Oregon Company's employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and they have completed 35 years of service. The be reimbursement for health care services of $37,000 annually, beginning one year from the date of retirement. Ralph Young was hired at the beginning of 1988 by Oregon after turning age 22 and is expected to retire at the end of 2026 (age 60) The discount rate is 4%. The plan is unfunded. The PV of an ordinary annuity of $1 where n=15 and /= 4% is 1111839. The PV of $1 where n 2 and /= 4% is 0.92456. With respect to Ralph, what is the interest cost to be included in Oregon's 2025 postretirement benefit expense, rounded to the nearest dollar? Multiple Choice O О $14.434 $14,509

Oregon Company's employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and they have completed 35 years of service. The be reimbursement for health care services of $37,000 annually, beginning one year from the date of retirement. Ralph Young was hired at the beginning of 1988 by Oregon after turning age 22 and is expected to retire at the end of 2026 (age 60) The discount rate is 4%. The plan is unfunded. The PV of an ordinary annuity of $1 where n=15 and /= 4% is 1111839. The PV of $1 where n 2 and /= 4% is 0.92456. With respect to Ralph, what is the interest cost to be included in Oregon's 2025 postretirement benefit expense, rounded to the nearest dollar? Multiple Choice O О $14.434 $14,509

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

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Sachs Brands’ defined benefit pension plan specifies annual retirement benefits equal to: 1.6% * serviceyears * final year’s salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginningof 2002 and is expected to retire at the end of 2036 after 35 years’ service. Her retirement is expected tospan 18 years. Davenport’s salary is $90,000 at the end of 2016 and the company’s actuary projects her salary tobe $240,000 at retirement. The actuary’s discount rate is 7%.Required:1. Draw a time line that depicts Davenport’s expected service period, retirement period, and a 2016 measurementdate for the pension obligation.2. Estimate by the accumulated benefits approach the amount of Davenport’s annual retirement payments earnedas of the end of 2016.3. What is the company’s accumulated benefit obligation at the end of 2016 with respect to Davenport?4. If no estimates are changed in the meantime, what will be the accumulated benefit obligation at the end of2019…
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103.
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