What is the present value of liability

Assignment Help Financial Management

Reference no: EM131510677

Imprudential, Inc., has an unfunded pension liability of $761 million that must be paid in 30 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 9 percent, what is the present value of this liability?

Reference no: EM131510677

Questions Cloud

How much will he need by his retirement date to satisfy : How much will he need by his retirement date to satisfy his goals(assuming he starts withdrawing his retirement income need at the very beginning of reitrement.

Compute the capital charge : Compute the capital charge that would be imposed on the bank by regulators due to its market risk exposure if the bank decides to use its internal model.

Calculate market risk capital charge on bank trading book : In its trading book, a financial institution holds 20,000 shares of Enbridge Inc. Calculate the market risk capital charge on the bank’s trading book.

Calculate contribution margin per unit : A company recently reported 400,000 units sold at a price of $60.00 per unit. Calculate Contribution Margin $ per unit and Contribution Margin as a % of sales

What is the present value of liability : what is the present value of this liability?

Combination of assets to add to portfolio : Your employer was very impressed with your performance so far, who is indecisive about which combination of assets to add to his portfolio.

What is fletchers expected stock : what is Fletcher's expected stock price 5 years from now?

Find the annual percentage rate : The credit union compounds weekly. Find the annual percentage rate.

Compute the required estimated tax payments : compute the required estimated tax payments for 2016 tax in each of the following circumstances.

User Account

All Pages