Part $2.$ Managing in Financial Markets For this exercise you will need to choose any publicly traded company. Please look into the recent financial reports of the company and answer the following questions. $1.$ Roles of Financial Markets and Institutions. Is your company a surplus unit? In what way? Is your company a deficit unit? In what way How your company interacted with financial markets and institutions in the past? How might financial markets facilitate your company$$s expansion? In parts c and d you need to mention relationships with finance companies, commercial banks, securities firms, primary and secondary markets The loans that some companies obtain from commercial banks stipulate that the company must receive the banks$$ approval before pursuing any large projects. What is the purpose of this condition? Does this condition benefit the owners of the company? $2.$ How the Flow of Funds Affects Interest Rates Assume that your company has obtained substantial loans from finance companies and commercial banks. The interest rate on the loans is tied to market interest rates, and is adjusted every six months. Thus, its cost of obtaining funds is sensitive to interest rate movements. Given its expectations that the economy of the country where your company operates will strengthen, your company plans to grow in the future by expanding its business and through acquisitions. Your company expects that it will need substantial long$-$term financing to pay for this growth, and it plans to borrow additional funds either through loans or by issuing bonds. The company is considering the issuance of stock to raise funds in the next year. Explain why your company should be very interested in future interest rate movements. Given your company$$s expectations, do you think that the company anticipates that interest rates will increase or decrease in the future? Explain. If your company$$s expectations of future interest rates are correct, how would this affect its cost of borrowing on its existing loans and on future loans? Explain why your company$$s expectations about future interest rates may affect its decision about when to borrow funds and whether to obtain floating$-$rate or fixed$-$rate loans.