1 Which of the following statements is correct?

Firms with high marginal tax rates tend to have lower funding ratios.

The short-term pension risk ratio is calculated by dividing the projected benefit obligation by the market value of common stock.

The funded status of a pension plan does not throw light on cash flow problems.

Firms with less stringent capital constraints tend to have higher funding ratios.

2 When accounting for funded postretirement benefit plans, which one of the following is subtracted in the calculation of postretirement benefit expense?

Interest cost

Actual return on plan assets

Expected return on plan assets

Service cost

3 When accounting for funded postretirement benefit plans, which one of the following is subtracted in the calculation of postretirement benefit expense?

Interest cost

Actual return on plan assets

Expected return on plan assets

Service cost