Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) For the present employees, there is 30 million dollars in Pension Trust. These employees will retire in the weighted average of ten years, and then begin to gather a total of $8.3 Million per year for the weighted average expectancy of twenty years. Firm claims which using a discount rate of 8.00%, they are 80% funded, but with future profitability, they will be able to pay in more money.

So first, find out present value (in 10 years) of what they will require to make 20 years of payments at $8.3 Million per year at their discount rate. Then, discount that figures at their discount rate to determine today's current value required to compound to that in ten years. How does that compare to $30 Million that is really there.
Next, what do you believe is the suitable rate other than 8.00% to utilize as the discount rate for these computations? At that rate, what level of underfunding presently exists, if at all? Why is your selected rate better than 8.00% that the firm used?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M915165

Have any Question? 


Related Questions in Basic Finance

1 what is meant by a sale-leaseback why would a building

1. What is meant by a sale-leaseback? Why would a building investor want to do a sale-leaseback of the land? What is the benefit to the party that purchases the land under a sale-leaseback? 2. Why might an investor prefe ...

1 how do scientists get ideas for research what are the

1. How do scientists get ideas for research? What are the advantages and potential disadvantages of each method for doing so? 2. What guidelines do scientists use to conduct an effective literature search? What specific ...

1 what is the yield to maturity why is the yield to

1. What is the yield to maturity? Why is the yield to maturity a better measure of the interest rate on a bond than is the coupon rate? 2. Write an expression showing the relationship among the price of a coupon bond, th ...

Suppose that an economy in 10000 bc used a rare stone as

Suppose that an economy in 10000 B.C. used a rare stone as its money. Suppose also that the number of stones declined over time as stones were accidentally destroyed or used as weapons. What probably happened to the valu ...

A recent survey at a major corporation found that employees

A recent survey at a major corporation found that employees who regularly participated in the company fitness program tended to have fewer sick days than employees who did not participate. However, because the study was ...

Below is a grammar for expressions involving operator and

Below is a grammar for expressions involving operator + and integer or oating-point operands. Floating-point numbers are distinguished by having a decimal point. a) Give an SDD to determine the type of each term T and ex ...

1 how might land development activities be specialized why

1. How might land development activities be specialized? Why is this activity different from project development discussed in the preceding chapter? 2. What is an option contract? How is it used in land acquisition? What ...

Question 1 a call provision gives bondholders the right to

QUESTION 1: A call provision gives bondholders the right to demand, or "call for," repayment of a bond. Typically, calls are exercised if interest rates rise, because when rates rise the bondholder can get the principal ...

1 why is cindy fratelli unprepared to play an ihr role2 how

1. Why is Cindy Fratelli unprepared to play an IHR role? 2. How can she prepare herself? 3. What areas of IHR will Cindy need to learn?

1 what is the logic of the percentage-of-sales method for

1. What is the logic of the percentage-of-sales method for constructing pro forma financial statements? On a year-to-year basis, which balance sheet and income statement items do you think will fluctuate most closely wit ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro