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(CH3) Exactly five years from today, assume that your $160M DB plan must make a $30.0M payment The payment is quoted in today's dollars, thus
(CH3) Exactly five years from today, assume that your $160M DB plan must make a $30.0M payment The payment is quoted in today's dollars, thus you do not need to adjust for annual inflation of 2.0% You do, however, need to account for an annual tax rate of 35.0%, which will be applied to any appreciation of YOY plan assets. In order to make the payment five years from now without falling below the original $160M in plan assets, the required real rate of before tax return is closest to: A. C. E. 1 .2% 2.3% 3.5% 5.4% 5.8% D
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