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]
4 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]4 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]4 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
What european nation profited most from trade with the east?
nydimaria [60]

Answer:

think it was italy

Explanation:

maybe im right

im prob wrong

6 0
3 years ago
Read 2 more answers
Describe the steps that should be followed to safely exit an expressway
LenKa [72]
The steps that should be followed to safely exit an expressway are:

1. Half a mile before the exit, you should check your front and rear zones for traffic.
2. Signal and move into the 3rd lane position that leads into the deceleration lane.
3. Move into the deceleration lane.
4. Flash your brake lights or push your brakes to turn on the brake lights to let other drivers know that you are slowing down.
5. Identify the ramp speed sign and use that speed to exit.
5 0
3 years ago
Kay’s dog-walking service is a profit-maximizing, competitive firm. Kay walks dogs for $7.50 each. Her total cost each day is $4
devlian [24]

Answer:

Because he is able to cover the variable cots, he should keep going in the short run. He must increase the number of walks to cover the fixed costs.

Explanation:

Giving the following information:

Kay walks dogs for $7.50 each. Her total cost each day is $45—she spends $35 a day on gas driving to different neighborhoods, and her liability insurance and other fixed costs average out to $10 per day.

Kay walks five dogs a day.

Income= 7.5*5= $37.5

Total cost= 45

Loss= (7.5)

Because he is able to cover the variable cots, he should keep going in the short run. He must increase the number of walks to cover the fixed costs.

6 0
3 years ago
Newland and Palermo form a partnership. Newland contributes land with a book value of $50,000 and a fair value of $60,000. Newla
katrin2010 [14]

Answer:

$97,000

Explanation:

The computation of capital account balance is shown below:-

capital account balance = Fair market value of Land + Equipment fair market value - Mortgage on the land

Capital account balance = $60,000 + $57,000 - $20,000

= $97,000

Therefore for computing the balance of capital account we simply added the fair market value of land and equipment fair market value and deduct the mortgage on the land and we ignore the book values as its not relevant to compute the balance of capital account.

7 0
4 years ago
A company has three products possible products that it can produce in a machine intensive production process. Capacity is constr
disa [49]

Answer:

D

Explanation:

                                          A             B             C

Contribution per unit      20          30           40

Machine hours per unit  2.5          3.25       4.5

Contribution per hour     8             9.23       8.89

Product B has the highest contribution per hour .

It is stated that the capacity is constrained by the number of hours the machine can run during a period . and all products produce will be sold. This has made the machine hour the determinant factor in the situation.

Therefore product B should be emphasized if the goal is to maximize contribution margin.

3 0
4 years ago
Other questions:
  • Suppose an economy has 10,000 people who are not working but looking and available for work and 90,000 people who are working. W
    12·1 answer
  • Haffner Corporation uses the weighted-average method in its process costing system. Data concerning the first processing departm
    14·1 answer
  • You plan to purchase a $360,000 house using either a 30-year mortgage obtained from your local savings bank with a rate of 8.60
    6·1 answer
  • The Holmes Company's currently outstanding bonds have a 10% coupon and a 14% yield to maturity. Holmes believes it could issue n
    12·1 answer
  • The managers of Presto Pizza, a popular pizzeria in Concord, California, have been increasingly encouraging senior citizens to o
    10·1 answer
  • Fast Photo operates four film developing labs in upstate New York. The four labs are identical: They employ the same production
    8·1 answer
  • Which of the following assets purchased in the current year are eligible to be expensed under Section 179 assuming the cost does
    11·1 answer
  • What was the major difficulty for the athletes?
    6·1 answer
  • The sum of direct materials and direct labor is called.
    9·1 answer
  • barbara is a single taxpayer who had a 2022 adjusted gross income of $25,000 and who contributed $4,000 to her traditional ira.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!