CASE NO #02

Mr. Mohammed is working as a Vice President - Finance in Suhail Bahwan Group of Companies. After 3 months of his appointment, he found, many finance related problems that are faced by treasurer and controller working under him. Mr.Mohammed called them for a meeting and found the following issues are raised by the Treasurer and controller:

1. The business dont have enough cash to maintain daily operations.

2. A large majority of business clients pay late on a regular basis.

3. The business needs to raise short term capital, but not sure which funding option to choose for the purpose.

4. The company also do need to raise long-term capital, but not sure which is the best option.

You, as a Financial Management student, are required to give at least three (3) solutions for each problem discussed above by the treasurer and controller with proper justification and explanation. So that Companys Finance operations work smoothly.