I have a question from the sample McK PST they have on their website. I don't quite understand their explanation, so I decided to ask it here.
If total Innovation Capital in Exhibit 1 (now at 13.8) were to grow by 5% per year in the future, which of the following would be the MINIMUM required annual growth in Human Capital (now at 3.3) that would see it represent more than half of total Innovation Capital in 10 years?
A: 10% B: 15% C: 20% D: 25%
NOTE: Innovation Captial is comprised of three different kinds of 'Capital' and the question is concerned with Human Capital.
How does one calculate this? Thanks