What is the present value of liability-normandin inc

Assignment Help Finance Basics
Reference no: EM132703733

Normandin Inc. has an unfunded pension liability of $575 million that must be paid in 20 years. To assess the value of the firm's stock, financial analyst want to discount this liability back to present. If the relevant discount rate is is 6.8 percent. What is the present value of this liability.

Reference no: EM132703733

Questions Cloud

Calculate the sterling net present value : Calculate the £ Sterling net present value of the project by discounting nominal annual cash flows in £ Sterling.
Describe how you would create an environment : The new south Africa reality in term of legislation requires a new approach towards training and development in a workplace. Describe how you would create.
Explain the validity of opposition : A company's shareholders oppose the $160 million debt issuance because they argue that the YTM on the debt is much higher than the project cost of capital which
Find murdock ethical responsibilities to clients : Considering CFA Ethical Standards I through Standards IV, which of these, if any, may Murdoch be violating? What are Murdock's ethical responsibilities to clien
What is the present value of liability-normandin inc : To assess the value of the firm's stock, financial analyst want to discount this liability back to present. If the relevant discount rate is is 6.8 percent.
Determine the cost of capital for electrostat : The risk-free rate is 3%,and the market risk premium is 6%. Determine the cost of capital for Electrostat.
Develop a methodology for evaluating the program : Develop a methodology for evaluating the program for Police Body-Worn Cameras. Describe in detail the methods that will be used to collect data.
Explain the unique dynamics of domestic organized crime : Explain the unique dynamics of domestic organized crime in the United States. Include your opinion of why you think this is true.
Can accounting firms still audit and accept consulting fees : Research Sarbanes-Oxley. How has it changed the responsibility of people involved in companies whose stock is publicly traded? Can accounting firms still audit.

Reviews

Write a Review

Finance Basics Questions & Answers

  How does the assumption on future improvements in working

.Approximately what expected future long-run growth rate would provide the same EBITDA multiple in 2010 as Ideko has today (i.e., 9.1). Assume that the future debt-to-value ratio is held constant at 40%; the debt cost of capital is 6.8%; Ideko’s mark..

  Federal income tax owed by an investor

1. What is the federal income tax owed by an investor in the 35 percent income tax bracket (15 percent tax rate on long-term capital gains and dividend income)?

  Does behavior described in question reflect your behaviour

Describe your behavior if you were going to buy a home. Does the behavior described in this question reflect your behavior, or would you be more disciplined?

  Sense of the magnitude of market

JB Hi Fi has already spent (and expensed) $0.8 million on a market study which has provided JB Hi Fi with a sense of the magnitude of this market

  Which ruling do you agree with in this complex case

Which ruling do you agree with in this complex case? What is the justification for the ruling against the leaseholder in this case

  Calculate a? one-year holding period return?

Calculate a? one-year holding period return? (HPR) for the following two investment? alternatives, which investment would you? prefer

  How does the value of the firm will increase with leverage

XCV Inc., which manufactures automobile parts for assembly, is considering the costs and the benefits of leverage. The CFO notes that the return on equity.

  Industry average inventory turnover ratio

1. The industry average inventory turnover ratio is 7 and your company's is 15. This could be good or bad news. Explain each possibility. How would you find out whether it is bad news?

  A bank grants 30 year mortgages for a total amount of 100

a bank grants 30 year mortgages for a total amount of 100 million. these mortgages require payments of coupons of 10

  Calculate long term sustainability for a company

How to calculate long term sustainability for a company.

  Managers and good consequences for the employees

Identify a case in which a company uses an OUTCOME-BASED control system and achieves correct conduct from its managers and incorrect conduct

  What is the present value of the interest tax? shield

Arnell Industries has just issued $25 million in debt? (at par). The firm will pay interest only on this debt.? Arnell's marginal tax rate is expected to be 21

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd