Study On The Benchmark Yield Model Of Forestry

As an industry of great potential, forestry can create great economic value and social value in the future. In recent years, the government releases some policies, some of which benefit the development of forestry. As a result, forestry receives more and more attention. Compared to other industries, forestry is different, such as, forestry investment projects always have a longer period, forestry investment projects is subjected to some natural environment factors, which cause lots of difficulties to the determination of the forestry benchmark yield. However, the industry benchmark yield is an important evaluation for the project investors to make investment decisions, therefore, in order to evaluate the forestry projects objectively, and to ensure the funds can flow into the forestry smoothly; we need establish a reasonable model to estimate the forestry benchmarks yield.This article is put forward under this reason. The research is based on two models (WACC and CAPM). The article establishes a benchmark yield model of forestry on the basis of the revised WACC. The model could be analyzed from three parts, the capital structure of the forestry, the yield on equity capital of forestry, and the yield on debt capital of forestry. The research focuses on the first two parts, with establishing the capital structure model of forestry and determining the capital structure optimization values and the value of the yield on equity capital of forestry through analyzing the relevant data of listed companies. On the basis of the results, the final value of the benchmark yield of forestry is determined.