aidebaobao

bchad - yes, and I actually found it to be one of the more interesting readings of the curriclulum (might be because my clients are pension plans).

By not including Pension Assets and Liabilities in the WACC calculation, many firms overstate their WACC and hence pass on projects whose NPV would have otherwise cleared the more correct (lower) hurdle. Futher, firms may be better off reducing risk in their pension plan, and increasing risk budget in its operating business where they are more likely to find more profitable opportunities (than investing in other companies passively via the Pension Plan)

Lots of other good stuff in the reading that I am realizing I need to review again.