Task 1 - Cost of Capital 1. You have been provided the Financial Position Statement (Balance Sheet) of Al Batinah Power Company SAOG for the year 2019 and the extracted capital structure is presented here below. Ain RO (2019 Tocal Equity Capital 28938 3.6% Term Loan 122,685 Totul Average market return of power companies in Oman is about 15% and the beta for the similar companies return will be 0.97. Oman's Average Government 10 years bond yield is 5.66% p.a. (Risk free rate of return). The company has a marginal tax rate of 15% Required: (a) Calculate Cost of Equity capital using CAPM model (1 marks) (b) Calculate Cost of Term Loan (1 mark) (e) Calculate Weighted average cost of capital. (2 marks) (d) You as a finance manager of Ai Batinah Power Company explain with justification any two important factors that would affect weighted average cost of capital of your company. (1 Mark) (Total 5 Marks) Task 2 - Working Capital Management 2. You have been provided Income Statement and Financial Position Statement of Oman Cement Company SAOG for the year 2018 and 2019. You are required to evaluate the Working Capital position of this company for the year 2018 and 2019 based on following calculations: (i) Liquidity position of the company (current ratio and quick ratio). What is your view about status of liquidity position of Oman Cement Company? (2 Marks) (ii) Cash Operating Cycle in a tabular form (as shown in ppt slide number 10 of working capital management) and present Cash Operating Cycle in a diagram for both years separately (as shown in class ppr slide number 9 of working capital management). (4 marks) (ii) Based on the above calculation, give your overall view on working capital situation of Oman Cement Company between the year 2018 and 2019. What are your suggestions to Oman Cement Company for strengthening Working Capital Management? (2 Marks) (iv) Discuss some of the factors that could impact the working capital management of Oman Cement Company SAOG? (2 Marks)