Imprudential, Inc., has an unfunded pension liability of $550 million that must be paid in 20 years.
Fantastic news! We've Found the answer you've been seeking!
Question:
Imprudential, Inc., has an unfunded pension liability of $550 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 6.4 percent, what is the present value of this liability?
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Posted Date: