This blog will examine two alternatives - of an infinite number - for managing cash and allocated equity. These alternatives will be called "CHS" and "CoBank" because they mirror the approaches of two large, very successful federated cooperatives - CHS Inc (Minnesota) and CoBank, ACA (Colorado). See the powerpoint presentation at http://www.blackdogcooplaw.com/case-study-managing-allocated-equity-1 as this blog unfolds in the coming days.
We will assume either CHS or CoBank has $100.0 million of cash to spend for cash patronage refunds, redemptions of equity and payment of income taxes. The key differences between CHS and CoBank is that CoBank (1) allocates less of its patronage earnings than CHS but (2) pays a cash patronage refund that approached 70% in 2009 (see slides 2 and 3) , and (3) is managing its allocated equity obligation by paying income taxes on a portion of its patronage earnings to create permanent equity (see slides 3 and 8) that will not be redeemed unless and until CoBank dissolves. Since CoBank is organized to exist perpetually, is quite successful, and hence is unlikely to ever dissolve, the practical conclusion is that the permanent equity will never be redeemed; this equity is truly "permanent".
CoBank is creating a stronger capital structure than CHS because it is building permanent equity and reducing its allocated equity obligation. Even though CoBank enjoyed some of its most profitable years ever, its allocated equity obligation increased by only 25% from the end of 2003 to the end of 2009 (see slide 7). Together with CoBank's base capital plan, its philosophy of building permanent equity has reduced its annual equity redemption obligation to only $7.0 million dollars in 2009, a 90% reduction from 2004 (see slide 9). Obviously CoBank has dramatically reduced its annual allocated equity obligation over the past 6 years.
CoBank is also creating a stronger value proposition than CHS because it is paying a cash patronage refund that approached 70% in 2009, nearly double CHS's cash patronage refund of 35% (see slides 4 and 6). CoBank's value proposition is stronger because more net (after the recipient member co-op pays taxes or its own cash patronage refund on the income it receives from CoBank or CHS) cash is paid more quickly than CHS pays. Hence, CoBank rewards patronage rather than ownership (see slide 6). The net present value of CoBank's cash payments are $29,789 compared to $3,625 for CHS.
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Work from home theory is fast gaining popularity because of the freedom and flexibility that comes with it. Since one is not bound by fixed working hours, they can schedule their work at the time when they feel most productive and convenient to them. Women & Men benefit a lot from this concept of work since they can balance their home and work perfectly. People mostly find that in this situation, their productivity is higher and stress levels lower. Those who like isolation and a tranquil work environment also tend to prefer this way of working. Today, with the kind of communication networks available, millions of people worldwide are considering this option.
Women & Men who want to be independent but cannot afford to leave their responsibilities at home aside will benefit a lot from this concept of work. It makes it easier to maintain a healthy balance between home and work. The family doesn't get neglected and you can get your work done too. You can thus effectively juggle home responsibilities with your career. Working from home is definitely a viable option but it also needs a lot of hard work and discipline. You have to make a time schedule for yourself and stick to it. There will be a time frame of course for any job you take up and you have to fulfill that project within that time frame.
There are many things that can be done working from home. A few of them is listed below that will give you a general idea about the benefits of this concept.
Baby-sitting
This is the most common and highly preferred job that Women & Men like doing. Since in today's competitive world both the parents have to work they need a secure place to leave behind their children who will take care of them and parents can also relax without being worried all the time. In this job you don't require any degree or qualifications. You only have to know how to take care of children. Parents are happy to pay handsome salary and you can also earn a lot without putting too much of an effort.
Nursery
For those who have a garden or an open space at your disposal and are also interested in gardening can go for this method of earning money. If given proper time and efforts nursery business can flourish very well and you will earn handsomely. But just as all jobs establishing it will be a bit difficult but the end results are outstanding.
Freelance
Freelance can be in different wings. Either you can be a freelance reporter or a freelance photographer. You can also do designing or be in the advertising field doing project on your own. Being independent and working independently will depend on your field of work and the availability of its worth in the market. If you like doing jewellery designing you can do that at home totally independently. You can also work on freelancing as a marketing executive working from home. Wanna know more, email us on workfromhome.otr214425@gmail.com and we will send you information on how you can actually work as a marketing freelancer.
Internet related work
This is a very vast field and here sky is the limit. All you need is a computer and Internet facility. Whatever field you are into work at home is perfect match in the software field. You can match your time according to your convenience and complete whatever projects you get. To learn more about how to work from home, contact us today on workfromhome.otr214425@gmail.comand our team will get you started on some excellent work from home projects.
Diet food
Since now a days Women & Men are more conscious of the food that they eat hence they prefer to have homemade low cal food and if you can start supplying low cal food to various offices then it will be a very good source of income and not too much of efforts. You can hire a few ladies who will help you out and this can be a good business.
Thus think over this concept and go ahead.