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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

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Explanation:

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Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book value of $6,400 and a fair mark
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Answer:

Answer for the question  

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2 years ago
Diz Co. is a U.S.-based MNC with net cash inflows of euros and net cash inflows of Swiss francs. These two currencies are highly
VikaD [51]

Answer:

Yanta Co. has a higher exposure to exchange rate risk than Diz Co.

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Explanation:

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Diz Co. has net cash inflows of euros and net cash inflows of swiss francs

Yanta Co. has net cash outflows of euros and net cash inflows of swiss francs

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8 0
2 years ago
The high-income economies of the world contain approximately __________ of the world’s population and produce and consume ______
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The high-income economies of the world include approximately 12% of the world’s population and produce and consume 60% of the world’s GDP.

<h3>What is GDP?</h3>

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Gross domestic product (GDP) stands for the total monetary or market value of all the finished goods and services constructed within a country's borders in a typical period. GDP measures the worth of the final goods and services produced in the United States (without double counting the middle goods and services used up to produce them).

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To learn more about GDP refers to:

brainly.com/question/1383956

#SPJ4

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