Q for the present employees there is 30 million dollars in

Reference no: EM13355304

Q. For the present employees, there is 30 million dollars in Pension Trust. These employees will retire in the weighted average of ten years, also then begin to gather a total of $8.3 Million each year for the weighted average expectancy of twenty years. Firm claims which using a discount rate of 8.00%, they are 80% funded, but with future profitability, they will be able to pay in more money.

So first, find out present value (in 10 years) of what they will require to make 20 years of payments at $8.3 Million each year at their discount rate. Then, discount that figures at their discount rate to Find out today's current value required to compound to that in ten years. How does that compare to $30 Million that is really there.

Next, what do you believe is the suitable rate other than 8.00% to utilize as the discount rate for these computations? At that rate, what level of underfunding presently exists, if at all? Why is your selected rate better than 8.00% that the firm used?

Reference no: EM13355304

Questions Cloud

Q how to set up spreadsheet for questions given below i do : q. how to set up spreadsheet for questions given below. i do not know how it must be set up even.suppose that the

Q1 let the returns also yields given us t-bill 8 5-year : q.1 let the returns also yields given u.s. t-bill 8 5-year u.s. t-note 7 ibm common stock 15 ibm aaa corporate bond

Q sam goldsmiths broker has shown him 2 bonds each has : q. sam goldsmiths broker has shown him 2 bonds. each has maturity of five years a par value of 1000 also yield to

Q drake wishes to evaluate value of the asset expected to : q. drake wishes to evaluate value of the asset expected to give cash inflows of 3000 each year at the end of years 1

Q for the present employees there is 30 million dollars in : q. for the present employees there is 30 million dollars in pension trust. these employees will retire in the weighted

Q on october 5 2013 you bought a 12000 t-note which matures : q. on october 5 2013 you bought a 12000 t-note which matures on august 15 2024 settlement happens 2 days after purchase

Q cavo corporation expects the ebit of 23000 every year : q. cavo corporation expects the ebit of 23000 every year forever. company presently has no debt also its cost of

1 sam wishes to retire in thirty years also he wishes to : 1 sam wishes to retire in thirty years also he wishes to have the annuity of 1000 a year for twenty years after

Q1 susie can earn the nominal annual rate of return of 12 : q.1 susie can earn the nominal annual rate of return of 12 compounded semi-annually. if susie made 40 consecutive

User Account

All Pages