Question
Raysut Cement is an Omani Cement Manufacturing Company established in the year 1981 and considered to be one of the largest cement producers in the
Raysut Cement is an Omani Cement Manufacturing Company established in the year 1981 and considered to be one of the largest cement producers in the Sultanate. The company has 3,000 employees working in different departments. The company is established as an SAOG company with available cash on hand of RO 12 Million allotted for some income generating activity or projects. The management identified that there are ample opportunities in the market. To do so, the company require as additional capital of RO 6.5 Million. The following information should be considered making decisions, where they would place their funds and where they would get their funds. - In buying T - Bill the nominal rate for dollar is 3.65% while inflation rate in 1.93% - In borrowing funds in National Bank of Oman the real nominal rate is 5.75% while the inflation rate is 2.25% - In common stock the nominal rate is 7.28% and the inflation rate is 9.35% - In corporate bonds the real interest is 5.52% while inflation rate 3.45% if they would place their funds in common stock and they become one of the major stockholders, they can have a chance to be part of decision making on major issues on company. Which characteristics of common stock is displayed here? a. Residual Claim Ob. Dividends c. Limited Liability Od. Voting Rights Which investment is showing losses for them based on the real interest rate and real interest calculations? O a. In T-bill investment O b. In Corporate Bonds investment O c. In all types of investment given O d. In Common Stocks Investment If they would invest in bonds which financial market is recommended for them? O a. Stock Market O b. Money Market O c. Derivative Market Od. Capital Market
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