A Financial Model of the Regulated Firm and Implications of the Model for Determination of the Fair Rate of Return

1975 ◽  
Vol 42 (2) ◽  
pp. 279 ◽  
Author(s):  
James B. Herendeen
Keyword(s):  
Rate Of Return ◽  
Financial Model ◽  
Regulated Firm

scholarly journals Analysis of the Effect of Payment Mechanism on Exploitation of Polymetallic Nodules in the Area

Minerals ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 221
Author(s):  
Yan Li ◽  
Chang Liu ◽  
Sihan Su ◽  
Mengdan Li ◽  
Shaojun Liu
Keyword(s):  
Deep Sea ◽  
Mineral Resources ◽  
Economic Benefits ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Financial Model ◽  
Payment Mechanism ◽  
Advantages And Disadvantages ◽  
Internal Rate ◽  
Payment Mechanisms

The international seabed area (i.e., the “Area”) is rich in mineral resources. According to the United Nations Convention on the Law of the Sea (UNCLOS) and the relevant implemented agreements, in 2012, the International Seabed Authority (ISA) began to develop the regulations for the exploitation of mineral resources in the Area. The most important part of the regulations involves determining the distribution of benefits from the exploitation of mineral resources in the Area between the ISA and the contractors. The establishment of a financial model to evaluate the economic benefits and compare the distribution scheme was the basic method relied on in the current study of payment mechanism. According to the characteristics of the exploitation project of mineral resources in the Area, the discounted cash flow method was selected to construct the financial model. Taking China’s deep-sea mineral resources development project in the Area as the background, the main parameters of the model were determined. A comparative study of similar financial models with Massachusetts Institute of Technology (MIT) and other foreign countries was carried out, in addition to a sensitivity analysis of parameters. On the basis of the assurance that the contractor’s internal rate of return was not lower than the level of the land mining enterprise, the financial model was used to calculate the internal rate of return and the revenue of royalty under different payment mechanisms and rates. The advantages and disadvantages of different payment mechanisms in the exploitation of mineral resources in the area were analyzed. Lastly, the possible impacts of deep-sea polymetallic nodule mining on Terrestrial metal markets were highlighted.

scholarly journals PROSPEK PEMBESARAN IKAN BAWAL (Colossoma macropomum) DI DESA SUKOSARI KECAMATAN BELITANG KABUPATEN OKU TIMUR

2016 ◽  
Vol 2 (02) ◽  
pp. 24-31
Author(s):  
Yudi Zuriah
Keyword(s):  
Production Process ◽  
Rate Of Return ◽  
Colossoma Macropomum ◽  
Time Production ◽  
Fish Breeding ◽  
Return On Capital ◽  
The Cost ◽  
Production Period ◽  
Research Criteria

The purpose of this study is to: (1) To find out how much the cost of production and acceptance of the enlargement of pomfret (Colossoma macropomum) in one production process, (2) To find out how the value of the feasibility of enlargement of bawal fish (Colossoma macropomum) in one time production process. This research was conducted in Sukosari Village, Belitang District, OKU Timur Regency. Determination of research location is done purposively or purposely, with the consideration that in Sukosari Village is one of the villages that develop bawal fish enlargement farming and the area has enough population in the research criteria. The study was conducted in February 2015 until it was completed. This study found that the average cost of revenues and revenues of pomfret fish breeding in the production period of 4 months, obtained revenue in pomfret breeding business amounted to Rp 37.322.467 / process, while the income from the business of raising fish pomfret Rp 11.352.433 / process. The analysis of R / C ratio obtained from the enlargement of pomfret fish in 4 months is 1.4, which means that every one rupiah sacrificed will be obtained by the receipt of 1.4 so the enlargement of pomfret is said to be profitable. ROI analysis represents the rate of return on capital where ROI on the business of fish bawal enlargement is 42%.

scholarly journals Die metodiek en aanwendingsmoontlikhede van 'n markprysbepalingsmetode by onduursame verbruikersgoedere

1982 ◽  
Vol 13 (1) ◽  
pp. 28-37
Author(s):  
Chris P. Lerm
Keyword(s):  
Empirical Data ◽  
Return On Investment ◽  
Empirical Investigation ◽  
Market Price ◽  
Consumer Products ◽  
Need Satisfaction ◽  
New Method ◽  
Rate Of Return ◽  
Target Price

The methodology and applicability of a method to determine the market price of non-durable consumer products Proper pricing should be done in three phases. Firstly, the determination of the market price, namely that price which the consumers are prepared to pay for the amount of need-satisfaction they perceive from using the product. Secondly, the determination of the target price, namely that price which will give a satisfactory rate of return on investment for the firm. Thirdly, the determination of the final price, by achieving a match between the market price and the target price. The present methods to determine the market price were analysed and with this information a new method to determine the market price of non-durable consumer products was developed. The objectives of this article are to report on an empirical investigation undertaken to test the feasibility of this method and the seven steps to follow in using the method; and to outline the results obtained and conclusions which may be reached; the implications and use of the empirical data; and the method to determine the market price.

The Rate-of-Return Regulated Firm: Cost and Production Duality

1983 ◽  
Vol 14 (2) ◽  
pp. 405 ◽  
Author(s):  
Rolf Fare ◽  
James Logan
Keyword(s):  
Rate Of Return ◽  
Regulated Firm

Determination of the rate of investment return for the discounting of general insurance outstanding claims

1986 ◽  
Vol 113 (1) ◽  
pp. 61-101 ◽  
Author(s):  
G. C. Taylor
Keyword(s):  
Interest Rates ◽  
Rate Of Return ◽  
Insurance Fund ◽  
Book Market ◽  
Numerical Example ◽  
Section 8 ◽  
Investment Return ◽  
General Insurance ◽  
New Business

SummaryThe paper concerns the situation in which an evaluation of outstanding claims is discounted, in anticipation of investment return earned by the funds supporting that liability. Factors bearing upon the choice of an appropriate rate of return to be assumed in this evaluation are considered.The ‘standard approach’ to this problem is criticized in two main respects:(i) there is usually no statement (indeed, no consideration) of whether the discounted value of outstanding claims is to be associated with assets at book, market, or some other value;(ii) the discounting of outstanding claims is often performed by means of an assumed ‘inflation gap’, i.e. an assumed difference between future rates of inflation and investment return.Various other matters germane to the determination of an appropriate rate of investment return are listed in Section 2.Sections 3 and 5 deal particularly with points (i) and (ii) raised above. It is suggested that, in certain circumstances, an evaluation of outstanding claims which fails to address (i) or is carried out on an ‘inflation gap’ basis will be virtually meaningless.Section 4 deals with the case of an insurance fund in which assets are matched with technical liabilities by amount and term. The considerations which would cause the rate of investment return projected in these circumstances, to differ from that projected in the case of an absence of matching are discussed.Section 6 deals with the issue of exactly which assets are to be regarded as supporting the liability for outstanding claims. It is apparent that the identification of such assets will affect the rate of return to be regarded as referable to outstanding claims. Particular matters considered include:(i) assets to be associated with acquisition of new business (and hence not with outstanding claims);(ii) debtor and creditor items. particularly outstanding premiums and inwards loans.Section 7 gives a numerical example of the projection of future rates of investment return. This is done by means of a computer projection of various items of a hypothetical insurance fund, taking into account projected future:(i) interest rates;(ii) rate of growth of new premium;(iii) the required distribution of assets by sector;(iv) profitability of business underwritten.Conclusions on the various matters considered are dotted through the paper. For convenience, they are collected together in Section 8.

scholarly journals Financial model of investments to fixed assets

2019 ◽  
pp. 105-113
Author(s):  
Erika Beniušytė ◽  
Aurelija Zonienė
Keyword(s):  
Decision Making ◽  
Risk Identification ◽  
Financial Model ◽  
Common System ◽  
Financial Benefits ◽  
Fixed Assets ◽  
Investment In Fixed Assets ◽  
Selection Of

The analysis of the investments to fixed assets revealed that there is no common system in evaluation of investments to fixed assets. The financial model of investments to fixed assets is recommended. The model consists of these stages: 1) the need determination of investments in fixed assets; 2) financing sources selection of the investments in fixed assets; 3) the calculation of financial benefits of the investments in fixed assets; 4) risk identification of the investment in fixed assets; 5) decision making.

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