QUESTION $2(25$ MARKS$)$

Discuss an appropriate financial market and financial product for a company to solve

its financial matters under the following scenarios:

a$)$ RM$1$ million received from Headquarter in US which will stay idle in the bank

account for a supplier's payment to be due in $10-$days' time.

$(5$ marks$)$

b$)$ Intends to raise RM$50$ million for plant expansion at the juncture when Bank

Negara Malaysia is revising the Overnight Policy Rate downwards.

$(5$ marks$)$

c$)$ Expects to collect $1\mathrm{.}5$ million from its European client end of next two months

and Euro currency value has been very unstable for the past one quarter.

$(5$ marks$)$

d$)$ Intends to raise RM$300$ million for a merger & acquisition exercise when its own

company value is highly stated.

$(5$ marks$)$

e$)$ Intends to raise RM$300$ million for a merger & acquisition exercise when dilution

of voting power is the main concern of the key shareholders.

$(5$ marks$)$