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AysviL [449]
3 years ago
13

Splish Company provides the following information about its defined benefit pension plan for the year 2017. Service cost $110,00

0 Contribution to the plan 104,000 Prior service cost amortization 10,000 Actual and expected return on plan assets 30,000 Benefits paid 37,000 Plan assets at January 1, 2017 624,000 Projected benefit obligation at January 1, 2017 728,000 Accumulated OCI (PSC) at January 1, 2017 165,000 Interest/discount (settlement) rate 5% Compute the pension expense for the year 2017. Pension Expense for 2017 should be:
Business
1 answer:
kipiarov [429]3 years ago
3 0

Answer: $155,520

Explanation:

Pension Expense = Service Cost - Expected return on plan assets + Prior service cost amortization + Interest cost

Interest Cost

= Interest rate * Projected benefit obligation

= 0.09 * 728,000

= $65,520

Pension Expense = 110,000 - 30,000 + 10,000 + 65,520

= $155,520

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Anika [276]
1. To define unacceptable behavior.
2. To provide certainty & stability.
3. To protect the public.
4. To provide mechanism for businesses to resolve disputes.
5. Law gives everyone a framework for how to ace and operate.
6. To make better decisions.
7. To sue & be sued.
8. To balance harm done by the offender against the individual and society at large.
9. To collect and generate revenue from the masses.

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8 0
3 years ago
Gina Robinson, Inc. (GRI) GRI management has decided to reinvent the culture of the organization. Previously, the company tried
Nuetrik [128]

Answer:

C) Telecommuting

Explanation:

Telecommuting simply means working from your home. The internet changed our lives completely, and it is also how we work. Everyday more people are starting to work from distant locations to their "main office". This means that they can be working at their house using a computer which is connected to the company's intranet.

Some of the advantages of telecommuting is that it increases efficiency by decreasing costs (you don't have to spend time going to work and you can have your office at home), reducing employee churn rate, allowing older or disabled people to work, it is good for your health, and around 65% of telecommuters in the US have have increased their work efficiency vs. their normal office work.

7 0
3 years ago
The Highfield Company is going through a five-year of fast growth at 20% initially, and then it will grow at a perpetual rate of
slava [35]

Answer:

P0 = $66.6429 rounded off to $66.64

Option c is the correct answer

Explanation:

Using the two stage growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula to calculate the price of the stock today is,

P0 = D0 * (1+g1) / (1+r)  +  D0 * (1+g1)^2 / (1+r)^2  +  ...  +  D0 * (1+g1)^n / (1+r)^n  +  [(D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n]

Where,

  • g1 is the initial growth rate
  • g2 is the constant growth rate
  • r is the required rate of return

P0 = 2* (1+0.2) / (1+0.1)  +  2 * (1+0.2)^2 / (1+0.1)^2  +  2 * (1+0.2)^3 / (1+0.1)^3  

+  2 * (1+0.2)^4 / (1+0.1)^4  +  2 * (1+0.2)^5 / (1+0.1)^5  +

[(2 * (1+0.2)^5 * (1+0.04)  /  (0.1 - 0.04)) / (1+0.1)^5]

P0 = $66.6429 rounded off to $66.64

7 0
3 years ago
If the expected inflation rate is 4 percent and the nominal interest rate is 9 percent, the expected real interest rate is _____
goldenfox [79]

The real interest rate is simply nominal interest rate less the inflation rate. In equation form this is equivalent to:

Real interest rate = Nominal rate – Inflation Rate

Real interest rate = 9% - 4%

Real interest rate = 5%

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7 0
3 years ago
100 million diluted shares outstanding trading at $37.50 per share. The company has $1 billion of debt outstanding with a cost o
Pepsi [2]

Answer:

$4,650,000,000

Explanation:

We will use the formula below to calculate the enterprise value of Correct inc.

Enterprise value = Market value capital and debts - Cash and investments

= 100 million diluted shares × 37.50 per share + $1 billion of debt outstanding - $100 million cash

= $3750m + $1000m - $100m

= $4,650,000,000.

4 0
3 years ago
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