Imprudential, Inc., has an unfunded pension liability of $400 million that must be paid in 24 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 7.3 percent, what is the present value of this liability? (Do not round intermediate calculations and enter your answer in dollars, not millions,

Assume that an investor expects 18X their investment into a company. Assume the post money exit valuation of a company is going to be $3.6 Million. Assume that the investor's investment into the company is going to be $130,000. Assume the company will likely have 14 employees at the point of the liquidation event. According to the investor's expectations, at the point when the investor invests their money, what proportion of the company will the investor own? O a. 3.6% O b. 50.5% Oc. 35% O d. 65% 18%

The projected benefit obligation was $400 million at the beginning of the year and $429 million at the end of the year. At the end of the year, pension benefits paid by the trustee were $18 million and there were no pension-related other comprehensive income accounts. The actuary’s discount rate was 5%. What was the amount of the service cost for the year?

Suppose you can borrow and lend at the annual interest rate of 6% per annum. The IBM stock is trading at $200. It is not going to pay any dividend in one year. Use this information to answer the following three questions. 20. What is the fair forward price of a forward contract which calls for the delivery of 1 share of IBM stock at the end of one year? A. $216 B. $210 C. $214 D. $212 21. If the actual forward price Fa is $214, your arbitrage strategy is to A. buy one share of IBM, borrow $200, and sell the forward B. buy one share of IBM, borrow $212, and buy the forward C. short one share of IBM, lend $200, and buy the forward D. short one share of IBM, borrow $200, and sell the forward 22. At the end of one year, suppose IBM stock price is St, then the cash flow in the spot (stock) market is _, the cash flow in the forward contract is and the arbitrage profit is A. ST, 214- ST, 2 B. -St, ST-214, 2 C. -ST, 214-ST, 2 D. ST, ST-214, 2

It is January 2023 and you are the CFO of Metrix Systems the firm does not reinvest any of its eamings it will expect to achieve Corp. The firm only 5 points Save Ansa pays dividends. The firm is expecting earnings per share (EPS) of $10 at the end of this year. If the same EPS of $10 each year in perpetuity. You are considering changing the dividend policy of the payout rate of 60% each year. The firm's return on new investment is 18% and its cost of equity capital (r) is 12%. Calculate the best one. firm. Specifically, you want the firm to target a the share price under the proposed payout policy. Select the best one $ 98.33 $166.67 $83.33 $223.33 $125

Imprudential, Inc., has an unfunded pension liability of $581 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 7.4 percent, what is the present value of this liability? (Do not round intermediate calculations and enter your answer in dollars not in millions, rounded to 2 decimal places, e.g., 1,234,567.89.) Present value ( Prev 7 of 9 Next >