What is the present value of this liability

Assignment Help Accounting Basics
Reference no: EM133012997

Question - Imprudential, Inc., has an unfunded pension liability of $750 million that must be paid in 17 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 10.5 percent, what is the present value of this liability?

Reference no: EM133012997

Questions Cloud

Determine the carrying amount of the asset as at december : The plant had a useful life of 50 years from the date it was constructed and ready to be used. Determine the carrying amount of the asset as at December
What is the npv of this investment : Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. What is the NPV of this investment
Prepare the journal entry to record the issue of bonds : Bradley uses the straight line method of amortizing bond premium or discount and the bonds are sold at $239,111. Prepare journal entry to record issue of bonds
What the bill for this repair : In March 2022, Cullumber repairs a bicycle that takes three hours to repair and uses parts of $85. What the bill for this repair
What is the present value of this liability : Imprudential, Inc., has an unfunded pension liability of $750 million that must be paid in 17 years. What is the present value of this liability
What the weighted-average unit contribution margin : Sixty percent of the unit sales are Plain, and annual fixed expenses are $55,200. What the weighted-average unit contribution margin
Explain whether drawing attention to the note : Explain whether drawing attention to the note will result in the expression of a modified audit opinion. Justify your answer
Explain to pav the necessity of making adjusting entries : Explain to Pav the necessity of making adjusting entries and what would have been the effect on profit if these adjusting entries had not been made
What is the required treatment of each of the events : Question - What is the required treatment of each of the below events in the financial statements? Justify your decisions

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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