Assignment 1 (2023) (1)
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The University of Hong Kong *
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Subject
Finance
Date
Nov 24, 2024
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KS TSE 1
Real Estate Finance
Assignment 1/3
HKU, K S Maurice TSE
Note: Grace TSANG will announce the deadline for this assignment and provide you the instruction
for submission.
There will be a total of
THREE assignments
and
ALL
will be counted toward your
final grade. This assignment carries 50 points and represents 5% of your overall grade.
The Excel file “Dataset for Assignment 1” provides the data needed for
the assignment.
Question 1: Property Market Analysis (25 points)
The Excel shee
t “
Q1.
Property Mkt” contains
the following THREE data series downloaded from the
HKSAR website:
(1)
Private Domestic Property Price of Class A, B and C for Kowloon (Quarterly from Q1 1990 to
Q1 2019)
(2)
Hang Seng Index (Quarterly from Q1 1990 to Q1 2019)
(3)
Monthly Salaries of Supervisory Workers (Quarterly from Q1 1999 to Q1 2019)
1.
Compare the performance of the property prices of Class A, Class B and Class C for Kowloon
with the Hang Seng Index in terms of annualized rate of return for the following periods: (10
points)
a.
From Q1 1999 to Q1 2019,
b.
From Q1 2009 to Q1 2019
c.
From Q1 2014 to Q1 2019
2.
Evaluate the annualized growth rates of the average monthly salaries of
Office/administrator supervisor, Accounting Supervisor and Estate officer/building services
officer for the following periods: (10 points)
a.
From Q1 1999 to Q1 2019,
b.
From Q1 2009 to Q1 2019
c.
From Q1 2014 to Q1 2019
3.
How do the salary growth rates compare with the property price of Class A, Class B and Class
C for Kowloon growth rates? (5 points)
Question 2: Property Market Bubble Analysis (25 points)
The Excel sheet “
Q2.
Property Mkt Bubble” contains
the median monthly household income by
household size and the property price per square meter for Class B residential properties in Hong
Kong Island for the annual period from 2001 to 2018.
Consider the median monthly household income for a typical household with
FOUR
economically
active members.
Suppose the household can only commit up to 1/2 of its income to mortgage
payment.
The usual mortgage terms are 25-year, monthly payments, with mortgage rate equal to
Prime Rate (5.625%) minus 2.5%, and 40% down payment.
Assume that the household has enough
savings to make the 40% down payment for property price.
KS TSE 2
(a)
Determine the maximum home price the household can afford each year from 2011 to
2018?
(5 points)
Hint: Based on the median household income and the mortgage terms, the maximum
mortgage an average household can borrow is determined as follows:
??𝑟𝑡𝑔𝑎𝑔𝑒 ??𝑎? = 𝑃?𝑇 [
1 − (1 + 𝑟/12)
−12𝑛
𝑟/12
]
Where r is the annual mortgage rate, n is the mortgage term in year and PMT is the monthly
mortgage payment
(b)
Suppose the
4-member
household wishes to buy and own a class B property in Hong Kong
Island of size
65 square meters
. Plot the time series of the affordable home prices
calculated in (a) and the corresponding class B property prices for the period from 2011 to
2018. (5 points)
(c)
Determine the size of the price bubble for 2016, 2017 and 2018 calculated in (b). (10 points)
(d)
Using the bubble model discussed, determine the market-expected probability that the
bubble would
NOT
burst in 2016/2017 and 2017/2018? (5 points)
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Related Questions
Use the information above to complete the missing values in the table below $2,500 invested 4% interest.
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Fill in the blanks in the schedule below for two separate investment centers A and B.
Note: Round your final answers to 1 decimal place.
Investment Center
Sales
Income
Average assets
Profit margin
Investment turnover
Return on investment
A
+
$ 240,000
$ 1,200,000
8.0%
B
$ 10,400,000
2.0
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tests.mettl.com/test-window/f55ac827#/testWindow/0/6/1
EY
Accounting Assessment
Total 00:55.46
Finish Test
Section 1 of 1 Section #1 v
12
5.
7
8.
6.
10
11
7 of 45
All
2
43
Question #7
GRevisit
Choose the best option
Wages paid to own employees who have redecorated the office are
O capital expenditure.
debited to profit and loss account.
debited to premises account.,
O credited to profit and loss account.
Frev Question
Next Question
+91-82878-03040
Zaineh | Support +1-650-924-9221
4:12 PM
metti
1/16/2021
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Assignment 6.1: Session 6 Comprehensive Problem (Chapter 8)
Instructions
In this session, we have a 6-part comprehensive problem. Download the Session 6 Comprehensive Problem Templates below to complete the 6 required parts of the problem. You will need your Bergevin and MacQueen book for reference.
Rancho Cucamonga Inc. began business on January 1, 2020. The firm earned $100 from sales in its first year of business. Rancho Cucamonga collected $90 of revenue earned in cash during 2020 and reported a $10 account receivable on its 2020 balance sheet. The firm paid $70 cash for operating expenses in 2020 and reported a $5 account payable for unpaid operating expenses on its 2020 balance sheet. Income tax laws only recognize cash collected from sales and cash paid for expenses as taxable items in the year collected or paid.
Rancho Cucamonga also reported a $10 fine, paid in cash, to the federal government for unfair business practices. Generally accepted accounting principles allow firms…
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What is the amount of the total paid-in capital? What makes up this amount?
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5 of 25 Concepts completed
Ordering Question
Click and drag on elements in order
Place the steps involved in the calculation of the discounted payback period in order.
Instructions
Mc
Graw
Hill
Add the discounted cash flows.
Accept if the discounted payback period is less than some prescribed number of years.
Discount the cash flows using the discount rate.
Need help? Review these concept resources.
Determine the discounted payback period.
Rate your confidence to submit your answer. High
Medium
Low
© 2024 McGraw Hill. All Rights Reserved. Privacy Center Terms of Use
Exit Assignment X
Reading
✓
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Math Concepts
6.
Exam 3
Name:
Assume that the following loan was paid in full before its due date.
Regular Monthly
Payments
$785
APR
6.5%
Remaining Number of Scheduled
Payments after Payoff
36
(i)
Obtain the value of h.
(ii)
Find the amount of unearned interest by the actuarial method.
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General Accounting
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Module 2.6: Understandin...
Question
Calculate the total cost of a 15-year, $20,000 student loan at an interest rate of 4.5% per year compounded monthly.
Round to the nearest dollar.
CURRENT OBJECTIVE
Evaluate student loan options
Provide your answer below:
@
W
S
3
e
d
C
$
4
r
f
0
%
5
t
A
6
Oll
y
h
&
7
FEEDBACK
J
*
8
j
Von
b
MORE INSTRUCTION
m
(
9
k
O
O
SUBMIT
P
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Need help plz
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Need Financial Accounting Question solution
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Goal
To use recursive sequence to determine the amount money owed on a loan after months
Role
You are a loan officer at a mortgage company.
Audience
Jim and Joan Miller are customers applying for a mortgage.
Situation
Jim and Joan Miller are borrowing $120,000 at 6.5% per annum compounded monthly for 30 years (360 months) to purchase a home. Their monthly
payment is determined to be $758.48.
Performance Task
You need to present Jim and Joan with a report detailing the following:
• Arecursive formula for their balance after each monthly payment has been made.
• To do this, use the formula: a, = an-1 (1+r) – 758.48
A determination of Jim and Joan's balance after the first payment. Don't forget the interest affecting their payment!
• Use a spreadsheet or graphing utility to create a table showing their balance after each monthly payment.
• Determine when the balance will be below $75,000.
• Determine when the balance will be paid off.
• Determine the interest expense when the loan is…
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Assignment - 11. Quiz: Savings Accounts
SECTION
ASSIGNMENTS
COURSES
Attempt 1 of 1
1
2
3
4
Which functions denotes the value of a car loan that accrues 18% annual simple interest for t years?
Of (t) = 10000 + 120t
Og(x) = 10000 + 12t
Oh(x) = 12000t
Ok (x) = 10000 1.12t
NEXT QUESTION
O ASK FOR HELP
S Type here to search
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QUESTION 38
Last month, Jeff applied to three colleges (X, Y, and Z). Before applying he and his family had visited the all three colleges. Jeff has received admissions from Colleges X and Y. He is trying to decide which college he will attend. The following information is available:
College X College Y
(1) Cost of attendance $30,000 $21,000
(2) Program quality Excellent Average
(3) Campus visit cost $900 $300
(4) Location big city big city
(5) Scholarship $10,000 $10,000
Select the items that are relevant to Jeff's decision.
A.
(2), (4) only
B.
(1), (2), (3) only
C.
(1), (2) only
D.
(1), (3), (5) only
E.
(1), (3) only
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Part D please
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Explanation it correctly and not use excel
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Required information
Learning Objective 11-04 Calculate the periodic amortization of an
intangible asset.
(The following information applies to the questions displayed below.]
The allocation process for intangible assets is called amortization. For an
intangible asset with a finite useful life, the capitalized cost less any estimated
residual value must be allocated to periods in which the asset is expected to
contribute to the company's revenue-generating activities. An intangible asset
that is determined to have an indefinite useful life is not subject to periodic
amortization. Goodwill is perhaps the most typical intangible asset with an
indefinite useful life.
Software development
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Related Questions
- Use the information above to complete the missing values in the table below $2,500 invested 4% interest.arrow_forwardFill in the blanks in the schedule below for two separate investment centers A and B. Note: Round your final answers to 1 decimal place. Investment Center Sales Income Average assets Profit margin Investment turnover Return on investment A + $ 240,000 $ 1,200,000 8.0% B $ 10,400,000 2.0 12.0%arrow_forwardOnline Test Window-Google Chrome tests.mettl.com/test-window/f55ac827#/testWindow/0/6/1 EY Accounting Assessment Total 00:55.46 Finish Test Section 1 of 1 Section #1 v 12 5. 7 8. 6. 10 11 7 of 45 All 2 43 Question #7 GRevisit Choose the best option Wages paid to own employees who have redecorated the office are O capital expenditure. debited to profit and loss account. debited to premises account., O credited to profit and loss account. Frev Question Next Question +91-82878-03040 Zaineh | Support +1-650-924-9221 4:12 PM metti 1/16/2021arrow_forward
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Recommended textbooks for you
- Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning
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ISBN:9781111581565
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Publisher:Cengage Learning