SEMESTER: MAY 2021

BBBFN3234
FINANCIAL MANAGEMENT II

Coursework Guidelines
 Students are required to do this assignment individually. This assignment constitutes
40% of the total grade.

 Assignment due date is on WEEK 14 through email. Late submission will be

penalized in which 2 marks per day will be deducted for lateness.

 Plagiarism is a serious form of cheating and plagiarized assignments will be

penalized. If you have any supporting sources of reference, please quote the reference
and list down all the sources in the references section at the last page.

Report Format

 Typed report with all workings and calculations (if any) shown in the final report.
Clear, neat and orderly report will also be taken into account in the report evaluation
process.

 Your assignment should be typed using Microsoft Words in Times New Roman font
size 12 with 1.5-line spacing.

 In the front page of the report, students need to provide the following information:

1. Module Name and Code

2. Students Name and ID Number
3. Programme
4. Semester
Question 1
The Covid 19 pandemic brought unprecedented destruction to economic globally. Notably,
the burgeoning casino gambling industry was virtually wiped out overnight. Genting Bhd as
one of the major casino operators in the Subic Bay, the economic downturn severely affects
competitors’ operation as well, however, because the competitor casinos were engaging in
aggressive renovation and planning to rebuilt from scratch, Genting is considering the
following possibility:
1) engaging in a major renovation of the casino, transforming it from a second-tier
operation into one of the top gambling attractions in the area.

2) Alternatively, Genting’s owners are considering a relatively modest renovation of the

property and the construction of a newer casino in a nearby location, which was also
devastated by extended lock down.

3) Of course, Genting could just shut down the operations of the casino and move to
another area of the country that allows casinos but that is less prone to pandemic due
to the availability of vaccination procured by local government.

Required:

You as group financial controller of Genting Bhd, identify the real options inherent in the
situation faced by Genting Bhd. Support your analysis with a decision tree. (25
marks)

END OF EXAM QUESTION