Why is the projected value of the liabilities of adefined benefit plan dependent on the discountrate used
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 62% (16 reviews)
The value of any series of cash flows are greatly influenced by the discount rates used Lower discount rates representing less risky forms of borrowing will enable the present value of cash flows to b...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
4.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Corporate Finance questions
-
Why in managing a defined benefit pension plan is it necessary for the plan sponsor to pursue a liability-driven solution rather pursue a strategy that focuses only on management of the assets?
-
On January 1, 2021, Pharoah Co. had the following balances: Projected benefit obligation $7,460,000 Fair value of plan assets 7,460,000 Other data related to the pension plan for 2021: Service cost...
-
On January 1, 2015, Newlin co. has the following balances: projected benefit obligation $2,100,000 fair value of plan assets 1,800,000 the settlement rate is 10%. other data related to the pension...
-
The FBI Standard Survey of Crimes shows that for about 80% of all property crimes (burglary, larceny, car theft, etc.), the criminals are never found and the case is never solved (Source: True Odds,...
-
A filter has a transfer function given by (a) Is this filter, lowpass, highpass, or bandpass? (b) Find the noise equivalent bandwidth of this filter. H(f) = (1+J2+(2000
-
Write an expression for the area of each of the following shapes. a. b. 8 j -j- 3
-
Pew Research Center collected data on the same 10 political value questions from 1994 to 2014 and combines these responses to place each person on a scale ranging from consistently liberal to...
-
1. Wages and prices will increase when actual output exceeds potential. __________(True/False) 2. The short run in macroeconomics is the time period over which __________do not adjust to economic...
-
The Capital Asset Pricing Model (CAPM) implies that investors require a higher return to hold highly volatile securities. Is the statement true or false? Explain using the relevant formula. b) Here...
-
The Growall Fertilizer Company produces three types of fertilizerSupergro, Dynaplant, and Soilsaver. The company has the capacity to produce a maximum of 2,000 tons of fertilizer in a week. It costs...
-
You overheard a conversation by trustees of a defined benefit pension plan about how successful they have been in making asset allocation decisions and selecting asset managers. Every year their...
-
Why is the funding gap of a defined benefit pensionplan referred to as the unfunded liabilities?
-
According to the theories of modern physics, a. only stationary particles exhibit wave behavior b. only moving particles exhibit wave behavior c. only charged particles exhibit wave behavior d. all...
-
How do you fi nd the most efficient output, and how do you fi nd the most profitable output?
-
If business owners expected a steep drop in prices, they would take action that would tend to ________supply.
-
The marginal cost curve intersects the ATC curve at its _________. a) minimum point, which is the break-even point b) maximum point, which is the break-even point c) minimum point, which is the...
-
If a firm is producing a level of output at which that outputs marginal cost is less than the price of the good, _______-. a) it is producing too much to maximize its profits b) it is probably...
-
Suppose the Fed reduces the money supply by 5 percent. Assume the velocity of money is constant. a. What happens to the aggregate demand curve? b. What happens to the level of output and the price...
-
A toy store has average monthly sales of $80,000. Its sales for December were $120,000. What is the monthly sales index for December? a. 153 b. 67 c. 150 d. 400
-
A company has the following incomplete production budget data for the first quarter: In the previous December, ending inventory was 200 units, which was the minimum required, at 10% of projected...
-
Consider two mutually exclusive alternatives: If the MARR is 8%, which alternative should be selected? Year -$5000 -$5000 -3000 +2000 +4000 +2000 +4000 +2000 4 +4000 +2000 3.
-
Two mutually exclusive alternatives are being considered. If the minimum attractive rate of return is 8%, which alternative should be selected? Solve the problem by (a) Present worth analysis " (b)...
-
A contractor is considering whether to purchase or lease a new machine for his layout site work. Purchasing a new machine will cost $12,000 with a salvage value of $1200 at the end of the machine's...
-
a) Give one reason why local Pakistan bus businesses could benefit from Pakistan's crisis. b) Give one reason why local bus businesses could be hurt by the Rupee crisis.
-
A P/E multiple could be high relative to the S&P 500 Index because its high growth rate justifies it. You notice a stock that has an assumed growth rate of 5.43% with a dividend payout ratio of 64.9%...
-
What would be the volume ( cm 3 ) of a piece of Styrofoam if it had a mass of 3 5 0 g , no matter its shape? Show calculation.
Study smarter with the SolutionInn App