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3 years ago

The law of diminishing returns is often used to analyze the ideal amount of which factor of production?

Business

2 answers:

WINSTONCH [101]3 years ago

5 0

The correct answer to the question is, Labor.
Hope that help. ♥♥♥

blsea [12.9K]3 years ago

4 0

Answer:

labor

Explanation:

Theoretically, the law of diminishing returns could apply to the three factors of production (labor, land and capital), but it is generally used to analyze the amount of production that will be gained by adding additional units of labor. Usually additional units of labor tend to produce diminishing levels of output, e.g. a single extra worker will be able to produce 40 units per day, while another extra worker will only produce 37 units per day.

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Shahia Company bought a building for $73,000 cash and the land on which it was located for $107,000 cash. The company paid trans

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Answer:

Explanation:

Dr Building, Asset (73,000+6000+35,000) 114,000

Dr Land, Asset (107,000+10,000) 117,000

Cr Cash (73,000+107,000+16,000+35,000) 231,000

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3 years ago

Barton Industries expects next year's annual dividend, D1, to be $2.00 and it expects dividends to grow at a constant rate g = 4

Gekata [30.6K]

Answer: See explanation

Explanation:

The flotation cost adjustment that must be added to its cost of retained earnings will be calculated thus:

= Expected dividend / [Current price × (1 - Floatation cost)] + Expected growth rate

= 2.00/[20.00 × (1 - 4.5%)] + 4.2%

= 2.00 /[20.00 × (1 - 0.045)] + 0.042

= 2.00 / (20.00 × 0.955) + 0.042

= (2.00/19.10) + 0.042

= 0.104712 + 0.042

= 0.146712

New cost of equity = 14.67%

You didn't give the cost of equity calculated without the flotation adjustment. Let's assume that this is maybe 11%, the floatation on adjustment factor = 14.67% - 11% = 3.67%

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3 years ago

Kline Construction is an all-equity firm that has projected perpetual earnings before interest and taxes of $628,000. The curren

ArbitrLikvidat [17]

Based on the information given the levered value of the firm is $3,824,318.

First step is to calculate the Unlevered firm value

Unlevered firm value = EBIT(1 - Tax) / Cost of equity

Unlevered firm value= $628,000 x (1-.35)/.176

Unlevered firm value = $628.000×.65/.176

Unlevered firm value = $2,319,318

Second step is to calculate Levered firm value

Levered firm value = Unlevered firm value + (Tax rate× Debt))

Levered firm value= $2,319,318 + (.35 x $4,300,000)

Levered firm value= $2,319,318 +$1,505,000

Levered firm value = $3,824,318

Inconclusion the levered value of the firm is $3,824,318.

Learn more about levered value here:brainly.com/question/20067496

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2 years ago

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