Calculating present values in 2008

Assignment Help Accounting Basics
Reference no: EM13513822

Calculating Present Values In 2008, British Airways had a pension liability of £330 million. Let's assume it must be paid in 30 years' time. To assess the value of the firm's shares, financial analysts want to discount this liability back to the present. If the relevant discount rate is 5.6 per cent, what is the present value of this liability?

Reference no: EM13513822

Questions Cloud

Explain an acqueous solution of kl has a freezing point : An acqueous solution of Kl has a freezing point of -1.80 C and an osmotic pressure of 26.0 atm at 25.0C. Assume Kl completely dissociates in water. What is the density of the solution
What is a balanced scorecard : What is a balanced scorecard? How is a balanced scorecard more useful than return on investment in implementing and monitoring strategy in a global economy?
Define what is the empirical formula for coniine : Coniine, a toxic substance isolated from a poison hemlock, contains only carbon, hydrogen, and nitrogen. Combustion analysis if a 5.024mg sample yields 13.90mg of CO2 and 6.048mg of H2O. What is the empirical formula for Coniine
Economic concept of business income : Explain the main difference between the economic concept of business income as reflected by Lopez's management and the measurement of income under generally accepted accounting principles.
Calculating present values in 2008 : To assess the value of the firm's shares, financial analysts want to discount this liability back to the present. If the relevant discount rate is 5.6 per cent, what is the present value of this liability?
What is the phase angle of the source voltage : You have a 200-ohm resistor, a 0.400-H inductor, and a 6.00-uf capacitor. Suppose you make a series circuit with the resistor, What is the phase angle of the source voltage with respect to the current
What is the required premium per employee per month : What premium per employee per month does Sure Care need to break even? ' If Sure Care wants to earn $100,000 in profit for the year, what is the required premium per employee per month? ' What concerns do you have about this analysis?
Define deodorized by reaction with household bleech : The order of skunks is caused by chemical compounds called thiols. These compounds, of which butanethiol(C4H10S) is a representative example, can be deodorized by reaction with household bleech (NaOCl) according to the following equition
What is the magnitude of the sound level difference : Two sounds have intensities of 2.10×10-8 and 8.70×10-4 W/m2 respectively. What is the magnitude of the sound level difference between them in dB units

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd