Business Law

A new hotel has advertised in the local newspapers that its ballroom is going for a cheap rate for the month of June. Patrick wants to make a booking of the ballroom for a party for his daughter, Mary’s birthday on the 25^th June. The hotel manager does not want to accept his booking. However the hotel manager is prepared to give an alternative room to Patrick at a lower rate. Patrick refuses to accept the alternate room and is threatening to sue the hotel for not abiding by the advertisement in the local newspapers.

Critically evaluate whether there is a contract between the hotel and Patrick. Justify the answers with the evidence from the law of contract.

Oriental Hotel Bhd owned a few hotels in Malaysia. Their hotel in Melaka is set against a picturesque vista of Melaka’s most famous historical landmarks pf Melaka Raya. The location is close to Melaka City Centre with cheerful nightlife and mere minutes from the acclaimed UNESCO World Heritage site. The office management operates in the same hotel building as the hotel services provided to its guest. The company itself manages the hotel except for the laundry services which was transferred to its tenant, Cuci-Cuci Services Sdn. BHd.

Oriental Hotel Bhd take another step forward in its expansion plan with the opening a new hotel in the southern region in Malaysia. On 1 January 20X5, the company acquired a land for RM3,200,000 to construct a 4-star hotel building in Pangerang, Johor. Construction of the hotel building commenced on 1 March 20X5 and it was completed on 31 January 20X7, but was only used on 1 March 20X7.Total construction cost incurred excluding borrowing costs were RM34,000,000. The construction cost also includes the rectification of RM200,000. In order to finance the construction, the company took an 8%, 3 year-term loan of RM30,000,000 on 1 February 20X5. The company received a government grant of RM1,400,000 on 1 February 20X7 for the newly constructed hotel building. It is the company’s policy to use deferred income method for the government grant received.

Required:
Explain the accounting treatment for government grant received and how will it differ from the alternative method.

Question 1 Your stock has a β = 1.53, the expected return on the stock market is 17.33%, and the yield on T-bills is 3%. What is the expected return on your stock?

Question 2 Suppose you hold a portfolio of two stocks in the healthcare industry. The future outcomes for these stocks depend mainly on the next healthcare bill to be passed by Congress. The possible outcomes and returns are:

What is the expected return and a standard deviation of a portfolio that has 50% of its value in stock A and 50% in stock B?

Group of answer choices

5.1% and 3.2%

7.5% and 4%

5.1% and 3.2%

9.9% and 3.2%

Determine which of these data sets represents a zero-order, which represents a first order, and which represents a second order reaction. For each compound, A, B and C:

Write the rate law and integrated rate law.

Determine the value of the rate constant, use appropriate units? Justify.

Calculate the half-life.

Determine the concentration of A, B, and C at 400 minutes.

Suppose that the utility you receive from buying vegetables (V) and medicine (M) are given by: ???????(?, ?) = 4? ^0.8?^0.2)

a) What is your marginal utility of vegetables and medicine?

b) What is your marginal rate of substitution (vegetables as x good and medicine as y good) between the two?

c) If the price of vegetables is $20, the price of medicine is $15, and income is $120, what is your optimal consumption of V and M? Graphically show your answer.

d) If we start to tax medicine, increasing the price to $20, solve for your new optimal consumption of V and M . Given this utility function, how is your answer “predictable” based on your answer to c?

e) How much utility to you generate from the optimal bundles found in parts (c) and (d)?

Refer to the information in the table that follows to answer the question that follows:

Calculate the marginal propensity to save (MPS)?

Select one:

a. 0.2

b. Cannot be determined from the information available

c. 0.8

d. 0.1

Consider a firm managed by an entrepreneur. The firm has two kinds of debt outstanding: senior debt under which it owes $150 to bondholders, and a subordinated bank loan that requires a repayment of $1,250. The firm’s assets have a current liquidation value of $400, but if the firm continues to operate, it will be worth $1,400 with probability 0.8 and zero with probability 0.2 one period hence. To manage the firm for an additional period, the entrepreneur incurs a personal cost of $25. The entrepreneur has declared that he wishes to file for bankruptcy and has contacted both the bank and the bondholders’ trustee. The bondholders wish to liquidate the firm immediately. What should the bank do? Assume universal risk neutrality and a risk-free (discount) rate of zero. The entrepreneur owns all of the firm’s equity.

1. A certain spring is compressed 0.2 metres from its natural length by a force of 0.02 newtons. A 0.1 kilogram mass is attached to this spring. There is no damping, and the mass is acted on by an external force of 0.05 cos(0.8 t) newtons, where t is measured in seconds. At t = 0, the mass is released, at rest, from its rest (equilibrium) position.

   1. (a) Set up and solve the initial value problem for the displacement x(t) of the mass from its rest (equilibrium) position, where x is measured in metres. Express x(t) as a sum of sinusoidal (i.e. sine or cosine) functions of t.

   2. (b) Express x(t) from part (a) as a product of sinusoidal functions of t, and identify the two “envelope” functions that x(t) oscillates between.

Mickey Johnson is considering investing some money that he inherited. The following payoff table gives the               profits that would be realized during the next year for each of three investment alternatives Mickey is               considering (You should calculate the results to support your conclusions to get the credit): (10 points)

1. What decision would maximize expected profits? (4 points)

2. What is the maximum amount that should be paid for a perfect forecast of the economy? (3 points)

3. Develop an opportunity loss table for the investment problem that Mickey Lawson faces. What decision would minimize the expected opportunity loss? What is the minimum EOL? (3 points)