“Adrienne Rich’s poem: Living In Sin” Analysis Essay

Adrienne Rich’s poem Living In Sin is a free verse poem about a woman’s fairy tale dream of marriage versus the reality of the sin of not loving each other. The subject of the poem is a woman starting a life of hope and happiness in a perfect relationship only to learn the true reality of the relationship. The speaker of the poem observes the woman’s life as sad and boring using the past tense versus the present, and short run on lines that set the hopeless mood of the poem. Imagery and colorful language is also used to describe the unhappy relationship throughout the poem. Living In Sin shows a woman’s life without rhyme in four meaningful images and as the tone changes she sees the relationship/marriage she expected and the relationship as it actually is. To begin with the speaker uses run-on lines, past tense and tone to illustrate the first image. â€Å"She had thought the studio would keep itself†¦Ã¢â‚¬  shows that in the beginning of the relationship she pictured a fairy tale marriage like Cinderella. There would be no chores, no dusting, everything would be a perfect marriage. The use of past tense means she is thinking of what is not. The lines are also short and choppy making everything sound hopeless. The next line, Half heresy†¦ the speaker comes back to the present tense of the leaky faucet, noise and dirty windows. The mood then shifts again and she paints a pretty picture of her home with fruit and happiness on the table, a piano with an expensive shawl, and a cat as a nice pet. The short, choppy run on lines makes the woman’s life appear hopeless and tired of doing this day after day. The next image the speaker speaks about is the dinner from the night before. By using the past tense again, Not that at five†¦. shows the image of a romantic dinner that never was. The poem looses this imagery with the sound of the milkman waking her up as the cold morning dawns only to ruin her fantasy dream of the frustration of cleaning up from the night before. The use of language to describe last night’s cheese is a metaphor to show how sour their relationship really is. The speaker also uses three sepulchral bottles, sepulchral meaning burial or tomb, as a metaphor or image of the bottles lined up as dead soldiers from the night before of drinking and partying. The woman feels as if she too has died inside and is living in a  tomb. The bug, a pair of beetle-eyes would fix her own–, is another example of an image of what the woman doesn’t expect from life as she writhe under the milkman’s tramp†¦personifies her bending in pain. Finally the man in her life is introduced. Again run on, choppy lines are used to describe him in only four lines shows he is not in her life very often and she is frustrated and angry at him. He is described as yawning which shows that he is ignoring her and just goes on with his on self absorbed life. He then plays the piano which is out of tune like their relationship is in need of help. Next he shrugs at the mirror and leaves for a cigarette suggests he doesn’t care about her. Then the reality, using past to present, as the woman realizes by the minor demons, her inner thoughts of the fantasy versus the reality of the house work he left behind for her to do. The woman goes back to making the house look perfect on the outside to keep up the idea of a fairy tale life that she once thought she might have. The image of the coffee-pot boil over on the stove shows that even though she is going on like nothing is wrong, inside she is boiling. Comparative imagery is used to show life then and now in the the pears are now last night’s cheese, the cat is now a beetle-eye bug, a piano with a Persian shawl is now an out of tune keyboard, and no dust upon the furniture of love is now a dusty table-top. The illusion of a fantasy and now the reality of her life. The final image ends with By evening she was back in love again, shows the fantasy versus the reality of waking to feel the daylight coming when she can start all over again. Like a relentless milkman up the stairs, she has to wake up and do the same thing day after day like the milkman waking up and starting all over again to deliver the milk. The woman goes back to her job that life will get better and someday will have a fairy tale ending, but until then she has to live in her tomb of a relationship, hence, living in sin of not being happy with what she has. Adrienne Rich’s poem does an interesting job of describing the miserable life of a woman looking for love. She uses colorful language and imagery to show the dark, unhappy life of this woman. There is a lot of emotion and feelings  throughout the poem. The words like, grime, writhe, coldly, sepulchral, beetle-eyes, jeered, and demons all give a feeling of the sadness that this woman feels every day. The poem is easy to read and feel the loneliness this woman has in four, choppy run on images. In conclusion, Living in Sin paints a picture of a woman finally realizing that her marriage is not a fairy tale ending. Through imagery, run on lines, and tone the sin is in the guilt from not living in the present and not being in love with her husband, who’s not in love. This was an interesting poem on the sin of not loving each other and accepting each other for who they are.

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

Barack Obama - Second Weekly Transition Address

Barack Obama Second President-Elect Weekly Transition Address Broadcast 15 November 2008 Today the leaders of the G-20 nations, a group that includes the worlds largest economies, are gathering in Washington to seek solutions to the ongoing turmoil in our financial markets. Im glad President Bush has initiated this process, because our global economic crisis requires a coordinated global response.And yet, as we act in concert with other nations, we must also act immediately here at home to address Americas own economic crisis. This week, amid continued volatility in our markets, we learned that unemployment insurance claims rose to their highest levels since September 11th, 2001. Weve lost jobs for ten straight months nearly 1.2 million jobs this year, many of them in our struggling auto industry. And millions of our fellow citizens lie awake each night wondering how theyre going to pay their bills, stay in their homes, and save for retirement.Make no mistake: This is the greatest economic challenge of our times. And while the road ahead will be long, and the work will be hard, I know that we can steer ourselves out of this crisis, because here in America we always rise to the moment, no matter how hard. And I am more hopeful than ever that America will rise once again. But we must act right now. Next week, Congress will meet to address the spreading impact of the economic crisis. I urge them to pass at least a down-payment on a rescue plan that will create jobs, relieve the squeeze on families, and help get the economy growing again. In particular, we cannot afford to delay providing help for the more than one million Americans who will have exhausted their unemployment insurance by the end of this year. If Congress does not pass an immediate plan that gives the economy the boost it needs, I will make it my first order of business as President. Even as we dig ourselves out of this recession, we must also recognize that out of this economic crisis comes an opportunity to create new jobs, strengthen our middle class, and keep our economy competitive in the 21st century. And that starts with the kinds of long-term investments that weve neglected for too long. That means putting two million Americans to work rebuilding our crumbling roads, bridges, and schools. It means investing 150 billion dollars to build an American green energy economy that will create five million new jobs, while freeing our nation from the tyranny of foreign oil, and saving our planet for our children. It means making health care affordable for anyone who has it, accessible for anyone who wants it, and reducing costs for small businesses. And it also means giving every child the world-class education they need to compete with any worker, anywhere in the world. Doing all this will require not just new policies but a new spirit of service and sacrifice, where each of us resolves to pitch in and work harder and look after not only ourselves, but each other. If this financial crisis has taught us anything, its that we cannot have a thriving Wall Street while Main Street suffers. In this country we rise or fall as one nation, as one people. And thats how we will meet the challenges of this time together. Thank you. Source:Â  https://www.loc.gov/ Source: https://en.wikipedia.org

Narrative Essay Example | Topics and Well Written Essays - 1000 words - 1

Narrative - Essay Example I was all geared up after my I finished my midyear exams and I thought to myself that it was time to kick back as well relax after all the sleepless nights spend studying. I could not help but go to the Chalet, this was the first thing on my mind and I knew the opportunity had come for me to have a well-deserved holiday. The thought of the Chalet made me excited and my cheeks flushed with happiness which I could not hide from anyone. The thought of having a holiday was God sent and I could not believe it. I finished packing and called up my friends in order to move into the Chalet. The journey to the Chalet was smooth and we drove as we sung and bonded. I could not believe that I had finished my exams and I was getting the much deserved holiday that in needed. However, upon reaching the Chalet we realized that there was a need to get some foodstuffs in the nearest supermarket. Being the smallest one I was told to follow my Cousin’s car and I followed the car with my ATV slowly. The night was dark and chilly and consequently the visibility was low. It was well known that my Cousin was a good driver, however, things started going haywire when he started showing off. The road was not as smooth and consequently as a result of his drifting, several stones were thrown towards our car and I had to swerve in order to avoid them. However, out of nowhere my cousin’s car flipped and rolled several times. I gasped out of breath and I could not believe what was unfolding before my eyes. Bodies were being thrown outside the window in weird and contorted ways. I was rooted to the spot and could not be able to move, I looked at the horrific accident with my mouth agape. The smile that was there initially was wiped out clean and what was existed was a face that showed sadness and despair. Seeing people that I cared about very much coughing blood and desperately crying for help on the sand and on the pavements made me crouch with fear.

Economics Effects of Taxing Sugar Beverages Research Paper

Economics Effects of Taxing Sugar Beverages - Research Paper Example Such economic policies have provided conventional measures in various sectors that have ensured reduction in consumption of non-dietary food items. Economists assert that best economic policies that could reduce consumption of non-dietary food that contribute to lifestyle diseases include adoption of price cap and taxation policies. These policies would advance commodity prices hence reduce its demand. Evidently, sugar beverages form one of the food items consumed by majority that have immense effect on productivity. It presents severe complications that delimit human functioning and productivity. Chronic diseases that it causes include diabetes, obesity and heart diseases that have severe complications.Economists assert that nations and individuals should adopt essential methods to facilitate eradication of lifestyle diseases that presents long-term complications for example diabetes which is caused by consumption of sugar beverages. They stated that authorities should adopt proper conventional strategies to facilitate eradication of chronic diseases that cause immense lose. Nations including the US have initiated development of sound health care policies to provide basic incentives towards improving health standards. The policies are geared towards reforming the entire health system with an aim of providing effective, fair and superior medical assistance to citizens. US government view health as a vital element that has to be improved through potential policies with absolute potential to revolutionize the sector. This is to facilitate provision of fair nursing care through superior treatment ideals and dietary counseling. Consequently, the policy seeks to ensure that individuals are informed about the dangers of compromised dietary food consumption including complications of drugs. This paper evaluates the imperativeness of economic health care with focus to sugar beverages that hinders human development. Health care policies Health care policies are comprehensive guidelines that drive provision of quality nursing services and enhancement of individual’s life standards. Health officials are under obligation to provide basic treatment and counseling based on health matters and food dietary system. The activities should be formulated with an aim of developing a healthy nation with vibrant economic prospects that are sustainable. Developing effective health care policies requires input of various stakeholders (Neuman 1). Evidently, effective health policies should consider various factors that include monetary impact, dietary system, and infrastructural system and health professionals. These factors are significant in devising appropriate health policies that enhances safety and human

History of Telephone Essay Example | Topics and Well Written Essays - 1000 words

History of Telephone - Essay Example Bell developed new and original ideas, but did so by building on older ideas and development (Farley). Transmission of electricity over wires by Stephen Gray in 1729, first Battery produced by Alessandro Volta in 1800, Michael Faraday's experiments with electromagnetism in 1821, Professor Henry's transmission of the first practical electric signal and the invention of the electromagnet in 1830 were the major developments, which paved the way for the invention of the first working telegraph by Samuel Morse in 1837, and the completion of the first non-working telephone in 1861 by Johann Phillip Reis. Successful experiments with a clock spring reed in transmitting actual sound over a pair of wires, ultimately led to the birth of the telephone on March 10, 1876, with the famous first sentence to be transmitted accidentally: "Mr. Watson, come here, I want you". With other inventors like Elisha Gray closely on his heels, Bell received his patent No. 174,465 for his epoch making invention. Since his invention was unprecedented, Bell was obliged to call it as "an improvement in telegraphy". Obviously, it was the telegraph and its wired network, which was most responsible for the development and success of the telephone. Impact of the Telephone on the social elements: Even after being baptized by the patent office and given a royal reception at the Philadelphia Centennial Exposition, Bell, instead of being applauded was pelted with a hailstorm of ridicule. While men of trade and commerce preferred to call it a scientific toy,. The newspapers went to the extent of describing it as 'the latest American humbug' (the London times), Salem Witchcraft , and something associated with the powers of darkness (The Providence press).The very idea of speaking to a metal piece seemed too bizarre and freakish. Since no one could understand how it worked, people saw this performance as a loss of dignity. Public Officials were slow to adopt it, as they were accustomed to use of written documents, and so was the banking community. It was only after a series of demonstrations and lectures arranged by Bell, as well as an account of a documented 3 hour demonstration, published in The Boston Advertiser (October 19, 1876), that people started taking it seriously. They r ealized, after several years of turmoil, that the telephone offered a hitherto unknown advantage of a 'Human Touch' to the communication. One could converse, respond to tones of voice and moods, discuss, persuade, enquire, argue and even reach agreements in a few minutes, in a personal way. It enabled members of the family to travel and even emigrate with increased security. It enabled the government to handle emergencies, like war, fires, accidents storms etc. Medical emergencies could be attended to much more efficiently. As it was having several advantages over telegraph, the businesses were in a position to handle all the issues in a more personalized way, and much faster. The Telephone in people's homes: Reasons for the delayed entry: The real popularity of the telephone in the home segment had to wait for more than 20 years after the invention of the

The Issue of the Negative Externalities of the Profit Maximization Aim Essay

The Issue of the Negative Externalities of the Profit Maximization Aim of the Big Corporations - Essay Example In this essay, he is against the big corporations which exploit the community in order to raise their profits, and condemns their motives and actions, accusing them of selfishness and non-humanitarianism; therefore his reputation instigates the reader to accept his blatant accusations and emotional appeals, thus the way a reader would read this essay. He bases his claim on the pieces of evidence from law pertaining to different illegal acts in the American society, proceeds on to include the numerical figures of the houses and villages that have been uprooted due to the tyranny of the big corporations, furthermore he states the abnormal profit figures generated by GM.  Ã‚   The main focus of his essay is on pathos since it is obvious that he is using sensitive terms such as ‘destroys Parma, moral, kills, illegal, hazardous, rights’ etc., in order to appeal to the emotions of the readers and arouse their sensitive side. To some extent he also makes use of ethos, since he has a reputation of speaking the blatant truth, and people usually respect him for his honesty and blunt opinion on any issue (IMDB, 2010), in addition to this, he also states that his film â€Å"Roger and Me† has been viewed by all bottom-line feeder, but this is a argue that is subjective in nature, and not at all being backed by evidence, this is a logical fallacy known as ‘hasty generalization’ since Moore is claiming that all people of the mentioned group have seen the movie. Moore has made other logical fallacies in this essay as well, such as the use of emotionally loaded terms, which makes the basis of this work has a ‘pathos’ approa ch. Furthermore, he has overly simplified the matter, since the way he has presented the argument for making the point of selling crack and corporation actions  appear on equal footing seems to be very simplified, while it actually might not be the case, since selling of crack would not affect the economy and health of the people the same way as other matters.

E Essay Example | Topics and Well Written Essays - 1500 words

E - Essay Example What this means is that State A has the right to withhold State B’s ship and that â€Å"arrested vessels and their crews shall be promptly released upon the posting of reasonable bond or other security† (Part V). Therefore, State A believes that it has the right to keep the ship until State B comes up with $80,000,000 in reparations. This Convention also states that State A would have the right to pursue any legal avenues that it deems necessary in order to maintain its own sovereignty, which is threatened by another country taking resources from its sea. State B, on the other hand, disputes the fact that $80,000,000 is a reasonable amount of money to pay for this offence. Despite the fact that State B knew full well that it was breaking the law, since this is a clear violation of the Convention, State B also does not believe that the offence is severe enough to warrant the penalty that has been imposed. State A is now taking the case to the International Tribunal for t he Law of the Sea in order to have a verdict rendered. As both state should know, a state’s Exclusive Economic Zone usually expands a distance of 200 nautical miles from the state’s coast. While there are exceptions, such as when a two EEZs overlap, there is no reason to believe that this is the case in this particular situation. If an overlap had occurred, it would be up to the states to come to a solution before this happened, with the state that is closest to where the dispute took place usually having control over the region. The EEZ includes all marine life that is found within the zone, so any fish that State B caught were, in fact, the property of State A. Also, any samples that were taken from the subsoil in this dispute are also the property of State A. Because of this, State A was well within its rights to arrest the crew and impound the vessel. Despite this, the crew and vessel must be released promptly once an agreement on the financial security is reached.

Opinion argument for or against Essay Example | Topics and Well Written Essays - 750 words

Opinion argument for or against - Essay Example provide quality education to as many citizens as possible disregarding their individual peculiarities and enable them to realize their potential. If the gifted students have more potential, they should be able to realise it, and creating special classes seems to be the best way out. Still, there are some problems to be considered. The problem of striking a proper balance between standardization and individualization when deciding if the children should study separately or remain in the "ordinary" class is one of the most topical: [s]tandardizing the assessment procedures, content, and scoring criteria enables those not directly involved in the administration of the assessment to understand the conditions under which the performance occurred and the criteria against which it was scored. Thus, standardization is critical if test scores are to be understood by anyone not intimately knowledgeable about the details of the assessment procedures used to test each student. (Hager & Slocum 2005, 55) However, as the students are all quite diverse, with their own needs and peculiarities, individual approach should also not be neglected. The No Child Left Behind Act states that testing is obligatory for all the American students, including the students with disabilities. (Hager & Slocum 2005, 54) Of course, the problems of choosing an appropriate alternate assessment and the alignment of the "specialized" programs with a general curriculum arise, along with the issue of the ethical character - how reasonable it is to implement high-stakes testing to the students who are less able compared to the rest. As I have mentioned at the beginning of the paper, though I support the idea of giving the talented and motivated kids as much as possible, there are some very important and burning issues that can make this decision unfair and wrong. For me, the reasons for not placing the gifted students into the specialized classes lay in different spheres. First of all, some students who can be evaluated as non-gifted and who have problems learning, could be the victims of a subjective evaluation - their intellect and abilities might be as high as those of the students with higher scores, but there is something that prevents them from showing that (emotional problems, low self-esteem, difficult situations in the family and other personal issues, etc.) There are, however, some problems that are of a more complicated nature. Though steps are being taken to achieve equality between the Americans of different genders, races, and social and economic backgrounds, still the problem of inequality is very burning one. It has been proved by researchers that the students coming from the families of higher social and economic background receive better education in schools, and therefore they tend to have significant advantage as compared to poorer children. Black children, among whom the number of those coming from poor families is much higher than among the white kids, have a limited access to education, and therefore even a

California-Illini Manufacturing Case Study Example | Topics and Well Written Essays - 1000 words

California-Illini Manufacturing - Case Study Example Their cost reduction strategy though seemed efficient; it was not able to compete well in the short run. The Cl’s standard cost system and the high levels of work-in-progress had impacts on its cost reduction strategy. However, the new Production Control/Inventory Control (PCIC) Manager is seen working on the right track, by implementing new strategies to manage the constraints to restrict the company form producing and building higher inventory levels for products not having sufficient demand. Thus, implementing a Theory of constraint approach would be most suitable for the Company to manage the human and material resources well. Problem Statement Competitive strategy, in the normal sense refers to the way a company can achieve a competitive advantage in its operating market while choosing a distinctive way of competing. California-Illini Manufacturing Company is able to compete in the global market by making the maximum use of their competitive strategy. They are the largest producers of plain and hard-faced replacement tillage tools in the United States. They concentrate more on handmade tillage tools. They use expensive metal pieces and metal forged metals in the production process, together with using manual electric arc welders. In the global market, there is greater opportunity for handmade products, especially for machineries and automobiles. For example, handmade vehicles, such as the Lamborghini cars are highly demanded as well as more expensive, because the extensive efforts and labor to produce the vehicle has attributed it to be better built. However, their line of industry in America as well as in the global market is getting very competitive. Products with cheaper rates are brought into the market, which makes the market more and more competitive. In spite of all these conditions, there is still a considerable market for the handmade, rugged, American machineries and tools. Therefore, the company can stick to their design and competitive s trategy and bring products into the market, from their family built, third-generation Company. They have the advantage of utilizing the quality of tools as their trademark. Causes of the Problem The California-Illini Manufacturing Company’s cost reduction strategy is attributed to the various market conditions and global economic stipulations. During 1980s, when President Reagan was in his first term, an economic downturn struck the global market. The slow down in the market caused many global companies like the California-Illini Manufacturing to struggle. The company was in need of formulating a strategy as its cash flow was poor and the inventory levels were down. They had to find out ways to cut down the cost, increase prices, and develop technology and productivity. However, the cost reduction strategy formulated by the management faced some unexpected failures in the short run. In 1989, the cost cutting strategy was seen failing, firing the operating costs up 20%. The in ventory level was increased by 24% and the net profit continued to slip (California-Illini Manufacturing). The California-Illini Manufacturing Company’s standard Cost system had an impact on the cost reduction strategy. The Company put a cost system into operation to measure performance and profit potentials. Under the cost system, a standard level was ascertained to each element, including material and labor. In the same way, each production manager was evaluated on their

Sophie Neveu Finds the Truth Essay Example for Free

Sophie Neveu Finds the Truth Essay In the Da Vinci Code by Dan Brown, Sophie embarks on a journey to not only to find the Holy Grail but also the truth about her family. Sophie’s character changed a lot throughout the story, she became a lot more aware about what is goes on in the world and how one’s past and history can have a big impact in life. She had to learn and grow as a person because of how much pressure she was on while figuring out the answers to all of the secret messages her grandfather left her. She also had to face a lot of difficulties due to the fact that she had so many people standing in the way and trying to hurt her and reveal the secret. Sophie Neveu is the granddaughter of the Grand Master of the Priory of Sion, Jacques Sauniere, the only real background we have of her is that her grandfather raised her from a very early age, after her parents were killed in a car accident (82). We find out that Sauniere trained her to solve complicated word puzzles as a young girl and that it was these puzzles and riddles that sparked her interest in solving them (218). The fact that she was exposed to puzzles and riddles when she was a child is likely the reason why she ended up working in a field that revolved around that topic. One of the things that give us some insight into Sophie’s personality is when we are told about a day when she accidentally discovered a strange key in her grandfathers room inscribed with the initials P.S. (118). This isn’t until much deeper into the book but it really defines who Sophie Neveu is because it shows how she struggled to find the truth about her family’s history from a very young age and that Sauniere was keeping secrets from her. This caused her to get even more curious about her past and is one of the main reasons why she becomes so dedicated to finding the Grail. Something that is really interesting about Sophie is the fact that her name’s meaning is that of the ancient goddess of wisdom, the icon of the divine feminine, Sophia; which means wisdom, this is very interesting becau se she does display wisdom at many points throughout the novel and out-shinning Robert most of the time. Throughout the book Sophie learns the reasons behind her grandfathers strange behavior and why he kept so many things hidden from her. At the beginning of the story we are told that she had stopped all forms of communication from her grandfather because of an estrange ritual she saw him be a part of and we are told that she had not spoken or seen him until the night of his murder (76-77). This shows that at a very young age Sophie had to deal with a very traumatic experience that shaped her personality and made her become a strong woman and caused her to not show much emotion. Sophie is a cryptologist working for the Parisian police and therefore a very intelligent woman. She shows she’s intelligent because she realizes that the message â€Å"P.S: Find Robert Langdon† is meant for her; She delivers a message to Robert Langdon letting him know that Officer Fache finds him as the prime suspect of Sauniere’s death. She reveals to Langdon that she is Sauniere’ s granddaughter and tells Langdon that she was sure of it because her grandfather used to call her Princess Sophie as a child. (76-77). Sophie’s talk to Langdon in the bathroom of the Louvre sets up the plot for the entire novel as well as give us some very important background information about Sophie, not only do we become aware of how intelligent she is but we also realize that she is brave enough to go against Fache and the Parisian police if it means finding out the truth about her past and family. Sophie doesn’t tell anybody else about the message her grandfather left her because she realizes that if her grandfather didn’t want anyone else to know what had happened. Being the only one that knows that Sauniere was hiding something important causes Sophie to act impulsively and helps Langdon escape from the police. It isn’t until farther into the book that we are told that her grandfather raised her from a after her parents were killed in a car accident and that he then proceeded to train her to solve complicated word puzzles and even made a cryptex for her (216). We are given brief flashbacks of her life, which prove that she was curious and hungry for knowledge from an early age. An example of this is that we are told that she accidentally discovered a strange key in her grandfathers room inscribed with the initials P.S. and that she tried looking for information about her family but anytime she tried Sauniere would get mad and tell her to forget about them. (118). This has a lot to do with her personality as an adult and being part of the Parisian police as a cryptographer, the fact that she spends her days at work figuring out puzzles and hidden messages shows that living with Sauniere made her become good at unscrambling and finding out the truth, the way she was brought up by Sauniere shaped her personality to be that of a person who doesn’t fully trust people and that is worthy of knowing important information such as the location of the Holy Grail. Sophie finds out at the end of the book that she is a descendant of the Merovingians, a living descendant of Jesus Christ and Mary Magdalene and that she is; literally, what her grandfather nicknamed her when she was a child: â€Å"Princess Sophie.† She also finds out that Sauniere wasn’t really her grandfather but that since he was the Grand Master of the Priory of Sion she would be safer with him. He chose to protect her and prepare her for what he knew was coming. The rest of the Priory then welcomes Sophie and tell her that they will protect her. At the beginning Sophie is brave and intelligent, she exhibits confidence and knowledge about her job and surroundings, but thought-out the novel and as she starts to unravel more of the secret and the Holy Grail she seems to leave that confidence behind and start questioning he past and who Sauniere really was. She starts showing more emotion throughout the novel and the closer we get to the end. Sophie is a strong woman who got a bit confused because of the uncertainty of her past and not knowing that she could trust. Works Cited Brown, Dan. The De Vinci Code, NY: Anchor, 2003. Print.

Gender roles Essay Example for Free

Gender roles Essay Well, the topic of gender roles is a ripe one. While there is no specific outline providing benchmarks to use in classifying a person’s gender, a number of factors come into play in helping define one’s gender. One of the factors is cultural prescription as provided for by a person’s social group. A man is a man or a woman a woman depending on how the social group they belong to label or socializes them. But one should remember here that genitalia alone do not determine a person’s gender. While one’s sex is determined by one’s biology, both biology and culture (nature and nurture) determine their gender. There are different roles for different genders. Gender is more of culturally than biologically determined. In fact, a person could be born with male genitalia but be of female gender or vice versa. Differences exist between the male and female genders for instance; men are braver than women and women more emotional than men. Women like being protected while men like to protect. Also, men want to pursue a woman for relationship while women want to be pursued. The differences between the genders emanate from differences in sexes culture, religion among others. Some of the similarities include: both are jealous, self-centered and want to mend the other to live up to their own standards. Again, both genders converge in their need for recognition and love. These among other differences and similarities together with other factors such as legal have succeeded in being constant obstacles on the road to equality. Most social groups, our parents and the media have socialized us to believe that the male gender is superior to the female gender. One can ask, does sex determine one’s abilities? Pursuing such a question may elicit an endless debate but a sex-based approach in determining gender roles is bias and oppressive to women and perpetuates inequalities and patriarchy. No wonder women have to fight for equality. Kyra Sedgwick says that, â€Å"†¦we are still not really supposed to want it as much as guy does. † But I think women should be able to make their own choices. I would want to socialize my children in a manner that they will see both genders as equal and worth as much respect despite the differences. I will also want to allow them freedom to choose what they want to be in life. I will not deny them opportunities on the basis of their gender. I will also encourage them to follow their passion provided they are within the range of acceptable careers and I will endeavor to support them. A number of questions puzzle me. They include; In agitating for equality, do women become more women or less? Is a woman more woman because she enjoys same rights as a man? Is it possible to invent a universally acceptable modality of determining gender roles so as to eschew the controversy? What provisions do our societies make for those individuals who do not qualify as average male/female? These questions leave me lost in the labyrinths. The first and second questions demand that women be careful when agitating for equality lest they lose their identity. Anyway what is so serious about losing one’s identity? If forgoing one’s identity will make one have a happier life then isn’t it better to forgo it. What should be pursued, identity or happiness? Addressing the third question will save us unnecessary debates while the fourth question rises out of my worry that there are some persons that are left out in the classification of genders and this could be unfair- a more inclusive definition needs to be adopted for a fair discussion. In doing away with the dual classification such terms as feminism and others that are so ‘poisoned’ will be avoided and may be a less controversial nomenclature adopted. Andrea Wong is a brave woman. From her early age she tried her leg in leadership, a field that was erroneously perceived as a reserve for men. Also unlike most women, Andrea Wong knows how, after falling, to get up, dust herself off and keep going. Unlike Wong, most women get resigned after their first failure. If women were like her, they would also be leaders like she is today and would be doing great exploits. Rachel Roy is another woman who impresses me. She goes for what she wants and she wants nothing but the best, â€Å" If I couldn’t work at Contempo, I didn’t want to work anywhere. † This shows a resolve that most women lack. She knows what she wants that is to be a designer, â€Å"her passion started in childhood and she has never wavered†. She is final in her decision. These two women not only set good example for me but also are good role models for women. From the pieces, it is clearly depicted that success for women is dependent on their attitude and not their gender. If women changed their attitude then they would favorably compete against men and it would be easier for them and tougher for men. Works cited Newsweek, October 15, 2007.

The History Of Haleeb Foods Marketing Essay

The History Of Haleeb Foods Marketing Essay Haleeb milk was the market leader in the dairy industry, in order for Haleeb to regain its market share they need to emphasize on, and create consumer awareness and differentiate from other milk products. Haleeb since it originally started has been using the same packaging, which has not been helpful in creating a positive perception in consumers minds. Haleeb needs to revamp its packaging in a fresh way keeping consumer wants and perceptions in mind. Companies change their overall look of products or launch new products to keep up with the fast paced changing market. Haleeb needs to get out of its comfort zone and relaunch its milk products with a fresh new look, using innovative advertising, fancier logos, and better packaging. Haleeb is dependent on Tetra Pak for the packaging of its entire dairy product line. Tetra Pak is the only option available to Haleeb and other milk providers for packaging because they have monopoly over the packaging sector in Pakistan. This gives Tetra Pa k a bargaining power of suppliers. Consumers perceptions and price differentials can cause a threat for the company. Loose milk is cheaper than packaged milk, this is one of the reasons why people prefer loose milk from local dud walas over packaged milk products. This is one of the barriers cutting into Haleeb milks profit margins. Haleeb needs a new design, a new innovative logo and a brand new package shape. The best option would be tetra pack carton with a removable and screwed top which can be open easily and is easy to use and dispose off. The color can also be changed, color is its personality and needs as new fresh look. An option is to have different colors for 3 different categories of milk, whole milk, 1% fat, and 2 %fat, an interesting bold logo and a change in carton shape. The screw top will be a hit as Prema has an attractive packaging as well. Here are some of the ways Haleeb will increase their market share. Promotion is very important as at this point Haleeb has no t promoted itself in the past few years. According to the surveys, consumers are influenced most by TVCs followed by street advertisement and lastly by publicity and public relations. The reason why sales decreased was because of bad word of mouth and highly negative publicity. Haleeb will now design a drastic promotion portfolio and through its diversity, gain a higher market share. Competitor Analysis The brand competition for Haleeb milk includes all those milk brands which are in direct competition with Haleeb. Haleeb is competing with three (3) major competitors in the market. Nestle Olpers Good Milk All these competitors are in direct competition with Haleeb. Haleeb has to compete with all of these. Its competitors have made a strong place in the market by using different competitive strategies i.e. advertising, marketing and different promotions.In order to compete with the competitors, it has to focus on marketing, advertisement and promotions of its product. Haleeb should provide higher quality than its competitors to sustain in the market. It should also focus on competitive strategies that its competitors are using. Its competitors mainly focus on advertisement. For example, Nestle MilkPak has been advertising its product in the market by using the slogan, Nestle MilkPak Banaye Mazboot Gharana. Similarly Olpers has been advertising its product using slogan, Subha Bakhair Zindagi And Good Milk has also created its goodwill by advertising in the past using slogan, Roz Roz Good Milk Piya Karo. Haleeb should advertise its product through the marketing and communication channels and use different promotional campaigns to attract the consumers and to compete with its competitors. It should create awareness in the consumers minds and in order to compete with its competitors that its milk is not only for making tea, it is also for drinking purposes. The Unique Selling Point (USP) of the Haleeb milk is that it is the thickest, purest and high quality milk available in the market packed in the hygienic and safe packing. And it is best for making tea and coffee. Haleeb does not compromise on quality. For Haleeb, quality is everything. The quality of Haleeb milk is the motivational factor for the consumers that will lead the consumers to switch their preferences and motivate them to try Haleeb milk. Marketing Strategies Product Haleeb Milk is available in all four sizes. i.e. 250 ml, 500 ml, 1 liter and 1.5 liter. For Haleeb Milk, the quality is everything. It is the thickest and purest milk available in the market that is packed in Tetra Packs. The packaging of the product is innovative as compared to the competitors because it has a twisted cap which can be closed after the seal packing is removed. So that it will remain safe from germs and bacteria. While the others milk brands has not the twisted cap packaging of their milk product. Price The price of the product set according to the competitors prices. The cost is tried to make less and less and the price is set at the market penetration strategy. The prices for all the four different size packs are as follows: 250 ml -Rs. 500 ml -Rs. 1 Liter -Rs. 1.5 Liter Rs. Place Haleeb Milk is targeting the mass market so the distribution of the milk is set as it is a convenience good so it is provided at maximum stores. Distribution network includes distributors, whole sellers and retailers. It will make sure that the product is available on all the big and major stores. i.e big departmental stores, bakery stores and small khokhaas. Promotion The product will be promoting through advertising and communication channels. Newspapers, billboards, radio and television commercials will be used for advertising the product. Television channel is the main medium that is most actively being utilized by the companies for the advertisement of their products. And television commercials are the only medium which can contact every one if their television is turned on. So the television commercials will be used to create awareness among consumers regarding the product. Different promotional activities and promotional campaigns will be used to promote the product. For example, if a consumer buys a complete carton then the consumer will be given 10% discount. Positioning Positioning is the only way through which a company can increase the functionality of its product and can portray it as a more useful product. Haleeb will position its product by its attribute and by its usage. Haleeb will position itself not only a tea making milk but also used for drinking purpose and for making sweet dish as well. It will make the perception in the consumers minds that it will fulfill their all requirements regarding milk whether it will be for drinking, for making tea and coffee or for other kitchen purposes. i.e. cooking and making sweet dishes. It will position itself as a thickest and purest milk brand available in the market. So whenever the consumers think of the purest and thickest milk, they will recall Haleeb Milk and it will affect their purchase decision and consumers will prefer to purchase Haleeb Milk as compared to other brands milk available in the market.

Fact of Blackness by Frantz Fanon :: personal response essay

â€Å"The Fact of Blackness† by Frantz Fanon   Ã‚  Ã‚  Ã‚  Ã‚  This article was an eye opener. After Fanon got away from the huge mind boggling words, I kind of felt for an extremely short second what it actually felt to be a black man. I myself am a unique mixture of races and I was fortunate to have grown up in such a way that I experienced my two main cultures vividly. I can laugh with George Lopez, and feel the pain, anguish, and laughter that are associated with a Mexican American heritage. The same goes for Larry the Cable Guy, I can laugh at what he says in his stand comedy routine, because I can relate with my Anglo culture. Going back to how Fanon explains his anguish of being labeled, it’s understandable, I’ve been there, but unlike Fanon, I learned to how to run with racial comments. However, I’m not black and cannot relate to his culture, or how bad for his time it must have been for an average black male.   Ã‚  Ã‚  Ã‚  Ã‚  I start with saying blah. I cannot in my mind imagine what it was for Fanon growing up, but he never embraces love for who his is. The racial slurs and dehumanization is in my opinion not reason enough to write hatred for what you are born into. Not once does he state philosophy on why it’s ok to be what he is. Instead he places himself into an â€Å"infernal circle† that he is embraced by white people in spite that he is black, but when he has an enemy they claim that it is so not because he is a black man.   Ã‚  Ã‚  Ã‚  Ã‚  My own experiences tell me that every bit of what he says is true. I work at an inner city Walgreen’s, and I’m told to watch certain people because they look suspicious, when in fact the only crime they commit is being a minority. I’m sometimes told to not spend too much time on a Mexican customer, because they don’t contribute enough money to our store, and to focus on our money crazed white customers, who never get questioned opening up products. I used to get stopped In Walgreen’s when I was a freshman in High School. I had to leave my back pack at the door and only one of my companions could come with me at a time. However, I would see plain as day, white students walking in the store at leisure with their book bags on.

Free Essays - A Difference in Values in The Good Earth :: Earth

A Difference in Values   The House of Wang Lung rose in one generation from a family of poor farmers to a wealthy respected house in the novel The Good Earth by Pearl Buck. The dramatic change in social status causes the sons of Wang Lung to have different views and values from their father. His different treatment of each son also shapes each character. Although part of the same family the charachters demonstrate a difference in values. The father values the land, the youngest son values regognition, the middle son values wealth, and the eldest son values respect.   As a result of his impoverished upbringing, Wang Lung values the land more than anything else. His obsession with the land causes him to neglect his family. The youngest son receives no attention and Wang Lung's plan to have him work the land disturbs him and makes him feel like a peasant. He feels that he has to prove that he is as great as his brothers and leaves the family to join the army. The middle son watches as his inheritance passes from his father's hand into the hand of his eldest son, and complains that his share is always too small. He wants to save the families money. The eldest son receives more attention and is given more than the other two sons and wants to be respected as a great family.      The eldest son receives more attention and is given more than the other two sons and wants to be respected as a great family. Wang Lung is proud of his first born son, Nung En, and gives him more than his other two sons. One example is when Wang Lung becomes distressed because he cannot read the contracts he is signing and does not want to sign a bad deal. He hopes that sending the elder son to school to learn how to read will solve this problem. The elder son is no longer needed in the fields, because Wang Lung can now afford men to work the land. However, he ignores sending his other children to school until later.   The eldest son's greatest desire is to have his family viewed as a great house. His wife, the daughter of the grain merchant Lui, Boggs 2 grew up in a rich house, she is accustomed to wealth and respect from others, and contributes to her husband's desire. He takes Wang Lung's silver bit by bit to mend up the old House of Hwang.

Clear Lake :: essays research papers

I looked ahead of myself, letting my feet do the work, for a moment. The trail seemed so distant and lengthy in front of me. The blue sky filled with scattered puffy, white like cotton clouds. The long grasses tickled at my legs, which were covered with nothing more than my shorts. My boyfriend and I were on our annual hike to Clear Lake. An obviously attractive name for a beautiful body of water. Clear Lake was an icy cold from the glacier run off but after a 2 day hike up a mountain ridge it always seemed enjoyable and refreshing. The lake itself was surrounded by magnificently smooth boulders, which I was told, became so soft to touch from glaciers.The water was undeniably clear and inviting, covered by small pebbles at the bottom and little ripples on the surface. On one side of the small,clear lake was a discreet beach away from the trail. But the lake itself was very discreet at the most people I would ever see is maybe 1 or 2 in a day. Todd, my boyfriend, and I lay on the beach the years before in each others arms. Watching as insects passed over our heads and the world turned while the cotton clouds moved from left to right.It surprises me that we are up here so soon considering the nightmare we experienced the previous year. I sighed and dared to reach back into my head and pull out the dreaded memories I had tried to neglect.The night was young but Todd and I had been hiking all day. Our feet ached along with many other body parts. We built a fire and were up past the lake because we decided to explore a little bit further up, considering we both had some extra days off of work. The winter had been a cold one and there seemed to be little snow melting because the lake appeared low. I felt a chill descend through my body and my hair stuck straight up out of every hair follicle in my body. Leaning back, I took notice to the moon and saw how crisp and serene the mountain sky was. I always loved looking at stars when I went camping, there are so many more to see to the naked eye. The milky way was so easy to see, it looked as though someone had accidentally spilt glitter on a piece of black construction paper. Clear Lake :: essays research papers I looked ahead of myself, letting my feet do the work, for a moment. The trail seemed so distant and lengthy in front of me. The blue sky filled with scattered puffy, white like cotton clouds. The long grasses tickled at my legs, which were covered with nothing more than my shorts. My boyfriend and I were on our annual hike to Clear Lake. An obviously attractive name for a beautiful body of water. Clear Lake was an icy cold from the glacier run off but after a 2 day hike up a mountain ridge it always seemed enjoyable and refreshing. The lake itself was surrounded by magnificently smooth boulders, which I was told, became so soft to touch from glaciers.The water was undeniably clear and inviting, covered by small pebbles at the bottom and little ripples on the surface. On one side of the small,clear lake was a discreet beach away from the trail. But the lake itself was very discreet at the most people I would ever see is maybe 1 or 2 in a day. Todd, my boyfriend, and I lay on the beach the years before in each others arms. Watching as insects passed over our heads and the world turned while the cotton clouds moved from left to right.It surprises me that we are up here so soon considering the nightmare we experienced the previous year. I sighed and dared to reach back into my head and pull out the dreaded memories I had tried to neglect.The night was young but Todd and I had been hiking all day. Our feet ached along with many other body parts. We built a fire and were up past the lake because we decided to explore a little bit further up, considering we both had some extra days off of work. The winter had been a cold one and there seemed to be little snow melting because the lake appeared low. I felt a chill descend through my body and my hair stuck straight up out of every hair follicle in my body. Leaning back, I took notice to the moon and saw how crisp and serene the mountain sky was. I always loved looking at stars when I went camping, there are so many more to see to the naked eye. The milky way was so easy to see, it looked as though someone had accidentally spilt glitter on a piece of black construction paper.