Question $1$

One of the notable trends in the recent times in financial reporting is $$ESG Reporting$.$ Explain what ESG Reporting is and why is it so important in modern day$$s financial reporting.

Question $2$

a$.$ Calculate the Weighted Average Cost of Capital and the Gearing Ratio ADCB based on the following information are extracted from the financial statements for the year $2022$:

$$ Issued share capital of $$750$ M

$$ Last Dividend Paid $ $90$ M

$8\%$ Long Term Loan of $ $500$M

b$.$ The Chinese Construction Company $($CCC$)$ is planning to construct a $100$KM Highway with Toll Gates in country Xonia on a BOT $($Build Operate and Transfer$)$ basis. This means, once the construction of the highway is completed, the Company will operate for $6$ years and transfer to the Government of Xonia. Your Company has been working as the Consultant to CCC and your team has gathered the following information for your analysis:

$$ Initial Investment required is USD $500$M$.$

$$ Expected income from the Toll Collections for the $6$ years:

Year $180$M

Year $2100$M

Year $3110$M

Year $4110$M

Year $5110$M

Year $6110$M

After the successful hander, the government agrees to pay $100$M which will

materialise in the subsequent year. On the year after the transfer, CCC will dispose

the road maintenance equipment for just $50$M$.$

CCC is planning to finance this project with a $6-$year loan at $9\%.$

Required:

The Director Wants you to calculate the following:

a$.$ The Payback Period

b$.$ Accounting Rate of Return

c$.$ The Net Present Value of the Project

d$.$ The Internal Rate of Return

e$.$ Interpret the results in an advisory capacity

Question $3$

Explain the different classifications of financial markets with examples of financial

instruments and the role of a strong financial market in a fast$-$growing economy.