1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Semenov [28]
3 years ago
10

Imprudential, Inc., has an unfunded pension liability of $800 million that must be paid in 16 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 9.5 percent, what is the present value of this liability?
(A) $195,316,570
(B) $172,286,761
(C) $191,013,583
(D) $183,522,855
(E) $187,268,219
Business
2 answers:
mihalych1998 [28]3 years ago
8 0

Answer:

(E) $187,268,219

Explanation:

You have to take the amount of money and apply the formula to bring the amount to the present value, with the discount rate of 9,5%.

You have to use the next formula where n in ne number of years:

Present Value = amount of money /((1+doscount rate)^(n))

Present value = $800.000.000/((1+9,5%)^(16))

Present value= $187.268.219  

The operation reflect how much value the 800 millions today if they will be paid in 16 years in the future.  

Drupady [299]3 years ago
4 0

Answer:

Present value of the liability = $187,268,219

Explanation:

the present value of a single payment to be made sometime in the future is calculated as follows:

Present value = \frac{FV}{(1+i)^n}

where FV is the payment to be made some time in the future= $800 million

i is the discount rate = 9.5%

and n is the number of years left before the payment is made= 16 years

Present value = \frac{800,000,000}{(1+0.095)^1^6}=187,268,219

You might be interested in
McCabe Manufacturing Co.'s budget at 8,000 units of production includes $40,000 for direct labor and $4,000 for electric power.
sesenic [268]

Answer: variable costs of $49,500 and $23,000 of fixed costs

Explanation:

A flexible budget refers to the budget which adjusts to the volume levels of a company.

Based on the information given in the question, the variable cost will be:

= (44000/8000) x 90000

= $49500 variable

On the other hand, the fixed cost has been given as $23000.

Therefore, the flexible budget would show variable costs of $49,500 and $23,000 of fixed costs.

4 0
2 years ago
Armando, a technology enthusiast, is often willing to pay premium prices to always have the newest tech gadgets. Armando most li
KatRina [158]

Answer:

c. innovators.

Explanation:

  • Armando a technology enthusiast is often willing to pay premium prices to the gadgets that are new and belong to the groups of the people that are called as innovators. And they try to find new in everything and they are the early adopters and are focused in the new and advanced levels of technology. This they always likely to be updated and are fast learners.
8 0
3 years ago
A wealth gap is an economic difference between
kirill115 [55]

Answer:

classes

Explanation:

"The term “wealth gap” refers to the gap in wealth between two groups such as rich and poor people."

6 0
3 years ago
List which coins are profitable and which are not.
sergeinik [125]
What are the options and I’ll tell you when you comment on mine when
6 0
3 years ago
How has amazon successfully leveraged e-commerce strategies to promote supply chain integration and boost sales and growth for t
castortr0y [4]
Amazon is currently the most accomplished business because of it has mastered ecommerce. Through providing exclusive offers for their special or Prime subscription members, the company remains above its competitors. Their unique mobile app, ideal shipping deals, and wide entertainment provisions have become essential parts of the business's supply chain integration. Amazon then uses ecommerce in its growth and development by continuously acting upon its sales goals. It also keeps creative in becoming more technologically equipped than its rivals.
6 0
3 years ago
Other questions:
  • Is the process of planning, scheduling, and then controlling the activities during system development?
    6·1 answer
  • Coolsavings.com is one of the largest on-line distributors of in-store coupons, sales announcements, and mail-in rebates offered
    6·1 answer
  • BSO, Inc, has current assets of $1,000,000 and current liabilities of $500,000, resulting in a current ratio of 2.0.Calculate th
    14·1 answer
  • Help!!!!!!!!!!!<br> Can you answer this question? :(
    12·1 answer
  • Metal Manufacturing has isolated four alternatives for meeting its need for increased production capacity. The following table s
    11·1 answer
  • If the borrower has a previous foreclosure, can he use FHA to purchase a new home?
    6·1 answer
  • Clear Call Corporation makes phones, which are sold to consumers by DefDeals stores. Erna files a product liability suit against
    6·1 answer
  • Gantner Company had the following department information about physical units and percentage of completion: Physical Units Work
    5·1 answer
  • Imagine that a country produces only three goods: apples, bananas, and carrots. The quantities produced and the prices of the th
    8·1 answer
  • Youngstown Rubber reports the following data for its first year of operation. Direct materials used $710,200 Direct Labor 350,00
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!