Answer:
B)Since the development of human capital is an important determinant of economic growth, Brazil's literacy and reading rates suggests its potential economic growth rate is lower.
Explanation:
From the question, we are informed about Brazil having a population of about 210 million, with about 150 million over the age of 15. And Of these, an estimated 25 percent, or 37.5 million people, are functionally illiterate, and also compare how the typical literate individual reads only about two nonacademic books per year, which is less than half the number read by the typical literate U.S. or European resident.
From the view of New growth theory,the option that explains the implications of Brazil's literacy and reading rates for its growth prospects is that Since the development of human capital is an important determinant of economic growth, Brazil's literacy and reading rates suggests its potential economic growth rate is lower.
New growth theory, which was attributed to Paul Romer, explains about Economic growth in the long run in related to internal factors of with knowledge as well as human capital. In this scenario Brazil should arrive to make sure the literacy rate among people is increased as possible
Answer:
The answer is Harris Co, who should include the $12,500 of the merchandise in transit as part of its year-end inventory.
Explanation:
For this question, we must first need to understand the <u>FOB destination</u>.
<u>FOB destination:</u>
- Selling term under which the ownership of goods sold and shipped remain with the seller - Harris Co.
- This is until the goods arrive at the buyer's destination
- Once the goods reached at buyer's receiving dock, the ownership is transferred to the buyer from the seller - In this case, buyer is Harlow Co
<u>Further explanation:</u>
In this case, Harris Co shipped $12,500 of merchandise FOB destination to Harlow Co. The ownership will remain with the company Harris Co (seller) that shipped the goods to Harlow Co (buyer), until they arrive at the buyer company Harlow Co's receiving dock.
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Answer:
$53
Explanation:
The computation of the stock sale at the end of the year is computed after calculating the required rate of return and the growth rate
The required rate of return by applying the Capital Asset Pricing model formula is
= Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 6% + 1.2 × (16% - 6%)
= 6% + 12%
= 18%
Now the growth rate is
Stock price = Dividend per share÷ (Required rate of return - growth rate)
$50 = $6 ÷ (18% - growth rate)
So, the growth rate is 6%
Now the ending stock price is
Next year dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend is
= $6 + $6 × 6%
= $6 + 0.36
= $6.36
So,
= ($6.36) ÷ (18% - 6%)
= $53
Answer:
D. The IRR is about 22.80%
Explanation:
If we use excel instead of trial and error method, it is easy to determine the Internal rate of return. As there is no cost of capital, it is challenging to determine IRR through the trial and error method.
The following image shows the IRR of this project is 22.80%.
