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I'll have to check the book (at home).... but my point is independent of the pension's funded status.

Do you agree that a plan's higher equity allocation decreases the firm's D/E ratio? That's point I was making... is straight from LOS 5(c)

Also, can you clarify why would the firm's increased borrowing increase the pension liability? I don't completely follow



Edited 1 time(s). Last edit at Sunday, May 30, 2010 at 02:55PM by Neveruse_95%_everagain.

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