Imprudential Inc. has an unfunded pension liability of $750 million that must be paid in 20 years.

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Imprudential Inc. has an unfunded pension liability of $750 million that must be paid in 20 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 8.2 percent, what is the PV of this liability?

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Corporate Finance

ISBN: 9781259270116

8th Canadian Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss

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