1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
wlad13 [49]
2 years ago
15

mprudential, Incorporated, has an unfunded pension liability of $750 million that must be paid in 25 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 10.0 percent, what is the present value of this liability
Business
1 answer:
Dafna1 [17]2 years ago
3 0

Answer:

PV= $69,221,998.63

Explanation:

Giving the following information:

Future Value= $750,000,000

Number of periods (n)= 25 years

Discount rate (i)= 10%

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

PV= FV / (1 + i)^n

PV= 750,000,000 / (1.1^25)

PV= $69,221,998.63

You might be interested in
Kenneth, the CEO of Dewberry Inc., is very particular about establishing and maintaining good interpersonal relations with his e
qaws [65]

Answer:

<em>Need for Achievement.</em>

Explanation:

David McClelland and his colleagues developed the Needs / Achievement Motivation Theory theory of McClelland.

The theory suggests that three needs; <em><u>Need for Power, Success and Affiliation</u></em>-affect human actions.

The desire to succeed, to perform in comparison to a set of norms, to strive to achieve greatness is the need for achievement.

5 0
3 years ago
Assume that you are a new analyst hired to evaluate the capital budgeting projects of the company which is considering investing
Alchen [17]

Answer:

Assume that you are a new analyst hired to evaluate the capital budgeting projects of the company which is considering investing in two CPEC projects, “Expansion Zone North” and “Expansion Zone East”. The initial cost of each project is Rs. 10,000. Company discount all projects based on WACC. Further, all the projects are equally risky projects and the company uses only debt and common equity for financing these projects. It can borrow unlimited amounts at an interest rate of rd 10% as long as it finances at its target capital structure, which calls for 50% debt and 50% common equity. The dividend for next period is $2.0, its expected that they will grow at the constant growth rate of 8%, and the company’s common stock sells for $20. The tax rate is 50%.

6 0
3 years ago
Read 2 more answers
Careers in the Transportation and Logistics career cluster are
saul85 [17]

Answer:

B)secure industries that are expected to grow.

Explanation:

The other person was right but just accidently said A) instead of B)

Hope this helps! :D

8 0
2 years ago
The Walthers Company has a semi-annual coupon bond outstanding. An increase in the market rate of interest will have which one o
professor190 [17]

Answer:

The answer is D.

Explanation:

An increase in the market rate of interest of a bond will decrease the market price of the bond. Market rate of interest of a bond is inversely related to the market price of the bond.

For example, A bonds is issued with a higher interest rate, the price of existing bonds will fall because the demand for this bond falls.

6 0
3 years ago
Hal Gore won a $1 million prize for special contributions to environmental research. This prize is awarded for public achievemen
Vikki [24]
I think the answer is A
7 0
3 years ago
Other questions:
  • An investment banker agrees to a firm commitment offering of two million shares of Ace stock. The offer price is set at $55 and
    7·1 answer
  • Scenario 3: Assume that Jacob had not yet sold the office furniture division by the end of 2016. Further, assume that the fair v
    13·1 answer
  • Advocates of the floating rate system argue that Multiple Choice there is no connection between the floating rate system and tra
    12·1 answer
  • Which word means a formal agreement between two or more governments?
    7·2 answers
  • Johnson, Inc. has just ended the calendar year making a sale in the amount of $10,000 of merchandise purchased during the year a
    6·1 answer
  • In recent​ years, economists have begun to use height as a measure of health​ and, indirectly, general​ well-being. Over​time, p
    6·1 answer
  • Ben quit his job as an economics professor to become a golf professional. He gave up his $30,000 salary and invested his retirem
    7·1 answer
  • Refer to the scenario to answer the following questions. A government worker surveys a number of households and comes up with th
    12·1 answer
  • Which was not an example of a business ethical dilemma discussed by Albert Carr in his article on business bluffing?
    5·1 answer
  • In​ 1982-84 dollars, the real average hourly wage rate in 2005 was ​$8.18 and in 2006 ​, it was ​$8.24 . In 2005 ​, the CPI was
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!