The following information relates to a company's defined benefit pension plan at December 31:Accumulated benefit obligation1,035
,000Projected benefit obligation1,250,000Prior service cost113,000Net gain on plan assets167,000Plan assets (fair value)737,000What amount should the company report as its pension liability at December 31?A.$567,000B.$513,000C.$400,000D.$352,000
According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return.
So we will discount the steams of dividend using the required rate of 11.0% as follows
