Abstract
When pricing common shares, investors do not assign the same earnings multiple to all components of pension cost. And these multiples differ from the multiple assigned to earnings before pension expense. In particular, both return on plan assets and the interest cost components tend to be assigned higher multiples than earnings before pension expense. Moreover, the market appears to assign a multiple of zero to the amortization of the transition asset. Earnings analysis obviously constitutes more than just the bottom line; careful analysis of earnings components and of the relative importance assigned to those components is also involved.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
