Imprudential, Inc., has an unfunded pension liability of $645 million that must be paid in 25...

 

Transcribed Image Text:

Imprudential, Inc., has an unfunded pension liability of $645 million that must be paid in 25 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 6.5 percent, what is the present value of this liability? (Do not round intermediate calculations and enter your answer in dollars, not millons of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) Present value Imprudential, Inc., has an unfunded pension liability of $645 million that must be paid in 25 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 6.5 percent, what is the present value of this liability? (Do not round intermediate calculations and enter your answer in dollars, not millons of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) Present value

Answer rating: 100% (QA)

To calculate the present value of the unfunded pen... View the full answer