Pension liability-what is present value of this liability

Assignment Help Financial Management
Reference no: EM131330117

Imprudential, Inc., has an unfunded pension liability of $576 million that must be paid in 25 years. To assess the value of the firm’s stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 6.9 percent, what is the present value of this liability? (Enter your answer in dollars not in millions, e.g., 1,234,567. Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

Reference no: EM131330117

Questions Cloud

Firm recent earnings per share and dividend per share : Suppose that a firm's recent earnings per share and dividend per share are $2.50 and $1.50, respectively. Both are expected to grow at 9 percent. However, the firms current P/E ratio of 24 seems high for this growth rate. Compute the value of this st..
Discuss about the basics of legal research : Describe two (2) ways in which using an electronic research tool could increase your productivity on the case.Explain two (2) ways that you could use electronic spreadsheets in order to organize your case load.Explore the concept of document review, ..
Problem regarding the webpage development : HTML is usually attached to webpage development, giving instructions to a web browser on how to display the webpage, how does it work with mobile development?
Calculate the pressure in bar : Calculate the pressure in bar that would be equivalent to the attractive force between the Na + and Cl - ions in a salt crystal, at a separation of 2.81 Å and approximating the area over which the force works to be 4.00A2 .
Pension liability-what is present value of this liability : Imprudential, Inc., has an unfunded pension liability of $576 million that must be paid in 25 years. To assess the value of the firm’s stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 6.9..
Security considerations for temporary or contract workers : What attributes do organizations seek in a candidate when hiring InfoSec professionals? Prioritize this list of attributes and justify your ranking.
Internet transport services proposal using microsoft : You are a Network Engineer for an IT consulting company. Your current client is a software developer. Recently they created a software which is capable of file transfers, voice chat, and videoconferencing. Your manager has tasked you with creating..
What is the minimum change to the entropy of the surrounding : If during the compression stroke the entropy of the gas is reduced by 0.20JK -1 , what is the minimum change to the entropy of the surroundings?
Discuss the key points of the case study : Discuss the key points of the case study, include in your discussion the following points: Overview of the organization The business problem The IT solution that solved the problem

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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