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MarineCo has unfunded pension liabilities valued at $200 million, recorded as a long-term other liability. MarineCo has detailed a potential legal judgment of $100 million
MarineCo has unfunded pension liabilities valued at $200 million, recorded as a long-term other liability. MarineCo has detailed a potential legal judgment of $100 million for defective engines in its annual report. Since management estimates a 90% likelihood the judgment will be enforced against the engine maker and not MarineCo, they have not reported a liability on the balance sheet. The companys marginal tax rate is 30 percent. Based on this information and enterprise value of $2.600 million, what is MarineCos equity value?
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