Compared to the pension assumptions Stereo Warehouse used in 2008, which of thefollowing pairs of assumptions used in 2009 is most likely internally inconsistent?A . Estimated future salary increases, infl ationB . Discount rate, estimated future salary increasesC . Expected long-term rate of return on plan assets, discount rate
Compared to the pension assumptions Stereo Warehouse used in 2008, which of thefollowing pairs of assumptions used in 2009 is most likely internally inconsistent?A . Estimated future salary increases, infl ationB . Discount rate, estimated future salary increasesC . Expected long-term rate of return on plan assets, discount rate
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Compared to the pension assumptions Stereo Warehouse used in 2008, which of the
following pairs of assumptions used in 2009 is most likely internally inconsistent?
A . Estimated future salary increases, infl ation
B . Discount rate, estimated future salary increases
C . Expected long-term
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