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DaniilM [7]
3 years ago
11

Imprudential, Inc., has an unfunded pension liability of $800 million that must be paid in 24 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 9.0 percent, what is the present value of this liability
Business
2 answers:
Anon25 [30]3 years ago
7 0

Answer:

101.12 million

Explanation:

<em>The present value of a future cash flow is the amount that can be invested today at a particular rate for a certain number of years to have the future cash flow </em>

The present value of the liability

= FV × (1+r)^(-n)

= 800  × (1.09)^(-24)

= 101.12 million

The present value of this liability= 101.12 million

zmey [24]3 years ago
4 0

Answer:

Correct answer is option e. =$101123952.6

Explanation:

Correct answer is option e.

Calculation of Present value of pension liability

Present value = Liability amount * PVIF,24, 9%

$101123952.6

Note

-The formula for calculating the Present Value Inflow Factor (PVIF) is [1 / (1 + r)n], where “r” is Discount rate and “n” is the maturity year

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3 years ago
Anderson Company acquires Thompson Company by paying $30 million in cash. The fair value of the identifiable assets acquired is
bonufazy [111]

Answer:

The fair value of the assets of the identifiable assets of Thompson company are $38 million and the fair value of identifiable liabilities is $6 million. So if we were to find the value of Thompson company just on the basis of identifiable assets and identifiable liabilities we would subtract the identifiable liabilities from the identifiable assets.

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Explanation:

5 0
3 years ago
Help me please please
monitta
Either a or c it’s one of those
6 0
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Is the loss in efficiency due to market power large or​ small? explain. the loss in efficiency due to market power is?
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