Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question:
Car Maker Ltd is a multinational. In one of the countries where it is present, current legislation makes it compulsory for companies to pay a gratuity lump sum at retirement equivalent to 150% of the monthly salary per complete year of service. For companies which have a pension scheme in place, they can deduct 100 times the monthly pension off the gratuity lump sum payment. Car Maker Ltd wants to put in place a final salary DB scheme to fund in advance this gratuity benefit
a) What is the minimum accrual rate that will ensure that Car Maker will have no liability at retirement in respect of the gratuity?
b) How will your answer to (a) above change if Car Maker Ltd defines pensionable salary as the average over the last 5 years instead of using final salary? Explain
c) On a purely cost basis, is it in the interest of Car Maker to set up a DB scheme with the minimum accrual rate to fund for the gratuity lump sum assuming that retirement age is 65 and life expectancy at retirement is 12 years? Explain
d) How would your answer to (c) above change if all employees of Car Maker Ltd were females instead of males? Explain
Explain with proof that c >= max(S - X, 0), where c is the value of the European call option, S is the price of the underlying asset and X is the strike of the option. The follo
Method is the ?rst of two methods proposed by Mantrala and Rao (2001) and has been reviewed in Section 2.We use a simpli?ed version, with ?xed prices and for a single period. Furth
How do mergers affect communities? A: When a locally controlled bank is merged into a bank headquartered elsewhere (an out-of-market merger), some apprehension about the instit
B. Zehpher Intelligence A second possible Acquisition, Zehpher Intelligence, an IT company is operating in a rapid growth industry. Relevant financials: Free cash flow for the pa
The higher the rate of interest the more likely you will elect to invest your funds and forego current consumption. Is this statement true or false?
McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $825 per set and have a variable cost of $395 per set. The company has spent $150,000 for a mar
What will be impact on the operating leverage of a firm, if it proceeds for additional borrowings?
Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique. Your company is considering the constructio
A firm's assets have a market value of $500m; the asset returns have a standard deviation of 25% per year. The firm is financed with zero coupon debt having a face value of
Define depreciation expense as it appears on the income statement.How does depreciation affect cash flow? Accounting depreciation is the provision of an asset's initial cost ov
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd