Assume you are the Finance Manager for Tough Limited Inc which is domiciled in Jamaica. The company produces and distributes steel across the Caribbean and Central America. With a goal to acquire one of its competitors in the steel industry, you are given the mandate to borrow $50 million over the financial year 2021-2022.

1 Identify and explain the different ways you can borrow this $50M (4 marks).

2 In a meeting with the Chief Financial Officer of the company you were advised to consider the issuing of debt securities. What type of debt securities would you consider? Why? Describe the type of financial institutions in Jamaica that may purchase these securities? (5 marks)

3. Discuss some possible challenges your company may face in issuing these debts? (6 marks).

4. How do individuals indirectly provide financing for your company when they maintain deposits at depository institutions, invest in mutual funds, purchase insurance policies, or invest in pensions? (5 marks)