Car City Motors Ltd. in Happy Valley (Hong Kong) is offering
free credit on a new...
Car City Motors Ltd. in Happy Valley (Hong Kong) is offering
free credit on a new $10,000 car. You pay $1,000 down and then $300
a month for the next 30 months. Wai Cheong Motors Ltd. in Wan Chai
does not offer free credit but will give you $1,000 off the list
price. If the interest rate is 10 percent a year, which company is
offering the better deal?
Solutions
Expert Solution
we should choose deal which has lowest present value
pv of deal at car city motors is 8934(workings in excel
sheet)
K Mautos is offering free credit on a new $110,000 car. You pay
$2,0000 down and then $3500 a month for the next 30 months. Lemon
Motors next door does not offer free credit but will give you
$1,000 off the list price. If the rate of interest is 10% a year,
which company is offering the better deal. Please help with an
excel.
A Ltd, is a company incorporated and carrying on business in
Hong Kong, is organizing a pop music concert to be staged in Hong
Kong in January 2018. A Ltd has appointed another Hong Kong
resident company, B Ltd, to procure the performance of an overseas
artist at the concert, for which A Ltd will pay B Ltd $11 million.
Ms. Happy, a famous international star singer from the US, has been
approached by B Ltd to undertake this performance....
1.
In June 2018
“XiaomiCorp.andsomeexistinginvestorsraised$4.7billionafterpricing a
Hong Kong initial public offering at the low end of a marketed
range, a person with knowledge of the matter said. The
Beijing-based smartphone maker priced the sale of 2.18 billion
shares at HK$17 each, the person said, asking not to be identified
because the details are private. Xiaomi had offered the shares at
HK$17 to HK$22 apiece. The pricing values Xiaomi at about $54
billion, roughly half the company’s initial goal.” Explain the...
Kangaroo auto is offering free credit on a $10,000 car. You can
pay $1000 down and then $300 per month ($9,000 ÷ 30 months) for 30
months. Turtle Motors, next door, does not offer free credit but
will sell you the same car for $9,000 with 100% financing at 8% for
30 months. What are your monthly payments at Turtle Motors? Which
offer is the best offer?
An investment bank is offering a new financial instrument called
a “happy call.” The happy call has a payoff at the end of the year
equal to max [0.5S1, S1−$10], where S1 is the unknown price of a
stock at the end of the year. You always get something with the
happy call. The market price of the stock today is$11. There are
two ordinary call options with strike prices of $10 and $20 being
traded in the market. The...
Hong Kong was ranked the second most sustainable city in Asia
after Singapore according to Arcadis’
Sustainable Cities Index (SCI) in 2018. Hong Kong obtained top
marks in economic aspects but trailed
in some other important parameters. A green group recently warned
that the Hong Kong government
might fail to reach the previously promised environmental goals,
particularly waste reduction. The
Hong Kong government definitely needs to take more actions to
enhance the overall sustainability in
a more balanced manner.
What...
Hong Kong was ranked the second most sustainable city in Asia
after Singapore according to Arcadis’
Sustainable Cities Index (SCI) in 2018. Hong Kong obtained top
marks in economic aspects but trailed
in some other important parameters. A green group recently warned
that the Hong Kong government
might fail to reach the previously promised environmental goals,
particularly waste reduction. The
Hong Kong government definitely needs to take more actions to
enhance the overall sustainability in
a more balanced manner.
To...
Free Trade:
Markets
How did Hong Kong end up having a free-market economy?
What type of economic growth has Hong Kong had over the past 50
years? Has it changed since 1980 when Milton Friedman was
there?
According to the movie, what is, “self-interest?”
Free Trade: Creative
Destruction
How has Mr. Cheung adapted to the demands of the market?
What is, “creative destruction?”
How do people in developing countries use cell phones
differently than people living in advanced economies?
Why...
Hong Kong Taxation
Candy Suen rented out an office premise in Wanchai to Winny Ltd
for many years at $30,000 per month. However, due to its poor
trading performance, Winny Ltd has not paid the monthly rent since
1 January 2018. Rates paid by Candy for the flat were $10,000 per
annum for the years ended 31 March 2018, 2019 and 2020. As Winny
Ltd failed to pay the monthly rent, legal action was taken to
recover the rent and...
According to Thomson Reuters data, Hong Kong replaced New York
in 2015 as the world's biggest initial public offering market by
the amount of funds raised. The funds raised in Hong Kong accounted
for more than a third of the total amount for the entire Asia
Pacific region.
(a) Why Hong Kong has been able to attract foreign firms to
raise funds here? Critically discuss four main attractions
possessed by Hong Kong.
(b) Though Hong Kong is currently the biggest...