what is the present value of this liability?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 7RE
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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
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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