Question No 2: (A) Al Khareef Company is a large and creditworthy Company that manufactures ceramic products in Oman. This Company always maintains sufficient raw material in its stores to avoid interruption in the production process. Recently, it started dealing with a new supplier and he is demanding an advance payment for supply of raw material. Currently, the company is facing liquidity problem and needs to raise short-term finance from the market. Requirement: Which money market instrument can be used by Al Khareef Company to raise the required funds ? Briefly explain its features. (3 Marks) (B) Raysut Cement Company is a leading cement manufacturing company in Oman. It wants to expand its business by establishing its branches in other parts of Oman. Since the investment is large, it requires long-term finance. For this purpose, the Company is looking for two alternatives- debt finance and equity finance that can be raised from the market. Requirement: (i) If company decides to raise debt finance, which market it should use and what are its features? Explain. (i) If company decides to raise equity finance, which market it should use and what are its features? Explain. (4 Marks) (C) Diamond Company is a manufacturing company which is involved in packaging business. At present the performance of the company is up the expectation. Keeping up with latest technology, the company decided to improve the quality of its products by upgrading its machinery. The company assigned the task of estimating the amount of funds required for this upgrading to its financial manager Mr. Salim. Mr. Salim started the work by collecting the relevant data about the amount available from internal sources. Later, he will estimate the remaining amount to be raised from external sources and try to find out the alternative sources from which this amount will be mobilized. Requirement: (i) By performing the above tasks, what are the functions performed by Mr. Salim? (ii) As a financial manager, what are the principles he should concentrate while investing capital of the company? Explain.