Answer:
The present Value of Annual Gain for two years made from unwrapping the original swap agreement is $20.00
Explanation:
From the given information;
The annual gain from swap agreements = $61.50 - $51.25
The annual gain from swap agreements = $10.25
Annual rate for the first year = 1% = 0.01
Annual rate for the second year = 2% = 0.02
However the present gain for the first year will be;
= 10.14851485
The present gain for the second year will be;
= 9.851980008
The present Value of Annual Gain for two years is:
= 10.14851485 + 9.851980008
= 20.00049486
≅ $ 20.00
The present Value of Annual Gain for two years is $20.00
According to efficiency wage theory the increase in wages will raise productivity but increase unemployment.
Explanation:
Salaries for productivity are greater than salaries of harmony. They increase productivity, but also create a labour surplus that creates greater unemployment.
The Efficiency Pay Theory states that businesses can operate efficiently and make them more competitive by paying salaries that surpass the margin.
Across four ways, businesses will benefit from productivity wages : increased workloads, reduced employee turnover, better quality workers, and healthier personnel. There are three different theories.
The idea behind the principle of effectiveness is that higher salaries can lead to increased efficiency, as employees are more motivated to work for greater salaries. In principle, higher pay can lead to higher labour productivity. The salary increases will cover themselves in this situation.
Answer:
D. Capacity
Explanation:
In order to applying for a loan, the financial institution analyze the borrower information in terms of creditworthiness i.e. collateral property, cash on hand, repayment conditions, status of the job. These factors should be based on the capacity of the borrower whether he or she is eligible for a loan or not
Therefore according to the given situation, the option D is correct and the same is to be considered
Answer:
The correct answer is: false.
Explanation:
The market for lettuce <u>does exhibit</u> the two primary characteristics that define perfectly competitive markets that is the fact of the sellers having identical products to offer and a large number of buyers and sellers are in the market and therefore is also known as an atomized market where both buyers and sellers do not influece in the price of the market but instead this price is already given by the market and accepted by both parties.