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Present Value of Synthetic Equity

Guest tmills

By Guest tmills
in Employee Stock Ownership Plans (ESOPs)

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What do you think is a good rate to use to determine the present value of synthetic equity?  

7 members have voted

  1. 1. What do you think is a good rate to use to determine the present value of synthetic equity?

    • long term AFR
      0
    • mid term AFR
      0
    • GATT
      0
    • company \"cost of capital\"
      0
    • not TPA\'s job, company should provide
      1
    • other
      0

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Guest tmills

Guest tmills

Posted
Posted

409(p) requres the present value of synthetic equity be determined, but gives no hints regarding the discount rate. We are a TPA firm rying to perform the test properly. I have received no responses to my message board post on 11/17 regarding this issue, so I thought I'd try this. ;)

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