Answer:
The amount of the projected benefit obligation at December 31 was $ 38.34 million
Explanation:
According to the given data, we have the following:
Beginning PBO= $29.4 million
Service cost= $9.4 million
The actuary's discount rate was 10%, hence Interest cost (10% x $29.4 million)= $2.94 million
Also, there is a Loss (gain) on PBO=$0
, and pension benefits paid by the trustee were $3.4 million.
Therefore, to calculate the amount of the projected benefit obligation at December 31 we would have to use the following formula:
Ending PBO=Beginning PBO+Service cost+Interest cost-pension benefits
=$29.4 million+$9.4 million+$2.94-$3.4 million
=$38.34 million
Answer:
0.5.
Explanation:
Assets - Liabilities = Owner's Equity.
As the name states, the debt to equity ratio is simply obtained by dividing total debt (liabilities) by the total equity, total assets should not be included:
Rajan Company's debt to equity ratio is 0.5.
Answer:
$63,000
Explanation:
One of the four methods of determining insurance if the DINK method which means Double income with no kids.
To estimate the value of the insurance using this method , the sum of , mortgage , car loans and personal debt is divided by two and added to the funeral expenses
Mortgage - 100,000
Car loan - 11,000
Personal debt - 2000
Credit card - 3000
Total = 116,000
Insurance = (116,000/2) = 58,000
Funeral expenses - 5,000
=63,000
Answer:
PV(after-tax net return in 7th year) = 70.55 (Approx)
Explanation:
Given:
Number of year = 7
Pre-tax net returns (Fn) = $100
Growth rate = 4% = 0.04
Inflation = 3% = 0.03
Marginal tax rate = 30% = 0.3
Discount rate = 10% = 0.1
Computation:
Fn = Fo(1+g)ⁿ = 100(1.04)⁷
Fn = 131.6
Nominal net returns = 131.6(1.03)⁷
Nominal net returns = 161.85
After tax return = 161.85 (1 - 0.3)
After tax return = 113.30
After-tax, risk adjusted discount rate = 0.1(1-0.3) = 7%
PV(after-tax net return in 7th year) = 113.30
(1+0.07)⁻⁷
PV(after-tax net return in 7th year) = 70.55 (Approx)
Answer:
the qquantity of money available in the economy will increase because there will be more foreign investments plus now the economy will start exporting and will reduce its imports so the quantity of money will increase.
