Section B (30 Marks ) 1. Foreign Direct Investment is vital for economic success in this globalized business environ-men

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Section B (30 Marks )
1. Foreign Direct Investment is vital for economic success in this
globalized business environ-ment. Countries get FDI in the form of
greenfield investment and brownfield investment.
a. Compare and contrast the greenfield investment with brownfield
investment using exam-ples from Oman context. (10 marks)
b. Discuss the merit and demerit of FDI to Oman economy. (10
marks)
2. A&A Limited has $4 million 6% debentures in issue. They are
redeemable in five years at a premium of 40%. Current market value
= $120 and Corporation tax = 25%
What is the post-tax cost of the debentures?
(Use 5% and 10% discounting factor in calculation of IRR) (10 Marks
)