1. Assume that Ole Olson is a patron of the Taft Farmers Cooperative. The cooperatives Board of Directors uses a Base Capital equity redemption plan. The Board of Directors has chosen a base capital level of $ 65,000,000. Please calculate Oles Adjusted Equity Obligation. Is Ole over invested or underinvested? How much is Ole overinvested or underinvested?

   (Please see Table 4)

Table 4. Information for Base Capital redemption plan Member Beginning 10 Year Equity Patronage Total Percentage of Cooperative's Business Adjusted Equity Obligation Over or Under Invested $ 68,546,819 $ 3,349,184,168 100 % $ 65,000,000 $ 648,137 Cooperative Total Ole Olson $ 2,740,249 $ 126,257,545 0.037698 ?? ?? Table 4. Information for Base Capital redemption plan Member Beginning 10 Year Equity Patronage Total Percentage of Cooperative's Business Adjusted Equity Obligation Over or Under Invested $ 68,546,819 $ 3,349,184,168 100 % $ 65,000,000 $ 648,137 Cooperative Total Ole Olson $ 2,740,249 $ 126,257,545 0.037698