Description
Discuss the causes of the growth of the shanty neighborhoods surrounding Sao Paulo.
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.
Explanation & Answer
Surrounding neighborhoods of Sao Paulo began to grow there was a demand for cheap labor to build houses, apartments, buildings, schools, hospitals, roads, bridges, etc. The lack of affordable housing options or adequate housing policies for the laborers eventually let to the rapid growth of the favelas in Rio. Rocinha’s rapid growth is directly attributable to these factors.
Completion Status:
100%
Review
Review
Anonymous
I was struggling with this subject, and this helped me a ton!
Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4
24/7 Homework Help
Stuck on a homework question? Our verified tutors can answer all questions, from basic math to advanced rocket science!
Most Popular Content
5 pages
Economic Development 2
Atlantic Canada comprises of four provinces that are Nova Scotia, Prince Edward Island, New Brunswick and Newfound and Lab ...
Economic Development 2
Atlantic Canada comprises of four provinces that are Nova Scotia, Prince Edward Island, New Brunswick and Newfound and Labrador all located on the ...
ECO 110 Strayer University Week 4 Impact of Economics on Daily Living Paper
PLEASE USE ATTACHED TEMPLATE AND RUBRIC
Due: Week 4
Points: 105
Skill(s) Being Assessed: Problem Solving
Criteria for S ...
ECO 110 Strayer University Week 4 Impact of Economics on Daily Living Paper
PLEASE USE ATTACHED TEMPLATE AND RUBRIC
Due: Week 4
Points: 105
Skill(s) Being Assessed: Problem Solving
Criteria for Success: In this assignment, you will:
Identify a relevant economic concept and describe how it applies to the scenario.
Summarize the change in expenditures between budgets.
Record the ways in which economic trends impacted personal income and consumer prices.
Explain the rationale for budget decisions made in response to economic changes.
Explain an additional economic trend or change from within the last year and how it has impacted your personal life and finances.
What to submit/deliverables: A completed Assignment 1 template, in Word document form.
What is the value of doing this assignment? Economic trends and events in the world have real impacts on your daily life. This could take the form of a new technology that increases the demand for workers in a certain field, the amount of economic growth for a country affecting the ability (or willingness) of employers to increase wages, or even trade decisions between two countries that cause price of some everyday goods to fluctuate.
Economic impacts require you to make decisions on how to allocate resources and effectively budget, and use critical thinking strategies to help you navigate the world of finance and economics. Throughout the previous weeks of this course, you have learned foundational economic concepts, basic personal finance considerations, and problem solving strategies. In this assignment, you will apply all of these to help a friend communicate her budgeting decisions to her family.
Your goal for this assignment is to: Build your problem solving skill by articulating how economics have real impacts on families and their budgets. You will apply decision making and critical thinking strategies to explain how economics impacts a friend’s personal budget decisions.
Steps to complete: In Week 4, submit your assignment by following these steps:
STEP 1:Read the scenario in the TEMPLATE ATTACHED And preview the questions that follow.
Scenario: A friend who knows that you are learning problem solving skills and economics has come to you for advice. At the beginning of this year, rent and the price of imported food rose. At the same time, prices for domestic food dropped. The family’s income stayed the same, but because of these economic changes, they had to make changes to their yearly budget.
Your friend’s family is unhappy about the lifestyle changes that your friend has chosen. Your friend knows that you are studying personal finance and have asked you how to explain to her family what has happened to their spending. She has brought with her their family budget from last year, as well as their current budget for this year.
STEP 2: Identify one relevant economic concept that applies to the scenario and describe how it applies. (Question 1)
STEP 3: Summarize how expenditures changed between budgets. Make sure to address how expenditures changed (or did not change). (Question 2)
STEP 4: Describe the economic trends that created the need for a change in expenditures. Make connections to the economic concepts you have learned. (Question 3)
STEP 5: Explain the rationale for your friend’s budget decisions to her family. Address all changes (or non-changes) in expenditures and discuss long term effects. (Question 4)
STEP 6: Reflect on how changes in economic variables may impact your personal life and finances. (Question 5)
STEP 7: After completing all questions in the Assignment 1 Template, save your responses as a Word document titled: Your Name, ECO110_Assignment 1 Economic Impacts and upload to BB in Week 4. Make sure to also review the scoring rubric before submitting.
Assignment 1 Template: Impact of Economics on Daily Living
Scenario:A friend who knows that you are learning problem solving skills and economics has come to you for advice. They have brought their family’s budget from last year, as well as their current budget for this year. At the beginning of this year, rent and the price of imported food rose. At the same time, prices for domestic food dropped. Your friend’s family’s income stayed the same, but because of these economic changes, they had to make changes to their yearly budget. Budget 1 on the left shows how their family used to spend their income of $25,000. Budget 2 on the right reflects changes your friend made to the family’s budget based on economic changes.
Your friend’s family is unhappy about the lifestyle changes that your friend has chosen. They are having a difficult time explaining the reasons for some of the decisions they have had to made about family finances. Since they know that you are studying personal finance, they have asked you to help them come up with a way to explain to their family what has happened to their spending.
Answer the following questions based on the scenario and Budget 1 and 2:
1. In the first four weeks of this class you have learned about several economic concepts and how they impact daily living. Choose one economic concept from this list and explain how it is relevant to your friends' budget situation:
Supply and demand
Scarcity
Tradeoff decisions
International trade
Opportunity cost
Compound growth
2. How did expenditures change between budgets? Which expenditures changed the most? Which expenditures changed the least? Which stayed the same?
3. What were the economic trends that created the need for your friend’s family to change their expenditures? What can you infer about the connection between prices and expenditures, based on the economic concepts you have learned?
4. Help your friend explain the rationale for their budget decisions to their family. For each expenditure change, describe why your friend made that decision and how it impacts the family overall. Also make sure to address expenditures that did not change. What are the long-term benefits/risks of these changes? Some questions you could help them answer are:
Why did your friend decide to buy less imported food, and more domestic food?
Why did your friend decide to use the furnace and air conditioning less?
Why did your friend decide to walk more?
Why did your friend not change the amount spent of education and family care?
Why did your friend decide to reduce savings, and what will the long-term effects of that be?
5. In our personal lives, we sometimes need to react to changes in our economic environment. Thinking about your own budget, describe how a change in an economic variable (such as a change in income, employment, interest rates, or prices) could impact your personal life and finances.
Ashford University Week 5 Mindfulness as a Human State Discussion Paper
Part 1
In the constant growth formula, you can use the required rate of return on equity to determine the value of a ...
Ashford University Week 5 Mindfulness as a Human State Discussion Paper
Part 1
In the constant growth formula, you can use the required rate of return on equity to determine the value of a share of stock. However, when you are computing the value of an investment project, you cannot assume the project is entirely funded by equity. Most businesses, and most projects, are funded with a combination of debt and equity financing. As a result, the discount rate for the project has to reflect the required rates of return for the debt holders and the equity holders. Analysts compute the weighted average cost of capital (the WACC) to value projects. The WACC is a weighted average of the required returns for the debt and equity holders, based on the proportions of debt and equity in the capital structure. In this discussion, you will practice calculating the WACC and interpreting its meaning and application.
For the initial post,
Calculate Optimus’ required rate of return on equity using the capital asset pricing model (CAPM). For the CAPM, use the following assumptions:
Use a risk-free rate of 4.0%.
Use 6.0% as the market risk premium.
For the beta, use the beta below, according to the first letter of your first name
First Letter of First NameBetaA through B0.30C through D0.40E through F0.50G through H0.60I through J0.70K through L0.80M through N0.90O through P1.00Q through R1.10S through T1.20U through V1.30W through Z1.40
Calculate the WACC for Optimus. As a reminder, Optimus is funded with 40% debt and 60% common stock; there is no preferred stock in the capital structure. The debt has an after-tax cost of 4%.
Use the Optimus required rate of return on equity that you calculated using the CAPM.
Explain why it is appropriate for Optimus to value the Electrobicycle project using its WACC. Compare using the WACC to using solely the cost of equity in valuing the Electrobicycle project.
last name is JOHNSON
350 words
Part 2
“The use of debt to fund the firm (called leveraging) carries with it benefits as well as risks” (Hickman et all., 2013, Chap 8, Overview, para. 4). In the short term, leverage lowers the weighted average cost of capital due to the typically lower required rates of return on debt as compared to equity. In the long run, debt requires interest payments and the principal must be repaid. A firm that cannot repay its debt faces default risk and/or bankruptcy. The risks due to excessive leverage are known as financial risks. Thus, as a firm considers using debt or equity to fund its business, it must consider both the benefits of debt and the financial risks of too much debt. In this discussion, you will evaluate a real-world scenario and consider the implications of the debt financing decision for the firm.
Watch the following video:
(Links to an external site.)
How Alex Clark Turned $32,000 Into a Chocolate Phenomenon - 30 Under 30 | Forbes (Links to an external site.)
After watching the video, answer the following questions in your post:
Did Alex Clark initially fund the business with equity or debt?
Initially, Clark’s chocolate business is very small. Compared to publicly traded companies, would Clark’s required rate of return on equity be higher or lower than the “average” required rate of return on equity for small cap companies of 15%? Explain your answer.
After the business was established, Clark talked about buying a building to expand. This is a good example of an investment project that a business must evaluate. Would the required rate of return for Clark’s building purchase be higher or lower than the overall chocolate company’s required rate of return? Explain your answer.
Should Clark use some bank debt to finance all or a portion of the building purchase?
Justify your answer by explaining how the weighted average cost of capital for the company would change if Clark uses bank debt to finance all or a portion of the building purchase.
What is the primary risk that Clark faces if she uses debt to finance the entire building purchase? For purposes of this discussion, assume that the debt would then comprise 95% of the company’s capital structure.
Frank Smith Plumbing, economics homework help
Need this assignment completed. I have done the financials already just need the 1050 word analysis to include the below b ...
Frank Smith Plumbing, economics homework help
Need this assignment completed. I have done the financials already just need the 1050 word analysis to include the below bullet points in APA format... Files attached.Analyze the case study, "Frank Smith Plumbing."Analyze the "Frank Smith Plumbing's Financial Statement" spreadsheet.Compare the cost of the truck to the cash flow recordsCompile your calculations in a Microsoft® Excel® documentDevelop a 1,050-word analysis and include the following:Explain why limited leverage is good for business.Show the profitability of the project so that Stephanie can convince her father to purchase the truck by borrowing money.Explain how Stephanie should convince her mother that it is inappropriate to call the bank manager and his wife for assistance in getting the loan approval?Analyze whether the investment in the truck is profitable.Explain whether it is more beneficial for Frank to close his business.Explain what you would do in this same situation.Format your assignment consistent with APA guidelines. Click the Assignment Files tab to submit your assignments.
Similar Content
Economics Question
Hi therei have Statistics for Economics and Business E xam, it's online, requires well known knowledge of stat and econthe...
Methods of Currency Appreciation Paper
Date
12/30/2021
9/30/2021
6/30/2021
3/30/2021
12/30/2020
9/30/2020
6/30/2020
3/30/2020
12/30/2019
9/30/2019
6/30/2019
3/30...
ENC 500 SEU Economic Development of Saudi Arabia & FDI Essay
In a critical essay, analyze the role of FDI in the economic development of Saudi Arabia. What are the determinants of FDI...
UGBA 103 University of the Cumberlands Stock Portfolio Finance Questions
finish problem 1,3,4,5,7 ...
ECON 303 International Economics Essay
...
Econ 112 MACRO PROBLEM SET # 5
https://sonoma.yuja.com/V/Video?v=3766586&node=12880391&a=1423321578&autoplay=1...
Brief Notes.edited
1. Table 4 shows negative growth for most of the sector and the finance and agriculture-related sector bouncing back after...
Final
The Coca Cola Company has shown a mix trend over the years from 2018 to 2020. The revenue grew from $34,300 million in 201...
Policies
The first and the second policies are most likely to increase the rates of economic growth in the United States. An invest...
Related Tags
Book Guides
The King Must Die
by Mary Renault
100 Side Hustles
by Chris Guillebeau
Ezperanza Rising
by Pam Muñoz Ryan
Notes from Underground
by Fyodor Dostoyevsky
Death Of A Salesmen
by Arthur Miller
The Metamorphosis
by Franz Kafka
White Fang
by Jack London
Nervous Conditions
by Tsitsi Dangarembga
The Tipping Point
by Malcolm Gladwell
Get 24/7
Homework help
Our tutors provide high quality explanations & answers.
Post question
Most Popular Content
5 pages
Economic Development 2
Atlantic Canada comprises of four provinces that are Nova Scotia, Prince Edward Island, New Brunswick and Newfound and Lab ...
Economic Development 2
Atlantic Canada comprises of four provinces that are Nova Scotia, Prince Edward Island, New Brunswick and Newfound and Labrador all located on the ...
ECO 110 Strayer University Week 4 Impact of Economics on Daily Living Paper
PLEASE USE ATTACHED TEMPLATE AND RUBRIC
Due: Week 4
Points: 105
Skill(s) Being Assessed: Problem Solving
Criteria for S ...
ECO 110 Strayer University Week 4 Impact of Economics on Daily Living Paper
PLEASE USE ATTACHED TEMPLATE AND RUBRIC
Due: Week 4
Points: 105
Skill(s) Being Assessed: Problem Solving
Criteria for Success: In this assignment, you will:
Identify a relevant economic concept and describe how it applies to the scenario.
Summarize the change in expenditures between budgets.
Record the ways in which economic trends impacted personal income and consumer prices.
Explain the rationale for budget decisions made in response to economic changes.
Explain an additional economic trend or change from within the last year and how it has impacted your personal life and finances.
What to submit/deliverables: A completed Assignment 1 template, in Word document form.
What is the value of doing this assignment? Economic trends and events in the world have real impacts on your daily life. This could take the form of a new technology that increases the demand for workers in a certain field, the amount of economic growth for a country affecting the ability (or willingness) of employers to increase wages, or even trade decisions between two countries that cause price of some everyday goods to fluctuate.
Economic impacts require you to make decisions on how to allocate resources and effectively budget, and use critical thinking strategies to help you navigate the world of finance and economics. Throughout the previous weeks of this course, you have learned foundational economic concepts, basic personal finance considerations, and problem solving strategies. In this assignment, you will apply all of these to help a friend communicate her budgeting decisions to her family.
Your goal for this assignment is to: Build your problem solving skill by articulating how economics have real impacts on families and their budgets. You will apply decision making and critical thinking strategies to explain how economics impacts a friend’s personal budget decisions.
Steps to complete: In Week 4, submit your assignment by following these steps:
STEP 1:Read the scenario in the TEMPLATE ATTACHED And preview the questions that follow.
Scenario: A friend who knows that you are learning problem solving skills and economics has come to you for advice. At the beginning of this year, rent and the price of imported food rose. At the same time, prices for domestic food dropped. The family’s income stayed the same, but because of these economic changes, they had to make changes to their yearly budget.
Your friend’s family is unhappy about the lifestyle changes that your friend has chosen. Your friend knows that you are studying personal finance and have asked you how to explain to her family what has happened to their spending. She has brought with her their family budget from last year, as well as their current budget for this year.
STEP 2: Identify one relevant economic concept that applies to the scenario and describe how it applies. (Question 1)
STEP 3: Summarize how expenditures changed between budgets. Make sure to address how expenditures changed (or did not change). (Question 2)
STEP 4: Describe the economic trends that created the need for a change in expenditures. Make connections to the economic concepts you have learned. (Question 3)
STEP 5: Explain the rationale for your friend’s budget decisions to her family. Address all changes (or non-changes) in expenditures and discuss long term effects. (Question 4)
STEP 6: Reflect on how changes in economic variables may impact your personal life and finances. (Question 5)
STEP 7: After completing all questions in the Assignment 1 Template, save your responses as a Word document titled: Your Name, ECO110_Assignment 1 Economic Impacts and upload to BB in Week 4. Make sure to also review the scoring rubric before submitting.
Assignment 1 Template: Impact of Economics on Daily Living
Scenario:A friend who knows that you are learning problem solving skills and economics has come to you for advice. They have brought their family’s budget from last year, as well as their current budget for this year. At the beginning of this year, rent and the price of imported food rose. At the same time, prices for domestic food dropped. Your friend’s family’s income stayed the same, but because of these economic changes, they had to make changes to their yearly budget. Budget 1 on the left shows how their family used to spend their income of $25,000. Budget 2 on the right reflects changes your friend made to the family’s budget based on economic changes.
Your friend’s family is unhappy about the lifestyle changes that your friend has chosen. They are having a difficult time explaining the reasons for some of the decisions they have had to made about family finances. Since they know that you are studying personal finance, they have asked you to help them come up with a way to explain to their family what has happened to their spending.
Answer the following questions based on the scenario and Budget 1 and 2:
1. In the first four weeks of this class you have learned about several economic concepts and how they impact daily living. Choose one economic concept from this list and explain how it is relevant to your friends' budget situation:
Supply and demand
Scarcity
Tradeoff decisions
International trade
Opportunity cost
Compound growth
2. How did expenditures change between budgets? Which expenditures changed the most? Which expenditures changed the least? Which stayed the same?
3. What were the economic trends that created the need for your friend’s family to change their expenditures? What can you infer about the connection between prices and expenditures, based on the economic concepts you have learned?
4. Help your friend explain the rationale for their budget decisions to their family. For each expenditure change, describe why your friend made that decision and how it impacts the family overall. Also make sure to address expenditures that did not change. What are the long-term benefits/risks of these changes? Some questions you could help them answer are:
Why did your friend decide to buy less imported food, and more domestic food?
Why did your friend decide to use the furnace and air conditioning less?
Why did your friend decide to walk more?
Why did your friend not change the amount spent of education and family care?
Why did your friend decide to reduce savings, and what will the long-term effects of that be?
5. In our personal lives, we sometimes need to react to changes in our economic environment. Thinking about your own budget, describe how a change in an economic variable (such as a change in income, employment, interest rates, or prices) could impact your personal life and finances.
Ashford University Week 5 Mindfulness as a Human State Discussion Paper
Part 1
In the constant growth formula, you can use the required rate of return on equity to determine the value of a ...
Ashford University Week 5 Mindfulness as a Human State Discussion Paper
Part 1
In the constant growth formula, you can use the required rate of return on equity to determine the value of a share of stock. However, when you are computing the value of an investment project, you cannot assume the project is entirely funded by equity. Most businesses, and most projects, are funded with a combination of debt and equity financing. As a result, the discount rate for the project has to reflect the required rates of return for the debt holders and the equity holders. Analysts compute the weighted average cost of capital (the WACC) to value projects. The WACC is a weighted average of the required returns for the debt and equity holders, based on the proportions of debt and equity in the capital structure. In this discussion, you will practice calculating the WACC and interpreting its meaning and application.
For the initial post,
Calculate Optimus’ required rate of return on equity using the capital asset pricing model (CAPM). For the CAPM, use the following assumptions:
Use a risk-free rate of 4.0%.
Use 6.0% as the market risk premium.
For the beta, use the beta below, according to the first letter of your first name
First Letter of First NameBetaA through B0.30C through D0.40E through F0.50G through H0.60I through J0.70K through L0.80M through N0.90O through P1.00Q through R1.10S through T1.20U through V1.30W through Z1.40
Calculate the WACC for Optimus. As a reminder, Optimus is funded with 40% debt and 60% common stock; there is no preferred stock in the capital structure. The debt has an after-tax cost of 4%.
Use the Optimus required rate of return on equity that you calculated using the CAPM.
Explain why it is appropriate for Optimus to value the Electrobicycle project using its WACC. Compare using the WACC to using solely the cost of equity in valuing the Electrobicycle project.
last name is JOHNSON
350 words
Part 2
“The use of debt to fund the firm (called leveraging) carries with it benefits as well as risks” (Hickman et all., 2013, Chap 8, Overview, para. 4). In the short term, leverage lowers the weighted average cost of capital due to the typically lower required rates of return on debt as compared to equity. In the long run, debt requires interest payments and the principal must be repaid. A firm that cannot repay its debt faces default risk and/or bankruptcy. The risks due to excessive leverage are known as financial risks. Thus, as a firm considers using debt or equity to fund its business, it must consider both the benefits of debt and the financial risks of too much debt. In this discussion, you will evaluate a real-world scenario and consider the implications of the debt financing decision for the firm.
Watch the following video:
(Links to an external site.)
How Alex Clark Turned $32,000 Into a Chocolate Phenomenon - 30 Under 30 | Forbes (Links to an external site.)
After watching the video, answer the following questions in your post:
Did Alex Clark initially fund the business with equity or debt?
Initially, Clark’s chocolate business is very small. Compared to publicly traded companies, would Clark’s required rate of return on equity be higher or lower than the “average” required rate of return on equity for small cap companies of 15%? Explain your answer.
After the business was established, Clark talked about buying a building to expand. This is a good example of an investment project that a business must evaluate. Would the required rate of return for Clark’s building purchase be higher or lower than the overall chocolate company’s required rate of return? Explain your answer.
Should Clark use some bank debt to finance all or a portion of the building purchase?
Justify your answer by explaining how the weighted average cost of capital for the company would change if Clark uses bank debt to finance all or a portion of the building purchase.
What is the primary risk that Clark faces if she uses debt to finance the entire building purchase? For purposes of this discussion, assume that the debt would then comprise 95% of the company’s capital structure.
Frank Smith Plumbing, economics homework help
Need this assignment completed. I have done the financials already just need the 1050 word analysis to include the below b ...
Frank Smith Plumbing, economics homework help
Need this assignment completed. I have done the financials already just need the 1050 word analysis to include the below bullet points in APA format... Files attached.Analyze the case study, "Frank Smith Plumbing."Analyze the "Frank Smith Plumbing's Financial Statement" spreadsheet.Compare the cost of the truck to the cash flow recordsCompile your calculations in a Microsoft® Excel® documentDevelop a 1,050-word analysis and include the following:Explain why limited leverage is good for business.Show the profitability of the project so that Stephanie can convince her father to purchase the truck by borrowing money.Explain how Stephanie should convince her mother that it is inappropriate to call the bank manager and his wife for assistance in getting the loan approval?Analyze whether the investment in the truck is profitable.Explain whether it is more beneficial for Frank to close his business.Explain what you would do in this same situation.Format your assignment consistent with APA guidelines. Click the Assignment Files tab to submit your assignments.
Earn money selling
your Study Documents