Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: daixieit

FIN B281F Finance for Managers

Assignment 1

Due Date: 3 November 2023

This assignment consists of 5 questions, carrying a total of 100 marks. Student scores will contribute to 35% of the course score.

Important note:

i.       Students are expected to follow the APA Style (7th edition) created by the American Psychological Association when citing sources in their assignments. A list of references should be included at the end of each assignment.

ii.      Students  should upload a  soft copy of their assignment(s) to the OLE course page. Unless otherwise specified, all assignments should be submitted in Microsoft Word format. There is no need to submit the hard copy of the assignment(s).

iii.     As a mechanism to maintain academic integrity, assignments uploaded on the OLE will automatically be sent to Turnitin for plagiarism checking before final  submission. Please refer to the quick start guide for submission of assignments to Turnitin on the OLE.

iv.     Assignments must be submitted to the OLE by 5:00pm on the submission due date. 10% of the marks awarded to the assignment will be deducted for each calendar day overdue until the soft copy of the assignment is submitted.

Question 1 (20 marks)

According to the MTR Corporation’sdisclosure on 31 July 2023, their major shareholder is the HongKong SAR Government, which takes up 74.57% of the issued outstanding shares. Each management member owns 0.03% or less of the company’s shares.

With the above background information, please answer the following question accordingly.

a)   There were theories introduced in Topic One of this course. According the above given information,please identify and explain one of the most related theories impacts MTR Corporation.  (10 marks)

b)  Utilizing the knowledge acquired in Topic One, please propose a remuneration package for the senior management of MTR Corporation, consisting of a three-year contract term. The goal is to motivate the senior management to perform better in their positions. (10 marks)

Rubrics:

a)   Below, please see the Rubric for this question.


b)   Below, please see the Rubric for this question.


Question 2 (25 marks)

MU Jewelry Ltd. is a successful jewelry company in Hong Kong that belongs to your family. You have set a personal goal to pursue an MBA degree in the United Kingdom after completing your Bachelor's degree at HKMU. Unfortunately, your parents disagree with this plan and prefer you to remain in HongKong to assist with the family business.

To persuade your parents, you explain that you intend to explore the possibility of expanding the family business to the United Kingdom during your studies. To support your argument, you apply the knowledge acquired in Topic Two of this course to analyze relevant information.

Financial information of MU Jewelry Ltd. and a summary of peer companies in the UK market are provided on the next page.

Please answer the following question accordingly.

a)   Please calculate all the ratios provided in the industry table for MU Jewelry Ltd. (8 marks).

b)  Based  on  the  ratios  you  have  just  calculated,  please  provide  a  comment  on  the likelihood of persuading your parents to support your idea of expanding the business tothe UK. (17 marks).

Question 3 (20 marks)

Metro Bank offer the following investment plans to its corporate:

a)   Please determine the annual interest rate for each plan accordingly. (15 marks)

b)  Considering that the current bank savings yield at 5% per annum, do you find any of the investment plans tempting? (5 marks)

Question 4 (15 marks)

The HR department of Open Limited is planning to provide an insurance plan for its staff members who are approaching retirement. Under this plan, if they pay $800,000 when they reach Hong Kong's legal retirement age, the company will pay them $6,000 per month until

they pass away. Please answer the following questions accordingly.

a)   If the staff's remaining life expectancy is 20 years, what is the monthly interest rate for this plan? (10 marks)

b)  What is the effective annual interst rate? (5 marrks)

Question 5 (20 marks)

Please come up with a theory learned in class that aligns with the comic provided and explain what the theory is about. (20 marks)

Below, please see the Rubric for this question.