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Usimov [2.4K]
3 years ago
6

Assume the carrying capacity of the earth is 13 billion. Use the 1960s peak annual growth rate of 2.1​% and population of 3 bill

ion to predict the base growth rate and current growth rate with a logistic model. Assume a current population of 6.8 billion. How does the predicted growth rate compare to the actual growth rate of about 1.2​% per​ year?
Business
1 answer:
user100 [1]3 years ago
5 0

Answer:

The predicted growth rate is compared at  -2%

Explanation:

To calculate growth rate, G.R = X(1-\frac{Population}{Carrying capacity of earth})

In the 1960s,

The carrying capacity of the earth = 13 billion

Earth's population = 3 billion

X = \frac{(Growth rate in 1960)}{(1-\frac{Population in 1960}{Carrying Capacity in 1960}) }

X = 0.021 (1-\frac{3,000,000,000}{13,000,000,000} )

X = 0.021 × 0.77

X = 0.01617 = 1.6%

Current population calculation:

Growth Current population (C.p) = 0.016(1-\frac{current population}{current capacity})

Growth Current population (C.p) = 0.016(1 - \frac{6,800,000,000}{3,000,000,000} )

Growth Current population (C.p) = 0.016(-1.267)

Growth rate = -0.020272 = -2%

The predicted growth rate compare to the actual growth rate of about 1.2​% per​ year at -2%.

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A stock has a required return of 11%; the risk-free rate is 7%; and the market risk premium is 4%.
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Answer:

The Beta is 1

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Explanation:

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4%=beta*4%

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beta=1

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required return=7%+1(6%)

required return =13%

This implies that the riskier the stock, the higher the market risk premium, the higher the required return to investors.

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Grecian Tile Manufacturing of Athens, Georgia, borrows $1,500,000 at LIBOR plus a lending margin of 1.25 percent per annum on a
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Answer: 92812.50

Explanation:

The following information can be derived from the question:

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LIBOR for 1st 6 months = 4.50%

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Lending margin per annum = 1.25%

The interest will then be:

= 1,500,000 × [(4.50% + 1.25%)/2] + 1,500,000 × [(5.375% + 1.25%)/2]

= 1,500,000 × [(0.045 + 0.0125)/2] + 1,500,000 × [(0.05375 + 0.0125)/2]

= 92,812.50

Therefore, the interest is 92812.50.

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4 0
3 years ago
A note payable was executed by Sterling Inc. to Miami Finance Company. Sterling Inc. used $768,000 of its accounts receivable as
denpristay [2]

Answer:

See all the entries below.

Explanation:

a. Record the entry for Sterling to record the secured borrowing.

The entries will look as follows:

<u>Account Name                                    Debit ($)           Credit ($)    </u>

Cash (768,000 * 85%)                       652,800

  Note Payable                                                              652,800

<em><u>(To record the secured borrowing.)                                                    </u></em>

b. Record the entries for Sterling to record (1) the collections and (2) the payment to Miami for the first month.

The entries will look as follows:

<u>Account Name                                    Debit ($)           Credit ($)      </u>

Cash                                                   504,320

Refund Liability                                    20,480

  Accounts Receivable                                                 524,800

<u><em>(To record collection on receivables for first month.)                         </em></u>

Interest Expense                                     4,480

Note Payable                                      499,840

  Cash                                                                             504,320

<u><em>(To record payment to Miami for the first month.)                               </em></u>

c. Record the entries for Sterling to record (1) the collections for the second month and (2) the final payment to Miami.

The entries will look as follows:

<u>Account Name                                    Debit ($)            Credit ($)     </u>

Cash                                                    238,080

Allowance for Doubtful Debt                  5,120

  Accounts Receivable (w.1)                                          243,200

<u><em>(To record collection on receivables for second month Interest.)     </em></u>

Expense                                                   1,920

Note Payable                                       151,040

  Cash (w.2)                                                                      152,960

<u><em>(To record final payment to Miami.)                                                      </em></u>

Workings:

w.1: Accounts Receivable = Amount of accounts receivable as collateral – Cash received from customer = $768,000 - $524,800 = $243,200

w.2: Cash = Loan - First payment for principal = $652,800 - $499,840 = $152,960

3 0
3 years ago
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