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allsm [11]
4 years ago
7

Imprudential, Inc., has an unfunded pension liability of $800 million that must be paid in 21 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 5.5 percent, what is the present value of this liability
Business
1 answer:
Sunny_sXe [5.5K]4 years ago
5 0

Answer:

PV= $259.89 million

Explanation:

Giving the following information:

Future Value= $800 million

Number of periods= 21 years

Relevant discount rate= 5.5 percent

<u>To calculate the present value, we need to use the following formula:</u>

PV= FV/(1+i)^n

PV= 800/1.055^21

PV= $259.89 million

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Which of the following individuals is defined as an "agent" under the Uniform Securities Act? I An individual who represents a b
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Answer:

I think it would be the first one to be honest

3 0
3 years ago
In previous years, Cox Transport reacquired 2 million treasury shares at $20 per share and, later, 1 million treasury shares at
MArishka [77]

Answer:

The solution to the given problem is provided below.

Explanation:

Cash (1 million shares x 29)                                                    29 mil  

Paid- in capital – share repurchase (difference )                            7  mil

Treasury stock (1 million shares x 22 )                                           22  mil

7 0
3 years ago
.In 2027, instead of cashing in the bond for its then current value, you decide to hold the bond until it doubles in face value
cricket20 [7]

Answer:

The question is not complete,find below complete questions:

If you purchased a $50 face value bond in early 2017 at the then current interest rate of .10 percent per year, how much would the bond be worth in 2027? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. In 2027, instead of cashing the bond in for its then current value, you decide to hold the bond until it doubles in face value in 2037. What annual rate of return will you earn over the last 10 years?

The bond is worth $50.50 in the year 2027

The annual rate of return is 7.07%

Explanation:

The future value of the bond is given by the below formula:

FV=PV*(1+r)^N

where PV  is the present of the bond of $50

r is the rate of return of 0.10 percent=0.001

N is the duration of the bond investment of 10 years

FV=50*(1+0.001 )^10

FV=$50.50

However for the face of the bond to double i.e to $100, the rate of return can be computed thus:

r=(FV/PV)^(1/N)-1

where FV=$100 (double of $50)

FV=$50.50(current value in 2027)

N=10

r=($100/$50.50)^(1/10)-1

r=0.070707543

r=7.07%

5 0
3 years ago
in the 1990s, the personal computer became more easily available to the average american consumer. which factors played a role i
hjlf

Microchip technology is one of the main factors that made low-cost personal computers and other devices increasingly accessible to the general people in the 1990s.

The history of the technology industry is one of rapid expansion and decline. Its initial era of rapid expansion covered the years 1990 to 2000, which are commonly referred to as the "dot-com boom" or the "tech bubble."

Over the time, employment in the technology sector sectors soared by 36% nationwide. Over a ten-year period, the average weekly pay for those working in the technology industry quadrupled and increased by 102%. At its height in 2000, slightly over 4% of all private employment was in the technology sector.

Early in 2001, as the tech bubble burst, employment in the industry fell off quickly. For the next four years, there were large net job losses.

Learn more about personal computers in the 1990s here:

brainly.com/question/16026203

#SPJ4

3 0
1 year ago
In 2004, an art collector paid $84,275,000 for a particular painting. The same painting sold for $27,000 in 1950. Complete part
Klio2033 [76]

Answer:

Explanation:

The file has been attached. Please see the file, all the four answers have been done. Thanks.

Download docx
8 0
4 years ago
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