The question asked of us this week sounds so simple “When should the company harvest the forest?” however as you begin to answer the question you discover just how complex it really is. In order to forecast correctly Mr. Boles must compute many different factors.

REVENUES

Mr. Boles should begin with the future value of revenue. The formula is the MBF per acre multiplied by total acres to be harvested multiplied by timber grade multiplied by future value factor. This is much easier in a table; I have included the table for 20 year revenues:

20 YEAR REVENUES|

| TOTAL MBF| 54000|

1P| 8100| 4657500|

2P| 22680| 12587400|

3P| 23220| 12306600|

FUTURE REVENUES| | $61,115,962.80 |

COMPARISON OF REVENUES|

20 years| $61,115,962.80 |

25 years| $29,352,810.58 |

30 years| $47,207,495.37 |

35 years| $67,443,367.44 |

Now this calculation must be made for every year that needs to be analyzed, such as 25, 30, and 35, such as this:

As we can see, revenues will increase the longer we can put logging the timber however Mr. Boles needs to continue to analyze the data. Next he should look at variable costs.

VARIABLE COSTS

COMPARISON OF VARIABLE COSTS|

20 years| $12,746,700 |

25 years| $16,641,525 |

30 years| $20,005,238 |

35 years| $21,598,575 |

Next, Mr. Boles would need to look at variable costs and forecast and evaluate them. See the attached comparison table:

Variable costs also increase every year that we hold off logging our timber however not at the same rate as revenues. If we look at the contribution rate for the years identified we can see that the contribution margin goes up the longer we don’t harvest the timber.

...Bunyan Lumber LLC
Clear-cutting is a controversial method of forest management. To obtain the necessary permits, Bunyan Lumber has agreed to contribute to a conservation fund every time it harvests the lumber. If the company harvested the forest today, the required contribution would be $300,000. The company has agreed that the required contribution will grow by 3.2 percent per year. When should the company harvest the forest?
The options that are available to harvest are years 40, 45, 50, and 55 year harvest cycles. This is because the forest was planted 20 years ago. Due to the inflation rate, and cash flow we will be looking at the real and nominal cash flow. Nominal cash flow and real cash refer to the same sources of cash to a business. However, different formulas are used for both. Real cash flow is basic measurement that takes basic measurement of cash flow into consideration, as well as present value. Nominal cash flow does not use inflation to determine cash flow. Nominal cash flow is more precise in forecasting future projects.
Real Cash flow is:
(1 + R) = (1 + r)(1 + h)
1.10= (1+r) (1.037)
r=.0608
r=6.08%
Conservation funds will grow at a slower rate than the inflation. The real return for the conservation fund can be determined by:
(1 + R) = (1 + r)(1 + h)
1.10= (1 + r)(1.032)
r=.0659
r=6.59%
Cash flow from the thinning process also needs to be determined in order to have the accurate harvest schedule. The cash flow from the...

...STEPHENSON REAL ESTATE RECAPITALIZATION
Francisco Morales
BUS650
Dr. Hollman
12 / 17 /12
1. If Stephenson wishes to maximize its total market value, would you recommend that it issue debt or equity to finance the land purchase? Explain.
In order to maximize the total market value the company should issue debt to finance the land purchase. Using debt will allow the company to create a tax shield which will decrease taxes and increase the overall value. The tax shield will be created because interest payments are tax deductible and will decrease the overall taxable income.
Construct Stephenson’s market value balance sheet before it announces the purchase.
3. Suppose Stephenson decides to issue equity to finance the purchase.
a. What is the net present value of the project?
NPV(Purchase) = - $95,000,000 + {($23,000,000)(1 – 0.40) / 0.125}
= - $95,000,000 + ($13.8 million / 0.125)
= $15,400,000
b. Construct Stephenson’s market value balance sheet after it announces that the firm will finance the purchase using equity. What would be the new price per share of the firm’s stock? How many shares will Stephenson need to issue in order to finance the purchase?
The new market value of the company will be $517,500,000 + $15,400,000 = $532,900,000
The price per share = $532.9 million / 15 million shares = $35.53 per share
Needed shares to issue to finance...

...1. Question : In a statistical study, the random variable X = 1, if the house is colonial, and X = 0 if the house is not colonial, then it can be stated that the random variable is continuous.
2. Question : The set of all possible experimental outcomes is called a(n)
3. Question : If two events are independent, then the probability of their intersection is represented by:
4. Question : A(n) __________ is a measure of the chance that an uncertain event will occur.
5. Question : The price-to-earning ratio for firms in a given industry is distributed according to normal distribution. In this industry, a firm with a Z value equal to 1
6. Question : The expected value of a discrete random variable is:
7. Question : For a continuous distribution, P(a ≤ X ≤ b) = P(a <X< b).
8. Question : The following formula: P(A U B) = P(A) + P(B) - P(A ∩ B) represents
9. Question : The MPG (mileage per gallon) for a mid-size car is normally distributed with a mean of 32 and a standard deviation of .8. What is the probability that the MPG for a selected mid-size car would be less than 33.2?
10.Question : The height of a continuous probability curve over a given point is
BUS 308 Week2 Quiz
1. The one-sample t-test differs from the z-test in which way?
2. The z-test can be used to test mean differences even when the initial data set is not normally distributed.
3. What question does the z test answer?
4. Type I errors may...

...Running head: Week Six Assignment
Week Six Managerial Finance
Jason Campbell
Wayne Hollman
BUS650
January 7, 2013
Abstract
In this final paper for Managerial Finance I will attempt to show how the supply chain inventory management method can be affected depending on the situation of the retailer. Studying the control method for problems in inventory, which would include both, excesses in inventory as well as shortages, and hoping to minimize loss.
Use of SCM as a Method of Inventory Control
I have decided to do the final for Managerial Finance on the use of the SCM method as a form of inventory control, because I have worked in a business that has used many different forms of inventory control. As a manager it was one of my responsibilities to maintain inventory and observe any losses as a loss prevention issue that must be discovered. The ordering responsibility for inventory was one of my most important duties as a manager.
“Supply Chain Management is a set of synchronized decision & activities, utilized to effectively integrate suppliers, manufacturers, transporters, warehouses, retailers & customers so that the right product or service is distributed at the right quantities, to the proper locations & at the appropriate time, in order to minimize system wide costs while satisfying customer service level requirements.”(Misra, 2010) Finding different options for inventory choices as...

...
Business Model and Strategic Plan Part III
Shawn Good
BUS/475
October 27, 2014
Fredric Hibbler
Introduction
The balance scorecard is another tool that goes along the same lines as the strength, weakness, opportunity, threat, and trend or commonly known as SWOTT. The information in this document will cover the basic aspects of the balance scorecard.
The balance scorecard method will cover four main areas or quadrants and those are: shareholder value or financial perspective, customer value perspective, process or internal operations perspective, and learning and growth of the employee perspective. These four main areas or quadrants will help explain how Samsung’s new division, Customers Research and Development will be adopted into the Samsung business portfolio.
Four Areas
1. Financial Perspective: Samsung’s new division, Customers Research and Development will initially have no upfront financial consideration with Samsung supporting the new division.
1a. The division will start to focus on how to grow their own financial support t hat is separate from Samsung’s overall financial budget. This will assist both the division and Samsung as a whole by having its own cash flow. This could also assist in providing customers that submit ideas with a financial award for their ideas that are initially taken on by Samsung.
1b. While the focus will be on how the division can become financially on its own with help still from...

...
Week2 Assignment
BUS642: Business Research Methods & Tools
ASSIGNMENTS TO COMPLETE:
Chapter 2 - Discussion Questions (Making Research Decisions) #1
Chapter 6 - Discussion Questions (Terms in Review) #1-5
Chapter 14 - Discussion Questions (Making Research Decisions) # 7
Chapter 2 – Discussion Questions – Making Research Decisions #1:
A. What are the most prudent decisions she can make about her responsibilities to herself and others?
The most prudent decisions she can make about her responsibilities to herself and others, in my opinion, would be to turn the papers to the airline. The reason I believe it would be the best thing to do is because if her employer were to find out she ran the risk to get fired and although it is only a draft she could still be found dishonest and be dismissed from work. By keeping the information to herself she would be violating her firm’s Business Conduct Guidelines.
B. What are the implications of those decisions even if there is no violation of law or regulation?
The implications of those decision even if there is no violation of law or regulation could be getting fired, being seen as unethical, and implications on career ending consequences.
Chapter 6 – Discussion Questions – Terms in Review #1-5:
1. Distinguish between the following:
Exploratory and formal studies:
The difference between exploratory and formal studies is...

...– it begins with the hypothesis or research question and involves precise procedures and data source specifications. The goal of a formal research design is to test the hypotheses or answer the research questions posed.
B Experimental and ex post facto research designs.
Experimental or experiment – the researcher attempts to control and or manipulate the variables in the study. Ex post facto design – the investigators have no control over the variables; to do so introduces bias.
C Descriptive and causal studies.
Descriptive study is if the research is concerned with finding out who, what, where, when, or how much. Casual studies are if a study is concerned with learning why – that is, how one variable produces changes in another.
2 - Establishing causality is difficult, whether conclusions have been derived inductively or deductively.
A Explain and elaborate on the implications of this statement.
Casualty or the relation between cause and effect is difficult to establish whether the conclusions have been derived inductively or deductively because anything that affects an effect is a factor of that effect. There can be direct or indirect factors that affect an effect.
B Why is ascribing causality more difficult when conclusions have been reached through induction?
It is difficult to ascribe causality when the conclusion is reached through induction because one cannot attribute to a specific source or origin when logic was used as the bases for...

...
This work of BUS650Week 5 Assignment includes:
Closing Case: Ch 13
Complete Chapter 13 Closing Case at the end of the chapter and submit answers to your instructor.
Deadline: ( ), Business - Finance
"Corporate Valuation and Financial Planning" Please respond to the following:
Suppose a company’s return on invested capital is less than its weighted average cost of capital (WACC). Speculate on what would happen to the value of operations if the sales growth rate increases. Provide examples of similar instances to support your response.
* From the scenario, cite your forecasting conclusions that support TFC’s decision to expand to the West Coast market. Speculate as to whether or not the agency conflict discussed in the scenario could become a roadblock to your conclusions. Provide a rationale for your response.
"Agency Conflicts and Corporate Governance" Please respond to the following:
Select the type of agency conflict that you believe has the most serious repercussions, and provide a rationale for your selection. Provide one (1) example of the groups in the throes of the selected agency conflict.
* From the mini case, recommend two (2) desired characteristics of a board of directors. Provide support for your response, citing the ways in which these characteristics usually lead to effective corporate governance.
Gather all the materials you need for a test...