Execise No. Mod 1-1 (Case study)

Property Corporation requires funds for its inventory, payment of wages, payment of utilities and other monthly operating costs.

A. You are to suggest which financial market, the company may approach and why?

B. Discuss the fianancial instruments to raise in this requirement.

Execise No. Mod 1-2 (Case study

Incorporated in 2000, Dairy Corporation is one of the leading manufacturers and marketers of dairy - based branded foods in India. In the initial years, its operation was restricted only to collection restricted only to collection and distribution of milk. But, over the years it has gained a reasonable market share by offering a diverse range of dairy based products including fresh milk, flavored yogurt,ice creams, butter milk, cheese,ghee, milk powders etc. In order to raise capital to finance its expansion plans. Dairy Corporation has decided to approach capital market through a mix of Offer for sale and a public issue of shares.

A. Name and explain the types of financial market being approached by the company.

B. Identify the possible financial instruments to be raised for this.

Exercise No. Mod 1- 3 (Case Study)

Gabriel won a cash prize of Php 20,000 in the National level Robotics Competition. On the advice of his father, he visits a nearby bank to open a Fixed deposit account in his name with the prize money. His sister Heart accompanied him to the bank. On reaching the bank, he notices big banners which are placed within the premises containing information about the various arrangements through which corporates may raise their capital through the bank. Being a finance graduate, Heart explains to Gabriel that banks play the role of the financial intermediary by helping in the process of channelizing the savings of the households into the most profitable business ventures.

A. Aside from the bank, suggest other financial intermediaries that help in the process of channelizing the savings of the households into the most productive to use.

B. Identify the functions of those financial intermediaries that you will be suggesting.