Reconciling value estimates from the discounted cash flow model and the residual income model

This paper examines why practitioners and researchers get different estimates of equity value when they use a discounted cash flow (CF) model versus a residual income (RI) model. Both models are derived from the same underlying assumption -- that price is the present value of expected future net dividends discounted at the cost of equity capital -- but in practice and in research they frequently yield different estimates. We argue that the research literature devoted to comparing the accuracy of these two models is misguided; properly implemented, both models yield identical valuations for all firms in all years. We identify how prior research has applied inconsistent assumptions to the two models and show how these seemingly small errors cause surprisingly large differences in the value estimates. [ABSTRACT FROM AUTHOR]

The effects of temperature on the growth, survival and biomass of different families of juvenile Penaeus japonicus Bate

Variation in the growth, survival and change in total biomass (termed biomass increase) of different families of juvenile Penaeus japonicus was investigated over a range of temperatures in controlled laboratory experiments. In the first experiment, the effects of temperature on six families of juveniles were examined over a broad range of temperatures (24 to 30 degreesC). In the second experiment, the effects of temperature on six more families of juveniles were examined over a narrower range of temperatures (27.5 to 31.2 degreesC). Over the broad temperature range, mean growth and biomass increase were highest at 27 degreesC and mean survival was highest at 24 degreesC. Mean growth was lowest at 24 degreesC, whilst survival and biomass increase were lowest at 30 degreesC. However, there was a significant interaction between family and temperature, with some families tolerating a broader range of temperatures than others. As a result, the ranking of families in relation to growth, survival and biomass increase changed at each temperature. This effect was more pronounced for survival than for growth. Over the narrower range, temperature significantly affected growth, survival and biomass increase, but there was no significant interaction between family and temperature. Growth, survival and biomass increase were significantly lower at 31.2 than at 27.5 and 29.2 degreesC. These results suggest that if grow-out conditions for P. japonicus vary by more than a few degrees, interactions between family and temperature could affect the efficiency of selection. The results also suggest that the family x temperature interaction may have a more pronounced effect on survival than on growth. Crown Copyright (C) 2002 Published by Elsevier Science B.V. All rights reserved.

Simulating growth, development, and yield of tillering pearl millet. III. Biomass accumulation and partitioning

Pearl millet landraces from Rajasthan, India, yield significantly less than improved cultivars under optimum growing conditions, but not under stressed conditions. To successfully develop a simulation model for pearl millet, capable of capturing such genotype x environment (G x E) interactions for grain yield, we need to understand the causes of the observed yield interaction. The aim of this paper is to quantify the key parameters that determine the accumulation and partitioning of biomass: the,light extinction coefficient, radiation use efficiency (RUE), pattern of dry matter allocation to the leaf blades, the determination of grain number, and the rate and duration of dry matter accumulation into individual grains. We used data on improved cultivars and landraces, obtained from both published and unpublished sources collected at ICRISAT, Patancheru, India. Where possible, the effects of cultivar and axis (main shoot vs. tillers) on these parameters were analysed, as previous research suggested that G x E interactions for grain yield are associated with differences in tillering habit. Our results indicated there were no cultivar differences in extinction coefficient, RUE, and biomass partitioning before anthesis, and differences between axes in biomass partitioning were negligible. This indicates there was no basis for cultivar differences in the potential grain yield. Landraces, however, produced consistently less grain yield for a given rate of dry matter accumulation at anthesis than did improved cultivars. This was caused by a combination of low grain number and small grain size. The latter was predominantly due to a lower grain growth rate, as genotypic differences in the duration of grain filling were relatively small. Main shoot and tillers also had a similar duration of grain filling. The low grain yield of the landraces was associated with profuse nodal tillering, supporting the hypothesis that grain yield was below the potential yield that could be supported by assimilate availability. We hypothesise this is a survival strategy, which enhances the prospects to escape the effects of stress around anthesis. (C) 2002 E.J. van Oosterom. Published by Elsevier Science B.V. All rights reserved.

The residual effects of cooperative-learning experiences: A two-year follow-up

The author investigated how training in small-group and interpersonal behaviors affected children's behavior and interactions as they worked in small groups 2 years later. The authors assigned 52 fifth graders, who had been trained 2 years previously in cooperative group behaviors, to the trained condition and 36 fifth graders, who had not previously been trained, to the untrained condition. Both were reconstituted from the pool of students who had participated previously in group activities. The results showed a residual training effect, with the children in the trained groups being more cooperative and helpful than their untrained peers.

Competition and resource availability in an annual plant community dominated by an invasive species, Carrichtera annua (L. Aschers.), in South Australia

The last decade has seen spirited debates about how resource availability affect the intensity of competition. This paper examines the effect that a dominant introduced species, Carrichtera annua, has upon the winter annual community in the arid chenopod shrublands of South Australia. Manipulative field experiments were conducted to assess plant community response to changing below-ground resource levels and to the manipulation of the density of C. annua. Changes in the density of C. annua had little effect on the abundance of all other species in the guild. Nutrient addition produced an increase in the biomass of the most abundant native species, Crassula colorata. An analysis of the root distribution of the main species suggested that the areas of soil resource capture of C. annua and C. colorata are largely segregated. Our results suggest that intraspecific competition may be stronger than interspecific competition, controlling the species responses to increased resource availability. The results are consistent with a two-phase resource dynamics systems, with pulses of high resource availability triggering growth, followed by pulses of stress. Smaller plants were nutrient limited under natural field conditions, suggesting that stress experienced during long interpulse phases may override competitive effects after short pulse phases. The observed differences in root system structure will determine when plants of a different species are experiencing a pulse or an interpulse phase. We suggest that the limitations to plant recruitment and growth are the product of a complex interplay between the length and intensity of the pulse of resource availability, the duration and severity of the interpulse periods, and biological characters of the species.

Dry matter production and allocation in Eucalyptus cloeziana and Eucalyptus argophloia seedlings in response to soil water deficits

Effects of soil water availability on seedling growth, dry matter production and allocation were determined for Gympie ( humid coastal) and Hungry Hills ( dry inland) provenances of Eucalyptus cloeziana F. Muell. and for E. argophloia Blakely ( dry inland) species. Seven-month-old seedlings were subjected to well-watered (100% field capacity, FC), moderate (70% FC) and severe (50% FC) soil water regimes in a glasshouse environment for 14 wk. There were significant differences in seedling growth, biomass production and allocation patterns between species. E. argophloia produced twice as much biomass at 100% FC, and more than three times as much at 70% and 50% FC than did either E. cloeziana provenance. Although the humid provenance of E. cloeziana had a greater leaf area at 100% FC conditions than did the dry provenance, total biomass production did not differ significantly. Both E. cloeziana provenances were highly sensitive to water deficits. E. argophloia allocated 10% more biomass to roots than did E. cloeziana. Allometric analyses indicated that relative biomass allocation patterns were significantly affected by genotype but not by soil water availability. These results have implications for taxon selection for cultivation in humid and subhumid regions.

An approach to verifying and debugging simulation models governed by ordinary differential equations: Part 1. Methodology for residual generation

For dynamic simulations to be credible, verification of the computer code must be an integral part of the modelling process. This two-part paper describes a novel approach to verification through program testing and debugging. In Part 1, a methodology is presented for detecting and isolating coding errors using back-to-back testing. Residuals are generated by comparing the output of two independent implementations, in response to identical inputs. The key feature of the methodology is that a specially modified observer is created using one of the implementations, so as to impose an error-dependent structure on these residuals. Each error can be associated with a fixed and known subspace, permitting errors to be isolated to specific equations in the code. It is shown that the geometric properties extend to multiple errors in either one of the two implementations. Copyright (C) 2003 John Wiley Sons, Ltd.

Effects of soil water availability on water use efficiency of Eucalyptus cloeziana and Eucalyptus argophloia plants

Effects of soil water availability on transpiration efficiency (WUET), instantaneous water use efficiency (WUEi) and carbon isotope composition (delta(13)C) were investigated in 7-month-old plants of humid coastal (Gympie) and dry inland ( Hungry Hills) provenances of Eucalyptus cloeziana F. Muell. and in a dry inland provenance of E. argophloia Blakely (Chinchilla), supplied with 100 (W-100), 70 (W-70) and 50% (W-50) of their water requirements. At W-100, WUET of the three provenances were not significantly different but as available soil moisture decreased, E. argophloia produced greater biomass and demonstrated significantly higher WUET than either E. cloeziana provenance. Midday WUEi was not significantly affected by watering regime within each provenance but was lowest in E. argophloia. A decrease in soil water availability caused a consistent increase in delta(13)C values in all three provenances; however, delta(13)C values of E. argophloia in all three water regimes were significantly lower than those of E. cloeziana provenances, which did not differ significantly from each other. For all three provenances, delta(13)C was not correlated with WUEi but height and root collar diameter were negatively correlated to delta(13)C. There was little evidence of differences in delta(13)C, WUET and WUEi between E. cloeziana provenances but clear differences between E. cloeziana and E. argophloia. The high WUET, low WUEi and low delta(13)C for E. argophloia may have implications in the selection of Eucalyptus provenances for commercial forestry in low-rainfall regions.

Efeito da restrição hídrica sobre o crescimento de clones de eucalipto

O estabelecimento e o crescimento inicial de espécies florestais no campo são fortemente afetados pela disponibilidade de água no solo e pela época de plantio, por isso, o presente trabalho estuda o impacto do déficit hídrico no crescimento de mudas de dois clones do híbrido Eucalyptus grandis x Eucalyptus urophylla, ambos submetidos a 4 níveis de déficit hídrico, em duas épocas de plantio. O estudo foi realizado na área experimental do Núcleo de Estudos e Difusão de Tecnologia em Florestas, Recursos Hídricos e Agricultura Sustentável (NEDTEC), do Centro de Ciências Agrárias da Universidade Federal do Espírito Santo (CCA-UFES), localizado no município de Jerônimo Monteiro. O trabalho foi realizado em duas épocas distintas, sendo a primeira no período de 09 de fevereiro a 09 de junho de 2009 e a segunda no período de 11 de julho a 07 de novembro de 2009, visando à realização das observações em diferentes condições de regime de radiação, déficit de pressão do vapor do ar, temperatura, umidade relativa do ar e velocidade do vento. O delineamento experimental utilizado foi o inteiramente ao acaso em parcelas subdivididas 2 x 4, alocando-se os 4 níveis de déficits hídricos na parcela principal e as 2 épocas nas subparcelas, com três repetições. Os manejos hídricos aplicados foram: Déficit 0 (D0) sem déficit, Déficit 1(D1) corte da irrigação aos 30 dias de experimentação, permanecendo até o final do experimento, Déficit 2 (D2) corte da irrigação aos 30 dias de experimentação, suspensão da irrigação por 60 dias e posterior retomada da irrigação por mais 30 dias; Déficit 3 (D3) corte da irrigação aos 60 dias de experimentação, prolongando até o final do experimento. Os dados experimentais foram submetidos à análise de variância, e quando significativas, as médias foram comparadas pelo teste de média Tukey a 5% de probabilidade, para cada clone estudado. Com este trabalho, foi possível avaliar o impacto de diferentes déficits hídricos, no crescimento inicial das plantas, em duas épocas do ano e avaliar o incremento no desenvolvimento das plantas durante a aplicação dos tratamentos, com retiradas de amostras médias de cada tratamento a cada 30 dias. As variáveis medidas nos dois experimentos foram altura total da planta, diâmetro ao nível do coleto, número de folhas, área foliar, matéria seca de folhas, matéria seca de haste e ramos, matéria seca de raízes e matéria seca total. Foram avaliadas as variáveis climáticas durante todo o período experimental, nas duas épocas, a fim de determinar a condição do clima em cada época. Para os dois clones estudados, em geral, os déficits hídricos promoveram a redução das variáveis morfológicas estudadas e a época experimental foi o fator que mais influenciou a redução do crescimento das plantas. Sendo que a Época 1 foi a que proporcionou resultados superiores, e a Época 2 foi a que prejudicou mais o desenvolvimento das plantas, reduzindo significativamente todas as variáveis morfológicas em todos os déficits hídricos, inclusive o D0.

Efeito da restrição hídrica sobre o crescimento de clones de eucalipto

O estabelecimento e o crescimento inicial de espécies florestais no campo são fortemente afetados pela disponibilidade de água no solo e pela época de plantio, por isso, o presente trabalho estuda o impacto do déficit hídrico no crescimento de mudas de dois clones do híbrido Eucalyptus grandis x Eucalyptus urophylla, ambos submetidos a 4 níveis de déficit hídrico, em duas épocas de plantio. O estudo foi realizado na área experimental do Núcleo de Estudos e Difusão de Tecnologia em Florestas, Recursos Hídricos e Agricultura Sustentável (NEDTEC), do Centro de Ciências Agrárias da Universidade Federal do Espírito Santo (CCA-UFES), localizado no município de Jerônimo Monteiro. O trabalho foi realizado em duas épocas distintas, sendo a primeira no período de 09 de fevereiro a 09 de junho de 2009 e a segunda no período de 11 de julho a 07 de novembro de 2009, visando à realização das observações em diferentes condições de regime de radiação, déficit de pressão do vapor do ar, temperatura, umidade relativa do ar e velocidade do vento. O delineamento experimental utilizado foi o inteiramente ao acaso em parcelas subdivididas 2 x 4, alocando-se os 4 níveis de déficits hídricos na parcela principal e as 2 épocas nas subparcelas, com três repetições. Os manejos hídricos aplicados foram: Déficit 0 (D0) sem déficit, Déficit 1(D1) corte da irrigação aos 30 dias de experimentação, permanecendo até o final do experimento, Déficit 2 (D2) corte da irrigação aos 30 dias de experimentação, suspensão da irrigação por 60 dias e posterior retomada da irrigação por mais 30 dias; Déficit 3 (D3) corte da irrigação aos 60 dias de experimentação, prolongando até o final do experimento. Os dados experimentais foram submetidos à análise de variância, e quando significativas, as médias foram comparadas pelo teste de média Tukey a 5% de probabilidade, para cada clone estudado. Com este trabalho, foi possível avaliar o impacto de diferentes déficits hídricos, no crescimento inicial das plantas, em duas épocas do ano e avaliar o incremento no desenvolvimento das plantas durante a aplicação dos tratamentos, com retiradas de amostras médias de cada tratamento a cada 30 dias. As variáveis medidas nos dois experimentos foram altura total da planta, diâmetro ao nível do coleto, número de folhas, área foliar, matéria seca de folhas, matéria seca de haste e ramos, matéria seca de raízes e matéria seca total. Foram avaliadas as variáveis climáticas durante todo o período experimental, nas duas épocas, a fim de determinar a condição do clima em cada época. Para os dois clones estudados, em geral, os déficits hídricos promoveram a redução das variáveis morfológicas estudadas e a época experimental foi o fator que mais influenciou a redução do crescimento das plantas. Sendo que a Época 1 foi a que proporcionou resultados superiores, e a Época 2 foi a que prejudicou mais o desenvolvimento das plantas, reduzindo significativamente todas as variáveis morfológicas em todos os déficits hídricos, inclusive o D0.