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Chapter 5, Problem 41P
Summary Introduction

To determine: The extent of the true unfunded liability.

Introduction:

An unfunded liability is a future debt. It is commonly settled through performance of a service or payment.

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A defined benefit pension plan expects to pay out $23 million per year over the next 27 years to pensioners. The fund currently has $176 million in pension assets that are earning 8.2% per year. By how much is this plan over/under funded? (Do not round intermediate calculations. Round your answer to a whole number. Use a negative sign to denote underfunded)
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Chapter 5 Solutions

Corporate Finance Plus MyLab Finance with Pearson eText -- Access Card Package (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)

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