Question: 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

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 )

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