question 1

Question 2

Please solve both its a humble request.

Gulf International Company has invented a new gadget and wishes to launch this new invention in the market. The company is certain there will be demand from millions of people around the world, and therefore it needs to build a new factory. The company is planning to raise 200,000 for constructing the factory. The Company's existing capital structure consists of 700 common stock, and 500 10% Preferred stock @25, and 3,000 10% Bonds @ 10 each The company has following alternative scheme of financing. Kindly suggest which is better and why I. To issue 1,000 common stock @ 100 each AND issue 1,000, 10% Bonds @ 50 each AND 1,000 10% Preferred Stock @ 50 II. To issue 1,000 common stock @ 100 each AND issue 1,000, 10% Bonds @ 75 each AND 1,000 10% Preferred Stock @ 25 To issue 20,000, 10% Bonds @ 10 each The company's EBIT is 200,000. The corporate Tax rate is 27% Muscat International Company is working in the construction field in Arabian Gulf. The executive manager is planning to expand their work to cover Middle East also; the following information is related to one offered project in the Malaysia: The cost of buildings and infrastructure RO 260,000 The cost of the cars and machines RO 100,000 The cost of plants RO 200,000 The yearly expected cash outflow and cash inflow for 9 years as following: Cash inflow RO 160,000 Cash outflow RO 80,000 You are requested to prepare Internal Rate of Retune since you are working as the financial manger the Muscat International Company