1. Imprudential has an unfunded pension liability of $578 mill that must be paid in 20 years. To assess the value of the firms stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 7.1% whats the present value of the liability? (round 2 decimal places)

2. If Moran has an ROE of 7% and the payout ratio is 15%, what is its sustainable growth rate?

3. You're trying to chose between two different investments. Both have up front costs of $71,000. Investment G returns $131,000 in six years, investment H returns $191,000 in 10 years. Calculate the interest rate for G and H.