Many firms have pension plans for their employees that are heavily in deficit (i.e. the asset value

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Many firms have pension plans for their employees that are heavily in deficit (i.e. the asset value of the fund is less than the present value of its future pension payments). How does this affect the risk of firms? How would you incorporate the pension fund deficit or surplus into the Modigliani–Miller framework?

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Corporate Finance

ISBN: 9780077173630

3rd Edition

Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe

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