International Paper Company's 2016 annual report disclosed the following pension information:
Actual rates of return earned on U.S. pension plan assets for each of the last 10 years were:
The footnote also reports that International Paper's expected long-term rate of return on plan assets is 7.75%.
a. Calculate the actual (long-term) rate of return over the past 10 years.
b. Does the company's expected rate of return seem reasonable? Why or why not?

Question

International Paper Company's 2016 annual report disclosed the following pension information:
Actual rates of return earned on U.S. pension plan assets for each of the last 10 years were:
  The footnote also reports that International Paper's expected long-term rate of return on plan assets is 7.75%. 
a. Calculate the actual (long-term) rate of return over the past 10 years.
b. Does the company's expected rate of return seem reasonable? Why or why not?

Quizplus · Accepted Answer

The Answer of International Paper Company's 2016 annual report disclosed the following pension information:
Actual rates of return earned on U.S. pension plan assets for each of the last 10 years were:
  The footnote also reports that International Paper's expected long-term rate of return on plan assets is 7.75%. 
a. Calculate the actual (long-term) rate of return over the past 10 years.
b. Does the company's expected rate of return seem reasonable? Why or why not?

International Paper Company's 2016 Annual Report Disclosed the Following Pension