What is present value of this liability

Assignment Help Financial Management

Reference no: EM131492523

Imprudential, Inc., has an unfunded pension liability of $800 million that must be paid in 20 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 8.0 percent, what is the present value of this liability?

Reference no: EM131492523

Questions Cloud

Money by issuing dollar-denominated bonds : It plans to raise this money by issuing dollar-denominated bonds and using a currency swap to convert the dollars to euros.

Assume debt tax shields have a net value : Assume debt tax shields have a net value of $0.25 per dollar of interest paid. Calculate the project’s APV.

Investment requirement : what is the minimum expected annual return for Stock 3 that will enable Michele to achieve her investment requirement?

Concept of portfolio diversification is to minimize : Based on a multi-factor APT model, the concept of portfolio diversification is to minimize which one of the following?

What is present value of this liability : Imprudential, Inc., has an unfunded pension liability of $800 million that must be paid in 20 years. what is the present value of this liability?

Perfect capital markets-value interest tax shield adds : Firm Xi has market beta for their equity of 1.2-currently has D/E ratio of 1.4. Now, value company with tax shield-how much value interest tax shield adds.

What was the initial cost to mitchell labs to go private? : What was the initial cost to Mitchell Labs to go private? What is the percentage return to the management of Mitchell Labs from the restructuring?

What decisions should she make regarding these projects : What decisions should she make regarding these projects if she assigns them a mandatory discount rate of 8.5 percent? Explain why

What was annual increase in selling price : What was the annual increase in selling price?

User Account

All Pages