Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:Imprudential, Incorporated, has an unfunded pension liability of $570 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 6.3 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)
Procont valuo
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