easy · Investment Banking implied-share-price

A company has 250 million in unfunded pension obligations. How should this be treated when bridging from Equity Value to Enterprise Value?

  1. It should be subtracted from cash as it represents a future cash outflow.
  2. It should be ignored as it is a non-cash accounting liability.
  3. It should be added to Equity Value as a debt-like obligation.
  4. It should only be included if the company is in a distressed situation.

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