Greed for Money Essay

Today, greed for money, together with greed for power, is one of the chief causes of human misery. No wonder our Lord put as his first beatitudes;† Blessed are the poor in spirit. † Poverty in spirit is the opposite of greed for money, for it means detachment from material things coupled with trust in God as the only Savior. People cheat other people for money. They betray friends for money. Members of the same family – sometimes parents and children quarrel and sue each other in court over money. Jesus was very well aware that money would rival God in the eyes of many people. That is why he warned â€Å"No man can serve two masters, you cannot serve God and money†. He himself was the victim of greed. In the end, He was betrayed for thirty pieces of silver by Judas. It takes real grace to see the seduction of money and the emptiness of its promises. Aspiring politicians have heard of the sad end of Ferdinand Marcos, and other dictators whose billions benefit only the Swiss banks but not those who robbed their own people. And yet given the opportunity, how many will resist the temptation to take advantage of one’s public trust? In the song Hello Dolly, it says â€Å"Money my dear is like manure. It is good for nothing unless it is spread around to make your things grow. † Many of us are rather more fascinated by the manure and love to store it, more than to share it.

How did America change after the War of 1812? Essay

Change occurs in every time period. Today Americans work and communicate faster through home computers and cell phones than they did thirty years earlier. Change also occurred early in the nineteenth century. After General Andrew Jackson led the United States victory at New Orleans, nationalism increased and Americans looked forward with confidence to a future filled with changes. They would not be disappointed. The years after the War of 1812 produced great economic and political changes. The economic changes of the years following the War of 1812 varied from new innovations to government policies. Eli Whitney’s greatest inventions, the cotton gin and system of interchangeable parts, both helped spur the growing American economy and industrial revolution. The cotton gin improved the output of workers by a thousand percent and in ten years, the production of cotton in the country rose from 5 million pounds to 63 million pounds, thus making the South the leading cotton producer, shipping it to Britain and New England. Unfortunately, the cotton gin also caused a higher demand for slave labor, and by 1860, approximately 33% of Southerners were slaves. The system of interchangeable parts introduced Americans to mass production. When Eli Whitney took the government order of 10,000 muskets, he showed that the majority of goods could be mass-produced. Both the cotton gin and mass production method would revolutionize the United States. In addition, tariffs helped protect American trade. The British stored goods during the war and flooded them on America when peace was achieved. To combat the inundation of imports, the national government issued a tariff to encourage people to buy American products and stimulate the growth of the economy. Moreover, the tariff assisted in rebuilding the federal treasury. After a growth in trade, the Panic of 1819, the country’s first major economic setback, hit. Europeans demanded American grain, meat, tobacco and cotton; farm products and land prices soared as farmers rushed to increase production. State banks would make loans to anyone who needed money to buy land or farm equipment. Afterwards, the country began to fall into depression as Europeans began to buy less expensive cotton from India and bumper crops. Crop prices and land prices collapsed; land values in Pennsylvania dropped from $150 an acre to $35 in four years. Unemployment increased with 50,000 people unemployed or erratically employed in New York,  Philadelphia, and Baltimore. Furthermore, state banks failed, and the federal bank foreclosed mortgages on homes, farms and shops. Perhaps John Calhoun would be able to describe it best: â€Å"There has been within these two years an immense revolution of fortunes in every part of the Union; enormous numbers of persons utterly ruined; multitudes in deep distress.† It is obvious that economic changes were ubiquitous during the time period after the War of 1812. During the time after the war, political changes influenced society significantly. Different issues like the Missouri dispute and the Tariff of 1816 led to sectionalism, dividing the nation. Slavery had been legal in the Missouri territory under French and Spanish rule, but the North and South disagreed on whether it should have been a slave state. The compromise was to permit slavery in Missouri, create Maine as a free state, and leave future states north of 36 °30†² N latitude as free states. Jefferson felt the debate was ominous: â€Å"†¦the momentous question, like a firebell in the night†¦a bell signaling death of the Union†¦this is a reprieve only, not a final sentence.† Also, the tariff was supported by the West and North and opposed by the South. Next, Monroe’s foreign policy changed how other countries saw the United States considerably. The country had always tried to remain neutral before – impressment and the seizing of ships wer e allowed. The Monroe Doctrine dictated that Latin America and the Pacific coast of the Americas needed to be left alone by Europeans and Russians. Monroe said that the American continents â€Å"†¦are henceforth not to be considered as subjects for future colonization by any European Power.† This policy succeeded since it met both British and American interests and was enforced by the British fleet for the next hundred years. Next, the Adams-Onis Treaty helped the country gain Florida and set the western boundary of the Louisiana Purchase, as well as renouncing any claim of the United States to Texas. This was another addition to the ever-expanding country. Lastly, an entirely new political party system developed. The Federalists ceased to exist as a national organization after the 1816 election, and two new party alignments formed: the National Republicans, who supported the federal government and national bank and were from the higher class, and the Democrats, who supported individual states, were against the  national bank, and came from the working class. As one can see, there was an abundance of political chan ges after the War of 1812. The War of 1812 greatly affected the United States economy and political system. The years following the war were full of economic ups-and-downs. For example, the cotton gin boosted the cotton industry and southern economy. Although the tariffs of 1816 and 1828 were supposed to protect trade, they proved ineffective. The Panic of 1819 occurred when the European trade bubble burst. On the other hand, the nation’s government underwent various changes. Sectionalism split the nation into the North and the South, and the Missouri Compromise proved to be only a temporary resolution to the slavery debate. The Monroe Doctrine helped the country gain respect, and the end of the Federalists altered the political party system. Although the War of 1812 didn’t have any great impact on the country directly after the war, America experienced numerous changes the years following the war.

The Japanese Internment Essay Example | Topics and Well Written Essays - 1250 words

The Japanese Internment - Essay Example The answers of these questions come to us through the story of Japanese American Internment. These people were imprisoned and interned for no strong reason. They were sent to the relocation camp far away from their homes. The disgraceful incident of internment started soon after the Pearl Harbor attack. On December 7, 1941 Imperial Japanese Navy attacked on Pearl Harbor, Hawaii. Suspicion prevailed all over among the outraged American people and their attitude towards the Japanese- Americans suddenly changed. On the background of the bombing on Pearl Harbor, the Presidential proclamations were signed which included 2525 (Japanese), 2526 (German), and 2527 (Italian). The Raciest Hysteria led to the forced evacuation and internment of the Japanese- Americans. Approximately 120,000 Japanese Americans were imprisoned and were sent to the war relocation centers. Among some young men of Japanese heritages became some of the most trustworthy soldiers. In 1990, Japanese American survivors of the camps started receiving redress checks of $ 20,000 along with a letter of apology from President George Bush. The Second World War had just started. There was a historic incident happened during this time. It was 19th February 1942. On the basis of the Pearl Harbor attack, Franklin Roosevelt signed Executive Order 9066. According to the order 120,000 Japanese- Americans were rounded up to one of the 10 internment camps which were called â€Å"relocation centers.† The American government took such initiatives against the Japanese- Americans due to the fear that those people would otherwise support to the Japanese in Second World War. Thus more than 2/3 of the Japanese in US were interned who were the citizens of United States. They were never disloyal to America yet they were evacuated for no strong reason. The blatant euphemism was that they were humiliated by calling them ‘non-aliens.’ The misery of the people can be

Cognitive Behavioral Therapy based approaches to mental health nursing Essay

Cognitive Behavioral Therapy based approaches to mental health nursing and their application to depression - Essay Example This paper presents a literature review of the cognitive behavioral therapy based approaches to mental health nursing and their application to depression. The most remarkable finding published thus far on the treatment of depression has been in a major research, conducted by Keller and colleagues (2000), weighing the outcomes of one of the more recent treatments, nefazodone, against a new treatment, the Cognitive Behavioral Analysis System of Psychotherapy (CBASP). The CBASP approach suggests that the mindset of individuals with chronic depression has become retarded or regressed to the most elementary developmental stage. The nature of this mindset makes patient indifferent to forces from the social environment, leading to the belief that they are not able to affect any of the circumstances in their lives. This kind of mindset leads to the submissiveness and vulnerability usual of patients with chronic depression. The technique underlying the therapy is to demonstrate to patients th at their decisions and behavior do in fact have significant effects, so that they will be encouraged to adopt behaviors that will yield positive outcomes. These positive outcomes, which stem mostly from social support, work to bring back motivation and enhance mood. Several techniques are implemented in adopting this approach such as the following (Keller et al., 2000, p. 1465): Provision of consistent feedback from the therapist on the interpersonal effects of the patient’s actions. Teaching patients to discriminate between aversive or abusive past interpersonal situations where they could not affect outcomes and current situations where they can. Teaching patients to evaluate systematically whether their actions are assisting them in achieving desired outcomes. The study of Keller and colleagues (2000) presented credible proof that CBASP is very useful in treating chronic depression. The speed of total remission with the combination of medication and CBASP in the study of K eller and colleagues (2000) was almost double the speed of total remission of patients who received medication and cognitive therapy. It is somewhat likely that CBASP will become the most successful therapy for chronic depression. However, this is not yet definite, since the speed of response to medication was significantly greater than in studies using cognitive therapy. Even though the research subjects used in the study of Kelly and colleagues (2000) seem to have higher levels of chronic depression than those in cognitive therapy studies, it is also probable that they were more responsive to treatment. Relapse preventive outcomes have also been reported applying other newer treatment approaches of cognitive therapy. Galante and colleagues (2013) formulated Mindfulness-Based Cognitive Therapy (MBCT) which incorporates several typical cognitive therapy policies into mindfulness approaches. MBCT is given in a group setting with individuals who have experienced severe depression. Thi s treatment was developed particularly with the purpose of enhancing meta-cognitive consciousness in patients who have recovered from depression and who are highly vulnerable to more episodes. By means of mindfulness exercise, MBCT seeks to build a mental ‘group’ of meta-cognitive consciousness that is broader than the meta-awareness associated only with a damaging

Benefits of a Private School Education Research Paper

Benefits of a Private School Education - Research Paper Example According to the research paper "Benefits of a Private School Education" findings, many public schools which are located in affluent areas can be just as focused and just as well funded as private schools; it is in the urban areas where the most differences can be seen. Private schools also generally have fewer incidences of drugs, dropouts, and violence, most possibly due to the increased level of commitment of parents who send their children to private schools to have every advantage. Private schools have far fewer disciplinary issues to contend with, and the number play a very significant role. With fewer students, there are going to be fewer problems, but there are other reasons as well. Since private schools are not required to accept students or retain them, they can simply expel disruptive students. Only those unerringly meeting their standards both academically and behaviorally are benefited to stay. Public schools are not as privileged since public education is considered an entitlement. Further, since parents are aware that they pay for their children’s tuition, then they also play a part in making their children behave and do school work. Students in private schools are more focused on particular projects and school activities because of the diversity in the curriculum and so they tend to become well-balanced individuals. There are far fewer reports of drug abuse and violence per student in private schools. Public schools also tend to deal with students as a whole, rather that on an individual basis.

Risk management Failure Essay Example | Topics and Well Written Essays - 1500 words

Risk management Failure - Essay Example The overall discharge of the spill was estimated at 4.9 million barrels, which covered an area of 780,000 cubic metres (Jervis and Levin 2010). The disaster was followed by major attempts to protect the estuaries and wetlands of the region, from the spreading oil. The impacts of the spill included the destruction of wildlife and marine habitats in the area; the stagnation of the tourism and the fishing industry of the region, as well as the human health issues that continued to be felt until year 2012 (Robertson and Krauss 2010). Following investigations, the causes of the disaster included the use of defective cement; the ineffectiveness of the operations of Halliburton and Transocean, as well as the lack of effective risk assessment by BP (NOAA 2011). This paper will explore the impact of BP’s failure to manage risks, which resulted in the BP disaster. The risk management failures of BP that led to the disaster Risk management failures were among the core factors that led to the 2010 BP disaster at the Gulf of Mexico (Zolkos and Bradford 2011). ... However, the contributory roles of the two secondary companies blamed for the disaster could have been mitigated through an effective investigation and the management of the risks facing the project. For example, the report from the investigation showed that the cement used during the construction was defective. Through effective risk assessment and management, BP would have discovered that the cement supplied was defective, therefore would outsource good cement for the project (Ingersoll, Richard and Reavis 2013). The Macondo blowout of 20th April 2010 was caused by a string of company decisions by BP, which increased the risk levels of the project. The company, also failed to assess different areas that would help it mitigate the risks of the project. These risk management failings include that BP did not carry out an official risk assessment of the critical operational choices made during the days prior to the disaster. For example, through administering an effective risk assessme nt process, the company would have discovered the risky operations planned during the execution of the project. Through the assessment, the BP Company would have exposed any organizational issues that were likely to affect the credibility of the decision-making process. Through exposing the different areas of risk – whether in the areas of planning or implementation – the company would have averted the incidence of the disaster. Therefore, the company’s failure to assess the risks that contributed to the disaster was a contributing factor. Through effective risk management prior to the disaster, the company would have detected the engineering weaknesses in the plant, therefore would have recommended some precautions to the issue (Zolkos and

War, Politics, and Culture in Modern Mass Society Assignment

War, Politics, and Culture in Modern Mass Society - Assignment Example Culture in modern mass society is the distinct ways which people who live in the post-medieval Europe or at a global level differently classify and represent their acts and experiences creatively. Therefore, primary sources about Europe from 1871-1939 on war, politics, and culture are the original materials, artifacts, or documents. In this case, the primary sources that lead or related to the first-word war and how this has influenced the culture of the mass society to date (Teich and Porter, pp, 307-315). Europe from 1871-1939 experienced numerous revolutionary events, conflicts, and wars and at the peak of it was the First World War between 1914 and 1918. They are several primary sources that relate or lead to this particular war and they are into four categories. The four sources include printed sources, micro format; Personal reminiscences that are letters and diaries and eyewitness statements (Luebke, pp, 92-97). Printed sources are printed documents, newspapers articles, magazines, and journals. In the year 1914, the war was declared on Serbia by the government of Austro- Hungarian. In their statements, they stated that the whole Europe should prepare for war. The Ogden Standard in the same year also reported that Austria had chosen war. The Washington times seconded the report in the same year. It did not take long after the reports when war between these countries started. Microformat sources were also used to report the war in Europe. Microformat sources are types of open source data format that is upon existing and widely adopted frameworks. These micro format records consist of documents from the archives of the German Foreign Ministry that concerned with German involvement in Irish affairs during World War Impersonal reminiscences, on the other hand, give first-hand information on the happenings of the event.  

Energy Wedges Lab Report Example | Topics and Well Written Essays - 500 words - 1

Energy Wedges - Lab Report Example (Carbon Mitigation Initiative, 2006) This can be achieved by use of energy wedges to achieve a stabilization triangle. This triangle is to be made of eight wedges with each wedge representing a reduction of one billion tonnes of carbon emitted per year and hence a total of eight billion tones in reduction (Margolis, 2003). The four colors of the wedge pieces indicated the major category (fossil fuel-based (blue), efficiency and conservation (yellow), nuclear (red), and renewables and bio-storage (green). We choose a red, yellow, blue, or green wedge for our strategy andlabeled the wedge to indicate the specific strategy. For each of the 8 strategies chosen, we filled out one line in the Wedge Worksheet. After all 8 wedges had been chosen; we tallied total cuts from each energy sector (Electricity, Transport, and Heat) and costs. We then used the scoring table to predict how different interest groups would rate our wedge on a scale from 1 to 5. In the group discussion everyone contributed really substantially and significantly and we all agreed unanimously on the choice of wedges. The wedges selected as shown earlier in this report were due to the relative ease of achieving them. Also considering the effectiveness of each wedge we agreed that our choices were the best. Our group majorly based our choices on the relative costs as they were low cost and this would attract the political will as well as public will in general. (Hotinski, 2007) Each of the 8 strategies above has the potential to reduce global carbon emissions by at least 1 billion tons per year by 2054, or 1 wedge. A combination of strategies will be needed to build the 7 wedges of the stabilization triangle. In summary, No one strategy will suffice to build the entire stabilization triangle. New strategies will be needed to address both fuel and electricity needs, and some wedge strategies compete with others to replace emissions from the same source.

Special Education Article Example | Topics and Well Written Essays - 250 words

Special Education - Article Example avior, of which William was also observed to exhibit: inattention: â€Å"often does not seem to listen when spoken to directly† (cited in Foley, Carlton, & Howell, 1996, pp. 341-342); hyperactivity: â€Å"often leaves seat in classroom or in other situations in which remaining seated is expected; often runs about or climbs excessively in situations in which it is inappropriate† (APA, 1994, cited in Foley, Carlton, & Howell, 1996, p. 342). Concurrently, the behaviors that suggest that this may be a conduct disorder are as follows: aggression: â€Å"often bullies, threatens, or intimidates; often initiates physical fights; has been physically cruel to people† (APA, 1994, cited in Foley, Carlton, & Howell, 1996, p. 342); and destruction of property: â€Å"has deliberately destroyed others property† (APA, 1994, cited in Foley, Carlton, & Howell, 1996, p. 342). In making any recommendations or actions to address William’s dilemma, the legal considerations that must be taken into account include the use of excess force to restrain William and which could cause harm and injury to him; and implementing interventions that run counter to those recommended by the DHS or the surrogate mother, without proper court order or legal approval. Foley, H., Carlton, C., & Howell, R. (1996). The Relationship of Attention Deficit Hyperactivity Disorder and Conduct Disorder to Juvenile Delinquency: Legal Implications. Retrieved from Bull Am Acad Psychiatry Law:

Segmentation and Target Market Essay Example for Free

Segmentation and Target Market Essay The point of being in business is to provide a service or product to a particular consumer base and to produce a profit of the service or product given. In order to accomplish this, companies must be able provides its products and services to a particular type or group of consumer that calls for a the need of it. It takes care planning and research in order to produce something that your customer based will embrace and continue to come back for more. It takes, further, skill and effort to advertize your product and service to the right groups of consumers. Apple, Inc. is a prime company to take a look at in terms of the services and products that it provides to its customer base. Apple, Inc. can address the needs and wants of its entire customer base within a particular market segment. In todays business world, there may not be another company out there that is quite like Apple. Over the last two decades, Apple, Inc. has emerged as the premier, go-to, technology retailer for your all your tech needs. Apple offers a comprehensive portfolio to meets all of your entertainment and productivity needs. From the introduction of the Mac desktop computers to the creation of their I product line, which includes the iPod, iPad, iPhone and the new iWatch. Apple provides laptops, music streaming and cloud services along with audio equipment and printers. The company operates in a space where they can reach most individuals and their needs. Understanding market segmentation is what has along Apple to accomplish all it has. Market segmentation divides a market into well-defined slices. A market segment consists of a group of customers who share a similar set of needs and wants (Kotler Keller, 2011, p. 214). They have created easy to use products to help even the busiest student or business person throughout their work day. They have provided a means for the mom to keep her children entertained while out running errands. Apple has made family time better within home  video streaming options as well. Even big and small business have the ability to increase productivity and streamline their workflow with the software and products that are offered by the company. Apple has invested plenty of time and energy in understanding what the wants and needs are of its customer base. Based on the segmentation, there are other variables that a company, like Apple, must acknowledge and address. Demographic, geographic, psychographic, and behavioral segmentation are vital parts to a marketing program. In terms of demographics, it seems that product saturation is not an issue for Apple. According to an article posted on USA Todays website, entitled Half of U.S. homes own Apple products (2012), explains Apples reach across the United States in the title. To put that into perspective thats more than 55 million homes with at least one iPhone, iPad, iPod or Mac computer. And one-in-10 homes that arent currently in that group plan to join it in the next year (para. 1). The breakdown goes further stating that consumers tend to be male, college-educated, and younger (Half Of U.s. Homes Own Apple Products, 2012). It does not appear that money is an issue when it comes to those who own Apple products. Those on the higher end of the income scale own an average of about three Apple devices, compared with 0.6 for lower-income homes (Half Of U.S. Homes Own Apple Products, 2012). Outside of income, age does not appear to be a factor in those who own Apple products. Another statistic from the article shows that just as many Americans between ages 18 and 34 count themselves among Apple users, as those ages 35-to-49 (63 percent). The number drops to 50 percent when you get into the 50-to-64 age group, and down to just 26 percent among those 65 and older (Half Of U.S. Homes Own Apple Products, 2012). Parents are more likely to own Apple products than those without children. Sixty-one percent of households with children own Apple devices, compared with 48 percent of homes without kids (Half Of U.S. Homes Own Apple Products, 2012). Based off the numbers that were produced in 2012, it seems that Apple has everything working for them. With that many people invested in Apple products, their doors will continue to stay open. Apple has put an emphasis on the quality of their products to make them as easy to use as possible while helping to increase productivity and staying economically friendly.  Placing an emphasis on quality design and adapting to todays culture is another reason Apple, Inc. has been very successful. In todays society, the population has become more concerned about the environment than ever before. Issues of global warming, pollution reduction, and the polar ice cap melting are what drive the eco-conscientious consumer. Apple has a adopted an environmental responsibility for all of their products. As a global company that makes some of the most popular products in the world, we know we use a lot of energy and material, which in turn generates greenhouse gas emissions that contribute to climate change. Thats the part of the problem we can help solve (Environmental Responsibility, 2015). Being able to appeal to a growing, societal concerns makes a play on the human psyche. Apple showing concern for their impact on the environment allows them to reach that environmentally friendly consumer and bring them to their doors. That is one example of how playing to a particular thought process can be in your favor. Apple has, also, answered the growing demand for sleek looking products that can be easing carried around and still provide access to certain daily pleasantries. With todays on-the-go society, being able to access information, view videos, email, listen to music and otherwise stay connected is another way Apple has attacked the psychographic nature of product marketing. The company understands what is essential to its consumer base and will do what it needs to do to appeal to them. Another aspect that needs to be considered is a marketing program is behavioral characteristics. Apple deals with this on several fronts. The first way Apple deals with this is in the quality of its products. With an excellent product comes customers and revenue. A great product is not the only thing that is taken into consideration the marketing plan. A company must take into account what the consumer expects to receive from the company and in exchange for those expectations being met, consumers reward the company with their loyalty. Outside of product quality and appropriately addressing the needs of all its consumer based. Apple has adopted a quality approach in how its retail employees treat those customers in their store locations. They have created an a 5-step process for the customer experience. (A)pproach, (P)robe, (P)resent, (L)isten, (E)nd. Approach customers with a personalized, warm welcome. Probe politely to understand  the customers needs (ask closed and open-ended questions). Present a solution for the customer to take home today. Listen for and resolve any issues or concerns. End with a fond farewell and an invitation to return (Apples Secret Employee Training Manual Reinvents Customer Service In Seven Ways, n.d.). According to By The Numbers: Iphone Vs. Andriod (n.d.), in an infographic provided, it showed device upgrade trends reveal that 76% of Apple customers upgrade for one iPhone to the next (Brand Retention). Creating an excellent environment for the customer is one way to meet expectations and build brand loyalty. The reason we. see customers flock to stores every fall in bigger and bigger crowds for the latest iPhone model is due to the loyalty that Apples consumer base has for their products. What company in the world can create a mass movement that way Apple does across national retailers and those that shop there? There is none. One last factor that goes into a marketing plan is the ability to reach your intended target regardless of their location in the world. Apple, Inc. is not just a United States company. The company has grown into a global presence. An organization or company must be able to meet the demand for its consumer base where their customers are located to achieve the best results possible. Apple as a presence in 16 major countries around the world including the United States, Canada, United Kingdom, China, France, Italy, and Japan to name a few. In a press release drafted by the company, it stated that by the end of 2014, the new iPhone 6 and 6+ would be available for sale in 115 countries worldwide. The Statistic Portal created a graph showing the growth and expansion of Apple and their retail store locations. According to The Statistic Portal, Apple increased its retail store locations from 116 in 2005 to 437 in 2014. This shows the growth and willingness to reach as many customers as possible who can all benefit from the use of Apple products or to have place to go to continue to purchase Apple products. This year Apple became the first U.S. company in history to be worth $700 billion. Understanding the market that you are in and how to best service your consumer base is a surefire way to ensure success in marketing your products. This is what Apple as vowed to do and continues to demonstrate that with the incredible productivity level that they are producing with the help of their strong consumer base. There does not look to be an end in sight for the mega company. Marketing is a fundamental  element to their success, but it is not limited to the marketing of their products in terms of getting the word out to the population. It is an essential element when it comes to understanding the marketplace, its consumers, and their wants and needs. With that under control, everything else becomes simple and sweet. Like an apple. References Apple, Inc.. (n.d.). First Weekend iPhone Sales Top 10 Million, Set New Record. Retrieved from http://www.apple.com/pr/library/2014/09/22First-Weekend-iPhone-Sales-Top-10-Million-Set-New-Record.html Apples Secret Employee Training Manual Reinvents Customer Service in Seven Ways. (n.d.). Retrieved from http://www.forbes.com/sites/carminegallo/2012/08/30/apples-secret-employee-training-manual-reinvents-customer-service-in-seven-ways/ By the Numbers: iPhone vs. Andriod. (n.d.). Retrieved from https://www.yahoo.com/tech/by-the-numbers-iphone-vs-android-97842025474.html Environmental Responsibility. (2015). Retrieved from http://www.apple.com/environment/ Half of U.S. homes own Apple Products. (2012). Retrieved from http://usatoday30.usatoday.com/tech/news/story/2012-03-28/cnbc-survey-apple-products-us-homes/53827254/1 Kotler, P., Keller, K. L. (2011). Marketing Management (14th ed.). Upper Saddle River, NJ: Pearson Prentice Hall. The Statistics Portal. (n.). Number of Apple Stores World wide from 2005-2014. Retrieved from http://www.statista.com/statistics/273480/number-of-apple-stores-worldwide-since-2005/

A Case Study Of Barclays Bank Ghana Marketing Essay

A Case Study Of Barclays Bank Ghana Marketing Essay Customer Relationship Management (CRM) is a broadly used and accepted strategy for nurturing a firms relationship with clients and business prospects. It involves the use of globally accepted technological tools to technically organise and synchronize work procedures, especially in the area of sales and marketing and technical support. The principal aim of CRM is to search, attract, and keep customers, grow and retain already existing ones and try to win back lost customers as well as cut down on costs of business service. For any firm to start, grow and remain in business the customer is vital and as such CRM is of key importance. Business success means that firms must see CRM as an area to invest in it is an investment and not be counted as a cost. However, if CRM is not handled properly it can be costly and detrimental to any firm. On the other hand, if well applied it will go a long way to enable any firm retain its clients base and subsequently grow its business. CRM to a very large extent affects the movements rate of customers in any industry, for the purposes of this research; the banking industry will be examined. Attrition rate is hugely dependent on CRM; customers in the banking industry have grown in terms of choice and control. A company therefore needs to strategise critically in its bid to retain customers. Of key importance in CRM is not just smiling faces but value in service delivery or superior product, leading to customer satisfaction and therefore customer loyalty and retention, which is the pivot of financial performance (Reichheld et al 2000; Hesket et al 1997, Reichheld, 1994). 1.1 GHANAS BANKING INDUSTRY ANALYSIS The Banking industry is highly competitive industry with 26 Banks currently competing for Corporate and Retail Clients. The industry is vastly capitalized with a total share holders fund of over One billion, Eight hundred thousand (GH ¢1,854,648,000), culminating to an average of over seventy one million of share holders fund per bank (GH ¢71,332,620.00). This may seem adequate per bank, regarding the upward adjustment of the Stated Capital by Bank of Ghana by 2012. The average share holders fund is however misleading as a number for banks are still struggling to even meet the twenty five million minimum capital requirement by 2010. In reality, it is only just about eight Banks whose capital is meets the Sixty million required by 2010. The Regulation to increase the minimum capital requirement of the banks comes on the back of the discovery of Oil in Commercial Quantities. This is required to position the banks strongly to take be able to take up larger transactions. While only f our (SCB, BBG, GCB and EBG) banks control almost 50% of the total assets held by the banking industry, the other twenty two banks are competing to increase their asset base to enable them compete with the larger banks. Profitability in the industry is quiet competitive as only four banks (BBG, FAMB, UTB and BSIC) made losses. The rest of the Banks made profit. With the developing new oil economy and the resulting expansion in the Ghanaian Economy, Banks are faced with a better opportunity to increase their profitability and consequently, their asset base. They are however faced with loan recovery difficulties resulting in an average of 18% of loans disbursed going bad. The Continual reduction of Inflation to 9.44% and the Policy lending rate of Bank of Ghana, has forced the base lending rate of the Bank Interest rates downwards. This however has ignited a price competition in the industry culminating into a debate on whether interest rates should reduce any further than it has, espe cially when loans default rate remains high (www.ghanaweb.com,www.bft.com) 1.2 BACKGROUND INFORMATION ON BARCLAYS GHANA Barclays Bank Ghana is one of the biggest and first foreign banks to enter the Ghanaian economy at a time in which the three major banks namely Barclays, Standard Chartered and Ghana Commercial Bank and enjoyed oligopolistic positions before other banks entered the industry. Barclays has operated in Ghana for ninety four years. It is a wholly owned subsidiary of Barclays Bank PLC. Its vision is to become the best bank for every customer, in every branch, for every product and every time. Barclays Bank of Ghana Limited has an expansive retail and commercial banking network in the country with 92 branches and over 130 ATMs in all regional capitals and major towns. Its products and services are targeted particularly at the business and corporate, as well as retail customers. Barclays offers a wide range of commercial, Retail and Treasury products and services. It also offers local business banking product and services for Small Medium Enterprises and indigenous businesses (http://www.ba rclays.com/africa/ghana/barclays_in.htm). The Bank of Ghana in February, 2010 named Barclays Bank of Ghana Limited the biggest foreign bank and also the largest bank in terms of capacity to handle transactions in Ghana. In June 2009, Barclays launched its Bancassurance proposition in partnership with Enterprise Life Assurance Company Limited (ELAC) to enhance our product range with insurance product such as Term, Family Funeral Plan and Education Plan for the convenience of its customers. The Banks Premier Banking offers tailor made solutions and one-on-one banking to its high net worth. The Premier proposition amongst others offers; dedicated banking suites, financial planning, lifestyle alliances, global access to Premier lounges (airport) etc. In addition Premier Life, a new service proposition to replace Prestige Banking has been introduced. It is targeted at customers who require convenient banking, quick and efficient service as well as a level of privacy and recognition. The Barclays Offshore Banking Unit, the first of its kind in Ghana and indeed Africa South of the Sahara, continues to offer world class banking service to non-resident private clients and corporate. Industries financed by Barclays include cocoa, the backbone of the countrys economy; timber; gold and other minerals as well as business in the manufacturing sector and commerce. The banks sustainability programme focuses on three pillars. Banking for brighter futures; Looking after local communiti es and Charity begins at work. Barclays uses these key pillars to support developmental projects across Ghana. More than 80% of staff are involved in voluntary community programmes annually. Dubbed Make a Difference Day, it is the biggest corporate voluntary activity in Ghana. Barclays Bank of Ghana Limited is part of the Barclays Africa Group comprising ten (10) African markets under Barclays PLC(http://www.barclays.com/africa/ghana/barclays_in.htm) 1.3 RATIONALE OF THE STUDY In recent years, there has been a paradigm shift from transaction focused policies to customer relationship focused policies. This is because the fundamental task of business is to create and keep a customer in a sustainable way and at an acceptable return to a shareholder. Levitt, Marketing Myopia. Majority of industries all over the business world have made varying efforts to go along with this shift in order to be able to retain the largest customer base possible. Some have managed it successfully whiles others are still woefully behind, and as such unable to break even. This dissertation is therefore aimed at examining the impact of CRM on customer attrition and also uncovers most appropriate methods of application. As a matter of fact it has become necessary to pursue this field as research to boost efforts of industries in their bid to uphold CRM in their business operations in order to retain and grow their customer base. An in depth knowledge of CRM and its appropriate use re veals that it reduces attrition. Thus the aim of this research work is to critically investigate the strategies of CRM and how it can be used to boost customer retention. The outcome of this research will establish CRM as the lifeline to any industry and hopefully get firms to adopt to it and grow their business. 1.4 STATEMENT OF THE PROBLEM Based on previous study, it has been established that bad CRM practise can be very damaging for any business. A recently released Harris Interactive study confirms that a bad customer service experience with your company is enough to make a majority of consumers run for the hills. The study reported that 80% of 2,049 US adults surveyed decided never to go back to a business/organization after a bad customer service experience. The study clearly indicates that an organizations customer service level is a defining factor that will make or break a company (www.crm2day.com/library/50483.php). Thus it is no doubt CRM is one of the main factors contributing to the rise or fall of an industry. CHAPTER TWO 2.0 AIMS AND OBJECTIVES OF THE STUDY The purpose of this research work is to; Understand clearly the concept of CRM Provide reasons why industries need to invest in CRM Explore the extent to which industries focus on CRM Establish the merits and de-merits of CRM Suggest the methods of application of CRM 2.1 RESEARCH QUESTION As a follow up to the aims and objectives of this research, certain questions will be examined using the findings and suggestions of some experts in this field as background. Jankowicz (2000) advocates strongly that knowledge does not exist in a vacuum, thus the present research only has value in relation to the work already done by other people. With the above as a basis, this research work will aim at finding answers to the questions below; A definite description of Customer Relationship Management( CRM) How does CRM boost business success? What are the various ways of CRM application? Is CRM a field to invest in at all? How important are customers to any industry? Why do banks need CRM? 2.2 SIGNIFICANCE OF THE STUDY With recent developments in the concept of CRM and its impact on business industries Huber et al.(2001) state that many marketing strategists and industrial-organization (IO) economists emphasize that creation of superior customer value is a key element for ensuring companies success ; it has become crucial to re-examine by research work the whole area of CRM establishing its importance and highlighting reasons why industries need to give more focus to this area. The results of the research will significantly achieve the following: Contribute to the knowledge providing good understanding of the key factors in CRM Establish CRM as a field to be invested in Assist industries that want to adapt CRM strategically Constitute a useful addition to work already done in the field Provide a basis for further research 2.3 SCOPE AND LIMITATIONS OF THE STUDY This research will be limited to the banking industry with specific focus on Barclays Bank. It would have been profitable to include other service industries but this will not be possible considering the broad nature of CRM and the costs and time constraints which relates to the time frame within which this results needs to be submitted. CHAPTER THREE 3.0 LITERATURE REVIEW 3.1 INTRODUCTION Customer relationship management (CRM) is bringing together of people, processes, and technology seeking to provide understanding of customer needs, to support a business strategy, and to build long-term relationships with customers. Successful usage of the integrated technology requires appropriate business processes and organizational culture to adequately address human behavioural elements. Because it is not simply a technology solution, success in CRM business is largely dependent on people. Customer relationship management (CRM) is a combination of people, processes, and technology (Chen and Popovich, 2003) that seeks to provide understanding of customer needs (Stringfellow et al., 2004), to support a business strategy (Ling and Yen, 2001; Bull,2003), and to build long-term relationships with customers (Wayland and Cole, 1997). Although enabled by information systems, CRM is not a technology solution (Rigby et al., 2002; Chen and Popovich, 2003). The core processes are handled b y people and requires clear understanding of the goals of key decisions and system-people interactions. To appreciate the concept of CRM an evolution of it needs to be highlighted. 3.2 EVOLUTION OF CRM From the 1980s to the 2000s the research of CRM have progressed tremendously (Ling and Yen, 2001; Goldenberg, 2006). The evolution of CRM started from target marketing (Prabhaker, 2001) and sales force automation (West, 2001) to relationship marketing (Gronroos, 1994) and has increased the demand for customer information management. However, as the scope of CRM grew, comprehensive emphasis on technology has become the focus. At the same time, the increased interest in CRM technology management has downplayed the importance of people issues, which are intimately responsible for successful CRM implementations (Goldenberg, 2006). New forms of competition and structural modifications of exchange processes have led to the emergence of the relationship paradigm for creating long-term relationships among customers and suppliers. This is partly due to the globalisation of business, internationalisation, deregulation, information technology advances, shorter product life cycles, and the evolv ing recognition of the relationship between customer retention and profitability (Morgan and Hunt, 1994; Zineldin and Jonsson, 2000; Chandra and Kumar, 2000; Sahay, 2003; Stefanou et al., 2003). Relationship paradigm refers to all activities directed towards establishing, developing and maintaining successful relational exchanges (Gro ¨nroos, 1990, 1995, 1996, 1997; Gummesson, 1994; Morgan and Hunt, 1994, cited in Donaldson and OToole, 2002; Sahay, 2003). Through out the 1990s, in many organisations strategies, there was a shift from the need to manage transactions toward relationship management (Light, 2003). While enterprise resource planning (ERP) packages dominated the transaction management era, customer relationship management (CRM) packages lead with respect to relationships. The relationship between marketing strategies and performance has been studied from numerous theoretical perspectives, for example, transaction cost economics (Williamson, 1985, 1993; Park and Kim, 200 3), market orientation (Jaworski and Kohli, 1993; Harris and Piercy, 1999; Martin and Bush, 2003; Nielsen et al., 2003; Stefanou et al., 2003; Shapiro et al., 2003; Bigne ´ et al., 2004), and profit impact of marketing strategy (Kumar et al., 2000). The focus on the content of marketing strategies has been valuable in identifying performance-enhancing strategies (Goodhue et al., 2002; Plakoyiannaki and Tzokas, 2002; Chen and Popovich, 2003). While the concepts presented and discussed in the above perspectives are clearly valuable and have clear meaning, they also reflect a lack of accurate operating elements. Efforts made in this direction have failed to provide the concepts with sufficiently accurate and indicative operating elements (Grisi and Ribeiro, 2004). It is our view that past attempts of extant literature on implementation of customer relationship strategies have been insufficient and not gone far enough in the transition from the old to the new. According to Narayandas and Rangan (2004), empirical research in relationship management has tended to take a snapshot of a relationship at a given time and then attempted to project its trajectory (Croteau and Li, 2003). This gap has prompted researchers such as Anderson (1995), Jap and Ganesan (2000) and Lambe et al. (2001) to call for more field-based research based on case studies that draw on material from the multiple exchange episodes that constitute relationships and that offer insights into the processes of relationship initiation and maintenance (Narayandas and Rangan, 2004). Work on implementation of CRM strategy has focused on database management, direct marketing techniques, e-commerce and customer relationship mechanisms (Ling and Yen, 2001; Winer, 2001; Shoemaker, 2001; Gefen and Ridings, 2002; Fjermestad and Romano, 2003; Apostolou and Mentas, 2003; Croteau and Li, 2003; Bull, 2003; Park and Kim, 2003; Chen and Popovich, 2003; Kotorov, 2003; Scullin et al., 2004). This has been most noticea ble in business to consumer markets, and in services and financial services in particular. Donaldson and OToole (2002), indicated that though not all, many schemes are little more than sophisticated selling. According to Hertz and Vilgon (2002), many CRM implementation projects are fraught with difficulties in terms of technically not delivering the anticipated business benefits. Hertz and Vilgon (2002) indicate that up to 60 per cent of CRM implementation projects fail to live up to expectations. The study reported in this paper aims to contribute to the existing literature on the relationship marketing paradigm and the implementation of customer relationship strategy by examining both of these issues. This is accomplished by providing a better understanding of the components of CRM on the one hand, and the implementation of CRM strategy on the other. CRM systems have been used for a long time to automate processes (Ngai, 2005). However, the system process cannot manage customer re lations (Rigby et al., 2002; Chen and Popovich, 2003) because customer knowledge needs to be comprehended by business managers (Bueren et al., 2005), the face-to-face communication needs to be performed by front-line operators (Stringfellow et al., 2004), and a customer-centric culture needs to be formed by organization architects (Oldroyd, 2005). Although critical to the firm and dynamic in nature, the human side of CRM processes has gained little attention in CRM studies. Indeed, superior value of products/services delivered to customers leads to customer loyalty, the real driver of financial performance (see Reichheld et al., 2000; Heskett et al., 1997; Reichheld, 1994). Reichheld and Sasser (1990) show that, on average, a five percentage points increase in customer retention leads to between 40-50 percent increases in net present value profits. A few years later, Reichheld (1994) reports that a decrease in defection rate (or an increase in retention rate) of five percentage poin ts can increase profits by 25-100 percent and that this result is consistent across a wide array of industries. Satisfaction is a state of mind and it is only important as an indication of the intention of the most important behavior of repeat purchase, favorable word-of-mouth, and referrals. Reichheld (1994) states that customers who describe themselves as satisfied are not necessarily loyal. A cost benefit analysis reveals that huge resource allocation to CRM by businesses world-wide (estimated at $100 billion to date at the time of writing, see www.CRM-forum.com) has been primarily IT driven, not marketing driven. While CRM is meant to be about enabling a customer orientation, often it is not marketers pulling the strings: The serious question for the marketing profession is whether to respond to the challenges raised by new technology. The authors are not suggesting that one size fits all. The assertion by OMalley and Mitussis (2002), that where the ethos of relationship marketi ng does not exist in an organisation, it may be prudent for marketers to limit their CRM ambitions to advanced database marketing, is very sensible. But the disruption of new technology gives marketers, at the very least, opportunities to improve their internal influence. Many respondents in this research doubted whether CRM can control attrition rate in the business industry. My hypothesis suggests that CRM powered by technology and human involvement can control attrition rate in the business industry specifically banking where fierce competition is fuelling switching from bank to bank by customer. Are switching costs too low to dissuade clients from staying loyal to a particular bank? CHAPTER FOUR 4.0 METHODOLOGY The research seeks to explore the topic through the use of qualitative data. The choice of methodology will give the researcher an in-depth view, Easterby-Smith et al (2002), (Deshpande ´, 1983) on the extent to which CRM could go to control the attrition rate in the banking industry. This section extensively considers the research methods, tools and techniques available to achieve the aims and objectives and also to justify the use of the research method that will be employed in this study. Jankowicz (1995) describes methodology as the analysis of and justification for the part method(s) used in undertaking research. Furthermore, methodology seeks to explain the research procedure adopted by a researcher and should consist of the following: research design, data collection methods, sampling, field work, analysis and interpretation of data (Boyd, 1981). As asserted by Oppenhein (1992) for every social research there is the need to examine appropriate methodologies necessary for con ducting a particular study. As further stated by Oppenhein (1992) it is often seen that as research takes shape the aims of the research undergoes a number of subtle changes as a consequence of greater clarity in thinking, such changes may require a new or better design, which in turn will lead to a better specification for the instruments of measurement. Sources of data are the carriers of information and basically there are two sources of data- primary and secondary (Ghauri et al., 1995). Saunders et al, (2003) identified a third source as tertiary. However, it must be emphasised that while tertiary and secondary sources of data form the basis of the literature review, primary data sources are linked to the empirical research. As suggested by Kinnear and Taylor (1996), when research objectives include identifying problems or spotting potential opportunities, the use of exploratory research is the most suitable method. Easterby-Smith et al. (2002) argue that the knowledge of differ ent research traditions enables one to adapt a research design to cater for constraints. A qualitative research approach is used because it is a valuable means of finding out what happened; to seek new insights; to ask questions and assess phenomena in a new light (Robson, 2002). It great advantage is that it is flexible and adaptable to change, as in conducting exploratory research the researcher must be willing to change direction as a result of new data that appears and new insights that occur to the researcher (Saunders et al., 2003). As further reinforced by Adam and Schvaneveldt (1991) flexibility is inherent in exploratory research which does not mean there is no sense of direction to the enquiry but rather that the focus is initially broad and becomes progressively narrower as the research progresses. However, qualitative biases can also occur and result in inaccurate measurement and findings. 4.1 METHOD OF DATA COLLECTION/ SOURCE Both primary and secondary data will be used in this research. The primary data will be obtained from the semi-structured telephone interviews with some Barclays customers in Ghana. A semi-structured interview is suggested so as to obtain relevant information through the use of open-ended questions thus encouraging the interviewee to emphasize his/her point of interest (Easterby-Smith et al., 2002; Healey, 1991; Jankowicz, 2000). Individual in-depth interviews are deployed to provide the anonymity essential in allowing sensitive internal material to be revealed. It is also the most practical way of getting participation from busy Barclays customers. The interviews were semi-structured with a topic guide to provide some structure and consistency to the interviews, as advocated by a number of researchers (Miles and Huberman, 1989). The secondary data will be obtained from the companys website, published materials such as, academic journals, newspaper articles, search engines and books. Ghauri et al, (1995) says it all that the purpose of secondary data is to frame the problem under scrutiny, identify relevant concepts, methods and techniques and facts to position the research. 4.2 SAMPLE FRAME AND STRATEGY There will be sample size determination on the data collected. A total of 100 Barclays Bank customers will be interviewed. Also, due to time and budget constraints involved with the research, the sample would be a convenient size. Indeed. The interviews will be transcribed and analyzed with the use of a simple median. Thus the software Microsoft Excel will be used to calculate the percentage and numbers to clarify the data. It is worth emphasizing that due to the small size of the study, a deviance may appear in the result. CHAPTER FIVE 5.0 DATA ANALYSIS AND SAMPLING PROBLEMS As said above, there are limitations associated with the data collection through the means of semi-structured interviews. It is necessary to consider data quality issues such as reliability, bias, validity and generalizability which are seen as important to any qualitative research. According to Easterby-Smith et al. (2002) reliability in qualitative research is concerned with the probability of whether another researcher who has the same research will come up with similar information and findings. According to the authors (pp 53) reliable research tries to find answers to three questions. The first is will the measure yield the same results on other occasions? Secondly will similar observations be reached by other observers? Thirdly is there transparency in how the raw data will be analyzed? Thus for this study the researcher believes that reliability will be dealt with as previous research has been carried out on the small business sector which the researcher will be making use of including some materials through secondary data. Also, with the use of qualitative, non-standardised research, the result of the study implies that findings are not intended to be repeatable, as they reflect the reality at the time of collecting the data, which might be subject to change (Marshall and Rossman, 1999). In addition, bias on the side of the interviewee or interviewer can also affect the quality of the research; hence it should be noted that being aware of this, the researcher will ensure in the design of the interview questionnaire and also in terms of asking the right questions to get the required answers in line with the aims and objectives of the research. The researcher at all times Endeavour not to use any verbal or non-verbal behaviour that could affect the quality of the interview. Also a lot of readings will be undertaken in terms of text books, as well as obtaining guidelines from a professional interviewer and through practice. According to Saunders et al. (2003) validity is concerned with whether the results are what they appear to be. Oppenheim (1992) also notes that sample accuracy is more important than its size, in that there is a compromise between the theoretical sampling size and practical limitations such as time and costs. In terms of validity the researcher deems this to be high as the method used, that is, the in-depth interview will give the researcher a hands-on experience and the ability to see the reactions of the respondents through their interactions. The last issue will be the generalizability which according to Saunders et al., (2003) is the situation whereby findings of a research are applicable to other research settings. 5.1 ETHICAL ISSUES / CONSIDERATION Ethical issues occur when undertaking any kind of research and these have to be taken into consideration. Research ethics refer to the acceptability of a researchers behaviour towards the rights of subjects of research. To ensure this, researchers behaviour is guided by the code of ethics appropriate to academics and the profession or association of the researcher (Saunders et. at, 2003). The goal of ethics in research is to ensure that no one is harmed or suffers adverse consequences from research activities (Cooper and Schindler, 2003). According to Easterby-Smith et al. (2002) the ability to explore data or to seek explanation through qualitative methods will require a greater scope for ethical issues. This is particularly important when the data collected during interviews for example concerns sensible subjects or private stories, etc (Denzin and Lincoln, 1998). This issue is relevant in this research, as Barclays Bank customers will be asked about their finances and other privat e issues regarding possible attrition. The researcher however, is aware that when it comes to issues about finance, people are reluctant to give information. Hence the researcher will take the necessary action to avoid any such issues. Thus this research will consider the anonymity and privacy of respondents and accordingly would be based on the consent of respondents who will be provided with a cover letter, informing them of the purpose of the research and also providing assurance of the confidentiality of information given. Also, the name of the researcher as well as the University will be given in order to avoid any ambiguity. As a result, the researcher will be conversant with ethical considerations and both the researcher and respondents will be protected. 5.2 RESEARCH TIME TABLE 2010-2011 SEPT OCT NOV DEC JAN FEB MAR APR MAY Identification of research area 1ST    4th Formulation of research questions 6th Formulation of research strategy, 9th research design and selection 15th   methods Writing of the research proposal 20rd Negotiation of access 26th Literature review 29th 5th 27th Data collection 8th 24th Data analysis 28th 19th Writing the first draft 2nd 15th Writing the second draft 20th 2nd Writing the final draft 15th Dissertation due date 30th BIBLIOGRAPHY Rafaeli, A. and Sutton, R., (1987) Expression of Emotion as Part of the Work Role, Academy of Management Review, pp. 23-37

A Bus Story Essay -- essays research papers

During the entire three years in high school, the bus always was my main transportation. I needed to take it to school and take it home. If you wanted to count how many times I took the bus, it would definitely be plenty. Therefore, I had many different experiences on the bus. As you know, high school bus always has many interesting events that rake place. Among those special experiences, there’s one that happened when I was a junior in high school on my way to school. It was a very interesting one, so that I still remember it until now. One day morning, just like other mornings in my life, I forced myself woke up early, prepared all my stuff, and went to the bus station to wait for my bus. I remembered it was a beautiful Monday morning. The warming sunshine was so comfortable and let me almost forgot the big midterm that I was going to have that day. The bus came early. I got on the bus and sat in the back of the bus. In this early morning, there are already some people on this bus. Some of them hurrying to school, some of them hurrying to their work, but everyone at least could have their seat. I started to read my book and worried about the quiz I would have that day. Suddenly, an invisible power pulled my attention to a couple whom had just gotten on the bus. Maybe because they were the only two that was standing in this bus or maybe because I felt tired of my book, I felt enjoy by watching them. Therefore, I started to observe them. They were around their twen...

Solar Energys Ability to Power our Future Essay -- Energy Solar PV Pa

Solar ability to power our future Abstract Solar Energy is the process of using the rays from the sun and transferring the energy into thermal or electric energy. A main contribution to solar energy is PV panels. The Solar panels are found in a variety of locations, but mostly found on roofs of buildings or other large surfaces. The panels are devices used to capture the solar energy transferring it into electric or heat energy. Solar energy is beneficial in numerous ways, including helping the environment. Studies and attempts in working with solar energy have been around for decades and continue evolving. Solar Energy is very beneficial, but still has its disadvantages. Yet as the studies and experiments continue, the usage and benefits of Solar Energy will flourish. Introduction Solar Energy first appeared during the 1860s’. The first scientist that is believed to have turned solar power into mechanical energy was Auguste Mouchout. He began his studies in fear that his country was becoming too dependent on coal. After he received grants, he continued perfecting his theory until 1880, in which he created the beginning of outstanding and beneficial findings. (Smith 2007) Many people took his theories and experiments and evolved it more thoroughly. Since then solar power has come along way and now anybody has the opportunity to be involved in the struggle for energy. Numerous of households across the United States are cutting down on their usage of lights and appliances, and solar panels are being seen more frequent. Powering our future 3 Steps on how Sun rays are converted to electric energy. Figure 1: (Pacific Gas and Electric Company, 2007) The solar energy is created by the harboring of the Sunrays using Photovoltaic... ...eb site: http://www.solarenergy.com/info_history.html (2005). Solar Energy. Retrieved July 31, 2007, from BBC-GCSE Bitesize- Physics Web site: http://www.bbc.co.uk/schools/gcsebitesize/physics/energy/energy_resourcesrev7.shtml (2006). Discover Solar Energy. Retrieved July 24, 2007, from Solar Energy Advantages and Disadvantages Web site: http://www.facts-about-solar-energy.com/solar-energy-advantages-disadvantages.html (January 4,2007). Retrieved July 31, 2007, from ecosystems Web site: http://www.ecosystemssolar.com/sungrabber.htm (2007). About Solar Energy. Retrieved July 24, 2007, from Pacific Gas & Electric Company Web site: http://www.pge.com/about_us/environment/solar/about_solar_energy.html (2007). About Solar Energy. Retrieved July 24, 2007, from Pacific Gas & Electric Company Web site: http://www.pge.com/about_us/environment/solar/about_solar_energy.html

Birthmark Essay -- essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Mark of Ugliness   Ã‚  Ã‚  Ã‚  Ã‚  In Nathaniel Hawthorne’s The Birthmark, there is indeed a representation of a submerged personality in Aylmer. Although the other underlying personality is not represented within himself, it is rather portrayed through his assistant Aminadab. Since Aylmer is lacking so much within himself, he is unable to appreciate his wife even she was dying. Basically if Aylmer had the sensibility of Aminadab he could have realized how beautiful she was even with her birthmark.   Ã‚  Ã‚  Ã‚  Ã‚  During the portion of the rising action we discover what type of man Aylmer is. He is a man of science, and held with high regards by other scientists. His love for science is first priority; anything else means nothing compared to his studies.Even though he decided to search for a wife, he does so with hardly any enthusiasm, â€Å" He had left his laboratory to the care of his assistant, cleared his fine countenance from the furnace smoke, washed the stain of acids from his fingers and persuaded a beautiful women to become his wife.† Two points are brought up; first he leaves his assistant in the lab with all the dirty work to be done, while Aylmer cleans himself up and just decides he needs a wife, pointing out that Aminadab, although only an assistant, has a great deal of responsibility. Second due, to his non chalante attitude towards finding a woman, we find that he wonders if he could love a woman more than his science, â€Å" His love for his young wife might prove the stronger of the two; but it could only be by intertwining itself with his love of science and uniting the strength of the latter of his own.† Right then we see he could not marry and be truly in love unless he could some how combine it with his science.   Ã‚  Ã‚  Ã‚  Ã‚  Luckily for Aylmer, he discovers a birthmark on his wife that makes him look at his wife in disgust. The birthmark which he calls a flaw to perfection, becomes more intolerable after every glance at it. He can not ignore... ... of time,and,living once all in eternity, to find the perfect future in the present.† Basically saying the missing part of him, which was shown through Aminadab, was the key to see that he had everything he could possibly want. That is when he no longer fights with this inner struggle. What is even more tragic is that even with the passing of his wife, he is unable to learn from this expierence because his own wife basically says, dont feel guilty it is going to be ok. This totally disturbs the possiblility of learning from this horrible incident, because his wife eases the guilt.   Ã‚  Ã‚  Ã‚  Ã‚  Aylmer doesnot incorporate his missing characteristics from Aminadab. Although if he would have he would have been able to totally appreciate his wife, and even if he would have portrayed Aminadab’s way of thinking even at the end when she dies he could have learned at least the hard way. But the fact that he did not even learn anything from this expieerence and still has a seperation within himself is the saddest part. If only he had the mentality of his counterpart Aminadab, he wold have realized his wife, Georgiana was in fact a beautiful creature who need not be changed.

Navigating the Global Essay: Lost in Translation & Seamus Heaney Essay

The reactions of characters towards a growing global culture, whether a retreat or an embrace, are heavily influenced by personal choices. Within the arena of Navigating the Global, choices are almost certainly influenced by the circumstances in which they occur, whether this be a choice to keep the connection to the local, or move towards a more global setting. Three key texts that exemplify this phenomenon include the film ‘Lost in Translation’ by Sophia Coppola made in 2003, the Seamus Heaney’s poems ‘Digging’ (1998) and ‘Personal Helicon’, and finally the illustration ‘Globalisation’ (2012) by Michael Leunig. All three delve deeply into the interplay between internal choice and external circumstance. While they do explore how circumstances can influence choices, ‘Lost in Translation’ has a secondary investigation of how choices can impact the circumstance. ‘Lost in Translation’ is a film that explores the decisions made by two characters when they are stranded in a foreign country. It also shows how their circumstances ultimately shape the decisions that they make. The characters already exist in a highly globalised world, and furthermore, in one of the most technologically advanced cities on the planet – Japan. Although the film is set in this city, there is also an element of the local throughout the film. Japan’s juxtaposition of the new age and deep-rooted tradition becomes a focus throughout the film as the protagonists ultimately end up giving favor towards that global utopia they found with each other. The protagonists, Charlotte and Bob represent opposing sides of this; Charlotte the traditional, Bob the new age. A scene that best represents Charlotte’s displacement within this technological environment, is when she is situated within her hotel room, and is talking to a friend on the phone. The dull lighting and grey cityscape that is seen from out the extensive window, highlights her displacement within the hotel. The mid close up angle of Charlotte huddled on a seat in the middle of the room, crying to her friend about how she misses them, further demonstrates her isolation within the bleak setting. This juxtaposes strongly with her behavior when she is out near a temple with nature around her. She seems, although alone, to be more at home and interested with the culture than when alone in the hotel, and in one scene, is in awe of a tender moment between bride and groom. This is shown through the wide shot of her standing back from the couple, and a panning shot of them walking, with the bride in traditional dress. The fact that we feel Charlotte is more comfortable within a natural setting is even more relevant to the choice that she makes to spend more time with Bob in a more commercial and overbearing city, and within the hotel. The hotel is one of the most symbolic features of the film and as hotels are a worldwide symbol for globalization and the merging of culture with traditions, this becomes important when Bob chooses to stay longer because of the close friendship formed with Charlotte. They are a physical manifestation of cross-cultural convergence in one single place. Therefore, the hotel in ‘Lost in Translation’ becomes a clear depiction of not only the protagonists circumstances influencing their choice, but of isolation, of the limits of the American ethos, and of the dangers of language barriers. This is demonstrated clearly in the sauna scene for Bob, when two other men have a conversation, possibly in German, which he is incapable of understanding. The high angle mid close up shot of the two men sitting together, talking comfortably, while Bob is distanced from them with a pained expression, illustrates his confusion and ostracism from general banter and interaction with new people. Earlier in the film, Bob tries to communicate to the photographer in his whiskey advertisement. The director rants for a lengthy period, making grand physical gestures and dramatically giving instructions, but when he finished this performance, his translator says only a simple sentence of vague direction. This is another vital indication of how the true meaning of words and conversation is completely lost in translation. This theme of the globalised world of Japan is relevant to the circumstance that the movie has been set up in because of Sophia Coppola’s 21st century up bringing. The movie itself can be seen as a comment on the growing global scale of the world, and the multicultural boundaries that are blurring and changing within the world. Not unlike Lost in Translation, Michael Leunig’s cartoon ‘Globalisation’ focuses on the move away from the natural and towards embracing an increasingly global and technological world. The image portrays two human figures in the centre, they are framed on one side by a stark, black tree that seems to be smouldering as if having just been burnt, and on the other side by a collection of tall buildings with small windows, seen from a distance. The only text in the illustration says, ‘What is Globalisation? Globalisation is installing light globes in as many places as possible on the face of the earth’. The pun of ‘Globalisation’ is used to diminish or even parody the impact of actual globalisation. The human figures face away from nature and appear to prefer the cityscape, with their faces upturned with slight smiles. This symbolism of moving away from the smouldering, suffering tree and towards the seemingly pristine city is used to convey that we, as humans, are forgetting our original position in nature. He suggests a conscious choice to move away from the natural and towards the global culture. The fact that the tree is so prominent within the picture, and that it is giving off some kind of toxic looking smoke, is an ominous symbol which forshadows the dangers of preferring the man-made to our natural state. Similarly, this preference is reflected repeatedly in Lost In Translation, with characters moving towards the global and more technological world. But in contrast, Leunig conveys this in a more sinister and ignorant tone, whereas in Lost In Translation, the more modern setting is seen as a kind of safe haven for the two characters who are lost in their mutual isolation. This relates back to the issue of how the circumstances that you are in, e. g. the isolation that Charlotte and Bob feel, and the dying natural world in Leunig’s illustration, influence the choices that are made, this time being to move and accept a more global world. In contrast to Lost In Translation, Seamus Heaney’s poems ‘Digging’ and ‘Personal Helicon’ focus on the importance of the local, and the foundational relationships held within choosing to keep that homely connection. Within these two poems, great importance is placed on the exploration and appreciation of nature and the natural environment. Throughout the poem ‘Digging’, the connection to his father, grandfather and other family members, and his choice to remain connected with his Irish heritage is seen through â€Å" †¦ a clean rasping sound – When the spade sinks down into the gravelly ground – my father, digging. I look down. The auditory imagery in ‘rasping sound’ when explaining the shovel noise is an immediate link to nature, and the significance of potatoes and agriculture in Irish heritage is highlighted. The direct link to his father with ‘ My father, I look down’ conveys his relationship with his father is still there, but that it has changed from him looking up to his father, to him making the more adult choice of acknowledging his work, but moving away from him, or becoming an adult. This choice to distance himself from the expectations of his father comes within the last line â€Å"Between my finger and my thumb- The squat pen rests- Ill dig with it. The metaphor of turning his more modern job of a writer, and the tool in which he uses, his pen, and turning it into a spade which was his father and grandfathers tool, tells us that, although he is honoring family and keeping within the local by still maintaining connections, the circumstances for him have changed, and so he moves only slightly to a more modern world. The poem ‘Personal Helicon’ is slightly different, in that it is completely about moving away from the people around you, and the advancing world, and finding peace in solitude and nature. This poem of the recollections of a man looking back on his childhood and his fascination with wells, is one that demonstrates how childhood and the associations that you had as a child, in this instance with nature, can influence what you do later in life, and how he longs for that childhood fascination again. Within the line ‘I savored the rich crash when a bucket – Plummeted down at the end of a rope. ’ It gives us insight into Heaneys connection with the simplicity of nature, and his childlike self’s fascination with earthy objects. This is further shown in ‘ When you dragged out long roots from soft mulch – A white face hovered over the bottom. ’ The use of ‘you’ indicating that it is a relatable situation, and the tactile and visual imagery found in ‘ long roots’, ‘soft mulch’ and ‘ White face’ gives us further insight into his connection and love for nature. The mention of his reflection being seen in the water is a link to how he sees himself in nature, and is therefore connected to it. The last lines in the poem ‘ †¦ To pry into roots, to finger slime†¦ Is beneath all adult dignity. I rhyme- To see myself, to set the darkness echoing. Shows that as an adult, it is unacceptable to do the things he once loved as a child, and the only way to conjure the memory of that is to tell it through his poems. The use of the high modality of ‘beneath all adult dignity’ alludes to the fact that he is now in a world that is un-accepting of nature, and the choice he has made to stay within that position means that he can never really find his solitude within nature that he had as a child, growing up in Ireland and the farming culture that valued nature, again. Within the texts ‘Lost in Translation’ by Sophia Coppola, ‘Digging’ and ‘Personal Helicon’ by Seamus Heaney and ‘Globalisation? by Michael Leunig, the issues of how circumstances can affect choices within the globalised world, and how the choices you make will and can affect the circumstances you are in is explored through a number of different ways. Whether the characters have chosen to retreat from the modern world, or embrace it, the choices made within the texts are coming from some sort of influence from their previous circumstances. It is clear that your upbringing and loca l situation will influence how you go about navigating through an increasingly global situation.

Civil Peace

Civil Peace Chinua Achebe The short story â€Å"Civil Peace† by Chinua Achebe is about a man named Jonathan Iwegbu, his wife Maria and his three surviving children. Chinua Achebe’s emphasis in his short story is how Jonathan and his family are trying to get on with their lives after the Civil War in Nigeria. Moreover, there is a phrase that Jonathan says several times through his story, â€Å"nothing puzzles God†. What does Jonathan means when he says this?The story starts off with Jonathan realizing how lucky he is to have survived the war along with his wife and three of his four children, one of his sons did not survive. He also mentions that his old bicycle which he had buried in the ground a year earlier just needed a little greasing and was able to be used again. This is also where Jonathan first uses the phrase â€Å"Nothing puzzles God†, (page 29). I think that in this part of the story Jonathan means that although his bicycle had been buried in th e ground for a year all that it needed to work again was a little oil.Most people may have thought that the bicycle would have been no good or puzzled by the fact that it worked, but God knew that it would be okay, so Jonathan places his faith in God, â€Å"Nothing puzzles God†. Jonathan immediately put his bicycle to use as a taxi to earn money. He then mentions that he makes the journey to Enugu and when he arrives he finds another miracle. His little house is still standing, â€Å"he discovers that miraculously his own modest home is intact†, Dameron Charles, â€Å"Chinua Achebe†, A Reader's Companion to the Short Story in English, paragraph 15.He again uses the phrase â€Å"nothing puzzles God†. Jonathan talks about the fact that just two houses away a huge concrete structure is no longer there, but his tiny little house has survived. As this point, I think Jonathan means that despite the war and hardship a small house withstood the effects of the war and Jonathan and his family had a place to return to. Jonathan after fixing his home opens a palm-wine bar for soldiers and people who had a lot of money. He opens this bar rather than going back to work as a miner. Jonathan talks of receiving twenty pounds from the treasury which he eceived for turning in rebel money and how he felt like it was Christmas because he had so much money. He attracts the attention of thieves who show up at his home that night to steal the money. Jonathan explains how he is usually a heavy sleeper but on this night he hears ever noise. He finally falls asleep and is awakened by knocking at the door. Jonathan and his wife scream for the police and for their neighbors but no one comes to help them. The thieves want one hundred pounds, but Jonathan tells them that he only has the twenty pounds that he had received from the treasury.Jonathan agrees to hand over the twenty pounds and the thieves leave. When Jonathan tells people of the robbery the next morni ng, he again uses the phrase â€Å"Nothing puzzles God†, (page 34). I believe that Jonathan means that with everything that has happened, the war, his son’s death, his bicycle being recovered, his house still standing, and finally the robbery that God has a plan for everything and although we may not understand what that plan is God does and therefore nothing puzzles God.He is a humble man, â€Å"He is a modern, and modest, hero, a rural counterpoint to the doomed Gladys†. Dameron Charles, â€Å"Chinua Achebe†, A Reader's Companion to the Short Story in English, paragraph 15. Chinua Achebe is aware of Jonathan’s feelings and he knows about his suffering and of his family members. However, the writer mentioned that Jonathan has a strong faith of God. Moreover, Jonathan always keeps his optimistic view of life and that is very important for all readers.

Medicalization of Deviance

Today I will discuss the topic is about medicalization of deviance. Firstly, as the textbook defines medicalization of deviance: â€Å"the transformation of moral and legal deviance into a medical condition. † In this definition it includes two different parts moral and legal deviance, and medical condition. Our society provides a moral and legal standard for everyone live in this society. Society has enough power to judge someone is deviance or normal. Also the Criterion of Assessment is mandatory and determined.For example, if someone did bank robbery, he or she must be putted into prison by police. But in my opinion, the social judgment is not a perfect way to identify someone is normal or deviance because the real world has a clear hierarchy, the upper classes have more voice and decision-making power in this society. The judgment can also be said to be made in an unfair platform, such as a person do actions with an idea what is beyond the understanding of most people, and the society will label him or her as deviance. Medicalization gives us one more option.As Peter Conrad pointed out that medicalization makes the medical institution the dominant moral entrepreneur of our society. A sample example is Medicalization can try to best help some people are an addict of drugs, and the medical institution can use Professional skills to help these deviance people rovers. The clear distinction is that medicalization labels people as â€Å"ill† and treats these people as patient. In this aspect I think medicalization is a positive manner. On the other hand, C. Wright Mills is a sturdy supporter in society has a main effect on society issues.As he mentioned that we come to see how society affects us, we may support society as it is, or we may set out with others to change it. However, the pros and cons of medicalization bring a question which is how to define what is â€Å"normal†, what is â€Å"deviance†. An actual issue has appeared in à ¢â‚¬Å"juiced† athletes. Some athletes are users of performance enhancing drugs to help them exceed others in the professional sport. I think the additional help is a cheating action. The action makes this equal competition become unfair. Also such acts must be punished in order to prevent its spread.These â€Å"juiced† athletes are not subscribing to contemporary cultural norms and values because if audients and other pure athletes are leaded to this â€Å"juiced† Value-oriented, the game or sport will ever lose its worth. Overall, In fact many deviance people pretty need help to treat them into individual problem in the society. But these deviants should suffer punishment for their actions. In addition, each case is different and should be looked at differently as to whether punishment is required or not. Reference: John J, Macionis and Linda M, Gerber. 2008. Sixth Canadian Edition: Sociology. Toronto, CA: Pearson Education Canada Press. |

Capital Structure Question Solution

FINE 3100 Problems for Midterm – Additional Capital Structure Problems Question 1 Belgarion Enterprises Asset beta, the riskiness of the firm, can be found as the weighted average of the betas of its debt and equity, where the weights are fraction of the firm financed by debt and equity: ? A = D/V ? D + E/V ? E = . 5 ? 0 + . 5 ? 1. 4 = . 7 To find the beta of the firm with no debt, find ? o or ? u using the formula for levered equity: ? E,L = ? o + [? o – ? D] D/E ( 1 – TC) Rearrange to find ? o = ? E,L + ? D D/E ( 1 – TC) 1 + D/E ( 1 – TC) Since the debt beta is zero, the equation simplifies to: ?o = ? E,L = 1. 4 / ( 1 + (. 5/. 5) ? (1 – . 4) ) = . 875 1 + D/E ( 1 – TC) The asset beta is higher if the firm has NO DEBT, in the otherwise perfect financial markets world. The firm with debt has an asset that the firm no debt does not: the interest tax shield. The riskiness of the tax shield is lower than the riskiness of the firm’s operating assets (its business risk). In fact, in this case, the interest tax shield is riskless because the debt is riskless. The beta of the levered firm’s assets is lower than beta of the unlevered firm’s assets. Remember, bankruptcy is costless in this problem. If bankruptcy is not costless, the result may not hold – by increasing leverage, the probability of bankruptcy goes up and therefore the expected costs of bankruptcy increase. In this case, the firm’s riskiness may well increase with leverage). Question 2 Little Industries a) Current market values EL = 300,000 ? $3 = $900,000 Value per bond: (. 05 ? 1000)/. 1 = 50/. 1 = $500 Total bonds: D= (. 05? 100,000)/. 1 = $50,000 VL = D + EL = 50,000 + 900,000 = $950,000 b) Current required rates of return Debt: rD = 10 % (given) Equity: rE,L = (EBIT – I) ? (1 – TC) = (270,000 – 5,000) ? (1 – . 4) = . 1766666 = 17. % EL 900,000 WACC = (D/VL) ? rD ? (1-TC) + (EL/VL) ? rE. L = (50,000/950,000) ? .1 ? (1-. 4) + 900,000/950,000 ? .177 = . 1708 c) For case of perpetual debt: VL = Vu + Tc D Therefore: Vu = VL – Tc D = 950,000 – . 4 ? 50,000 = 950,000 – 20,000 = 930,000 NOTE: another way to solve for the unlevered firm value is to first calculate the unlevered cost of equity and then use it to discount the unlevered firm’s cash flows 1. Unlevered cost of equity Recall: rE. L = r0 + (r0 – rD) D/E (1 – Tc) Rearrange the formula for r0: 0 = [rE,L + rD D/E (1 – Tc) ]/ [1 + D/E (1 – Tc)] = (. 177 + . 1? 50,000/900,000 ?. 6)/(1+50,000/900,000?. 6) = . 1741935 VU = EU = EBIT ? (1- TC)/r0   = 270,000 ? .6/. 1741935 = 930,000 d) (i) After restructuring, the firm will be 30% debt financed. Let D* be the total debt after refinancing and VL* be the total firm value after refinancing. It must be true that: D* = . 3 ? VL* Since VL = Vu + Tc D, then VL* = Vu + Tc D* Substituting for D* VL* = Vu + Tc . 3 ? VL* Solve for VL* (1 – . 3? TC) VL*  = Vu VL*  = Vu/ (1 – . 3? TC) = 930,000/ ( 1 – . 3 ?. 4) = 1,056,818. 2 And D* = . 3 ? VL*  = . 3 ? 1,056,818. 2 = 317,045. 5 EL* = . ? VL*  = . 7 ? 1,056,818. 2 = 739,772. 7 (ii) By issuing new debt and retiring equivalent value of equity, total firm value increases VOLD  = 950,000 VNEW = 1,056,818. 2 Increase in firm value = 1,056,818. 2 – 950,000 = 106,818. 2 Since the required rate of return to debt is unchanged, we can assume that all of the benefit of the restructuring is captured by the shareholders. On the announcement of the proposed restructuring, the total value of equity will increase by the increase in firm value: Value of existing equity on the announcement = 900,000 + 106,818. 2 = 1,006,818. 2 New share price = 1,006,818. 2/300,000 = $3. 356 To figure out the number of shares repurchased, first figure out the dollar value of the new debt issued: New debt issued = New total debt – previous total debt = 317,045. 5 – 50,000 = 267,045 Shares worth $267,045 are repurchased, at $3. 356 per share Total shares repurchased = $267,045/$3. 356 per share = 79,572 shares Share remaining = 300,000 – 79,572 = 220,427 (iii) New required return to equity Method 1: rE. L = r0 + (r0 – rD) D/E (1 – Tc) = . 17419 + (. 17419 – . 1) ? (317,045. 5/739,772. 7) ? .6 = . 193 Method 2: Interest on total debt, I = . 1 ? 317,045. 5 = 31,704. 5 rE,L = (EBIT – I) ? (1 – TC) = (270,000 – 31,704. 5) ? 1 – . 4) = . 193 EL 739,772. 7 New WACC = . 3 ? .1 ?. 6 + . 7?. 193 = . 1531 e) (i) Because the model assumes bankruptcy costs are zero, it does not consider the potential downside of increasing leverage. With bankruptcy costs, the expected costs of bankruptcy increase with leverage, offs etting the benefit of reduced taxes. (ii) Given D* = 317,045. 5 and Interest = 31,704. 5 EL = (EBIT – I) ? (1 – TC) = (270,000 – 31,704. 5) ? (1 – . 4) = 571,909. 1 EL . 25 Total firm value: V = D* + EL = 317,045. + 571,909. 1 = 888,955 Now, taking into account the impact of the bankruptcy costs, on the announcement of the increased leverage, the firm value FALLS: Change in firm value = 950,000 – 888,955 = -61,045 New equity value on the announcement = 900,000 – 61,045 = 838,955 New share price on the announcement = 838,955/300,000 = $2. 80 Share price falls from $3 to $2. 80!!! Therefore, the restructuring is a bad idea if the new required rate of return to equity rises to 25%. Question 3 Mighty Machinery Initial situation: market value of debt = . 08? 50m/. 08 = 50 m market value of equity = 8 m ? 20/sh = 160 m market value of firm = 210 After Restructuring: Assume that all change in value is borne by the shareholders. So the loss of the tax shield will impact shareholders only. Value of lost tax shield = Tax rate ? change in debt = . 35 (-10m) = – 3. 5m New firm value = old value + value of tax shield = 210 – 3. 5 = 206. 5 m New debt value = old debt + change in debt = 50m – 10 m = 40m New equity value (at the actual restructuring date) = new firm value – new debt value = 206. 5 – 40 = 166. 5 m New share price: Given that shareholders bear all of the impact of the reduced tax shield, given efficient financial markets, the value of the equity will fall by 3. m ON THE ANNOUNCEMENT of the plan. Thus, at the announcement, total equity is worth 160 – 3. 5 = 156. 5m or $19. 5625 per share ($156. 5m/8m = 19. 5625). Another way: the NPV of the restructuring is -3. 5m, which is all borne by shareholders. The change in share price will be -3. 5m/8m = -$0. 4375, giving a new share pric e of $20 – . 4375 or $19. 5625. ii) Shares issued = $10m/$19. 5625 or 511,182 Check: final share value/new number of shares = 166. 5/8. 511182 = $19. 5625. (iii) Use the formula: rE = r0 + (r0 – rD) D/E (1 – Tc) Rearrange the formula for r0: r0 = [rE + rD D/E (1 – Tc) ]/ [1 + D/E (1 – Tc)] = [. 5 + . 08 ? 50/160 ? (1-. 35)]/[1+50/160 ? (1-. 35)] = . 138181818†¦. Then New rE = r0 + (r0 – rD) (new D/new E) (1 – Tc) = . 138 + (. 138-. 08) (40/166. 5) (1-. 35) = . 1429 The restructuring causes rE to fall, as expected. The leverage is lower, the risk of equity is lower, shareholders’ required rate of return falls. b) You answer this question! Question 4 NOTE: This was a particularly tricky question. Part marks were given for wrong answers. Assume that it is valid to use the CAPM†¦this is ok, given the perfect financial markets assumption. Need to get all of the components of WACC: rD = current yield-to-maturity, 9% Market value of D = (. 08 ? 2. 5m )/. 09 = 2. 22222m TC = 35% What about value of equity and cost of equity Use a competitor to figure out†¦the closest company to GLC is All Lawn Chemicals. The most complete way to go is to figure out the unlevered cost of equity of All Lawn (reflecting the business risk), and value GLC at this rate. This will give us the unlevered value of GLC. Next, use GLC’s current capital structure to get GLC’s levered value of the firm and its equity. Next calculate the cost of equity, given GLC’s current capital structure†¦. 1. Find unlevered cost of capital for All Lawn Use the same rearrangement of the cost of equity formula in question 6: rE = r0 + (r0 – rD) D/E (1 – Tc) Rearrange the formula for r0: r0 = [rE + rD D/E (1 – Tc) ]/ [1 + D/E (1 – Tc)] Use CAPM to find current rE of All Lawn: rE = rf + ? ? MRP = . 075 + 1. 2 ? .07 = . 159 r0 = [. 159 + . 09 ?. 3? (1-. 35)] / [1+. 3? (1-. 35)] = . 14774 Value of firm for GLC  : V L = OCF ? (1 – tc) + tcD RU V = 1. 5M * (0. 65) + 2. 222M*(0. 35) .1477 VL = 7. 37892M Value of Equity for GLC: VL = Ve + VD = 7. 37892M = 2. 222M + Ve Ve = 7. 37892 – 2. 222 = 5. 1569M Ve = 5. 1569M = y R equity = (OCF – Interest expense)(1 – tax rate)/ Value of equity = { ($1. million – . 08x$2. 5 million) . 65}/5. 1569= . 163858 =16. 39%. OR 1. Find unlevered cost of capital for All Lawn Use the same rearrangement of the cost of equity formula in question 6: rE = r0 + (r0 – rD) D/E (1 – Tc) Rearrange the formula for r0: r0 = [rE + rD D/E (1 †“ Tc) ]/ [1 + D/E (1 – Tc)] Use CAPM to find current rE of All Lawn: rE = rf + ? ? MRP = . 075 + 1. 2 ? .07 = . 159 r0 = [. 159 + . 09 ?. 3? (1-. 35)] / [1+. 3? (1-. 35)] = . 14774 2. Value of Unlevered GLC Vu = [OCF – Taxes] / r0 = [1. 5 ? (1-. 35)] /. 14774 =6. 59943 3. Value GLC with its current capital structure VL = Vu + Tc D = 6. 59943 + . 35 ? . 22222 = 7. 37721 4. Value GLC’s equity and its required rate of return Thus: EL = VL – D = 7. 37721 – 2. 22222 = 5. 15499 and rE = r0 + (r0 – rD) D/E (1 – Tc) = . 14774 + (. 14774 – . 09)? (2. 22222/5. 15499)?. 65 = . 1639 5. Calculate GLC’s WACC Wacc = (2. 22222/7. 37721)?. 09?. 65 + (5. 15499/7. 37721)?. 1639 = . 1322 Question 5 a) False. Although often increases in firm value increase equity value, it is not always the case. When debt is risky (that is, there is a chance that the debt will not be paid the full promised interest and principal), improvements in firm val ue may go partly or totally to debt holders. This means that the debt has become less risky: there is less chance that the bondholders won’t get the promised interest and principal repayments. An example: when a firm is in financial distress, a value-increasing investment may only increase the value of the debt – and none of the value goes to shareholders. See kit and also the Barclay, Smith, Watts article. b) False. All that is necessary for the risk of equity to increase is that the firm’s operating cash flow be variable. Whenever you add the fixed interest payments, the result is to intensify the variability of the cash flows to shareholders (they get paid only after the fixed payments have been made to the debtholders). Look at the kit, – risk of equity increased with the addition of debt – and there is no chance of bankruptcy in this example (debt is riskless – no matter what state of the world occurs, the debtholders get their promised payments). c) False. For this answer, assume perfect financial markets and keep the firm’s investment and borrowing constant. If you don’t make these assumptions, then we have to make other assumptions about the state of the financial markets. These ones make our story easy). It is true that a shareholder may have to sell shares at the bottom of the market to create homemade dividends. But if the firm increases its dividend, they too will have to sell shares at the bottom of the market!! If we assume that the firm is currently payi ng out the money they have, the rest is tied up in investment plans and no new borrowing is made, if the dividend is increased, THE FIRM WILL HAVE TO GO TO THE MARKET AND SELL SHARES to pay for the higher dividend. The risk of selling shares at the bottom of the market has not gone away and shareholders still get stuck with it – either they pay for it directly when they sell their shares or indirectly when the firm brings in new shareholders who pay less for their shares than if it had been the top of the market. So this is not a valid reason why the firm paying a dividend will increase firm value. d) Uncertain. What the answer depends on is whether the bond holders anticipated correctly the chances and costs of distress/bankruptcy. If bondholders correctly anticipate distress and the costs associated with it, they will pay less for the bonds than if the costly distress did not occur. Shareholders end up paying the costs – because the company gets less for the bonds sold – raising the cost of debt financing. Of course, if bondholders do not correctly anticipate the distress, then they share in the costs. e) THIS IS A POST MIDTERM QUESTION True. Cost savings are much more likely to be achievable than revenue increases – firms have control over their production process but not over their customers. f) False. This question is very much related to a). Shareholders will not be willing to contribute more money to positive NPV projects when the bulk of the benefit goes to bondholders. See the references in a). g) True. The messy formula for the impact on firm value of adding debt when both personal and corporate taxes are considered is outlined in the kit. This happens when (1-TB) < (1-Tc)(1-TS)†¦.. Translating: 1-TB is the after-all-taxes cash flow of a $1 of bond income, (1-Tc)(1-TS) is the after-all-taxes cash flow of $1 of equity income (because first corporate taxes are paid and then personal taxes on equity income are paid). If investors get less in their pocket, after all taxes, when $1 of bond income is paid then after a $1 of equity income, they won’t want the firm to borrow – pay only dividend income and less total taxes (corporate plus personal) are paid. Firm value will be lower if the company borrows!!! h) True. This follows from the â€Å"free cash flow problem† discussed in Barclay, Smith and Watts. A company with lots of cash but few investment opportunities (low growth) puts management into temptation: spend the money on projects they like but aren’t necessarily positive NPV. For such a firm, a high dividend payout (high dividends/net income) and high interest and principal obligations keeps the cash out of the hands of manager and gives them fewer opportunities to make negative NPV investments, increasing the value of the firm. i) True. Given these assumptions, adding debt creates a new asset: a tax shield. The tax shield is a â€Å"gift† from the government, increasing the firm’s after-tax cash flows. This tax shield is lower risk than the assets of the business – it depends on the riskiness of the firm’s debt (and we assume that the tax rate doesn’t change). Thus total risk of the levered firm is lower than if it is unlevered (the levered firm has the same business risk plus the lower risk tax shield – the overall risk is lower). j) THIS IS A POST MIDTERM QUESTIONS False. All valuation methods requiring assumptions to be made. Earnings capitalization is a simpler valuation method than discounted cash flow– but it is loaded with strong assumptions about the future cash flows/earnings such as constant growth, constant dividend payout and unchanging capital structure. ) True the firm will have received the cash without having to issue new shares, however, the firm will also have missed out on raising equity when these warrants are not exercised and the warrant holders (and other potential investors) are disappointed and may not invest in this firm in subsequent rounds of equity financing if they were not able to benefit from their warrant purchase. Warrants are not like call options. With call options the firm in not involved in the transaction. With warrants the firm’s reputation and ability to raise financing is affected.