Question

plz ....... answer these questions

Answer 1

Unlike physical capital, which is easy to find on the balance sheet (and in the notes to the balance sheet), the value of human capital is often assumed. In addition to goodwill, analysts can value the impact of human capital on operations with efficiency ratios, such as return on assets(ROA) and return on equity (ROE).

Investors can also determine the value of human capital in the markup on products sold or the industry premium on salary. A company is willing to pay more for an experienced programmer who can produce a higher-margin product. The value of the programmer's experience is captured in the amount the company is willing to pay over and above the market price.