An Employer Does Not Have to Report a Liability on Its

question 71

True/False

An employer does not have to report a liability on its statement of financial position in a defined-benefit plan.

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Definitions:

Constant-Growth DDM

A model for valuing a company's stock by using predicted dividends and discounting them back to present value assuming a constant growth rate.

Preferred Share

A class of ownership in a corporation with a higher claim on assets and earnings than common stock.

Dividend

A portion of a company's earnings that is paid to shareholders, typically on a quarterly basis.

Earnings Retention Ratio

The proportion of a company's earnings not distributed as dividends but reinvested back into the company.