Using the WACC methodology to improve the assessment of projects in the french farming industry. Empirical evidences from farm's results of Isère

• Using the WACC Methodology to
  
• Improve the Assessment of Projects
  
• in the French Farming Industry
  
• Empirical Evidences from Farm's Results of
  
• Isère
  
• Table of Content
  
• Abstract
  
• Abbreviations
  
• Table of Illustrations
  
• Introduction
  
• 1 Significance of the Research
  
  • 1.1 The Farming Business in France
    
  • 1.2 The Profitability Heavily Relies on Subsidies, Not on Investment Decision
    
  • 1.3 A New Approach to Find
    
• 2 Literature Review
  
  • 2.1 Risk
    
    • 2.1.1 Risk in Agriculture
      
    • 2.1.2 Risk Premium
      
  • 2.2 The WACC Theory
    
    • 2.2.1 The Importance of the WACC Theory.
      
    • 2.2.2 The Betas for Micro-Capitalizations
      
  • 2.3 Discount Rates and the CAPM Used in Agriculture
    
• 3 Research Methodology
  
  • 3.1 Survey Construction
    
    • 3.1.1 Questionnaire
      
    • 3.1.2 Results Analysis
      
  • 3.2 Historical Analysis of the Results of Farms in Isère
    
    • 3.2.1 Data Collection
      
    • 3.2.2 Data Processing
      
    • 3.2.3 Research Questions
      
    • 3.2.4 Data Analysis
      
  • 3.3 Bond Yield Plus Risk Premium Model
    
    • 3.3.2 Beta and Risk premium
      
  • 3.4 WACC Estimation
    
• 4 Data Analysis
  
  • 4.1 Results of the Survey
    
  • 4.2 Calculation of the Historical Results Using the Data from CERFRANCE Isère
    
    • 4.2.1 Normality of the Datasets
      
    • 4.2.2 ROE
      
      • 4.2.2.1 ROE Tested by Time and Specialization
        
      • 4.2.2.2 ROE for Dairy Producers
        
      • 4.2.2.3 ROE for Grain Producers
        
      • 4.2.2.4 ROE for Cattle Ranching
        
      • 4.2.2.5 ROE for diversified production
        
      • 4.2.2.6 Results Summary for ROE by Groups of Leverage
        
    • 4.2.3 ROA
      
      • 4.2.3.1 ROA Tested by Time and Specialization
        
      • 4.2.3.2 ROA for Dairy Producers
        
      • 4.2.3.3 ROA for Grain Producers
        
      • 4.2.3.4 ROA for Cattle Farming
        
      • 4.2.3.5 Results Summary for ROA by Groups of Leverage
        
  • 4.3 Calculation of the Capitalization Rate Using Bond Yields Plus Risk Premium
    
  • 4.4 Approach of the WACC for Farming in Isère
    
    • 4.4.1 Calculation of the Betas
      
    • 4.4.2 Calculation of the WACC for the Different Specialization
      
• 5 Discussion
  
  • 5.1 Survey Results
    
  • 5.2 ROE and ROA Analysis the Farms of Isère
    
  • 5.3 Capitalization Using the Bond Yield Plus Risk Premium
    
  • 5.4 The WACC Methodology
    
• 6 Utilization of These Results
  
  • 6.1 Managerial Implications
    
  • 6.2 Agricultural Policies Implications
    
• 7 Limitations and Further Research Implications
  
  • 7.1 Survey Construction
    
  • 7.2 ROE and ROA Analysis
    
  • 7.3 Bond Yield Plus risk Premium Model
    
  • 7.4 The WACC Methodology
    
  • 7.5 Further Research Implications
    
• Conclusion
  
• Bibliography