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sdas [7]
3 years ago
8

Ivanhoe, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined

-benefit pension plan for the year ended December 31, 2021. 1/1/21 12/31/21 Accumulated benefit obligation 3600000 1660000 Net (gains) and losses $ 6670000 $ 148000 Projected benefit obligation 1450000 6855000 Pension assets (at fair value) 0 4036000 The service cost component of pension expense for 2021 is $523000 and the amortization of prior service cost due to an increase in benefits is $113000. The settlement rate is 11% and the expected rate of return is 7%. What is the amount of pension expense for 2021

Business
1 answer:
Setler79 [48]3 years ago
4 0

Answer:

The pension expense for 2021 = $543,500

Explanation:

Service cost = $523,000

Amortization of prior service cost = $113,000

Settlement rate = 11%

Projected benefit obligation = $1,450,000

Accumulated benefit obligation = $3,600,000

Note: The necessary calculations are in the table attached as a file to this solution.

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An investor estimates that next​ year's sales for​ Dursley's Hotels Inc. should amount to about ​$100 million. The company has 5
Lerok [7]

Answer:

(a) $10 million

(b) $1 per share

(c) $49

(d) 25 %

Explanation:

(a) Estimated net earnings for next year.

Sales next year = $100 million

Net profit margin = 10%

Net profit margin = Net Income ÷ Sales

Net Income = 10% × $100 million

                    = $10 mil lion

(b) Next year's dividends per share.

Dividend payout = Dividends paid ÷ Net Income

                            = 50%

Dividends paid = $10 × 50%

                          = $5 mil lion

Per share dividend = Dividend paid ÷ Shares outstanding

                                = $5 million ÷ 5 million

                                = $1  per share

(c) The expected price of the stock (assuming the P/E ratio is 24.5 times earnings).

Earnings per share:

= Net income ÷ shares outstanding

= $10 million ÷ 5 million

= $2 per share

P/E Ratio = Price per share ÷ Earnings per share

Price per share = $2 × 24.5

                          = $49

(d) The expected holding period return (latest stock price: $40 per share).

= (Final price - Initial price + Dividend) ÷Initial Price

= ($49 - $40 + $1) ÷ $40

= 25%

8 0
3 years ago
List three or four effects of financial irresponsibility.
Aleksandr-060686 [28]
Debt
Fraud
being broke
5 0
2 years ago
Richard Beck has a life insurance policy which he has modified to include an accidental death benefit payable to his son and dau
Ksju [112]

Answer:

The correct answer is number (1): double indemnity provision.

Explanation:

A double indemnity provision is added in life insurance to double the amount the beneficiaries of the policyholder receive in front of his or her death in an accident. Double indemnity provision does not cover events in which the policyholder dies because of natural reasons or when those individuals had hazardous jobs. Premiums are higher with a double indemnity provision.

7 0
3 years ago
4. What is one thing you can do to help remember a new business contact? Write
Zanzabum

Answer:

Explanation:

c:what type of business the person is in

that is the only logical answer lol

hope it helps

3 0
3 years ago
Luis regularly reminds his team members of the purpose of their work and why they are important to the organization. He also reg
Vlada [557]

Answer: (C) Transformational leadership style

Explanation:

 The transformational leadership style is one of the most important leadership element as it inspire and also encourage the various types of innovate ideas.

 The important of the transformational leadership style is that it give a clear vision and the direction to an organization and it also helps in influence the lower level part of the company.

 According to the given question, Luis is the team member and he regularity motivated his team member due to the transformational leadership style.  

Therefore, Option (C) is correct.

6 0
3 years ago
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