Failing to consider pension plan assets and liabilities in WACC estimations results in all of the following except: A. a negative NPV. B. rejection of profitable projects. C. maximization of stock price in the long run.
If management fails to consider pension plan assets and liabilities in their estimations, they will also fail to maximize stock price in the long run. They will end up rejecting profitable projects as well, due to their negative NPVs.
