Sustainable growth rate is NOT 9.59 or 8.75%Internal growth rate is NOT 5.75 or 5.25% Loreto Inc. has the following financial ratios: asset turnover = 1.40; net profit margin (i.e., net income/sales) = 5%: payout ratio = 25%,equity/assets = 0.6o.a. What is Loreto's sustainable growth rate?b. What is its internal growth rate?(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)a.Sustainable growth rateb.Internal growth rate

Given Values: B1= Profit Margin = 5% B2= asset turnover ratio = 1.40 B3= equidity/ asset = 0.60 For…

Answered: Loreto Inc. has the following financial…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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(A) cite the relationship between education and population growth. In 3 sentences only. (B) As of January 1, 2022, the population of Philippines was estimated to be 112,321,991 people. Is this more of a boon or a bane for us? In what way?
Between 1960 and 2010 the annual growth rate was 3% in country A and 1% in country B. The two countries are in the process of convergence if: (a) in 1960 country A was poorer than country B (b) in 1960 country A was richer than country B (c) since 1960 the capital output ration has increased more in country A than in country B (d) the savings rate is higher in country A than country B (e) both (a) and (c)
Analyze the impact of economic growth in a developing country such as Rwanda according to the case study "Rwanda:A success story" by USAID (2023)
In this problem, we distinguish between labor and population in the Solow growth model. A proportion of the population, a, between zero and one, works. The production function is now written as Y = A(K^1/3)[(aL)^2/3] (a) How does an increase in a from 0.3 to 0.6 change steady state GDP? (b) Does it change the steady-state capital? Explain. (c) Suppose a rises steadily over time. How do you think would affect the growth rate of GDP?
The Solow Growth Model is a model that is often used to explain the theoretical relationship between several factors that determine a country's economic growthcountry.(a) Explain what you know about the Solow Growth Model and what are the most important determinants of a country's long-term growth rate?(b) Within the framework of the Solow Growth Model, how does population growth affect a country's economic growth rate?(c) Still within the framework of the Solow Growth Model, how does technological progress affect a country's growth rate?
W (2 bookr Suppose that the depreciation rate increases. In the Solow growth model, determine the effects of this on the quantity of capital per worker and on output per worker in the steady state. Explain the economic intuition behind your results.
There are two common measures of growth. Year-on-year percentage growth and Compound Annual Growth Rate (CAGR), generally accepted metric for average growth rates. Discuss these two measures and explain their purpose.
Assuming an economy is at steady state, with the use of an appropriate diagram withdescriptions illustrate the impact of a reduction in the saving rate on capital perworker and output per worker.
The answer should be step by step and the answer should be no plagiarism.
QUESTION 2 If Z = (XY)2, and we know that the annual growth rate of Z is 3%, and the annual growth rate of X is 2%, the annual growth rate of Y is а. - 1% b. - 0.5% C. 0.5% d. 1.0%
The convergence to a steady-state capital-labour ratio k* is ensured by the fact that if k is at a level Multiple Choice lower than k*, saving will exceed the investment required to maintain constant k, causing k to rise lower than k*, investment will exceed saving, leading to an increase in the capital stock lower than k*, saving will exceed the investment required to maintain a constant k, causing output per capita to decline higher than k*, the rate of depreciation will be higher than the savings rate, causing k to decrease higher than K*, output per capita will continue to increase until a new steady-state equilibrium is reached

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