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Dr. Mohammed Kumail Al Lawati is owner of Mustafa Sultan Exchange Center and decided to apply for loan in banks. They need OMR 225,000 and

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Dr. Mohammed Kumail Al Lawati is owner of Mustafa Sultan Exchange Center and decided to apply for loan in banks. They need OMR 225,000 and they want the following terms: loan period of 5 years and the rate is 5 per cent payable in equal monthly installment. They have expansion project and the funds will be utilized for that plan. The banks will be checking their financial status so he asked his accountant to prepare the financial statement. Additional information available from the project report are as follows; At present, the company's balance sheet is showing a total asset valued OMR 850,000. The total liability of the supermarket is OMR 725,000 and the ownership fund (Capital Invested) is OMR 600,000. The income statement of the past 2 years are showing increase in net income after tax of 185,000 in 2019 with 20% increase in 2020 Bank Sohar interest rate on loan at present is 5.5 per cent on term loans and maximum repayment period allowed for such loans is 6 years and the maximum loan they can provide is 184,000 OMR. Bank Dhofar is providing 5.25 per cent with maximum loanable amount of 400,000 OMR payable in 5 years. The company has an option to issue a commercial paper amounting 250,000 OMR with a par value of 257,000 OMR for 180 days. If the loan will be granted based on the terms that Al Jaleel wanted, which C's of Credit will be applicable? O a. Capacity b. Condition on Oc Collateral d. Capital If the company's terms and condition on the loan will be followed how much would be the monthly installment due for them? O a. 4, 687.5 OMR O b. 5,000.5 OMR O c. 7,655.8 OMR O d. 6,765.7 OMR How much is the interest if the company will choose Bank Sohar? O a. 60,720 OMR O b. 61,700 OMR O c. 58,400 OMR O d. 67,780 OMR 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 O d. Capital Market

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