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Alexander and Nancy is a married couple in late 3 0 s with 1 years old kid living in Hong Kong. They have bought an

Alexander and Nancy is a married couple in late 30s with 1 years old kid living in Hong
Kong. They have bought an apartment 5 years ago. Alexander is a senior manager
working in a financial service company over 10 years. Nancy is a full-time mother taking
care of the kid together with a helper at home. They have no insurance policy. Below is
the financial situation of Alexander and Nancy.
Current Asset Current Market Value
Bank Deposit 80000
Equity and bonds 200000
Unit trust Funds 300000
Long term Asset
Residential Flat $4,000,000
Liability
Credit card balance overdue $30,000
Mortgage loan (4% interest rate p.a) $3,500,000
Income Per month
Alexanders Salary 80,000
Mortgage payment 25,000
Child, food and household expenses 20,000
Parent Living support 10,000
Automobile expenses 8,000
Helper Expenses 5,000
Entertainment 5,000
Tax 3,000
Miscellaneous expenses 2,000
Mandatory MPF contribution 1,500
Round to 2 decimal points for your answer
a) What is Alexanders net worth? @3
b) What is Alexanders solvency ratio? @3
c) What is Alexanders liquidity ratio? @3
d) What is Alexanders saving ratio? @3
e) As a Financial planner, based on the financial data gathered above and ratios you
have calculated, analyze the financial situation of Alexander and if you think he is not
in good shape, please identify three potential problems you anticipated with
suggested solutions to those area your highlighted to Alexander. @12

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