Answer:
Liability is the amount through which the projected benefit obligation is greater than the fair value of the plan assets.
Explanation:
Defined benefit pension plan is the plan which the company used for the pension payments of employees and are calculated or evaluated as per the length of the service as well as the salary, which employees earned during the time of retirement.
The liability in defined pension plan is the liability which the increase the each period through an equal amount to the expense as the company does not fund the other post retirement benefit plan.
And if the projected benefit obligation exceed the fair value of the plan assets of pension, then the prepaid or accrued pension cost is recorded as the liability.
Answer:
Explanation:
Corcoran Corp. pays a constant $7.10 dividend on its stock. The company will maintain this dividend for the next 10 years and will then cease paying dividends forever. If the required return on this stock is 11 percent, what is the current share price
Given that:
Dividend = $7.10 dividend on its stock
Rate r = 11 percent
The company will maintain this dividend for the next 10 years
Sustainable development..
hope it helped
Answer:
$778.82
Explanation:
Given:
Amount to be accumulated in retirement fund which is future value (FV) = $500,000
Interest rate (Rate) = 5.5% annually or 5.5 / 12 = 0.4583%
Time period (nper) = 25 years or 25×12 = 300 periods
Monthly deposit need to be computed (PMT). which can be calculated using spreadsheet function =pmt(rate,nper,PV,FV)
=pmt(0.004583,300,0,500000)
Monthly payment is computed as $778.82
Note: PMT is negative as it is a cash outflow.