Imprudential, Incorporated, has an unfunded pension liability of $ be paid in 20 years. To assess the value of the firm's stock, financ discount this liability back to the present. If the relevant discount r what is the present value of this liability? (Do not round intermedi enter your answer in dollars, not millions, rounded to 2 decimal 1,234,567.89)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A6

Imprudential, Incorporated, has an unfunded pension liability of $450 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 5.2 percent,
what is the present value of this liability? (Do not round intermediate calculations and
enter your answer in dollars, not millions, rounded to 2 decimal places, e.g.,
1,234,567.89)
Present value
Transcribed Image Text:Imprudential, Incorporated, has an unfunded pension liability of $450 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 5.2 percent, what is the present value of this liability? (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g., 1,234,567.89) Present value
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