Cyprus’ gross domestic product in 2011 was €17.98 billion, according to data produced by the European Commission. Of that total, 66.5% was domestic consumption. But Cyprus’ banks held total deposits of €74.24 billion at the end of 2011, according to the European Central Bank. Please explain how Cyprus’ banks held deposits totaling more than four times the value of its entire economy, and why that fact is relevant now.
Your answer will be assessed based on the same criteria as the previous writing exercises. Your answer should be 500 words or less.
Please write your assignment in Microsoft Word or Pages and upload it as an attachment using the buttons below. The file name MUST be your student number, and ONLY your student number, followed by the file extension (for example: 2011123456.docx). The message “Your file is uploaded” will appear in place of the buttons if the upload was successful. Please upload your completed assignment by noon on Apr. 15, after which time the buttons below will disappear.
Due to the holidays next week, we won’t have a lecture on Monday (Apr. 1). Also, the tutorial sessions on Tuesday (Apr. 2) will be cancelled.
Have a great Easter/Ching Ming holiday!
10:30am: Group 1
10:40am: Group 2
10:50am: Group 3
11:00am: Group 4
11:11am: Group 5
11:30am: Group 6
11:40am: Group 7
11:50am: Group 8
12:00 noon: Group 9
12:10pm: Group 10
You have just been appointed as Chief Executive Officer of Universal Motors Co., the (fictitious) Hong Kong-based maker of the popular, and low-cost, Panda automobile. Last year, your company sold 20,000 Panda cars for full-year revenue of HK$2.0 billion, and earned HK$100 million in net profit. Since the Panda was introduced in 2000, Universal Motors has sold 200,000 units of the four-door sedan (including the 20,000 sold in 2012). You were hired to boost the company’s revenue and profits, so shareholders are expecting profit to increase by at least 10% this year.
Earlier today, your chief designer admits he’s been hiding a dangerous flaw in the design of the driver’s door that could lead to the door slamming shut on its own, potentially injuring a driver’s arms or legs. While the designer tells you the likelihood of injury is low, and so far there haven’t been any reports of serious injuries, there remains the possibility that some drivers might sustain debilitating injuries to an arm or leg. The designer estimates that such a serious injury will happen in only one in 50,000 cars. Happily, the designer has already come up with a fix. Changing the design will add only HK$150 to the cost of newly produced Pandas, but repairing cars already sold will cost HK$1,000 each. Your legal team produces a detailed analysis showing that compensating drivers who sustain serious injury to due a rogue door will cost at most HK$10 million per incident.
What would you do, and why? In your explanation, please refer to the concepts we’ve been discussing in class, your own judgment, and any other outside information you feel is relevant. If you use outside sources, please make sure to cite them clearly and fully! And remember – there is no single right, or wrong, answer to this exercise. Your answer will be assessed based on the same criteria as the previous writing exercise. Your answer should be 500 words or less.
Please write your assignment in Microsoft Word or Pages and upload it as an attachment using the buttons below. The file name MUST be your student number, and ONLY your student number, followed by the file extension (for example: 2011123456.docx). The message “Your file is uploaded” will appear in place of the buttons if the upload was successful. Please upload your completed assignment by noon on Mar. 1, after which time the buttons below will disappear.
We have a new classroom for both tutorial sessions. From Feb. 19, all tutorials will meet in MW325 in the Meng Wah Complex.
For some reason the link embedded in this week’s lecture slides doesn’t work. If you’d like to review the “Balance Sheet Barrier” video, you can watch it here:
Office HoursMon 9am-12pm
Class ScheduleLecture: Mon 3:30-5:20pm (MWT4)
Tutorial A: Tue 10:30-11:20am (OLB135)
Tutorial B: Tue 11:30am-12:20pm (OLB135)
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