Thursday, August 27, 2020

Bigfoot Essay Research Paper Bigfoot free essay sample

Bigfoot Essay, Research Paper Yeti Can you think about yourself strolling through the woodlands and encountering a seven or even an eleven-foot quicken being? All things considered, this happens to numerous individuals in Canada and the United States. This creature is known as Bigfoot in the United States and in Canada, Sasquatch. Yeti is a local word, which implies haired grown-up male. ( Cryptic Creatures 99-126 ) Scientists think Bigfoot is early grown-up male, that endure while the others developed, or it might be another types of it s ain. Researchers would t be able to state which until they have troublesome stone grounds. Bigfoot is accounted for as being seven to eleven pess in height. The mean locating height is 6 pess. Bigfoot is assessed to be more than five 100 lbs. Its footmark is seen as in any event 17 inches. We know this from dramatis personaes of engravings in the land. From mensurating the profundity, they came about the evaluation of his weight. We will compose a custom paper test on Bigfoot Essay Research Paper Bigfoot or on the other hand any comparable point explicitly for you Don't WasteYour Time Recruit WRITER Just 13.90/page Bigfoot has long weaponries, a chimp like face with a level olfactory organ and thick shaggy pelt. His hide scopes in shading from the most boundless dim ruddy earthy colored to brown, dark, reddish, dim and even white. Bigfoot is a nighttime quicken being, which implies, it comes out at dim. ( Bigfoot ) Bigfoot was first observed ( by white work powers ) in 1811 and since so there has been 100s of studies on sightings and brushs from everywhere throughout the United States and Canada. There are numerous photos and pictures of Bigfoot, a significant number of which have ended up being fakes. Bigfoot lives in caverns and hid vales of Canada and North America. ( The Bigfoot Page ) Many individuals from everywhere throughout the United States have announced seeing Bigfoot. Here are three examinations on the sightings from, Florida, Pennsylvania, and California: In cardinal Florida in the late spring of 1983, at 2am, a kid and his male parent where out reflecting cervid when they hit a s upport of eyes that were seven to eight pess high and one pes separated. They jumped in there truck and began drawing off tungsten hen the energize being shouted. It was such an uproarious cry, that the male parent got so terrified and slowed down the truck looking to secure out of at that place. In Pennsylvania, July 4, 1980 these three childs around nine to eleven mature ages old were at a fourth of July party at a near s house somewhere down in the wood. They went down to a stream, simply before dim, where they went out to each twelvemonth to play. When at that minute, they all looked over the creek and saw a huge furry vitalize being standing taller than the pine tree that stood following to it. Them three were so frightened, they ran back to the relative s house yelling their caputs off. They told their folks and different adults, yet no 1 trusted them. In Hoopa, Indiana, guardians wouldn t permit their childs outside specific times in light of the fact that the enormous individuals were out. The childs and guardians talked roughly them as a society or gathering that were mainly nighttime. A few grounds we have about Bigfoot is that individuals have discovered energize creatures swinging from topographic focuses farther up than any mountain ruler of beastss or bears can make. People groups have other than four-foot trees that have been snapped into equal parts like toothpicks what's more huge up solidified trees. Campaigns that have embarked to look for Bigfoot have neer discovered it, nor is there logical reason for its being. ( The Bigfoot Page ) I took in a cluster while making this examination. I discovered that Bigfoot has been around a truly long clasp. I discovered that it is wherever from seven to eleven pess tall and is an extremely solid invigorate being. I other than discovered that Bigfoot is a nighttime energize being, which implies he comes out only at dull, except if upset by universes. The most astounding thing that I discovered that surprised me the most is that Bigfoot is the North American rendition of the Abominable Snowman. I think I took in a clump about Bigfoot in this examination. In my estimation from making this investigation, I believe that Bigfoot is the neatest and most engrossing quicken being that ever existed

Saturday, August 22, 2020

Customer Service Training Assignment Example | Topics and Well Written Essays - 1750 words

Client support Training - Assignment Example he paper will recognize courses through which inadequacies would be disposed of by supporting the utilization of necessities appraisal of the company’s given worker preparing program. Without a doubt, preparing can assume an essential job for the achievement of an association. Associations (related with client assistance explicitly) hold different instructional meetings as it is one of the suitable strategies to meet the objectives and destinations and to achieve proficient creation. Instructional course for new representatives encourages them to settle in the new condition and become accustomed to with the company’s arrangements. Moreover, these instructional meetings additionally helps the new representatives with respect to the better utilization of innovation and IT (Handy, 2008). Since client care is an exceptionally fragile and significant perspective for any business, along these lines, it ought to be noticed that the new representatives must learn courses through which they can perform better. Additionally, it can make their very own unflinching group that tends to beat issues and satisfy the client necessities under each condition (Marquardt, 2000). The most ideal approach to hold an instructional course for the new representatives is through necessities appraisal method. There is an eager need to recognize the provisos or the real preparing needs that are required by the organization, and ought to be organized. For instance in the current instance of preparing new workers, there is a conspicuous need to address them the fundamental principles and arrangements of the organization with respect to client administrations and how it hangs out in the market. Besides, there are various undertakings and capacities that is impossible without appropriate preparing or direction, for instance, the utilization of innovation/IT in the organization, and so on. This methodology would bring about fundamental returns by contributing time and preparing on the representatives by accurately distinguishing the essential needs, issues in client assistance, and other business related inquiries, while it additionally helps improperly selecting the corr ect worker at the ideal spot (Evenson,

Friday, August 21, 2020

Buy a Thesis

Buy a ThesisBefore you decide to buy a thesis, you will want to have all of the information needed to make the best decision possible. For example, will you be buying the thesis through an educational institution or are you going to purchase it directly from the author.You will also want to take a look at what is included in the package that you want to purchase. Are you going to be getting help with the conclusion? If so, will you need to make additional copies for yourself?The last thing that you will want to consider is how much your purchase will cost. By paying more, you will be able to get a better product. However, if you decide to purchase the product through the educational institution that you plan on purchasing it from, you may not have to worry about this factor. Theses are very expensive and they will definitely cost you more than you would have to pay if you purchased it directly from the author.However, you should know that there are other factors that can affect the p rices of such high prices. For example, if the book is a hardcover book, you will likely pay more because it costs more to create the cover. However, if the price is very close, you may want to give it a try because you could find that you get a better deal if you are willing to pay a little more.Once you have determined the price that you are willing to pay, it is time to start looking at the books that you want to buy. You may want to use the internet to help you make your search. It will allow you to quickly see the books that are available and that you want to consider buying.You will be able to compare the different companies and see if they offer different books at different prices. You may find that the bookstore offers the same book, but that the company you are buying it from offers a better price. This is one of the reasons why you should always make sure that you shop around for the best price possible.Who else is going to be reading the thesis? This is a big factor when making your decision. You will want to make sure that you are reading the thesis by someone who has not been accused of plagiarism. Having someone who is known for their research can help protect you from lawsuits that might occur.As you can see, the process of buying a thesis can be very easy. It takes the same amount of time that it would take to write the thesis on your own. Therefore, if you decide to write the thesis, you may want to first purchase a thesis.

Monday, May 25, 2020

Community Service Belongs In College - Free Essay Example

Sample details Pages: 3 Words: 1042 Downloads: 7 Date added: 2019/05/28 Category Society Essay Level High school Tags: Community Service Essay Did you like this example? As we all grow older itrs easy to become self-absorbed in our own needs and desires. Managing the stress of college, finding the proper career path for your future, all while still leaving time for your friends and social events can prove to be extremely challenging. What if on top of that you were required to volunteer in your community? Sounds like one more thing to add to the long list of things you need to do, but in reality, it could actually be just what the doctor ordered. Don’t waste time! Our writers will create an original "Community Service Belongs In College" essay for you Create order Community service, also known as volunteer work, is an unpaid act of service for a group or organization that benefits people, animals, or even an entire community in need. Research has shown that volunteers reap benefits such as mental and social health along with developing career readiness. I believe every college student should be required to complete community service throughout their college career. Mental health awareness has become an increasingly popular topic of concern during the last few years. Anxiety and depression can easily stem from high amounts of stress or the heavy workload that is so common with earning a college degree. A study by experts at United Health Group have found that 78 percent report that volunteering lowers their levels of stress, leading to feeling better than adults who do not volunteer. The reason behind this being that putting your attention into another personrs wellbeing disrupts the stress building pathways in the brain. In fact, many volunteers report a major rush of endorphins that plateaus into a sense of peace and overall satisfaction after doing a selfless act for another person or group. Now, an altruistic act that you decided to do for another person has also carried over into your overall happiness and wellbeing. Itrs a common complaint from students that after beginning college they begin to feel like one of many instead of an important individual. To understand that you, one person, have the power to change someone or even a group of peoplers day instills an undeniable sense of purpose. Feeling this level of importance along with the appreciation from those who youve helped establishes a positive mental image of your life as a whole during the difficult college years. Most college campuses are substantial in size and have an enormous number of students, it could even be one of the most diverse environments you will be introduced to during your lifetime. These social settings can be extremely overwhelming for a lot of students to adjust to initially and even over the long term. The American College Health Association reports that a 2017 survey of nearly 48,000 college students, 64% said they had felt very lonely in the previous twelve months. Among those only a shocking 14% said there was a very good chance they would seek counseling in college. Through required volunteering students get a push to get out of their typical social routine but are still allowed the freedom to choose something enjoyable or of interest to them. When a group of like-minded people are brought together strong support systems can be built that lead to positive future connections and comradery. The Institute for Volunteer Research, or IVR, found that 74% of students experienced a wider range of friendships through volunteering. Developing these relationships is crucial to self -esteem levels and feelings of inclusion. Once students feel that their peers are relatable they are far more likely to be comfortable, confident, and excel in their classes as a positive side effect. The entire college experience is centered around one mutual goal, to develop your knowledge and skills to begin the career of your choice. Although classes are essential to achieving this goal, it can be argued that not all skills can be obtained in the classroom. The Corporation for National and Community Service found that volunteering is associated with an increased likelihood of finding employment for all volunteers regardless of a personrs gender, age, ethnicity, geographical area, or the job market conditions. When the time comes for students to choose a volunteer organization they can go one of two ways. The first option being something they are familiar with. Familiarity is a comfort zone for many students but may lead to developing advanced skills and thriving in that specific area of interest. On the other hand, a commitment towards an unknown area of volunteering could yield a new interest or even a skill set that has been untapped for many years. When volunteering for an organization, students receive the opportunity to work on some highly coveted qualities in the work force. Businesses searching for potential job candidates want leaders, team players, and someone who can demonstrate professionalism in tough situations. Itrs key that young adults be able to show future employers that they have these skills and have had the experience properly utilizing them. Time Bank, a volunteer organization, ran a study on the correlation between community service and employer/employee relations. 80% of the employers highly valued seeing volunteer work on an applicantrs resume. Additionally, 50% of hired employees felt that volunteering was a primary reason they were hired into their job or field of work. Itrs clear that if students donate their time to any non-profit, charity, or volunteer group it would greatly increase their chances at entering their desired field of work already a step ahead of those without this experience. The facts undeniably show that while benefiting your community and those in need, volunteer work also contributes a plethora of advantages to students that would otherwise not be obtained. Mental and social health are crucial to students excelling in their line of study and developing the desire to continue on to achieve higher degrees. Along with this academic success comes occupational advantages. These could be as slight as getting bumped to the top of the candidates list or simply landing a job because of your impressive amount of experience. While yes, these could hypothetically happen without your volunteer background, why would you leave your future up to chance? In this day and age, we need to develop all aspects of the qualities that will set us apart from our peers. Im certain that the requirement of community service for college students would be wildly beneficial to all of those involved.

Thursday, May 14, 2020

Analysis Of The Film Lifeless Planet And Video Game...

Analysis on the Significance of Gender in the Development of Fear in Lifeless Planet The use of fear in entertainment literature, movies, and video games reflects some of the beliefs of society at the time. Lifeless Planet, an action and adventure platformer video game developed by Stage 2 Studios, tells the story of an astronaut whose mission to explore another planet teeming with life goes dreadfully wrong, stranding him and separated from his crew members on the planet. To his surprise, as he searches for his crew members, the planet appears to be a wasteland, barren and without any sign of life until he discovers an old and ruined Soviet Russian town. As he continues exploring, he picks up fragments of journal logs that allow him to piece together the story of what and how the planet came to be. Along the way, he experiences dangerous threats from unknown tree-like lifeforms, discovers the corpses of his crew members in various modes of death, and follows the trail of a woman nam ed Aelita who seems to be able to withstand the harsh conditions of the planet. The longer he continues exploring, the stranger the landscape becomes and the more danger he faces, leading him to question whether the woman is friend or foe and human or inhuman (Lifeless Planet). In the video game, Lifeless Planet, the stereotypical roles of the male hero and female damsel in distress and their reversal is used in generating fear which reflects how society’s views on the status of women are not

Wednesday, May 6, 2020

Essay on The Arguments of the Gettysburg Address - 851 Words

The Gettysburg Address is one of the most famous speeches in American history. The History Place indicates that on November 19, 1863 President Abraham Lincoln went to a battle field positioned in Gettysburg, Pennsylvania where three dreadful days of battle occurred called the Battle of Gettysburg. While he was attending the battle field to dedicate it as a national cemetery, he read his speech to the public. After the main orator, Edward Everett of Massachusetts, delivered his speech that lasted about two hours, it was Lincoln’s turn. Everyone was shocked that it only lasted a little over two minutes. The speech talked about the men who fought in the Civil War to help create the nation people have today: that it is only fair to honor them†¦show more content†¦This could be trigger someone’s emotions because one person might feel one way, but the other choice might be chosen. Many people choose a side of the speech, but others will stay neutral and agree with parts of both arguments. Should people let the past be the past and not do anything else to remember how our nation became one? Or should people still celebrate the lives of the soldiers who fought in the Civil War? Some say people need to leave the land and history as it is. This means not doing anything to make people think about it. Although, people will always remember what happened at Gettysburg. In the speech it states: But, in a larger sense, we can not dedicate -- we can not consecrate -- we can not hallow -- this ground. The brave men, living and dead, who struggled here, have consecrated it, far above our poor power to add or detract. The world will little note, nor long remember what we say here, but it can never forget what they did here. Some people agree that the Gettysburg Cemetery should stay the same as it was left after the soldiers were laid to rest. They think that nothing more should be done to remake the history that was created. This relates to the ethical appeal. It states that we should leave the land alone, but still honor the men who fought. The speech talks about the men being brave and courageous and people need to remember them for it. They need to be honored.Show MoreRelatedGettysburg Address Versus Declaration of Independence Essay1472 Words   |  6 PagesLincoln’s Address Versus Jefferson’s Declaration Two of the most important, and, perhaps the two most important documents in American history are the Declaration of Independence and the Gettysburg Address. The Declaration of Independence, the document of secession written by Thomas Jefferson in 1776, called for the complete independence of the states from the British Empire. The Gettysburg Address was a document on the theory of union that stressed the need for one united country and expressedRead MoreEssay about The Gettysburg Address and American Revival1729 Words   |  7 PagesThe Gettysburg Address is without a doubt one of the most famous speeches in American history. However, at the time, it was simply an uplifting, motivational speech by the sitting president as part of a ceremony dedicating the Gettysburg Battlefield as a National Cemetery. Now, it is viewed as an historic address delivered by one of the greatest presidents and orators to ever live, Abraham Lincoln. It has also become the benchmark for speeches today and is the subject of many articles, talks,Read MoreContribution of Different Groups to the Civil War and an Analysis of the Gettysburg Address731 Words   |  3 Pagesthe arguments against blacks in the military was that they would be unable to follow complex orders; black soldiers proved the doubters were wrong. Their cause was moral and it was personal. They both influenced the Civil War and were influenced by it. Word count: 293 Question 2: The Gettysburg Address has been such an enduring text that memorizing it used to be a common exercise for elementary school students. Do you think it warrants the attention? Why or why not?   The Gettysburg Address isRead MoreThe Gettysburg Address By Johnathon Hennessey936 Words   |  4 Pagesâ€Å"Four Score and Seven Years Ago† is one of the most famously well-known statements in American History. This was the opening line to The Gettysburg Address given by Abraham Lincoln on November 9th in 1863. This speech was given during the Civil War, with the Unionists on one side and the Secessionists on the other. America was one of the very few countries in which slavery was still legal. The Unionists (northern states), were supporters of the United States federal government and wanted to abolishRead MoreAnalysis of The Gettysburg Address Essay1435 Words   |  6 PagesAnalysis of The Gettysburg Address In the early days of the United States, loyalty to one’s state often took precedence over loyalty to one’s country. The Union was considered a â€Å"voluntary compact entered into by independent, sovereign states† for as long as it served their purpose to be so joined (Encarta). Neither the North nor South had any strong sense permanence of the Union. As patterns of living diverged between North and South, their political ideas also developed marked differencesRead MoreAbraham Lincoln’s Gettysburg Address1528 Words   |  6 Pagesdiscussion of the text. The students grossly mischaracterized Abraham Lincoln’s â€Å"Gettysburg Address â€Å"as a pro-abolitionist tract; they also seemed to think that President Lincoln was some divine martyr for anti-slavery sentiment, and that he was an exemplary person with regards to American identity. They could not be further from the truth. Historical context is paramount to understanding Lincoln’s â€Å"Gettysburg Address†. The text starts off with an appeal to authority with a reference to the ConstitutionRead MoreCivil War : The United States Of The Western Hemisphere898 Words   |  4 Pagesimportant in begging the process that led to ending of slavery in the United States; emancipation proclamation. Although he received resentment and threats along his political careers, Lincoln preserved his view and goals. Many of the opposition and arguments often came from his own cabinet members. Lincoln issued the Emancipation on the first of January in the year of 1863. This was during the third year of the civil war. The proclamation declared that in the rebellious states all slaves would be consideredRead MoreAbraham Lincoln And The Abolition Of Slavery879 Words   |  4 Pagesadministration, it was not the only defining factor of Abraham Lincoln when he was president. Lincoln saw past the inequality of black and white and regarded equality and freedom above all as a basis for a united nation because he wrote the Gettysburg Address at a crucial time during the civil war to earn favor among freed slaves and to those opposed to slavery in the North and he decreed the Emancipation Proclamation as a stepping stone to achieve his ultimate goal. Lincoln had deep feelings onRead MoreA Father of the Nation: The sacrifice Abraham Lincoln Essay1114 Words   |  5 Pagesviewpoints had to grow and progress just as Lincoln had to up until his death. Lincoln’s call for a strong Union was seen when looking through his works well before the Cooper Union Address which launched him to presidency, and particularly in his â€Å"House Divided† speech (Witt). Within this speech it was also found that the argument that Lincoln was an atheist could be quickly dismissed. In his speech, Lincoln used popular Bible quotes and was known to call to his fellow countrymen to keep the nation asRead MoreAnalysis Of Allen Guelzo And Vincent Harding1102 Words   |  5 Pagesthe abolition of slavery alongside the 13th Amendment of the Constitution. Guelzo uses comparisons between the Proclamation and some of Lincolns more successful words, such as the Gettysburg Address. Right away, he states, â€Å"†¦its apparent failure to rise to the level of eloquence Lincoln achieved in the Gettysburg Address or the Second Inaugural† (352). Guelzo believed that the Proclamation was not as glamorous or quotable as other addresses were. He recognizes The Proclamation as not being profound

Tuesday, May 5, 2020

Commercial Law Against Aldi Supermarket

Question: Discuss about the Commercial Law Against Aldi Supermarket. Answer: Issue Tamara was running towards her favorite chocolate but unfortunately she slipped on melted ice cream and she broke her neck. The issue in this case is whether she may successfully bring a claim of negligence against Aldi supermarket. Rule Negligence is the failure to do something that one is ordinary circumstances expected to reasonably do or it can also be an act that a reasonable person guided by normal considerations would not do (Blyth v Birmingham Waterworks Co, 1856). Lord Artkin remarked that one should make sure that his acts or omissions must not cause harm to the neighbor who is any person who is likely to be affected by the repercussions of ones acts or omissions (Donoghue v. Stevenson, 1932). In a claim of negligence there must be an existing duty of care owed to the claimant, the duty must be breached and because of the breach the claimant was injured (Grant v Australian Knitting Mills, 1936). To establish a duty of care the court must apply a three- stage test that was originally founded in Caparo Industries v Dickman (1990). The first test is whether the repercussions of the defendants acts or omissions were reasonably foreseeable in those circumstances. Second, the courts will seek to know whether a relationship of proximity existed (Home Office v Dorset Yacht Club, 1970). The court in Caparo Industries v Dickman (1990) held that a relationship of proximity did not exist. Lastly the court will seek to know whether a decision to impose a duty will be just, and fair. If the court finds that a duty care existed the next task is for the plaintiff to prove that the duty was infact breached. The court here will examine the standard expected and the general position is that that the standard should be that of an ordinary skilled man (Bolam v Friern Hospital Management Committee, 1957). To successfully show that the defendant breached the duty the court will investigate the degree of risk that was involved. The court will also seek to know whether the risk was known to the defendant (Haley v London Electricity Board, 1964). It has been held in Paris v Stepney Borough Council (1951) that the court must find that the harm of injury suffered is a serious one. In proving the breach of duty the court will also seek to know whether any reasonable precautions had been taken to prevent the harm. To prove negligence the defendant must have failed to take any precautions (Latimer v AEC Ltd, 1952).It must be evidenced in court that the damage was caused by the de fendant breaching the duty of care. The claimant must apply the but for test to show that the injury could not have occurred but for the defendants breach of duty (Barnett v Chelsea Kensington Hospital, 1968). When the claimant has proven the elements of negligence the defendant has the option of applying the following defenses; Contributory negligence The defense of contributory negligence is to the effect that the defendant can assert that the claimant did not pay heed to his safety and therefore he was harmed. In Froom v Butcher (1976) the defendants application of Contributory negligence as a defense succeeded and the court noted that plaintiff was also negligent because of an omission to tie a safety belt. Volentis non fit injuria The defendant may use this defense to claim that the claimant volunteered to be harmed. This is usually a very weak defense for the defendant. If a plaintiff successfully shows that the defendant was negligent the claimant will be entitled to the following remedies; Special Damages This kind or remedy is awarded for pure economic loss. The claimant will be entitled this remedy if he incurred medical bills and/or suffered a loss of income. General Damages This remedy is awarded to the claimant for non-economic losses such as pain, suffering and emotional distress. Application According to the neighbor principle enunciated by lord denning the customers who visit Aldi Supermarket are neighbors and within the meaning of Lord Artkins definition of a neighbor. It follows that Aldi Supermarket must put them in contemplation to and prevent any harm occurring to them since they are likely to be affected by the consequences of their acts or omissions. Aldi Supermarket has a duty of ace because the injury that Tamara has suffered was foreseeable. It is foreseeable that a customer will easily slip on melted ice cream if not wiped. Because Tamara was a customer to the supermarket it can be concluded that there was sufficient proximity in the relationship between Aldi supermarket which is the potential defendant and Tamara who is the potential claimant. There was a glaring risk that Tamara would slip on the melted ice cream and this risk was known to the management of the supermarket. Relying on the foregoing assertion it can be said that Aldi Supermarket was in breach of the duty of care. However, while proving damage Aldi Supermarket can argue that the frequently clean the melted ice cream after every forty minutes and thus they had taken reasonable precautions before the Tamara slip. This claim is unlikely to succeed because a rebutting argument can be that they ought to check it the spills more frequently than after mere forty minutes. Tamaras argument as the claimant may be that the skill exercised fell below that of an ordinary skilled person. Conversely, Aldi Supermarket may claim that the Tamarss injury would not have occurred even with the melted ice screams on the floor because she was running. Tamara was running on a slippery floor that she could easily slip if wet and the argument for Aldi Supermarket may be that she was reckless in taking care of her safety and hence claiming that she was contributory negligent. It is important to note that this defense has a higher chance of succeeding than the defense of Volentis non fit injuria. However, if Tamara successfully proves that Aldi Supermarket was negligent she will be entitled to special damages as a result of the medical expenses she may incur in treating her broken back. General damages will be awarded to her is she has suffered any shock, emotional distress and pain. Conclusion Considering the fact provided and the applicable law in the tort of negligence it is the conclusion that Aldi Supermarket has satisfied all the legal requirements for a successful claim against them. Tamara is, however, advised that the defense of contributory negligence is applied by Aldi Supermarket is likely to be successfully. References Barnett v Chelsea Kensington Hospital (1968)3 All ER 1068 Blyth v Birmingham Waterworks Company (1856) 11 Ex Ch 781 Bolam v Friern Hospital Management Committee (1957) 1 WLR 582 Caparo Industries v Dickman (1990) 2 AC 605 Donoghue v. Stevenson (1932) UKHL 100 Froom v Butcher [1976] QB 286 Grant v Australian Knitting Mills (1936) A.C. 562 Haley v London Electricity Board (1964) 3 WLR 479 Home Office v Dorset Yacht Club (1970) AC 1004 Latimer v AEC Ltd (1952) 2 All ER 449 Paris v Stepney Borough Council (1951) 1 All ER 42

Tuesday, April 7, 2020

India on the Move Essay Example

India on the Move Essay Why did India experience relatively slow economic growth from independence until 1991? India became an independent country in 1947 and from that moment until the first years of the 1990’s, the government adopted the Import Substitution Industrialization model (ISI) in order to protect the economy against foreign competition. The model was based on regulations in the private and public sector, trade and foreign direct investment that made the economy very closed compared to other economies in the world. The system was not sustainable in the long term because it encouraged inefficiency in the industry performance. For instance, the average GNP per capita at that period of time was as low as $2301. Moreover, India’s growth performance plan has been written in a five year scope in which the actual growth from the periods of 1956-1961, 1961-1966, and 1969-1974 did not surpass the target (see Exhibit 1). The â€Å"Hindu rate of growth† around 3. 5% prevailed in the period of 1950-1980 and then with oriented market reforms the growth rate change to approximately 6-8%2. Why did Rao adopt the post crisis, â€Å"Washington Consensus† strategy? How is it working? The Prime Minister Narasimha Rao, elected in 1991, had to ask for urgent help to the International Monetary Fund (IMF) as a result of a balance of payment crisis due to high interest rates, inflation driven by the fall of its principal trading partner: the Soviet Union. The IMF authorized the loan under the condition of adopting ten prescribed reforms. These policies were focused to stimulate growth and reach a stable macroeconomic environment; but most important, to minimize the role of the government in economic decisions. We will write a custom essay sample on India on the Move specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on India on the Move specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on India on the Move specifically for you FOR ONLY $16.38 $13.9/page Hire Writer One of the most important results from these market reforms was the reduction of India’s fiscal deficit from 9. 4% of GDP in 1990-19913 to 6. 5% of GDP in 1998 (Vietor and Thomson, 2008). On the other hand, the average inflation rate dropped from 7. 5% in the 1980’s, to 6. 3% in the 1990s, and from 4. 7% in the period of 1996-1997 to 2002-20034. Foreign Direct Investment is another main variable in the process of adjustment that shows positive highlights, since the opening of capital inflows in 1991, the investment rose from $74 millions to $5,626 millions in 2002, a 75% increase (Vietor and Thomson, 2008). Nevertheless, there are still challenges that must be overcome beyond macroeconomic indicators, for example a reduction of bureaucracy, lower entry barriers, good leadership to eradicate corruption, investment in infrastructure, and most important, the investment on the people through health programs and education especially in the highest illiterate states. How big a deal are Hindu-Muslim frictions? Demographic fragmentation? Deficits The Hindu-Muslim conflict is affecting in many ways to India. First, the friction promotes a bad climate of business to foreign investors. For instance, Thomas Friedman in his book â€Å"The World is Flat† describes how a state of emergency in 2002 worried American companies due to rumors of a nuclear exchange attack against Pakistan. The book also quote N. Krishnakumar, President of MindTree a leading Indian knowledge firm who stated: â€Å"What we explained to our government, through the Confederation of Indian Industry, is that providing a stable, predictable operating environment is now the key to India’s development†. Secondly, the conflict affects the country through a high fiscal deficit. Only in 2002, the military spending rose around 10% of the government expenditures (Vietor and Thomson, 2008). The mayor concern is that inefficient expenditure raises the budget and makes the economy more vulnerable. Lastly, the trade off between allocating money to the military defense is affecting the people urgent needs in social issues. In fact, In 2002 India ranked # 124 in the Human Development Indicator (Vietor and Thompson, 2008). That is the reason why health, education, and literacy have to be priorities to the government in order to maintain a sustainable growth. Is India an attractive site for foreign direct investment? India is an emerging country which is getting worldwide attention for its quickly growing economy. It has been growing in an average of 6%-8% in the last years. Many large companies are taking advantage of the skilled labor force at low cost, the vast number of people who speak English as a heritage from the British colony, as well as the cheaper costs in telecommunication. In fact, India is considered by many as the back-office of world servicesa. There are approximately 40% of the 500 Fortune companies that have outsourced part of its services to India5. According to the FDI Confidence Index 2005, India top as one of the best countries to invest in manufacturing, telecommunication, financial and non-financial services, and wholesale and retail (see Exhibit 2). However, even though there are positive outcome from the implemented reforms, there are still important activities to improve Foreign Direct Investment. The government has to emphasize more in infrastructure and simplify the procedures to make easier the establishment of a company in the country.

Monday, March 9, 2020

The Ways in Which the Methods of the Suffragists and Suffragettes Were Different Essays

The Ways in Which the Methods of the Suffragists and Suffragettes Were Different Essays The Ways in Which the Methods of the Suffragists and Suffragettes Were Different Paper The Ways in Which the Methods of the Suffragists and Suffragettes Were Different Paper The National Union of Womens Suffrage Societies (NUWSS) campaigned for Womens rights using peaceful methods. Its leader was Lydia Becker until she died in 1980. The leadership then fell to Millicent Garrett Fawcett. The NUWSS was given the nickname Suffragists by the Daily mail. The Suffragists used, peaceful methods to try and achieve their goal of the vote for Women. These methods included: Petitions massively signed petitions presented to the parliament. The petition in 1874 was the biggest of them all Leaflets/Posters leaflets and posters were the most popular campaign methods for the Suffragists. They were made and distributed among everyone and often showed how badly women were treated and then later on how bad the Suffragettes methods were. Peaceful Protests Lots of protests and marches were held all over England. Lots of these often included Suffragette as well as Suffragists but normally remained peaceful. A march in 1908 which went through central London and ended at the Royal Albert Hall consisted of over thirteen thousand women. Organised Meetings these were held where possible and contained lot of lectures and talks on votes for women and campaigning techniques. The Suffragists main idea was to campaign within the law. This was done to show how rational these women were. They wanted to let the government and public know that these women were very respectable and could be entirely trusted with the vote. They that their good behaviour could impress the government and that after a long, slow but steady struggle they would finally be able to get the vote they wanted. The work of the NUWSS continued throughout the early years of the twentieth century. Some women, however, became dissatisfied with peaceful methods and thought that the only way to get votes for women was by using more aggressive methods. These women formed the Womens Social and Political Union (WSPU, also known as the Suffragettes). Most of the Suffragists were not opposed to the methods of the Suffragettes but they simply thought that they would not work. The most important figure in the creation of the WSPU was Dr Richard Prankhurst. He was a firm supporter of votes for Women and had stood as candidate for the Independent Labour Party in the 1895 general election. He was defeated but continued his campaign until he died. His wife Emmeline Prankhurst then took over. Her daughters Sylvia and Christabel also played a part in campaigning for votes for Women. The WSPU had originally been set up in Manchester, but then in 1906 they made a very important decision, to move to London. It was a very brave decision as it would almost certainly lead to greater expenses. The WSPUs campaigning tactics included: Heckling continuous asking of embarrassing or unanswerable questions even when the MP tries to talk to others or changes the subject. The person only stops asking when the MP has given a suitable enough response. Disrupting Meetings loud and rude behaviour during importing meetings causing it to stop until the person is removed. Chaining to rails only done in particular places such as outside 10 Downing Street, where they can get the most attention. Stone Throwing adopted by Edith New which included using weapons such as stone throwing. Hunger Strikes Women would go on hunger strikes, mainly while in prison to get lots of attention and to get what they want. All of these were tactics that would get the person fined and/or thrown in prison. This would get that person a lot of attention and get the Suffragettes struggle for womens rights into the public eye. Further campaigning would let it stay in the public eye. As time progressed the tactics employed by Suffragettes became more violent. Stones were thrown at government windows and public, private property and paintings was also damaged. The government didnt listen to the Suffragettes which frustrated them even more causing them to employ even more violent tactics. As you can see here the method of the Suffragists and Suffragettes were very different. The Suffragists tactics were obviously much more peaceful and law abiding. They knew that going on like this would take a long time but they were prepared to wait. On the other hand, the Suffragettes could not wait and took on the more aggressive and violent tactics which they thought would give them immediate franchisement. Without the groundwork of the Suffragists, the campaign for Votes for Women would have been much weaker. The Suffragists were a much bigger group. From their title you can see why. They were a union of different suffrage societies across the UK. The Suffragists had a very large number of members and generally the group were very open about what they did. Any major events they were going to do or take part in would be known by the media and public. As this was the main group of suffrage societies they were very tolerant of different methods. They were also tolerant of the violent methods of the WSPU until 1912. The WSPU lost the support of the NUWSS. They said that the WSPUs campaigning was going out of hand and that their behaviour was giving women a bad reputation, making it harder for them to get the vote. The Suffragettes were a much smaller group. Because of their violent tactic this group always had a lot of publicity, keeping them in the publics eye. Nearly all of the tactics carried out by the Suffragettes, especially the later one were illegal. This meant that all of their planning and meetings had to be done secretly, unlike the openness of the Suffragists. This meant that groups across the UK would not know what other groups would be doing. The actions of the Suffragettes were very similar to terrorists. There was a dictatorship between Emmeline and Chrystabel Prankhurst. Anything they told the other to do, they had to do. Emmelines other daughter; Sylvia was kicked out of the Suffragettes as she helped the workers in London to much. The Prankhursts had turned on their own family. The Suffragists were continuously increasing in support and growing. The group never deviated from their purpose, they never strayed, and they were always intent on getting the Vote for Women. On the other hand the Suffragettes started losing support and became fragile. There were always arguments within the group about how far they had been and how far they were planning to go. As time went on, the tyrant leadership grew in dislike. Any questioning about the activities in the group would get you get kicked out, as did Emmeline Pethick-Lawrence and Elizabeth Robins. These are the differences in which the two major organisations are run and lead and the difference in which the activities they undertake differ from one another.

Friday, February 21, 2020

Higher ratings and wider range of the audience Research Paper - 1

Higher ratings and wider range of the audience - Research Paper Example The new late night show program has been aired for three months now but still suffers from low ratings. At first, we had high ratings because our program is officially the first late night show that directed and produced similarly to an American late-night show but then ratings went down from 16% to 7% during last three months. From the survey we conducted, the style of the production is unfamiliar to the viewers because they have not seen this style of the production before. To increase viewer ratings, the program needs more promotions and system that makes the audience engages in the program. For the above reasons, Taeho Kim assigned me to find ways to increase ratings and promote the program. Mr Kim gave me a set of criteria for the new system. First, the total budget allowed for the project is $15,000. Second, the new system must give the evidence that we have higher ratings and wider range of the audience. Third, the new system needs to be more cost-effective and has a long-term effect. Through the research I have conducted, three appropriate options were realized for the improvement of the program. Social networks, hiring of celebrities as co-host, and changing and improving the script are among the options that this paper will be dealing with. Locally, it is relevant to say that all these networks have the capacity to promote shows especially the late night shows and thus, could give people the idea and the knowledge of the advantages the viewers could get by watching the show.

Wednesday, February 5, 2020

Durkheims relationship between law, social solidarity and morality Essay

Durkheims relationship between law, social solidarity and morality - Essay Example As Lukes pointed out about Durkheim's approach, "Durkheim's criticisms of charity as the basis of social solidarity are explored. His Jewish background is related to his emphasis on justice as well as his scorn for charity as the basis for social solidarity. Implications for social theory are discussed briefly. "(Lukes 1989) Durkheim' s conception of justice has been neglected relative to other aspects of his thought, as is true for Durkheim' s political thought in general ( Lukes 1989). To be sure, Durkheim's concern with justice has been addressed, but usually in a narrow context. For example, Sirianni (1984) addresses it only within the confines of Durkheim's The Division of Labor in Society ([1893] 1933). Similarly, Lacroix (1981) concludes that there exists a hiatus between Durkheim's political sociology and sociology of religion. A similar hiatus seems to exist regarding the sociologists who have pursued Durkheim's political thought and those who have addressed Durkheim's personal as well as professional interest in religion, such as Bellah (1973), Filloux (1977), and Pickering (1984). In particular, Durkheim's conception of justice has not been analyzed in the context of his Judaic heritage." (Cotterrell 1997) the objective of this paper is to examine Durkheim's accounts of the above discussed issues and to examine his perspectives As well the importance of his accounts and tenets will be examined during the discussion. Durkheim's sociology will be presented and reviewed. Durkheim was especially concerned with establishing a "science of moral facts" (see also Hall, 1987). "This was a concern shared by many of his contemporaries, but what set Durkheim apart was that he rejected the possibility of establishing morality upon charity, even Christian charity, and opted instead for justice." (Lukes 1989) Durkheim also held a concept about his definition of justice and its close connection to the idea of contract. It is important to keep in mind that eventually, he apprehended the contract as being binding upon the individual and society after taking his account of justice and law into consideration it can be seen that Durkheim and the concept he accounts for is remarkably similar to Jewish conceptions of covenant and justice" as (Hunt 1978) pointed out. The correlation between Durkheim's view of justice and the la may be due to his personal accounts as a Jew. when considering the accounts and concepts of Durkheim it Is important to keep in mind that he "represents a break from the earlier generation of nineteenth-century social evolutionary thinkers." (Roach 2003) Although Durkheim was never officially trained in sociology, he has many accounts that are relevant to the study and tenets too the discipline. Durkheim said "social life comes from a double source, the likeness of consciences and the division of social labor." (Durkheim, 1933, p.226) Social cohesion based upon the likeness and similarities among individuals in a society, and largely dependent on common rituals and routines. Common among prehistoric and pre-agricultural societies, and lessens in predominance as modernity increases. (Durkheim p 76) He also said that "Social cohesion based upon the dependence individuals in more advanced society have on each other. Common among industrial societies as the division of labor increases. Though individuals perform different tasks and often have different values

Tuesday, January 28, 2020

Introduction To Modern Technology Media Essay

Introduction To Modern Technology Media Essay Modern technology has made the requirement for information flow to be quick and effective. We have been able to achieve this through the internet; the medium i.e the internet has facilitated each of us, by making the communication cheap and fast. News for U.K is available in the Australia as soon as its on the media, accessible by millions at one time. The growth of the internet is a necessity nowadays. Now internet, where people choose to spend a major part of their day has brought social communities where people can chat, message, share beliefs, extract information, share information about things they are interested in. The internet being the centre of usage for millions of users every day, thus it also appears to be a medium for brands and products to advertise, but this advertisement is different from the advertisement we see otherwise. This advertisement takes into account that the information flow is fast and inspired by people more than the advertising agencies. So let us see how social networking became the part of our lives. The last ten years of the century brought the innovative technology Internet. As predicted by Newman (1991) Internet: Altered the meaning of geographic distance. Allowed the huge increase in the volume of communication. Provided the possibility of increasing the speed of communication. Provided opportunities for interactive communication. Allowed forms of communication that was previously separate to overlap and interconnect. Whereas Grieco and Holmes (1999) (citied in Combe et al, 2003) identifies three powerful features of Internet: Disintermediation or the removal of brokers by allowing direct communication across spatial and sociometric distance; Asynchronicyty of the removal of temporality as a barrier to communications; Oculacy or the ability to communicate messages through images. According to Hermeking (2006) the spread of modern technology, including information and communication technology (ICT), is commonly regarded both as an indicator of the postmodern era of globalization and as the very precondition for that era of intensive worldwide interactions of people and exchanges of goods, services, information, and capital. On the contrary Hoffman (Hoffman et al., 1995) believes that the popularity of the WWW as a commercial medium (in contrast to other networks on the Internet) is due to its ability to facilitate global sharing of information and resources, and its potential to provide an efficient channel for advertising, marketing, and even direct distribution of certain goods and information services. world internet users Sixty five per cent of all UK households had a broadband connection in 2008. Adults under 70 years of age who had a degree or equivalent qualification were most likely to have access to the Internet in their home, at 93 per cent (Office for National Statistics,2009). According to Linda Peters (1998) the Web presents a fundamentally different environment- both as a medium and as a market from traditional communication channels perspective. It creates the Marketspace a virtual realm where products and services exist as digital information and can be delivered through information-based channels (Rayport and Svikola, 1994). Social Networking is a phenomena that has seen a rapid growth over the last few years. If you are not involved in one (or more) of these sites you are probably wondering, so what is this Social Networking thing all about?. Let us go through a general overview of a description of a Social Network A website where people are able to develop networks of friends and associates (whether only ever on line, in real life, or both) and create, share or give information on similar interests, tastes, lifestyles and other information. Also keep in mind that social networking websites are like communities. The Social Networking sites have gained popularity and are on the increase for one simple reason, the ability to share, with others, information about yourself, your interests, your hobbies, your thoughts and your feelings or anything you choose. These can quickly be seen by others in your network and by you through messages, comments, instant messaging applications, photos, games, and group interaction. Facebook one of the most popular social networking sites started as a site for previous College Associates to remain in contact with one another during and after they had finished College. Youtube is another social networking site not just a repository for uploading various types of videos. Some people have found new friendship and romance. People get to know events like fires, storms, and even floods in other countries that have occurred locally in that vicinity, usually even hours before these events are made public by the media. People become involved in many discussions which have given them an opportunity to get to know differing cultures and beliefs One other belief some people have is that it is only Generation Y that use these sites. You will be surprised that many people from many different walks of life in many countries in many age groups use these sites. Some sites are broad category sites like Myspace and Facebook (now). Some are specific to a narrow category, like Small business, the Arts, connecting Families, Blogging, Making Money on the Internet and Dating Services (using a broad and polite term there). Some are popular by type of category they use, where others are popular by region (like UK and Europe, Africa, etc). Social media According to Liu Shrum (2002) new media (Internet), brought new models of interactivity: user-to-user and user-to-message. The interactivity develops a new meaning when it is applied through Web 2.0 platforms and Social media channels as dialogue between consumer and company becomes much more active and interactive. Contemplating about user-to-user interactivity Ha and James (1998) suggested that the more communication in a computer-mediated environment resembles interpersonal communication, the more interactive the communication isà ¢Ã¢â€š ¬-. Defined by Steuer (1992) users-to-message interaction as follows: à ¢Ã¢â€š ¬Ã¢â‚¬ ¢the extent to which users can participate in modifying the form and content of a mediated environment in real timeà ¢Ã¢â€š ¬-. The above figure outlines the E marketing strategy suggested Constantinides (2008) Nielsen Company analyzed and found that the global average time spent for a person on social networking sites is over five each month (February 2010 data), Facebook being the major part of the usage. Social networking is a great option to advertise your business. Social networking does not require large amounts to be invested in, rather its free most of the time, moreover its very simple, easy and quick. There are dozens of websites on the internet where you can sign up within a few minutes and network with millions of people quickly and easily. Social media encourages feedback from everyone who is interested. Social media provokes the user controlled media, empowering the users to drive the communities they are in. Make their comments on products and brands, as they come to them. They can exploit these communities to promote a product and also ruin the reputation of one. Weston (2008) says that, social networking, if approached in the right manner, can build brand awareness, find new customers, help find talent, and help creating a database for market research and analysis. Some businesses find it unnecessary to market themselves on social networking sites, although it is a good way to advertise products/services with knowing what consumers think and want. Social network marketing can be very fruitful for businesses. Social networking media has been thought to be an advertisement source though should be used cleverly to reap of the benefits from it. Thus it is important that the brands committed to using it should use it in the correct way. Zirinsky, 2009 believes online social advertising is all about two way conversations with consumers, not one way broadcastmaking this mistake is far too common and simply makes brands appear out of touch with their audience and reality, and is detrimental to their overall image. Social media keeps an edge over other forms of online communication for its use of enabling content sharing on a network. Content sharing and interaction is defines social media making it different from other means of communication. This means that if brands are going to the get value from social media, they should use it for what it is good in; allowing and helping the sharing of interesting material to create relevant positive hype for the brand or product. Powell, 2009 on the other hand states that Brands need to add value into an online community through enabling the sharing of content, if it cannot do this it has little value, and will be perceived as having little value. For information sharing social media has accelerated the entire process. James in 2009 has said Across networks, a good or bad experience will be shared, potentially on a huge scale. Between 700,000 and 1.3 million blog posts are made daily and, according to Google, a new blog post is being created every second of every day. Most social media services are open to feedback and participation. They encourage voting, comments and the sharing of information. There are rarely any barriers to accessing and making use of content password-protected content is frowned on. Thus a free portal for information sharing, which is effective and fast engages millions of users, now for brands they should be aware how to engage masses they are interested in, because as discussed earlier social networking is probably the fastest way of communication and words positive or negative spread very quickly. Powell, 09 debates Normal social etiquette has crossed over into social media. Social media are communities and there are standards and protocols as to what kind of behavior is acceptable and unacceptable. This statement suggests that the brands should communicate and behave in the social media as to not offend the users of social networking. It is important that whatever information the brands or products are interested in sharing has been uploaded after careful screening and thought process. The strategy for online advertising has to be defined precisely. Thorbjornsen et al. in 2002 affirms that empowering consumers is crucial to online relationships. Rowley in 2007 argues that the concept of customer community leadership has been proposed with the customer being viewed as a partner. Virtual space was a key aspect in amplifying community member experience. Kozinets solicited that retribalized virtual communities of consumption require a newer framework for traditional relationship marketing theory. It is therefore vital at this point to provide a brief overview of tribalism. Cova, 1997 proposes that the potential of tribalism and the linking value has been developed. A tribe is defined as a network of heterogeneous persons in terms of age, sex, income, etc. who are linked by a shared passion or emotion; a tribe is capable of collective action, its members are not simple consumers, they are also advocates; (Cova and Cova 2002: 602). The Internet has only helped to increase the potential of tribalism. E-tribes allow people to gather together in groups based on a huge range of cultural and subcultural interests and social affiliations (Kozinets, 1999: 253). Muniz and OGuinn, 2001 argue that it is crucial to notice that tribal communities are argued to be less explicitly commercial than brand communities. Social Media Web 2.0 Social media and Web 2.0 are two words which are many times used interchangeably in the marketing literature, even though they are not entirely the same. As per the marketing perspective, the Web 2.0 should be apprehended as the recent tool for the marketing communication mix and facilitator and enabler of social media. The Web 2.0 term was introduced by Tim Oà ¢Ã¢â€š ¬Ã… ¸Reilly in 2004, it has originated from talks about social software and the communities surrounding these applications. Tim Oà ¢Ã¢â€š ¬Ã… ¸Reilly said the companies that survived the dotcom boom had something in common; these companies realized that the Web is much more useful for delivering service than being used just as a platform for packaged products (i.e. software). Constantinides and Fountain (2008) on the other hand defined Web 2.0 as follows: à ¢Ã¢â€š ¬Ã¢â‚¬ ¢Web 2.0 is a collection of open-source, interactive and user-controlled online applications expanding the experiences, knowledge and market power o f the users as participants in business and social processes. Web 2.0 applications support the creation of informal users networks facilitating the flow of ideas and knowledge by allowing the efficient generation, dissemination, sharing and editing / refining of informational content . Hoegg believes that Web 2.0 is the philosophy of mutually maximizing collective intelligence and added value for each participant by formalized and dynamic information sharing and creationà ¢Ã¢â€š ¬-. Both of these definitions are exhibits of similar concepts for amplifying the collated intelligence, a community regulated by itself, effects of the network, openness in showing the information creation and sharing process, but the vital aspect here is the consumer. There are not many changes in the Web 2.0 compared to Web 1.0 applications from the technological aspect; value over here is created by the people as they do not just use this software but also play a major role in the creation of these soft wares. Thus as apprehended in modern IT solutions and models, user input is the most vital aspect, can be viewed on a global level with each social networking website. Web 2.0 applications are still considered to be in the development stage, they are categorized according to the purpose and field of the research. Constantinides and Fountain (2008) classify them into 5 broad types according their nature: Blogs: Short for Web logs: online journals, the most known and fastest-growing category of Web 2.0 applications. Blogs are often combined with Podcasts, that is, digital audio or video that can be streamed or downloaded to portable devices. Examples: www.blogtopsites.com , www.blogger.com and several others. Social networks: applications allowing users to build personal websites accessible to other users for exchange of personal content and communication Examples: www.facebook.com , www.myspace.com and others. (Content) Communities: Websites organising and sharing particular types of content. Examples are applications of Video sharing: http://video.google.com, www.youtube.com, http://etsylove.ning.com, Photos sharing: http://www.flickr.com, Social Bookmarking: www.digg.com , http://del.icio.us and Publicly Edited Encyclopedias (Wikis): www. wikipedia.org , http://en.citizendium.org/wiki/Main_Page. Forums/bulletin boards: sites for exchanging ideas and information usually around special interests Examples: www.epinions.com, www.personaldemocracy.com, http://www.python.org. Content aggregators: applications allowing users to fully customise the web content they wish to access. These sites make use of a technique known as Real Simple Syndication or Rich Site Summary (RSS). Examples http://uk.my.yahoo.com/, http://www. google.com/ig, http://www.netvibes.com/. Blogs and blogging Web Logs (knows as Blogs), according to Tredinnick (2006), are arguably the oldest Web 2.0 applications and have been in the web space since mid 1990à ¢Ã¢â€š ¬Ã… ¸s. Constantinides and Fountain (2008) states that it is the most known and fastest-growing category of Web 2.0 applications. Published in Daily Blog Tips, 2008 A Blog is a Web site, usually run by any individual with regular entries of discussions, happening of events, or other content such as graphics or videos where entries are commonly displayed in reverse-chronological order and has permalinks. Antony Mayfield argues (2008), the most important features of the blogs are Linking, Trackbacks, Comments and Subscription (RSS) which allow companies to engage with their stakeholders and facilitates conversations between them. Good blogs are used by people to easily access information and share the viewpoint of things. People from various geographical locations, can log in and write blogs at one place, being able to share knowledge and express them. Blogs help people discover a lot a things that a layman would not be aware of but yet, through a search engine would reach a blogspot where he or she can gain the information they require. The internet guru Seth Godin (2004) remarked that good blogs work when they are based on: candor, urgency, timeliness, pithiness, controversy and utility. Armano (2008) groups these features to 4 Cà ¢Ã¢â€š ¬Ã… ¸s of blogging. Furthermore, Huang in 2007 identified the main techniques for how to manage brand communications according to various blogging motivations. Table 2.2. Bloggersà ¢Ã¢â€š ¬Ã… ¸ motivations. Source: Huang (Huang al., 2007) Social networks Social networking is the fastest growing Web 2.0 application, and this is the main reason for the social media to prosper as quickly as it is powered by effective, fast communication, this media is driven by the users demand. A user prefers to believe in their counterpart rather than any organization. McKinsey defines social networking as systems that allow members of a specific site to learn about other members skills, talents, knowledge or preferences. Pew/Internet believes- A social networking site is an online location where a user can create a profile and build a personal network that connects him or her to other users. Wikipedia states that a social network service focuses on the building and verification of online social networks for communities of people who share interests and activities, or who are interested in exploring the interests and activities of others. It provides various ways for users to interact chat, messaging, email, video, file sharing, blogging and discussion groups The features of social networks present an opportunity to create brand communities and interact with them online. It allows people from all over the world to sign up within a few minutes and access the information available, this has allowed the organizations to be acting in a multinational mode, as they can reach anywhere in the world with the least amount of time taken. Tim Oà ¢Ã¢â€š ¬Ã… ¸Reilly (2005) thinks otherwise and said that Web 2.0 doesnt have a hard boundary, but rather, a gravitational core which could be visualized as a set of principles and practices that tie together a veritable solar system of sites that demonstrate some or all of those principles, at a varying distance from that core (Appendix 2.4). Therefore it is difficult to classify the Web 2.0 into the precise groupings, because the applications are interrelated and most of the time a few Web 2.0 features works on one platform. The mixture of Web 2.0 applications working under one site are known as Mash-ups. On the contrary according to Mayfield (2008) this combination of two or more pieces of content (or software, or websites) is one of the phenomena in social media that make it at once so exciting, fast-moving and sometimes bewilderingà ¢Ã¢â€š ¬-. But even more vital aspect of Web 2.0 applications is the coherence with the different platforms. Social applications are getting more and more popular on mobile devices (Phones, iPods (via podcasts)). In fact, according to BBC News (2008) one of the reasons the Internet usage on the mobile devices is increasing Web 2.0 applications. According to Drury (2008) social media applications has an ability to bring Head (Professional) and Tail (UGC) content together in all the formats (audio, video , text). As more and more professionally edited websites incorporate social media content some companies (i.e. Joost) are trying to apply Web 2.0 principals (live participation) for even bigger media platforms as TV. These applications are being tested in the Internet TV and in the near future have a good chance to redefine TV experience completely. All these changes open new opportunities for integrated marketing campaigns, where marketers are enabled to reach bigger number of audiences of consumers at all their touch points with mediated world at one-stop shop. Facebook is the most used social networking site that has involved the masses all over the world. Facebook is a social networking site, which provides users with a platform to create a personal profile page, add friends, and send messages, post on their profiles, comment on their status. Kazeniac, 2009 said that since the company was founded in 2004, it has become the top ranked social networking site. According to Facebook Statistics (2009), there are over 300 million current active users (i.e. users that have logged-on in the past 30 days). Facebook users have claimed the site a necessity, along the lines of oxygen, water, and food (Verna, 2009). For many people, visiting Facebook has become an integral part of their daily lives, and has even caused some to have an unhealthy obsession with the site. According to Elizabeth Cohen (2009), a CNN medical correspondent, therapists are seeing more and more Facebook addicts, who become compulsive Facebook users to the point where the site interferes with relationships, jobs, and normal daily life. The site has transformed social communication in the 21st century, with Facebook and other Social networking sites reaching hundreds of millions of people across the globe. Facebook achieves the comptetive edge by adding new features and developments on a continuous basis. Since it is free to create an account, Facebook has to generate its revenue elsewhere, through a venue such as advertising. Companies can utilize Facebooks features to reach their audiences in different ways. Gangadharbatla (2009) states that Social networking sites are changing the way advertisers reach consumers, and that these changes are transforming online advertising all together. There are a variety of ways to use Facebook, and the different features allow creativity and experimentation in advertising. For instance, when users log-on, they are taken to a homepage called a News Feed which highlights recent activities from other users. Each Facebook account also includes a personal profile page, a Wall to write public messages to other users, Facebook-generated applications (photos, events, groups, video, notes, and links), and an inbox to write private messages to other users. T he site also allows users to add optional features called Platform applications to connect in new ways. According to Facebooks statistics (2009), more than 70% of Facebook users utilize Platform applications on a monthly basis. Since these Platforms are optional, it is significant that users are seeking out additional Facebook features and uses for the site. The purpose of Facebook has shifted, as the continued popularity of added features proves that its users are looking for more than just casual networking with friends. A few of the currently popular platform applications include games, fan pages, and gifts. Social-network gaming company Zynga has dominated the site with applications such as FarmVille, Cafà © World, and Mafia Wars. Zynga has over 126 million monthly active users, making it the leading Facebook development platform. The company reported that they currently spend approximately $50 million on Facebook advertising annually, and this figure is expected to increase as the company continues to develop over the years. The games allow Facebook users to purchase virtual products with a credit card, as a means to advance further in the game. Techniques such as these provide Zynga with Facebook-user generated revenues and encourage more advertising and developing on the site. Advertisers can also utilize the option to create a free fan page, where companies and individuals can invite users to become a fan of a product, service, person, company, brand, etc. The page is set up similarly to a profile page, with the option to add status updates, photos, announcements, etc. According to Facebooks statistics (2009), over 10 million users become fans of pages on a daily basis, which provides growing possibilities to reach consumers without any financial risk. The updates on the fan pages are also displayed on the home page news feed of the fans who have joined as fans. There is also a chance to buy birthday gifts, as Facebook has expanded its gift shop to include real gifts alongside virtual ones. This type of online shopping connects cyber space with the real world, so that what happens online does not necessarily stay online. Impact of Social media advertising Castells, 2000 states that it has long been suggested that the western world in particular operates in a network society. The leitmotif of societing the link is more important than the thing is central to tribalism. Crucially, tribalism encourages dialogue in many directions and combinations; Business to Consumer (B2C), Customer to Business (C2B) and Consumer to Consumer (C2C). Drury (2008) suggests that when analyzing social media marketers too often concentrates on the media factor, when social element is the key, because marketing within social media is about building a relationship and conversation with the audience, where the simple message delivery is changed by ongoing exchange of perceptions and ideas between company and the consumer. Haven (2008) argues that social media key elements are not entirely new as features of sharing, connecting, opining, broadcasting and creating has been long in our lives, but there are several characteristics of new technologies and behaviors that set them apart from the past: Reach Historically, audiences for the common person have been limited: a tribe, family, friends, neighbors, or the local community. Todays technologies provide scale and enable anyone to reach a global audience. Accessibility The means of production for most media used to lie in the hands of enterprises with unlimited resources (financial or human). Todays technologies for media creation are available to anyone at little or no cost. Usability The means of production typically required specialized skills and training, both technically and creatively. Todays technologies simplify those processes, or in some cases reinvent them, so anyone can create and operate the means of production. Transparency People, especially Americans, historically kept personal information to themselves and had a general distrust of authority (enterprises, government, etc.). Today, people are willing to share anything about themselves (interests, location, family situations, health condition, etc.) in a public venue, and todays technologies make that both possible and purposeful. Recency When people did have the means of production and distribution in the past (albeit limited), the time lag between communications was typically long (days, weeks, or even months). It was a limitation of the technology or system in which it operated. Todays technologies enable instantaneous responses and dialog where only the participant determines the delay in response. From the results of a research, Ofcom (2008) identified the following fundamental principle of social networking; By extending their social networks, users have the opportunity to communicate with people who share their interests and with people from different countries, cultures and backgrounds (Ofcom,2008). And, Communication with family and friends was found to be the main reason adults used social networking sites (Ofcom, 2008). Next Thing Now (McCann, 2008) said that 74% of social media users use the social media to be able to get in touch with their friends. This fact emphasizes on the fact the social network advertising has to be dealt with care and for the reason of not getting into the line of bad publicity. Glen Urban argued that the customer has much more power then ever before because of the three main reasons: More information. More alternatives. Easy transaction. A study from Delloite Touche USA narrated that 62% of the U.S consumers read consumer generated online reviews and 98% of them find these reviews reliable enough. 80% of these consumers say that these reviews have affected their buying intentions. According to Lockhorn (2007) word of mouth campaigns can take off very quietly through niche communities and can be powerfully persuasive, or conversely result in an astonishing backlash. This perhaps is not good for products, the habitat in which they are pushing to gain an entry is not notably considerate, and even if they do get a break, there is still a lot of competitor brand presence. James, in 2009 states that In a UK study by Jam/MySpace in early 2009, 26% of social media users said they already felt bombarded by too much clutter/advertising. The social media networking is uncommon and challenging and the brands that do not comply to the requirements will have to combat as their competitors reap on the market share. But the ones that can exploit the environment stay to make deeper relationships with the audience, and increase their brand awareness. The information over a social network spreads like a fire. Thus a bad word or a wrong mode of communication will also travel to millions of people at the same time, accessible by millions. The User Generated Content (UGC) can become an influential message of the consumer to the consumer (C2C) about the company and therefore should be carefully monitored. In fact, the content is the new message in social media channels. According to Eikelmann (Eikelmann et al, 2008) the best marketers can do in this environment is to try to engage with the consumers through social media in order influence these messages. Drury (2008) proposes that instead of sending simple messages, marketers should provide the audience with content that would intrigue them and would also be a means to kick off conversations at. Therefore, influence will become a standard measurement in Marketing 2.0 (Dowdell, 2008). As blogger and social media strategist Douma (2008) put it: The age of persuasion is over. Welcome to the age of influence. Give us the people control and we will use it, if you do not give us control you will lose us (Jarvis, 2009). Control now lies with the users, their perceptions, opinions, demands, satisfaction is what matters more. Previously, the powerful; companies, institutions and governments believed they were in control, and they were. Now the internet allows us to speak to the world, to organise ourselves, to find and spread information, to challenge old ways, to retake control (Jarvis, 2009). Companies realize this shift in control when they can stop holding on to what is lost, and start indulging in what is going to attract consumers. Engagement means giving the users content that is interesting and would appeal the masses, also providing them space where they can discuss the content. The control can be handed to the consumer. If the consumer spreads out a positive word for brand, this will create a positive image for it. Social media communities are used by humans, for a brand to prevail, it must use emotions, or undergo the subsequent results. Jarvis 2009 quotes Today, when you lose a customer, you dont lose just that customer, you risk losing that customers friends. And thanks to the internet and blogs and consumer rate and review services, your customers have lots and lots of friends all around the world. According to Powell (2009) The brand is no longer

Monday, January 20, 2020

The Internet as a Learning Tool Essay -- Technology Web Essays

The Internet as a Learning Tool The Internet has a universal appeal for most people. We (in the United States) have become dependant on it for our daily routines. We shop, send mail, read the news, look up movie reviews, etc., using the Internet. We depend on this service, because we have told ourselves that "It" has made our lives easier. We advocate the use of similar technologies within the classroom, because we are convinced that the use of computers and having access to the Internet is the best way to educate our children so they can have an equal chance to reach their potential and accomplish their goals. It is true that the Internet is a great source of information. Its value as a resource is immeasurable. Unfortunately, to get this benefit we have to pay a price. In some cases this comes as loss of privacy. The Internet and the digital world are a part of the public sphere; therefore, our speech has to be measured and revised to be appropriate for this realm causing our free speech to be limited. Access to the Internet is also restricted to a certain group of people. One has to own a computer, or have access to one to be able to make use of its benefits. Internet access is uneven, therefore unfair. The other potential problem with the Internet is the access that people with shady intents or with low morality have to it. Anyone with the means to a computer can be online with our innocent children. Are their intents innocent also? In the realm of education, I think that the Internet can be a great resource for information. Research can be easily planned and implemented for the benefit of both students and educators. Unfortunately, this brings us back to the issue of limited access. Some students are more readily... ...ose to a multimedia / interactive classroom as we think we are. The school district (LAUSD) has spent several millions on purchasing computers and hooking them up to the Internet. The emphasis is on acquiring technology instead of implementing it. I still think that the novelty of computers and its tremendous appeal to students of all ages should be utilized to teach. Works Cited "Fast, Easy and FREE Webpages." http://www.webspawner.com/ (1 Nov. 2001). "How to Publish Web Pages." http://itsweb.hartford.edu (1 Nov. 2001). "How to Publish Web Pages to an Internet Server." http://www.surfwise.com/support/publish.htm (1 Nov. 2001). "Personal Publishing." http://www.utexas.edu/ (1 Nov. 2001). "Publishing Your Page for Free." http://home.san.rr.com/artbytes/publish.htm (1 Nov. 2001). "Yahoo! GeoCities." http://geocities.yahoo.com (1 Nov. 2001).

Sunday, January 12, 2020

Case Solutions for Corporate Finance Ross, Westerfield, and Jaffe 9th Edition

Case Solutions Corporate Finance Ross, Westerfield, and Jaffe 9th edition CHAPTER 2 CASH FLOWS AT WARF COMPUTERS The operating cash flow for the company is: (NOTE: All numbers are in thousands of dollars) OCF = EBIT + Depreciation – Current taxes OCF = $1,332 + 159 – 386 OCF = $1,105 To calculate the cash flow from assets, we need to find the capital spending and change in net working capital. The capital spending for the year was: | |Capital spending | | |   |Ending net fixed assets |$2,280 | |   |– Beginning net fixed assets |1,792 | |   |+ Depreciation | 159 | |   | Net capital spending |$ 647 | And the change in net working capital was: |   |Change in net working capital | |   |Ending NWC |$728 | |   |– Beginning NWC | 586 | |   | Change in NWC |$142 | So, the cash flow from assets was:    |Cash flow from assets | | |   |Operating cash flow |$1,105 | |   |– Net capital spending |647 | |   |– Change in NWC | 142 | |   | Cash flow from assets |$316 | The cash flow to creditors was: |   |Cash flow to creditors |   | |   |Interest paid | $95 | |   |– Net New Borrowing | 20 | |   | Cash flow to Creditors | $75 | The cash flow to stockholders was:    |Cash flow to stockholders |   | |   |Dividends paid | $212 | |   |– Net new equity raised | –29 | |   | Cash flow to Stockholders | $241 | The accounting cash flow statement of cash flows for the year was:    |Statement of Cash Flows | |   |Operations | | |   |Net income |$742 | |   |Depreciation |159 | |   |Deferred taxes |109 | |   |Changes in assets and liabilities | | |   | Accounts receivable |(31) | |   | Inventories |14 |   | Accounts payable |17 | |   | Accrued expenses |(99) | |   | Other |(9) | |   |Total cash flow from operations |$902 | |   |   | | |   |Investing activities | | |   | Acquisition of fixed assets |$(786) | |   | Sale of fixed assets |139 | |   |Total cash flow from investing acti vities |$(547) | |   |   | | |   |Financing activities | | |   | Retirement of debt |$(98) | |   | Proceeds of long-term debt |118 | |   | Notes payable |5 | |   | Dividends |(212) | |   | Repurchase of stock |(40) | |   | Proceeds from new stock issues |11 | |   |Total cash flow from financing activities |$(216) | |   |   | | |   |Change in cash (on balance sheet) |$39 | Answers to questions 1. The firm had positive earnings in an accounting sense (NI > 0) and had positive cash flow from operations and a positive cash flow from assets. The firm invested $142 in new net working capital and $647 in new fixed assets. The firm was able to return $241 to its stockholders and $75 to creditors. 2. The financial cash flows present a more accurate picture of the company since it accurately reflects interest cash flows as a financing decision rather than an operating decision. 3. The expansion plans look like they are probably a good idea. The company was able to return a significant amount of cash to its shareholders during the year, but a better use of these cash flows may have been to retain them for the expansion. This decision will be discussed in more detail later in the book. CHAPTER 3 RATIOS AND FINANCIAL PLANNING AT EAST COAST YACHTS 1. The calculations for the ratios listed are: Current ratio = $14,651,000 / $19,539,000 Current ratio = 0. 75 times Quick ratio = ($14,651,000 – 6,136,000) / $19,539,000 Quick ratio = 0. 44 times Total asset turnover = $167,310,000 / $108,615,000 Total asset turnover = 1. 54 times Inventory turnover = $117,910,000 / $6,136,000 Inventory turnover = 19. 22 times Receivables turnover = $167,310,000 / $5,473,000 Receivables turnover = 30. 57 times Total debt ratio = ($108,615,000 – 55,341,000) / $108,615,000 Total debt ratio = 0. 49 times Debt-equity ratio = ($19,539,000 + 33,735,000) / $55,341,000 Debt-equity ratio = 0. 96 times Equity multiplier = $108,615,000 / $55,341,000 Equity multiplier = 1. 96 times Interest coverage = $23,946,000 / $3,009,000 Interest coverage = 7. 96 times Profit margin = $12,562,200 / $167,310,000 Profit margin = 7. 51% Return on assets = $12,562,200 / $108,615,000 Return on assets = 11. 57% Return on equity = $12,562,000 / $55,341,000 Return on equity = 22. 70% 2. Regarding the liquidity ratios, East Coast Yachts current ratio is below the median industry ratio. This implies the company has less liquidity than the industry in general. However, the current ratio is above the lower quartile, so there are companies in the industry with lower liquidity than East Coast Yachts. The company may have more predictable cash flows, or more access to short-term borrowing. The turnover ratios are all higher than the industry median; in fact, all three turnover ratios are above the upper quartile. This may mean that East Coast Yachts is more efficient than the industry in using its assets to generate sales. The financial leverage ratios are all below the industry median, but above the lower quartile. East Coast Yachts generally has less debt than comparable companies, but is still within the normal range. The profit margin for the company is about the same as the industry median, the ROA is slightly higher than the industry median, and the ROE is well above the industry median. East Coast Yachts seems to be performing well in the profitability area. Overall, East Coast Yachts’ performance seems good, although the liquidity ratios indicate that a closer look may be needed in this area. Below is a list of possible reasons it may be good or bad that each ratio is higher or lower than the industry. Note that the list is not exhaustive, but merely one possible explanation for each ratio. | |Ratio |Good |Bad | | |Current ratio |Better at managing current accounts. |May be having liquidity problems. | | |Quick ratio |Better at managing current accounts. May be having liquidity problems. | | |Total asset turnover |Better at utilizing assets. |Assets may be older and depreciated, requiring | | | | |extensive investment soon. | | |Inventory turnover |Better at inventory management, possibly due to |Could be experiencing inventory shortages. | | | |better procedures. | | | |Receivables turnover |Better at collecting receivables. |May have credit terms that are too strict. | | | |Decreasing receivables turnover may increase | | | | | sales. | | |Total debt ratio |Less debt than industry median means the company|Increasing the amount of debt can increase | | | |is less likely to experience credit problems. |shareholder returns. Especially notice that it | | | | |will increase ROE. | | |Debt-equity ratio |Less debt than industry median means the company|Increasing the amount of debt can increase | | | |is less likely to experience credit problems. |shareholder returns. Especially notice that it | | | | |will increase ROE. | | |Equity multiplier |Less debt than industry median means the company|Increasing the amount of debt can increase | | | |is less likely to experience credit problems. |shareholder returns. Especially notice that it | | | | |will increase ROE. | | |Interest coverage |Less debt than industry median means the company|Increasing the amount of debt can increase | | | |is less likely to experience credit problems. |shareholder returns. Especially notice that it | | | | |will increase ROE. | | |Profit margin |The PM is slightly above the industry median, so|May be able to better control costs. | | | |it is performing better than many peers. | | | |ROA |Company is performing above many of its peers. |Assets may be old and depreciated relative to | | | | |industry. | | |ROE |Company is performing above many of its peers. Profit margin and EM could still be increased, | | | | |which would further increase ROE. | If you created an Inventory to Current liabilities ratio, East Coast Yachts would have a ratio that is lower than the industry median. The current ratio is below the industry median, while the quick ratio is above the industry median. This implies that East Coast Yachts has less inventory to current liabilities than the industry median. Because the cash ratio is lower than the industry median, East Coast Yachts has less inventory than the industry median, but more accounts receivable. 3. To calculate the internal growth rate, we first need to find the ROE and the retention ratio, so: ROE = NI / TE ROE = $12,562,200 / $55,341,000 ROE = . 2270 or 22. 70% b = Addition to RE / NI b = $5,024,800 / $12,562,200 b = 0. 40 or 40% So, the sustainable growth rate is: Sustainable growth rate = (ROE ? b) / [1 – (ROE ? b)] Sustainable growth rate = [0. 2270(. 40)] / [1 – 0. 2270(. 40)] Sustainable growth rate = . 0999 or 9. 99% The sustainable growth rate is the growth rate the company can achieve with no external financing while maintaining a constant debt-equity ratio. At the sustainable growth rate, the pro forma statements next year will be:    |Income statement |   |   |   | |   |Sales |$184,018,615 |   |   |   | |   |COGS |129,685,224 |   |   |   | |   |Other expenses |21,990,725 |   |   |   | |   |Depreciation |5,460,000 |   |   |   | |   |EBIT |$26,882,666 |   |   |   | |   |Interest 3,009,000 |   |   |   | |   |Taxable income |$23,873,666 |   |   |   | |   |Taxes (40%) |9,549,466 |   |   |   | |   |Net income |$14,324,199 |   |   |   | |   |   | |   |   |   | |   |Dividends |$8,594,520 |   |   |   | |   |Add to RE |5,729,680 |   |   |   | |   |Balance sheet | |   |Assets |   |Liabilities & Equity | |   |Current Assets | |   |Current Liabilities | | |   | Cash |$3,345,793 |   | Accounts Payable |$7,106,236 | |   | Accounts rec. 6,019,568 |   | Notes Payable |14,384,050 | |   | Inventory |6,748,779 |   | Total CL |$21,490,286 | |   | Total CA |$16,114,140 |   |   | | |   |   | |   |Long-term debt |$33,735,000 | |   | | |   |   | | |   | | |   |Shareholder Equity | | |   | |   | Common stock |$5,200,000 | |   |Fixed assets | |   | Retained earnings |55,870,680 | |   | Net PP&E |$103,347,828 |   | Total Equity |$61,070,680 | |   |   | |   |   | | |   |Total Assets |$ 119,461,968 |   |Total L&E |$116,295,966 | So, the EFN is: EFN = Total assets – Total liabilities and equity EFN = $119,461,968 – 116,295,966 EFN = $3,166,002 The ratios with these pro forma statements are: Current ratio = $16,114,140 / $21,490,286 Current ratio = 0. 75 times Quick ratio = ($16,114,140 – 6,748,779) / $21,490,286 Quick ratio = 0. 44 times Total asset turnover = $184,018,615 / $119,461,968 Total asset turnover = 1. 54 times Inventory turnover = $129,685,224 / $6,748,779 Inventory turnover = 19. 22 times Receivables turnover = $184,018,615 / $6,019,568 Receivables turnover = 30. 57 times Total debt ratio = ($116,295,966 – 61,070,680) / $116,295,966 Total debt ratio = 0. 49 times Debt-equity ratio = ($21,490,286 + 33,735,000) / $61,070,680 Debt-equity ratio = 0. 90 times Equity multiplier = $119,460,968 / $61,070,680 Equity multiplier = 1. 96 times Interest coverage = $26,882,666 / $3,009,000 Interest coverage = 8. 93 times Profit margin = $14,324,199 / $184,018,615 Profit margin = 7. 78% Return on assets = $14,324,199 / $119,461,968 Return on assets = 11. 99% Return on equity = $14,324,199 / $61,070,680 Return on equity = 23. 45% The only ratios that changed are the debt ratio, the interest coverage ratio, profit margin, return on assets, and return on equity. The debt ratio changes because long-term debt is assumed to remain fixed in the pro forma statements. The other ratios change slightly because interest and depreciation are also assumed to remain constant as well. 4. Pro forma financial statements for next year at a 20 percent growth rate are: |   |Income statement |   |   |   | |   |Sales |$200,772,000 |   |   |   | |   |COGS |141,492,000 |   |   |   | |   |Other xpenses |23,992,800 |   |   |   | |   |Depreciation |5,460,000 |   |   |   | |   |EBIT |$29,827,200 |   |   |   | |   |Interest |3,009,000 |   |   |   | |   |Taxable income |$26,818,200 |   |   |   | |   |Taxes (40%) |10,727,280 |   |   |   | |   |Net income |$16,090,920 |   |   |   | |   |   | |   |   |   | |   |Dividends |$9,654,552 |   |   |   | |   |Add to RE |6,436,368 |   |   |   |    |Balance sheet | |   |Assets |   |Liabilities & Equity | |   |Curren t Assets | |   |Current Liabilities | | |   | Cash |$3,650,400 |   | Accounts Payable |$7,753,200 | |   | Accounts rec. |6,567,600 |   | Notes Payable |15,693,600 | |   | Inventory |7,363,200 |   | Total CL |$23,446,800 | |   | Total CA |$17,581,200 |   |   | | |   | |   |Long-term debt |$33,735,000 | |   | | |   |   | | |   | | |   |Shareholder Equity | | |   |   | |   | Common stock |$5,200,000 | |   |Fixed assets | |   | Retained earnings |56,577,368 | |   | Net PP&E |$112,756,800 |   | Total Equity |$61,777,368 | |   |   | |   |   | | |   |Total Assets |$130,338,000 |   |Total L&E |$118,959,168 | So, the EFN is: EFN = Total assets – Total liabilities and equity EFN = $130,338,000 – 118,959,168 EFN = $8,753,040 5. Now we are assuming the company can only build in amounts of $30 million. We will assume that the company will go ahead with the fixed asset acquisition. In this case, the pro forma financial stat ement calculation will change slightly. Before, we made the assumption that depreciation increased proportionally with sales, which makes sense if fixed assets increase proportionally with sales. This is not the case now. To estimate the new depreciation charge, we will find the current depreciation as a percentage of fixed assets, then, apply this percentage to the new fixed assets. The depreciation as a percentage of assets this year was: Depreciation percentage = $5,460,000 / $93,964,000 Depreciation percentage = . 0581 or 5. 81% The new level of fixed assets with the $30 million purchase will be: New fixed assets = $93,964,000 + 30,000,000 = $123,964,000 So, the pro forma depreciation as a percentage of sales will be: Pro forma depreciation = . 0581($123,964,000) Pro forma depreciation = $7,203,221 We will use this amount in the pro form income statement. So, the pro forma income statement will be:    |Income statement |   |   |   | |   |Sales |$200,772,000 |   |   |   | |   |COGS |141,492,000 |   |   |   | |   |Other expenses |23,992,800 |   |   |   | |   |Depreciation |7,203,221 |   |   |   | |   |EBIT |$28,083,979 |   |   |   | |   |Interest |3 ,009,000 |   |   |   | |   |Taxable income |$25,074,979 |   |   |   | |   |Taxes (40%) |10,029,992 |   |   |   | |   |Net income |$15,044,988 |   |   |   | |   |   | |   |   |   | |   |Dividends |$9,026,993 |   |   |   | |   |Add to RE |6,017,995 |   |   |   | The pro forma balance sheet will remain the same except for the fixed asset and equity accounts. The fixed asset account will increase by $30 million, rather than the growth rate of sales. |   |Balance sheet | |   |Assets |   |Liabilities & Equity | |   |Current Assets | |   |Current Liabilities | | |   | Cash |$3,650,400 |   | Accounts Payable |$7,753,200 | |   | Accounts rec. 6,567,600 |   | Notes Payable |15,693,600 | |   | Inventory |7,363,200 |   | Total CL |$23,446,800 | |   | Total CA |$17,581,200 |   |   | | |   |   | |   |Long-term debt |$33,735,000 | |   | | |   |   | | |   | | |   |Shareholder Equity | | |   |   | |   | Common stock |$5,200,000 | |   |Fixed assets | |   | Retained earnings |56,158,995 | |   | Net PP&E |$123,964,000 |   | Total Equity |$61,358,995 | |   | |   |   | | |   |Total Assets |$141,545,200 |   |Total L&E |$118,540,795 | So, the EFN is: EFN = Total assets – Total liabilities and equity EFN = $141,545,200 – 118,540,795 EFN = $23,004,405 Since the fixed assets ha ve increased at a faster percentage than sales, the capacity utilization for next year will decrease. CHAPTER 4 THE MBA DECISION 1. Age is obviously an important factor. The younger an individual is, the more time there is for the (hopefully) increased salary to offset the cost of the decision to return to school for an MBA. The cost includes both the explicit costs such as tuition, as well as the opportunity cost of the lost salary. 2. Perhaps the most important nonquantifiable factors would be whether or not he is married and if he has any children. With a spouse and/or children, he may be less inclined to return for an MBA since his family may be less amenable to the time and money constraints imposed by classes. Other factors would include his willingness and desire to pursue an MBA, job satisfaction, and how important the prestige of a job is to him, regardless of the salary. 3. He has three choices: remain at his current job, pursue a Wilton MBA, or pursue a Mt. Perry MBA. In this analysis, room and board costs are irrelevant since presumably they will be the same whether he attends college or keeps his current job. We need to find the aftertax value of each, so: Remain at current job: Aftertax salary = $60,000(1 – . 26) = $44,400 His salary will grow at 3 percent per year, so the present value of his aftertax salary is: PV = C {[1/(r – g)] – [1/(r – g)] ? [(1 + g)/(1 + r)]t} PV = $44,400{[1/(. 065 – . 03)] – [1/(. 065 – . 03)] ? [(1 + . 03)/(1 + . 065)]40} PV = $935,283. 49 Wilton MBA: Costs: The direct costs will occur today and in one year and include tuition, books and supplies, health insurance, and the room and board increase. So the total direct costs are: PV of direct expenses = ($65,000 + 3,000 + 3,000 + 2,000) + ($65,000 + 3,000 + 3,000 + 2,500) / 1. 065 PV of direct expenses = $141,544. 60 The indirect costs are the lost salary, so the value of the indirect costs are: PV of indirect costs (lost salary) = $44,400 / (1. 065) + $44,400(1 + . 03) / (1 + . 065)2 PV of indirect costs (lost salary) = $82,010. 18 The financial benefits are the bonus to be paid in 2 years and the future salary. PV of aftertax bonus paid in 2 years = $20,000(1 – . 31) / 1. 0652 = $12,166. 90 Aftertax salary = $10,000(1 – . 31) = $75,900 His salary will grow at 4 percent per year. We must also remember that he will now only work for 38 years, so the present value of his aftertax salary is: PV = C {[1/(r – g)] – [1/(r – g)] ? [(1 + g)/(1 + r)]t} PV = $75,900{[1/(. 065 – . 04)] – [1/(. 065 – . 04)] ? [(1 + . 04)/(1 + . 065)]38} PV = $1,804,927. 68 Since the first salary payment will be received three years from today, so we need to discount this for two years to find the value today, which will be: PV = $1,804,927. 68 / 1. 0652 PV = $1,591,331. 25 So, the total value of a Wilton MBA is: Value = –$141,544. 60 – 82,010. 18 + 12,166. 90 + 1,591,331. 25 = $1,379,943. 36 Mount Perry MBA: The direct costs will occur today and include tuition, books and supplies, health insurance, and the room and board increase. So the total direct costs are: Total direct costs = $80,000 + 4,500 + 3,000 + 2,000 = $89,500. Note, this is also the PV of the direct costs since they are all paid today. The indirect costs are the lost salary, so the value of the indirect costs are: PV of indirect costs (lost salary) = $44,400 / (1. 065) = $41,690. 14 The financial benefits are the bonus to be paid in 1 year and the future salary. PV of aftertax bonus paid in 1 year = $18,000(1 – . 29) / 1. 065 = $12,000 His aftertax salary at his new job will be: Aftertax salary = $80,000(1 – . 29) = $65,320 His salary will grow at 3. 5 percent per year. We must also remember that he will now only work for 39 years, so the present value of his aftertax salary is: PV = C {[1/(r – g)] – [1/(r – g)] ? [(1 + g)/(1 + r)]t} PV = $65,320{[1/(. 065 – . 035)] – [1/(. 065 – . 035)] ? [(1 + . 035)/(1 + . 065)]35} PV = $1,462,896. 46 Since the first salary payment will be received two years from today, so we need to discount this for one year to find the value today, which will be: PV = $1,462,896. 46 / 1. 065 PV = $1,373,611. 70 So, the total value of a Mount Perry MBA is: Value = –$89,500 – 41,690. 14 + 12,000 + 1,373,611. 70 = $1,254,421. 56 4. He is somewhat correct. Calculating the future value of each decision will result in the option with the highest present value having the highest future value. Thus, a future value analysis will result in the same decision. However, his statement that a future value analysis is the correct method is wrong since a present value analysis will give the correct answer as well. 5. To find the salary offer he would need to make the Wilton MBA as financially attractive as the as the current job, we need to take the PV of his current job, add the costs of attending Wilton, and the PV of the bonus on an aftertax basis. Note, this assumes that the singing bonus is constant. So, the necessary PV to make the Wilton MBA the same as his current job will be: PV = $935,283. 49 + 1414,544. 60 + 82,010. 18 – 12,166. 90 = $1,146,671. 37 This PV will make his current job exactly equal to the Wilton MBA on a financial basis. Since the salary will not start for 3 years, we need to find the value in 2 years so that it is the present value of growing annuity. So: Value in 2 years = $1,146,671. 37(1. 0652) = $1,300,583. 34 Since his salary will still be a growing annuity, the aftertax salary needed is: PV = C {[1/(r – g)] – [1/(r – g)] ? [(1 + g)/(1 + r)]t} $1,300,583. 34 = C {[1/(. 065 – . 04)] – [1/(. 065 – . 04)] ? [(1 + . 04)/(1 + . 065)]38} C = $54,691. 54 This is the aftertax salary. So, the pretax salary must be: Pretax salary = $54,691. 54 / (1 – . 31) = $76,263. 10 6. The cost (interest rate) of the decision depends on the riskiness of the use of funds, not the source of the funds. Therefore, whether he can pay cash or must borrow is irrelevant. This is an important concept which will be discussed further in capital budgeting and the cost of capital in later chapters. CHAPTER 5 BULLOCK GOLD MINING 1. An example spreadsheet is: [pic] 2. Since the NPV of the mine is positive, the company should open the mine. We should note, it may be advantageous to delay the mine opening because of real options, a topic covered in more detail in a later chapter. 3. There are many possible variations on the VBA code to calculate the payback period. Below is a VBA program from http://www. vbaexpress. com/kb/getarticle. php? kb_id=252. Function PAYBACK(invest, finflow) Dim x As Double, v As Double Dim c As Integer, i As Integer x = Abs(invest) i = 1 c = finflow. Count Do x = x – v v = finflow. Cells(i). Value If x = v Then PAYBACK = i Exit Function ElseIf x < v Then P = i – 1 Z = x / v PAYBACK = P + Z Exit Function End If i = i + 1 Loop Until i > c PAYBACK = â€Å"no payback† End Function CHAPTER 6, Case #1 BETHESDA MINING To analyze this project, we must calculate the incremental cash flows generated by the project. Since net working capital is built up ahead of sales, the initial cash flow depends in part on this cash outflow. So, we will begin by calculating sales. Each year, the company will sell 500,000 tons under contract, and the rest on the spot market. The total sales revenue is the price per ton under contract times 500,000 tons, plus the spot market sales times the spot market price. The sales per year will be:    | |Year 1 |Year 2 |Year 3 |Year 4 | |   |Contract |$47,500,000 |$47,500,000 |$47,500,000 |$47,500,000 | |   |Spot |10,800,000 |16,200,000 |20,700,000 |8,100,000 | |   |Total |$58,300,000 |$63,700,000 |$68,200,000 |$55,600,000 | The current aftertax value of the land is an opportunity cost. The initial outlay for net wor king capital is the percentage required net working capital times Year 1 sales, or: Initial net working capital = . 05($58,300,000) = $2,915,000 So, the cash flow today is:    |Equipment |–$85,000,000 | |   |Land |–7,000,000 | |   |NWC |–2,915,000 | |   |Total |–$94,915,000 | Now we can calculate the OCF each year. The OCF is: | | |Year 1 |Year 2 |Year 3 |Year 4 |Year 5 |Year 6 | |   |Sales |$58,300,000 |$63,700,000 |$68,200,000 |$55,600,000 | | | |   |VC |19,220,000 |21,080,000 |22,630,000 |18,290,000 | | | |   |FC |4,300,000 |4,300,000 |4,300,000 |4,300,000 |$2,800,000 |$7,500,000 | |   |Dep. 12,155,000 |20,825,000 |14,875,000 |10,625,000 | | | |   |EBT |$22,625,000 |$17,495,000 |$26,395,000 |$22,385,000 |–$2,800,000 |–$7,500,000 | |   |Tax |8,597,500 |6,648,100 |10,030,100 |8,506,300 |1,064,000 |2,850,000 | |   |NI |$14,027,500 |$10,846,900 |$16,364,900 |$13,878,700 |–$1,736,000 |–$4,650,000 | |   |+ Dep. |12,155,000 |20,825,000 |14,875,000 |10,625,000 |0 |0 | |   |OCF |$26,182,500 |$31,671,900 |$31,239,900 |$24,503,700 |–$1,736,000 |–$4,650,000 | Years 5 and 6 are of particular interest. Year 5 has an expense of $2. 8 million to reclaim the land, and it is the only expense for the year. Taxes that year are a credit, an assumption given in the case. In Year 6, the charitable donation of the land is an expense, again resulting in a tax credit. The land does have an opportunity cost, but no information on the aftertax salvage value of the land is provided. The implicit assumption in this calculation is that the aftertax salvage value of the land in Year 6 is equal to the $7. 5 million charitable expense. Next, we need to calculate the net working capital cash flow each year. NWC is 5 percent of next year’s sales, so the NWC requirement each year is: |   | |Year 1 |Year 2 |Year 3 |Year 4 | |   |Beg. NWC |$2,915,000 |$3,185,000 |$3,410,000 |$2,780,000 | |   |End NWC |3,185,000 |3,410,000 |2,780,000 | | |   |NWC CF |–$270,000 |–$225,000 |$630,000 |$2,780,000 | The last cash flow we need to account for is the salvage value. The fact that the company is keeping the equipment for another project is irrelevant. The aftertax salvage value of the equipment should be used as the cost of equipment for the new project. In other words, the equipment could be sold after this project. Keeping the equipment is an opportunity cost associated with that project. The book value of the equipment is the original cost, minus the accumulated depreciation, or: Book value of equipment = $85,000,000 – 12,155,000 – 20,825,000 – 14,875,000 – 10,625,000 Book value of equipment = $26,520,000 Since the market value of the equipment is $51 million, the equipment is sold at a gain to book value, so the sale will incur the taxes of: Taxes on sale of equipment = ($26,520,000 – 51,000,000)(. 38) = –$9,302,400 And the aftertax salvage value of the equipment is: Aftertax salvage value = $51,000,000 – 9,302,400 Aftertax salvage value = $41,697,600 So, the net cash flows each year, including the operating cash flow, net working capital, and aftertax salvage value, are: |   |Time |Cash flow | |   |0 |–$94,915,000 | |   |1 |25,912,500 | |   |2 |31,446,900 |    |3 |31,869,900 | |   |4 |68,981,300 | |   |5 |–1,736,000 | |   |6 |–4,650,000 | So, the capital budgeting analysis for the project is: Payback period = 3 + $5,685,700/$68,981,300 Payback period = 3. 08 years Profitability index = ($25,912,500/1. 12 + $31,446,900/1. 122 + $31,869,900/1. 123 + $68,981,300/1. 124 – $1,736,000/1. 125 – $4,650,000/1. 126) / $94 ,915,000 Profitability index = 1. 174 To calculate the AAR, we divide the average net income by the average book value. Since the cash flows from the project extend for two years past the end of mining operation, we will include an average book value of zero for the last two years. So, the AAR is: AAR = [($14,027,500 + 10,846,900 + 16,364,900 + 13,878,000 – 1,736,000 – 4,650,000) / 6] / [(85,000,000 + 72,845,000 + 52,020,000 + 37,145,000 + 26,520,000 + 0) / 7] AAR = . 1485 or 14. 85% The equation for IRR is: 0 = –$94,915,000 + $25,912,500/(1 + IRR) + $31,446,900/(1 + IRR)2 + $31,869,900/(1 + IRR)3 + $68,981,300/(1 + IRR)4 – $1,736,000/(1 + IRR)5 – $4,650,000/(1 + IRR)6 Using a spreadsheet or financial calculator, the IRRs for the project are: IRR = 19. 1%, –74. 64% MIRR = 12. 94% NPV = –$94,915,000 + $25,912,500/1. 12 + $31,446,900/1. 122 + $31,869,900/1. 123 + $68,981,300/1. 124 – $1,736,000/1. 125 – $4,650,000/1. 126 NPV = $16,472,777. 67 In the final analysis, the company should accept the project since the NPV is positive. CHAPTER 6, C ase #2 GOODWEEK TIRES, INC. The cash flow to start the project is the $120 million equipment cost and the $11 million required for net working capital, yielding a total cash outflow today of $131 million. The research and development costs and the marketing test are sunk costs. We can calculate the future cash flows on a nominal basis or a real basis. Since the depreciation is given in nominal values, we will calculate the cash flows in nominal terms. The same solution can be found using real cash flows. Since the price and variable costs increase by 1 percent, and the inflation rate is 3. 5 percent, the nominal growth in both variables is: (1 + R) = (1 + r)(1 + h) R = [(1. 01)(1. 0325)] – 1 R = . 0428 or 4. 28% To analyze this project, we must calculate the incremental cash flows generated by the project. We will calculate the real cash flows, although using nominal cash flows will result in the same NPV. The sales of new automobiles will grow by 2. 5 percent per year, and there are four tires per car. Since the company expects to capture 11 percent of the market, the number of tires sold in the OEM market will be: |   | |Year 1 |Year 2 |Year 3 |Year 4 | | |Automobiles sold |5,600,000 |5,740,000 |5,883,500 |6,030,588 | |   |Tires for automobiles sold |22,400,000 |22,960,000 |23,534,000 |24,122,350 | |   |SuperTread tires sold |2,464,000 |2,525,600 |2,588,740 |2,653,459 | The number of tires sold in the replacement market will grow at 2 percent per year, and Goodweek will capture 8 percent of the market. So, the number of tires sold in the replacement market will be: |   | |Year 1 |Year 2 |Year 3 |Year 4 | |   |Total tires sold in market |14,000,000 |14,280,000 |14,565,600 |14,856,912 | |   |SuperTread tires sold |1,120,000 |1,142,400 |1,165,248 |1,188,553 | The tires will be sold in each market at a different price. The price will increase each year at the inflation rate, so the price each year will be:    | |Year 1 |Year 2 |Year 3 |Year 4 | |   |OEM |$38. 00 |$39. 24 |$40. 51 |$41. 83 | |   |Replacement |$59. 00 |$60. 92 |$62. 90 |$64. 94 | Multiplying the number of tires sold in each market by the respective price in that market, the revenue each year will be: |   | |Year 1 |Year 2 |Year 3 |Year 4 | |   |OEM market |$93,632,000 |$99,091,916 $104,870,213 |$110,985,458 | |   |Replacement market |66,080,000 |69,592,152 |73,290,975 |7 7,186,390 | |   |Total |$159,712,000 |$168,684,068 |$178,161,188 |$188,171,848 | Now we can calculate the incremental cash flows each year. We will calculate the nominal cash flows. Doing so, we find: |   | |Year 1 |Year 2 |Year 3 |Year 4 | |   |Revenue |$159,712,000 |$168,684,068 |$178,161,188 |$188,171,848 | |   |Variable costs |78,848,000 |84,151,806 |85,026,717 |87,024,208 | |   |Mkt. nd general costs |26,000,000 |26,845,000 |27,717,463 |28,618,280 | |   |Depreciation |20,020,000 |34,300,000 |24,500,000 |17,500,000 | |   |EBT |$34,844,000 |$23,387,262 |$40,917,008 |$55,029,360 | |   |Tax |13,937,600 |9,354,905 |16,366,803 |22,011,744 | |   |Net income |$20,906,400 |$14,032,357 |$24,550,205 |$33,017,616 | |   |OCF |$40,926,400 |$48,332,357 |$49,050,205 |$50,517,616 | Net working capital is a percentage of sales, so the net working capital requirements will change every year. The net working capital cash flows will be:    | |Year 1 |Year 2 |Year 3 |Year 4 | |    |Beginning |$9,000,000 |$23,956,800 |$25,302,610 |$26,724,178 | |   |Ending |23,956,800 |25,302,610 |26,724,178 |0 | |   |NWC cash flow |–$14,956,800 |–$1,345,810 |–$1,421,568 |$26,724,178 | The book value of the equipment is the original cost minus the accumulated depreciation. The book value of equipment each year will be:    |   |Year 1 |Year 2 |Year 3 |Year 4 | |   |Book value of equipment |$119,980,000 |$85,680,000 |$61,180,000 |$43,680,000 | Since the market value of the equipment is $54 million, the equipment is sold at a gain to book value, so the sale will incur the taxes of: Taxes on sale of equipment = ($46,680,000 – 54,000,000)(. 40) = $4,128,000 And the aftertax salvage value of the equipment is: Aftertax salvage value = $54,000,000 – 4,128,000 Aftertax salvage value = $89,872,000 So, the net cash flows each year, including the operating cash flow, net working capital, and aftertax salvage value, are:    |Time |Cash fl ow | | |   |0 |–$149,000,000 | | |   |1 |25,969,600 | | |   |2 |49,986,547 | | |   |3 |47,628,637 | | |   |4 |127,113,794 | | So, the capital budgeting analysis for the project is: Payback period = 3 + $28,415,213 / $127,113,794 Payback period = 3. 22 years The discounted cash flows are:    |Time |Discounted cash flow | |   |0 |–$149,000,000 | |   |1 |22,406,903 | |   |2 |34,978,941 | |   |3 |30,592,703 | |   |4 |70,446,422 | Discounted payback period = 3 + $61,021,454 / $70,446,422 Discounted payback period = 3. 27 years The required return for the project is in nominal terms, so the profitability index is: Profitability index = ($25,969,600/1. 15 + $49,986,547/1. 152 + $47,628,637/1. 153 + $96,714,733/1. 154) / $149,000,000 Profitability index = 1. 63 The equation for IRR is: 0 = –$149,000,000 + $25,969,600/(1 + IRR) + $49,986,547/(1 + IRR)2 + $47,628,637/(1 + IRR)3 + $96,714,733/(1 + IRR)4 Using a spreadsheet or financial calculator, the IRR for the project is: IRR = 18. 35% AAR = [(20,926,400 + 14,032,357 + 24,550,205 + 33,017,606)/4] / [($140,000,000 + 119,980,000 + 85,860,000 + 61,1180,000 + 43,680,000)/5} AAR = 25. 67% NPV = –$149,000,000 + $25,696,600/(1. 15) + $46,986,547/(1. 15)2 + $47,628,637/(1. 15)3 + $127,113,794/(1. 15)4 NPV = $9,424,967. 81 In the final analysis, the company should accept the project since the NPV is positive. CHAPTER 7 BUNYAN LUMBER, LLC The company is faced with the option of when to harvest the lumber. Whatever harvest cycle the company chooses, it will follow that cycle in perpetuity. Since the forest was planted 20 years ago, the options available in the case are 40-, 45-, 50, and 55-year harvest cycles. No matter what harvest cycle the company chooses, it will always thin the timber 20 years after harvests and replants. The cash flows will grow at the inflation rate, so we can use the real or nominal cash flows. In this case, it is simpler to use real cash flows, although nominal cash flows would yield the same result. So, the real required return on the project is: (1 + R) = (1 + r)(1 + h) 1. 10 = (1 + r)(1. 37) r = . 0608 or 6. 08% The conservation funds are expected to grow at a slower rate than inflation, so the real return for the conservation fund will be: (1 + R) = (1 + r)(1 + h) 1. 10 = (1 + r)(1. 032) r = . 0659 or 6. 59% The company will thin the forest today regardless of the harvest schedule, so this first thinning is not an incremental cash flow, but future thinning is part of the analysis since the thinning schedule is determined by the harvest schedule. The cash flow from the thinning process is: Cash flow from thinning = Acres thinned ? Cash flow per acre Cash flow from thinning = 5,000($1,000) Cash flow from thinning = $5,000,000 The real cost of the conservation fund is constant, but the expense will be tax deductible, so the aftertax cost of the conservation fund will be: Aftertax conservation fund cost = (1 – . 35)($250,000) Aftertax conservation fund cost = $162,500 For each analysis, the revenue and costs are: Revenue = [? (% of grade)(harvest per acre)(value of board grade)](acres harvested)(1 – defect rate) Tractor cost = (Cost MBF)(MBF per acre)(acres) Road cost = (Cost MBF)(MBF per acre)(acres) Sale preparation and administration = (Cost MBF)(MBF acre)(acres) Excavator piling, broadcast burning, site preparation, and planting costs are the cost of each per acre times the number of acres. These costs are the same no matter what the harvest schedule since they are based on acres, not MBF. Now we can calculate the cash flow for each harvest schedule. One important note is that no depreciation is given in the case. Since the harvest time is likely to be short, the assumption is that no depreciation is attributable to the harvest. This implies that operating cash flow is equal to net income. Now we can calculate the NPV of each harvest schedule. The NPV of each harvest schedule is the NPV of the first harvest, the NPV of the thinning, the NPV of all future harvests, minus the present value of the conservation fund costs. 40-year harvest schedule:    |Revenue |$42,194,250 | |   |Tractor cost |9,870,000 | |   |Road |3,525,000 | |   |Sale preparation & admin |1,269,000 | |   |Excavator piling |750,000 | |   |Broadcast burning |1,500,000 | |   |Site preparation |725,000 | |   |Planting costs |1,125,000 | |   |EBIT |$23,430,250 | |   |Taxes |8,200,588 | |   |Net income (OCF) |$15,229,663 | The PV of the first harvest in 20 years is: PVFirst = $15,229,663/(1 + . 0608)20 PVFirst = $4,681,788 Thinning will also occur on a 40-year schedule, with the next thinning 40 years from today. The effective 40-year interest rate for the project is: 40-year project interest rate = [(1 + . 0608)40] – 1 40-year project interest rate = 958. 17% We also need the 40-year interest rate for the conservation fund, which will be: 40-year conservation interest rate = [(1 + . 0659)40] – 1 40-year conservation interest rate = 1,183. 87% Since we have the cash flows from each thinning, and the next thinning will occur in 40 years, we can find the present value of future thinning on this schedule, which will be: PVThinning = $5,000,000/9. 5817 PVThinning = $521,825. 80 The operating cash flow from each harvest on the 40-year schedule is $15,229,663, so the present value of the cash flows from the harvest are: PVHarvest = [($15,229,663/9. 5817)] / (1 + . 0608)20 PVHarvest = $488,615. 51 Now we can find the present value of the conservation fund deposits. The present value of these deposits is at Year 20 is: PVConservation = –$162,500 – $162,500/11. 8387 PVConservation = –$176,226. 22 And the value today is: PVConservation = –$175,226. 22/(1 + . 0659)20 PVConservation = –$49,182. 52 So, the NPV of a 40-year harvest schedule is: NPV = $4,681,788 + 521,825. 80 + 488,615. 51 – 49,182. 52 NPV = $5,643,046. 36 45-year harvest schedule:    |Revenue |$49,232,800 | |   |Tractor cost |11,480,000 | |   |Road |4,100,000 | |   |Sale preparation & admin |1,476,000 | |   |Excavator piling |750,000 | |   |Broadcast burning |1,500,000 | |   |Site preparation |725,000 | |   |Planting costs |1,125,000 | |   | EBIT |$28,076,800 | |   |Taxes |9,826,880 | | |Net income (OCF) |$18,249,920 | The PV of the first harvest in 25 years is: PVFirst = $18,249,920/(1 + . 0608)25 PVFirst = $4,177,464 Thinning will also occur on a 45-year schedule, with the next thinning 45 years from today. The effective 45-year interest rate for the project is: 45-year project interest rate = [(1 + . 0608)45] – 1 45-year project interest rate = 1,321. 11% We also need the 45-year interest rate for the conservation fund, which will be: 45-year conservation interest rate = [(1 + . 0659)45] – 1 45-year conservation interest rate = 1,666. 38% Since we have the cash flows from each thinning, and the next thinning will occur in 45 years, we can find the present value of future thinning on this schedule, which will be: PVThinning = $5,000,000/13. 2111 PVThinning = $378,470. 46 The operating cash flow from each harvest on the 45-year schedule is $18,249,920, so the present value of the cash flows from the harvest are: PVHarvest = [($18,249,920/13. 21111)] / (1 + . 0608)25 PVHarvest = $316,209. 37 Now we can find the present value of the conservation fund deposits. The present value of these deposits is at Year 25 is: PVConservation = –$162,500 – $162,500/16. 6638 PVConservation = –$174,800. 29 And the value today is: PVConservation = –$174,800. 29/(1 + . 0659)25 PVConservation = –$35,458. 26 So, the NPV of a 45-year harvest schedule is: NPV = $4,177,464 + 378,470. 46 + 316,209. 37 – 35,458. 26 NPV = $4,836,685. 86 50-year harvest schedule:    |Revenue |$52,024,993 | |   |Tractor cost |12,110,000 | |   |Road |4,325,000 | |   |Sale preparation & admin |1,557,000 | |   |Excavator piling |750,000 | |   |Broadcast burning |1,500,000 | |   |Site preparation |725,000 | |   |Planting costs |1,125,000 | |   |EBIT |$29,932,993 | |   |Taxes |10,476,547 | |   |Net income (OCF) |$19,456,445 | The PV of the first harvest in 30 years is: PVFirst = $19,456,445/(1 + . 0608)30 PVFirst = $3,316,238 Thinning will also occur on a 50-year schedule, with the next thinning 50 years from today. The effective 50-year interest rate for the project is: 50-year project interest rate = [(1 + . 0608)50] – 1 50-year project interest rate = 1,808. 52% We also need the 50-year interest rate for the conservation fund, which will be: 50-year conservation interest rate = [(1 + . 0659)50] – 1 50-year conservation interest rate = 2,330. 24% Since we have the cash flows from each thinning, and the next thinning will occur in 50 years, we can find the present value of future thinning on this schedule, which will be: PVThinning = $5,000,000/18. 0852 PVThinning = $276,468. 34 The operating cash flow from each harvest on the 50-year schedule is $19,456,445, so the present value of the cash flows from the harvest are: PVHarvest = [($19,456,445/18. 0852] / (1 + . 0608)30 PVHarvest = $183,367. 60 Now we can find the present value of the conservation fund deposits. The present value of these deposits is at Year 30 is: PVConservation = –$162,500 – $162,500/23. 3024 PVConservation = –$171,485. 25 And the value today is: PVConservation = –$171,485. 25/(1 + . 0659)30 PVConservation = –$25,283. 50 So, the NPV of a 50-year harvest schedule is: NPV = $3,316,238 + 276,469. 34 + 183,367. 60 – 25,283. 50 NPV = $3,750,790. 98 55-year harvest schedule:    |Revenue |$54,516,748 | |   |Tractor cost |12,670,000 | |   |Road |4,525,000 | |   |Sale preparation & admin |1,629,000 | |   |Excavator piling |750,000 | |   |Broadcast burning |1,500,000 | |   |Site preparation |725,000 | |   |Planting costs |1,125,000 | |   | EBIT |$31,592,748 | |   |Taxes |11,057,462 | |   |Net income (OCF) |$20,535,286 | The PV of the first harvest in 35 years is: PVFirst = $20,535,286/(1 + . 0608)35 PVFirst = $2,606,233 Thinning will also occur on a 55-year schedule, with the next thinning 55 years from today. The effective 55-year interest rate for the project is: 55-year project interest rate = [(1 + . 0608)55] – 1 55-year project interest rate = 2,463. 10 We also need the 55-year interest rate for the conservation fund, which will be: 55-year conservation interest rate = [(1 + . 0659)55] – 1 55-year conservation interest rate = 3,243. 60% Since we have the cash flows from each thinning, and the next thinning will occur in 55 years, we can find the present value of future thinning on this schedule, which will be: PVThinning = $5,000,000/24. 6310 PVThinning = $202,995. 97 The operating cash flow from each harvest on the 55-year schedule is $20,535,286, so the present value of the cash flows from the harvest are: PVHarvest = [($20,535,286/24. 6310] / (1 + . 0608)35 PVHarvest = $105,810. 96 Now we can find the present value of the conservation fund deposits. The present value of these deposits is at Year 35 is: PVConservation = –$162,500 – $162,500/32. 4360 PVConservation = –$169,097. 37 And the value today is: PVConservation = –$169,097. 37/(1 + . 0659)35 PVConservation = –$18,121. 00 So, the NPV of a 55-year harvest schedule is: NPV = $2,606,233 + 202,995. 97 + 105,810. 96 – 18,121. 00 NPV = $2,896,918. 96 The company should use a 40-year harvest schedule since it has the highest NPV. Notice that when the NPV began to decline, it continued declining. This is expected since the growth in the trees increases at a decreasing rate. So, once we reach a point where the increased growth cannot overcome the increased effects of compounding, harvesting should take place. There is no point further in the future which will provide a higher NPV. CHAPTER 8 FINANCING EAST COAST YACHT’S EXPANSION PLANS WITH A BOND ISSUE 1. A rule of thumb with bond provisions is to determine who the provisions benefit. If the company benefits, the bond will have a higher coupon rate. If the bondholders benefit, the bond will have a lower coupon rate. a. A bond with collateral will have a lower coupon rate. Bondholders have the claim on the collateral, even in bankruptcy. Collateral provides an asset that bondholders can claim, which lowers their risk in default. The downside of collateral is that the company generally cannot sell the asset used as collateral, and they will generally have to keep the asset in good working order. b. The more senior the bond is, the lower the coupon rate. Senior bonds get full payment in bankruptcy proceedings before subordinated bonds receive any payment. A potential problem may arise in that the bond covenant may restrict the company from issuing any future bonds senior to the current bonds. c. A sinking fund will reduce the coupon rate because it is a partial guarantee to bondholders. The problem with a sinking fund is that the company must make the interim payments into a sinking fund or face default. This means the company must be able to generate these cash flows. d. A provision with a specific call date and prices would increase the coupon rate. The call provision would only be used when it is to the company’s advantage, thus the bondholder’s disadvantage. The downside is the higher coupon rate. The company b