Answer:
$87 million
Explanation:
The projected benefit obligation (PBO) is a measurement of the present amount of money needed by a company to cover future pension liabilities. PBO uses how long the employee will work and any increased future obligations to the employee's pension.
Given that:
PBO at the beginning of the year = $80 million
Service cost for the year = $10 million
Interest = Discount rate × PBO at beginning of the year = 5% × $80 million = 0.05 × $80 million = $4 million
Actuarial (gain) Loss = Amount paid - Expected money = $5 million - $4 million = $1 million
Benefits paid paid by trustees = $6 million
The total pension expense for the year = PBO at year beginning + Service cost + interest - Actuarial (gain) Loss - benefits = $80 million + $10 million + $4 million - $1 million - $6 million = $87 million
The answer to this question is <span>Protraction of adolescence
During adolescence period, most people experience the first time felt the need to find their true identity.
This led us to experiment a lot, whether it's about hobby, social group, sexuality, career opportuniries, etc, which often lead to turmoil and external recklessness.</span>
Gross profit shows how much money you made in relation to the cost of goods sold, this calculation is very important when you need to know wether a product is profitable or not. Net profit also substracts the expenses (building machinery,etc).
Answer:
c. $76.48
Explanation:
The value of the stock is the present value of future cash flows
First, calculate each year's dividend
First year dividend = D1 = D0 x ( 1 + first year growth rate ) = $2.25 x ( 1 + 30% ) = $2.925
Second year dividend = D2 = D1 x ( 1 + Second year growth rate ) = $2.925 x ( 1 + 10% ) = $3.2175
Second year dividend = D3 = D2 x ( 1 + Second year growth rate ) = $3.2175 x ( 1 + 5% ) = $3.378375
Now calculate the present value of each year's dividend
Present value of D1 = D1 / ( 1 + required return )^1 = $2.925 / ( 1 + 9.00% )^1 = $2.6834
Present value of D2 = D2 / ( 1 + required return )^2 = $3.2175 / ( 1 + 9.00% )^2 = $2.7081
Present value of D3 = [ D3 / ( Required return - Growth rate ) ] / ( 1 + required return )^2 = [ $3.378375 / ( 9.00% - 5.00% ) ] / ( 1 + 9.00% )^2 = $71.0878
Now take the sum of the present value of all the dividends to calculate the value of stock
Value of Stock = Sum of Present value of all dividend = Present value of D1 + Present value of D2 + Present value of D3 = $2.6834 + $2.7081 + $71.0878
Value of Stock = $76.4793
Value of Stock = $76.48
