Which of the following statements is correct? 

A. The short-term pension risk ratio is calculated by dividing the projected benefit obligation by the market value of common stock.
B. Firms with high marginal tax rates tend to have lower funding ratios.
C. The funded status of a pension plan does not throw light on cash flow problems.
D. Firms with less stringent capital constraints tend to have higher funding ratios.


Answer: D

Business

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Indicate whether the statement is true or false

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Identify some practical considerations that affect a firm's payout policy

What will be an ideal response?

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Determining how performance will be gauged for a process is most closely associated with which element of the DMAIC improvement cycle?

a. Define b. Measure c. Analyze d. Improve

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If your estate is $500,000 over the maximum tax free limit, one way to avoid paying estate tax on the excess would be to

A) hide $500,00 in cash and bury it in the yard, leaving a secret map. B) order the estate to make a $500,000 charitable contribution since the amount contributed would not be subject to estate tax. C) gift the $500,000 to your children after your death but before the estate is settled. D) None of these schemes will avoid the estate tax.

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