Unfunded pension liability-the present value of liability

Assignment Help Financial Management

Reference no: EM131189901

Imprudential, Inc., has an unfunded pension liability of $569 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 6.2 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: EM131189901

Questions Cloud

The new purchase price for the existing stockholders : Katie Homes and Garden Co. has 15,300,000 shares outstanding. The stock is currently selling at $92 per share. If an unfriendly outside group acquired 25 percent of the shares, existing stockholders will be able to buy new shares at 30 percent below ..

Earnings per share be immediately after the rights offering : Walker Machine Tools has 6.2 million shares of common stock outstanding. The current market price of Walker common stock is $66 per share rights-on. The company’s net income this year is $21.00 million. What are the earnings per share and price-earni..

Annual rate of return : Suppose you are committed to owning a $192,000 Ferrari. If you believe your mutual fund can achieve a 13 percent annual rate of return and you want to buy the car in 10 years on the day you turn 30, how much must you invest today?

Behaviors with the appropriate bais : Match each of the following behaviors with the appropriate bais, as discussed in the chapter. Wanda owns shares in happy Clan Oil Exploration, but due to recent events, the share price is down 30 percent from when she bought. Drew doesn't believe his..

Unfunded pension liability-the present value of liability : Imprudential, Inc., has an unfunded pension liability of $569 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 6.2..

Do you think the balanced scorecard approach : Do you think the balanced scorecard approach, where you are required to look at a variety of factors related to the strategic plan, will help us identify filling processes earlier so that we can intervene and try to minimize the decline of an organiz..

What is the future value in three years of the present value : Suppose you receive $150 at the end of each year for the next three years. If the interest rate is 10 % what is the present value of these cash? flows? What is the future value in three years of the present value you computed in (a?)?

Illustrate sources that comprise hypothetical company value : Your employer, a mid-sized human resources management company, is considering expansion into related fields, including the acquisition of Temp Force Company, an employment agency that supplies word processor operators and computer programmers to busi..

Explain the law of supply and demand-what is national debt : Explain the law of supply: The price a which the quantity of goods demanded and the quantity of goods supplied are equal is known as: Explain the situation when a surplus occurs: Name the four elements required by private enterprise: Name the four de..

User Account

All Pages