Sohar's Cost of capital is: Show workings clearly

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