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
Question 13 of 20
____ [38]

\:\huge\mathbb\red{Answer}

Option A is the correct answer

4 0
2 years ago
Suppose an economist believes that the price level in the economy is directly related to the money supply, or the amount of mone
Alex787 [66]

The statement " An economist would look for data on past changes in the money supply, and note the resulting changes in the price level " is correct.

Explanation:

In the past, the knowledge economist will research price-money ties and observe trends; then analyse data, and establish the theory.

Financial experts analyse the market activity of economists. Their main responsibility includes the compilation and review of economic and socio-economic data, guidance on economic choices for companies and governments and the creation of models for economic predictions.

  • Financial political and socio-economic data collection and review.
  • Surveys and diverse sampling techniques are carried out.
  • Researching different areas such as governance, economics, employment, electricity, etc.
  • Using historical information. Market trends analysis.
5 0
3 years ago
Employees at Brazil-based company Seneco are permitted to control their work hours, location, and even pay plans. Employees also
kogti [31]

Answer:

Empowered

Explanation:

In the given scenario employees in Seneco have the freedom of controlling their work hours, location, and even pay plans. Employees also participate in all organization decisions, including what businesses Senco should pursue.

This is a form of employee empowerment.

Employee empowerment is the act of giving an employee autonomy in decision making regarding their welfare and activities affecting the organisation.

Employees are more involved in decisions affecting their work. This fosters a sense of commitment to the business.

6 0
3 years ago
Haley romeros had just been appointed vice president of the rocky mountain region of the bank services corporation (bsc). the co
cluponka [151]

computerized database

7 0
3 years ago
Accounting is the information system that A. processes information into reports. B. measures business activity. C. communicates
Natalka [10]

Answer:

The correct answer is letter "D": All of the above.

Explanation:

Accounting is the activity by which the economic transactions of a company are registered in ledgers that together form a group where information is recorded to be summarized at the end of an accounting period in Financial Statements. That report is useful for top managers since they can make decisions about what the firm should implement or replace to maximize the firm's resource allocation and profits.

8 0
3 years ago
Other questions:
  • Jim holds a commercial lease. Last year his rent went up 4% based on a 4% increase in the wholesale price index. What type of le
    9·1 answer
  • Describe at least two common types of variable expenses that you expect to have at some point in your life. (1-2 sentences. 1.0
    13·1 answer
  • Merv Grazinski, driving his Winnebago, put it on cruise control to go make coffee. The Winnebago went off the road, turned over
    13·1 answer
  • Reep Construction recently won a contract for the excavation and site preparation of a new rest area on the Pennsylvania Turnpik
    9·1 answer
  • Imitability of a resource can occur through _?
    12·2 answers
  • Which of the following best describes how to use a test-retest reliability estimate to assess reliability?
    7·1 answer
  • A home mortgage with monthly payments for 30 years is available at 6% interest. The home you are buying costs $120,000, and you
    8·1 answer
  • Bill owns a company called Wild Bill's Bracelets that sells custom jewelry. He launched a Search campaign to drive sales of his
    8·1 answer
  • First Simple Bank pays 6.4 percent simple interest on its investment accounts. If First Complex Bank pays interest on its accoun
    8·1 answer
  • Ms. Jorgen recently moved from Boston to Pittsburgh to take a job with OP Inc. She sold her home in Boston and OP paid the $14,5
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!