Rational Choice versus Cognitive Dissonance Essay -- Terrorism, Suici

Discerning Choice versus Cognitive Dissonance Presentation Discerning decision hypothesis can adequately clarify fear based oppression, self destruction shelling, and slaughter by essentially contending that each demonstration is the consequence of an individual creation a decision to submit said acts basically on the grounds that the advantages exceed the expenses. Objective decision hypothesis, in any case, makes some harder memories clarifying unselfishness without changing the meaning of philanthropy itself. Subjective discord can likewise clarify fear mongering, self destruction shelling and slaughter since it contends that an individual can decrease disharmony made by these demonstrations in an assortment of ways I will talk about later. Subjective disharmony however, similar to judicious decision, can't successfully clarify selflessness. I will contend that intellectual cacophony is the more grounded hypothesis in clarifying the psychological oppression, self destruction bombings and decimation. Hypothesis Review Sound decision hypothesis is the contends that examples of conduct in social orders are brought about by the decisions made by people as they attempt to expand their advantages, while simultaneously, limit their expenses. Sane decision hypothesis fights that individuals settle on normal decisions dependent on their objectives which thus controls conduct. The hypothesis accept that people are persuaded absolutely without anyone else intrigue and the craving to amplify their inclinations. A key in balanced decision dynamic is that people have ideal data before settling on a choice. Psychological disharmony, initially instituted by Leon Festinger, alludes to the tension that emerges when an individual holds contradicting thoughts simultaneously. The hypothesis keeps up that individuals are spurred to diminish disharmony and do as such by either changing their mentalities, activities and convictions or by advocating, denying and accusing. Survey of Ev... ...nfortunately, I can discover no proof that the hypothesis of psychological cacophony can clarify philanthropy. Truth be told, I can't discover any proof whatsoever that any hypothesis can clarify philanthropy precisely. In my exploration I didn't run over any mental speculations that clarify philanthropy. The nearest clarification I can discover needed to do science and advancement - a zone that doesn't include a spot inside this paper. Taking everything into account, after cautious assessment of both balanced decision hypothesis and subjective discord I see that psychological cacophony shows up as increasingly solid in its clarification of an individual’s interest in annihilation, fear based oppression, and self destruction bombings. Subjective disharmony concentrates essentially at the individual level for clarifying why people take an interest in said act though sound decision hypothesis frequently needed to depend on looking at activities at a hierarchical level.

Are Trade Unions still relevant Essay Example | Topics and Well Written Essays - 2500 words

Are Trade Unions still significant - Essay Example While worker's organizations have stopped being as forceful as they were before, some of them despite everything figure out how to complete their command today. For example, during aggregate bartering, worker's guilds are very valuable to separate representatives on account of the way that they go about as a go between the representative and the business. An association agent should be available at whatever point there is requirement for aggregate bartering. At the end of the day, worker's guilds and managers are limited by aggregate understandings which guarantee that the necessities of particular representatives are sufficiently met. It ought to likewise be noticed that there are some worker's organizations inside the UK that have been exceptionally dynamic in advancing specialists' privileges. One such model is REACH. (Wadsworth, 2007) This Trade Union to a great extent centers around the assurance of specialist's privileges when managing unsafe substances or synthetic compounds. Through the endeavors of such an association, it tends to be seen that worker's organizations are as yet required in the work environment. (Low Pay Commission, 2007) Worker's guilds are as yet important in the UK on the grounds that the last nation cooperates with such huge numbers of others on the planet, since these nations have diverse work laws, it is important to guarantee that representative rights are not encroached by those particular people. For instance, the TUC was extremely dynamic in battling against the UK based Primark shirt producer. As indicated by the TUC, Primark was sourcing their crude materials from Bangladesh where their provider was utilizing sweatshop work. Through the exercises of this worker's organization, Primark stopped working with that specific provider subsequently ensuring representatives' privileges. (Kent, 2007) How Trade Unions have lost their significance Worker's organizations in Britain hushed up valuable in the nineteenth Century on the grounds that around then, enterprises were simply coming up. There was a need to set up norms in the working environment on the grounds that the economy had not yet been presented to such a sort of course of action. Issues, for example, foundation of security rules, reasonable working hours, and reasonable wages were top on their motivation in light of the fact that most managers were all the while bending out patterns and examples. Worker's organizations were the voices that guaranteed specialist's privileges were properly secured. This is really the motivation behind why a worker's guild may characterized as a relationship of laborers that is focused on the need to secure specialist's privileges. Issues, for example, reasonable compensation were all piece of the undertaking to secure their privileges. (Bain, P. and Taylor, 2008) It ought to likewise be noticed that during those occasions, strikes, lock downs, wounds and blood shedding were a typical situation for worker's guilds attempting to battle for laborers' privileges. This really made some of them profoundly disagreeable with managers. England's history is described by huge strikes that abstract deadened certain open frameworks. Probably the best accomplishment made in terms of professional career associations around then was the establishment of lawful instruments for securing laborers' privileges. Through their eager endeavors, presently chiefs are responsible to the law after encroaching laborer's privileges to hampering their opportunities. Be that as it may, the UK work framework has changed definitely in the course of recent years. The steel business, vehicle industry, rail industry and numerous others are presently portrayed by fair working hours. Moreover, specification strategies have unfavorably improved in the present creation segment. Thusly, worker's organizations are left with little else to do. Their

Happy New Year!

Happy New Year! Hello Internet! Its been a while. I last blogged on EA Decision Day, 12/17/2011. But I actually wrote that post on the 16th, because on the morning of the 17th, when it went live, I was on a plane to Denver with my dad and two brothers for a few days of skiing at Breckenridge. It was kinda nice: In fact you may have seen this movie starring us. NBD brah. After returning from Colorado I went back up to New Hampshire to spend the holidays with my family. As Ive posted before, I come from a small town in the woods, a place where people generally agree that almost anything can be improved if it is shot out of a cannon and/or set on fire. Ma! Pa! Big news from the big city! This year, my uncle, who hosts our annual New Years Eve party, and is known by local fire rangers for his 512 cubic foot brush pile blaze: decided he wanted a little something extra. See, last year I had brought the potato cannon a few friends of mine and I had made back in college. It was made out of schedule 40 PVC and would shoot a potato roughly an eighth of a mile with an extremely satisfying report: This year, my uncle Ken wanted to bring back the cannon, but with a firing range. In order to do that, though, we needed a safer, more accurate cannon, which could be handled by just about anyone, and which could reliably fire with a known and controlled rate of speed. But I didnt know how to make these, as my education in engineering potato cannons never progressed beyond the wildly unsafe and generally illegal combustion variety. Enter Jack Queeney. Jack is an MIT freshman. Hes one of my academic advisees this year, and he builds potato cannons. Extremely epic potato cannons. I told Jack about our plan, and he sent some helpful tips and schematics to my uncle and I. The key tip was to build a compressed air potato cannon, so that we could precisely control the pressure to make sure it stayed within a safe range and ejected the potatoes at a safe speed. Ken worked with glee over the coming weeks to assemble the cannon, test it for safety and reliability, and scavenge the town dump (the social center of some New Hampshire towns) for stuff for the firing range And so came New Years Eve night, New Hampshire style: A snack bar, made out of wooden construction pallets, old window trim, surplus lumber, and Christmas lights A projector with the Bruins game. An enormous bonfire (those logs in there are actually trees, and Im standing a good way back).   And of course, the main event: Heres my dad taking the first shot, with a rundown of the safety features and design performed by Kens friend Chris: When the world ends and the zombies come as the Mayans foretold, Im heading straigth to Kens. Somehow I think hell be just fine. And Ill have a place to watch the (zombie) Bruins. I hope you all had a similarly excellent holiday season. Im going to head home and finish unpacking. By the end of the week Ill be reading the first round of Regular Action apps. I cant wait! Happy New Year yall Happy New Year! Happy new year everyone! Im hanging out at my sister and brother-in-laws new house, enjoying the snow and festivities. (By the way, for those who always seem surprised when they find out, Michigan is on the EASTERN time zone! :) ) Ive made my new years resolution to try and work out more this year whats your new years resolution? Best wishes for a safe and happy new year! Happy New Year! Happy New Year! It’s hard to believe that it’s already 2007. 2006 was the year of YouTube, iPods, gas for $3.50 a gallon, record-high temperature, Wiis and PS3s, the World Cup, penguins and pandas, eight planets, and changes of power on Capitol Hill. At MIT, we learned more about black holes, established the new MIT-Madrid study abroad program, learned more about the brain, designed better wheelchairs, created molecular libraries to understand cancer and disease, studied addiction, made plans for a new graduate dorm, pioneered a center for synthetic biology, designed fuel-efficient cars of the future, observed subatomic particles, won Nobel prizes, proposed changes to the undergraduate curriculum, began large scale genetic sequencing, and more! Check out http://web.mit.edu/spotlight/lookback-2006/ for a look back at the spotlights. So what’s in store for 2007? Any predictions? Any hopes? Comment away! Happy New Year! Hellooo I’ve been home for winter break for almost two weeks, basking entirely in food and sleep. A few days after I got home, the “Snowpocalypse of (dec.) 2010 hit. New Jersey was smack dab in the middle of it. Where I live, we got 2 feet of snow overnight. The blizzard crippled transportation in the Northeast for a good few days And I was pretty much snowed-in Butbutbut a few days later, sledding! Pulling that sled up the hill many times has literally been the only exercise I’ve had this break. That’s okay lot’s of physical activity planned forIAP; stay tuned. ANYWAYS, Good luck to those finishing regular decision apps! And Happy New Year! c:

The Lives Of Rural Poverty - 823 Words

Families, especially children, who are living in rural poverty are by the very definition isolated from others. Not only are they isolated physically from their peers and resources they are also isolated from the research community. Their very existence is only recognized by those who happen to have direct contact with them: the few hundred people that live in their town, the 50 students in their school or the family members who reside under one-roof (which often is well above the â€Å"traditional† family of four). To many, their lives resemble something from a history book where families lived in the woods separated sometimes by miles and they spend most of their time working on their farms or in a mill. Students often remark that going to school in a small town â€Å"seems like everyone knows you and your business† but the question is anyone doing anything with â€Å"what they know† to help these students succeed? According to the National Center for Children in Poverty, since 2013, families of four with incomes below $23,624 are referred to as poor. Children living in households with twice this income are referred to as low income. In the United States, 22% of children live in poor families and 44% live in low-income families. If you isolate NH, 11% of children are living in poverty and 28% live in low-income households (National Center for Children Living in Poverty, 2013). That is roughly 31 million children in the United States and 15 million in NH living in poverty. While mostShow MoreRelatedInsular Poverty Essay1448 Words   |  6 PagesEnglish 102 Insular Poverty 11/3/2012 Nobody wants to be considered to be below the poverty line. Unfortunately, for fourteen percent of the people in this country, that is their reality. Fourteen percent of the people currently living in the United States’ basic needs for food, clothing, and shelter are not being met. 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Spry Plc - Free Essay Example

Sample details Pages: 16 Words: 4767 Downloads: 7 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? 1.0 Introduction Spry Plc. as a large listed company, the directors identify that there are some large projects which have great chances for success if the company has enough of funds to take over it. The estimated finance needed for the projects is approximately  £200 millions; the company has to search for outside sources in order to reinvested profits in existing undertaking. Don’t waste time! Our writers will create an original "Spry Plc" essay for you Create order There are some subjects to be reported on this piece of work is either debt or equity to be issue on the stock exchange to raise funds, discover the differing sources of finance available in current markets and their relevant information, and how it may effect the cost of capital of the company after recognizing the impact on risk of the new finance. The following also included the nature of the capital markets and the theories of the efficient market hypothesis. This report will be divided into three main structures to cover all elements, which is first The Capital Markets surrounding Spry Plc. and EMH, Source of Finance and Long Term Financing Decision to Spry Plc., and last part is The Cost of Capital and the Capital Structure of Spry Plc. 2.0 The Capital Markets surrounding Spry Plc. and EMH 2.1 Capital Markets ‘In its broadest sense capital can be defined as accumulated wealth that is available to create future wealth. It is wealth that is engaged in a reproductive process. The capital markets are meeting places where those who require additional capital seek out others who wish to invest their excess. (Andrew M. Chisholm 2002: pg. 1) The Capital Markets is basically a financial relationship created by public, institutions, and governments with more funds (known as funds supplier or funds investor) transfer those funds to public, institutions, or governments who have a shortage of funds (known as funds demanders or funds borrowers) to make transactions. Apparently, the importance of capital markets is actually to promote economic efficiency by investing funds from those who do not have immediately productive use for it to those who do. For an organization it needs to be listed to trades its securities, thus, Spry Plc. as one of the listed companies are allowable and should ra ise funds from the capital markets. 2.1.1 The structure of Capital Markets Generally capital markets are divided into primary and secondary markets, where the main function of primary market is to issues new securities of equity and debt funding for funds demanders. The secondary market is where the outstanding securities are resold. The potential investors must first engage in the primary market place before they engage in the secondary market. These are the markets where Spry plc. will be involved in the future when the decision is made. 2.2 The Efficient Market In an efficient market, investor would want to obtain securities as cheaply as possible and seller will try to obtain the highest price they can for their securities. In this case, investors want to maximize their payback but the companies are looking finance as cheaply as possible. Therefore, securities are fairly priced by reflecting all available information in an efficient market. There are three forms of efficiency: * Allocation Efficiency : Ability of the market to allocate scarce resources to those companies which able to leads to these scarce resources being used most productively. * Operational Efficiency : Refers to the operations of the market, the costs of transaction determined competitively, reducing barriers to trade and trading rapidly. * Pricing Efficiency : Also known as Informationally Efficient, in a pricing- efficient market, shares price are fully reflect based on instantaneously all relevant available information. 2.2.1 Efficient Market Hypothesis (EMH) This hypothesis is actually derived from the Pricing/ Informationally Efficiency which can be define as, share prices are fully and fairly reflect by the all relevant available information. It means that the prices of securities are always equaled based on the ‘good news or ‘bad news for the shares. There are three levels of market efficiency which categorized by E.F. Fama: * Weak form of Efficiency : The hypothesis states that the share prices fully reflect included past history share price movements and patterns. But some of the traders believe that the future share prices might be predicted by using technical analysis to analyzing historical data. * Semi-Strong Form of Efficiency : The hypothesis states that the share prices not only historic patterns but also all publicly available information about the shares. If this hypothesis is true, then the share prices will be rapidly incorporated when new information becomes public. * Strong Form of Efficiency : Th e hypothesis states that the share prices not only reflect by the historical patterns and current relevant available information but also all possible information included inside available information. This meant that the markets respond so rapidly that not even the inside traders who have the most valuable information could profit from their activities. When Spry Plc. involves in the markets, they are actually facing risk that they might got loss as markets cannot be extremely efficient or wholly inefficient in the real world, share price will follow a so called â€Å"random walk† (for further explanation please refer to Appendix 1), a theory created by Louis Bachelier. This means that the only thing that can change the share prices is a new piece of information occurs, as discuss before share prices will accurately reflect on all relevant available information. But the future information is unknowable; it might be a good or bad news for a particular share. Therefore, as share prices reflect so quickly on new information, no one could predict the share price by only considering current or historical information. Spry plc. has to understand that the financial market is actually mixture of both efficient and inefficient, sometimes it will returns fairly while some other times it may generate more than average returns too. (David Blake (2000) Financial Market Analysis. Second Edition. United Kingdom: John Wiley Sons, Ltd, pg.389-405.) 3.0 Source of Finance and Long Term Financing Decision to Spry plc. For many business or companies, most are funded through a mixture of equity (share) capital or debt capital. Apparently, the concern of how and where to get funds to starting up, develop or expansion can be a key for the success of the business. It is so important, so, Spry Plc. must understand that which of the source of finance available to the business are the most appropriate or in relation to the needs of the business. From directors dec ision, the discussion will be more into debt and equity (share) finance. 3.1 Option of choosing Equity Finance Equity capital or known as share capital is actually an ownership capital, provider of the shares is the shareholders from those who are part-owners of the company. Shares counted in units, are the investment in a limited company, either it to be a public or private limited company. They are numbers of advantages if company chooses equity financing, like no repayment required for the capital which invested by the shareholders, no agreement for a fixed payment of dividend and the payments are determined by the Board of Directors. Equity financing able to decreases the gearing level of company, and pay zero dividend when profits are low or nil. These advantage all gone if considering on debt financing side. 3.1.1 Ordinary Shares Ordinary shares are the most common shares available in the United Kingdom (UK). The owner of ordinary shares has the voting privileges, and to share profits (dividends) of the company. This share can be defined as the riskiest share as the profits of company can differ wildly in years, therefore, in good years the ordinary shareholders may receive substantial dividend but in bad years they may receive nothing. (For example please refer to Ryanair Holdings Plc, Appendix 2) In additional on that, these shareholders have the lowest ranking in the capital structure means that other investment (example: Bond) must be paid out first before them. Ordinary shares can be said the most expensive to serve because the shareholders requires higher returns to compensate the high risk. Spry Plc. has a choice of two ways to issuing the shares; one is New Issue of shares. Normally, it can issue by offer for sale as the company sells the new shares to a financial institution or an issuing house then they will sell the shares to the public. Or, not issued to the public but arrangements are made to sell large ‘block of units of shares to small number of investors like for example to insurance companies, this type of issuing named as Placing. Another way of that is Right Issue of shares, raising funds by selling shares to existing shareholders to subscribe to new shares in ratio to their current holdings. The existing shareholders are offered to buy at a discounted price which means lower than the market price, they has the rights to sell if the shareholders not exercising the rights. 3.2 Option of choosing Debt Finance Debt capital is a non-ownership capital providers by a bank or investor who buy bonds issued by the company, or by trade suppliers who offer terms of credit. It has lower risk as they are the first and must to be paid no matter the company make profits or not, as compensate to the lower risk, the interest paid is cheaper than shares dividends and involved just a single payment at maturity on a fixed rate. The advantages of choosing debt financing are the interest payment is tax deductible, and free from dilution of the control of the existing shareholders. It is cheaper and also a straight forward contract between the lenders and borrowers, the issuing cost is lower compared to issuing of new shares. Normally debt holders do not have voting rights. These advantages do not exist on equity financing. Mainly, debt finance is broken down into two categories which are Term Loan and Bonds. 3.2.1 Term Loan Term Loan or Long-Term loan is a loan offer by a financial institution (Bank) to a business or company, and having more than one year initial maturity. Mostly this loan is made to finance capital needs, often for permanent work like purchasing equipment or machinery. In a term loan agreements normally will specify payment dates in monthly, quarterly, semiannual or annual loan payments. Over the life of the loan, the interest and the principles are fully repaid according to the agreement states. There are also restrictive covenants in the agreements that limit the borrower in order to protect the interest of the lender. Like constraint on Subsequent Borrowings and the Usage of the Loan Proceeds, also working and fixed assets restrictions, in this case because of the liquidity of a company maintain on a certain level and some fixed assets cannot be sold. 3.2.2 Bond â€Å"A corporate Bond is a certificate indicating that a corporation has borrowed a certain amount of money from an institution or an individual and promises to repay it in the future under clearly defined terms.† (Principles of Managerial Finance, pg495) This simply means a form of loan stock where an individual or company gives a written acknowledgement of the debt where the payment of interest and the repayment of the provision are stated. Face value in bond feature is the principal sum owed by the firmed. Coupon Rate is the contractual rate of interest, and Redemption Date is the date the firm must payback and last but not least is Call Feature, where the company reserves the right to retire the bond earlier before the maturity date at a premium. There are there types of unsecured bonds, which are debentures, subordinated debentures, and income bonds. While the secured bonds included mortgage bonds, collateral bonds, and equipment trust certificates. Other contempora ry types of Bonds are zero coupon bonds, junk bonds, floating rate bonds, extendable notes, and putable bonds. (Lawrence J. Gitman (1994) Principles of Managerial Finance. Seventh Edition. New York: Harper Collins College Publishers, pg 488-603.) 4.0 The Cost of Capital and the Capital Structure of Spry Plc. After discovered the sources of finance and also long term finance to Spry Plc, this part is actually discussing about the impact based on the decision making. Cost of Capital is a long term financing decision-making that will affecting the capital structure of the company, in any companies the capital structures must be a combination of both equity and debt capital. Different sources has different cost, overall cost can be measure by using Weighted Average Cost of Capital (WACC). The results must at least has fair return or most likely greater to the contributors. 4.1 Importance of the Cost of Capital A progressive management will always put most of the concern on the cost of capital and the fluctuation of the capital market when doing any financing decision in order to achieve economical or optimal capital structure. This move is so important because it is a significant factor that will impact directly to firms capital structure. Cost of capital can be used to deciding which method of financing are the most suitable for the company; a good financial officer will be able to identify normal dividend rates and the rate of interest on loans in times. Also, when a company requires additional finance like Spry Plc. is facing now, the first concern in choosing is which where bears the minimum of the cost of capital, at the same time considering the relating control and avoiding risk as well. Cost of capital is actually evaluating the performance of the financial of the top management. (Free MBA.in (2008) Importance of Cost of Capital in Decision Making .[Online] Available From: https://www.freemba.in/articlesread.php?artcode=343stcode=10substcode=22) 4.2 Optimal Capital Structure and the Weighted Average Cost of Capital (WACC) Capital structure refers to the combination of different types of capital which a company uses to finance its activities. While a ‘good of capital structure of a company can be defined as which a low overall has cost of capital, means that also has a low overall rate of return that has to be paid to finances providers. Capital structure also known as capital gearing can be categorized into high gearing and low gearing. Where high gearing means the proportion of debt capital is higher relative to the equity capital, and low gearing refers to the proportion of debt capital is lower than equity capital. Spry Plc. should find the optimum capital structure, which is a combination of debt and equity finance that has the minimum cost of financing, to reduce the WACC. Lawrence J. Gitman (1994: pg.474) states: ‘Optimal capital structure has strongly related to the WACC, in this area it can be explain by using a graphic view of companys equity, debt and WACC functions along wi th a modified form of the zero growth valuation model. The zero growth valuation model can be used to define the companys value as its after-tax earning before interest and tax (EBIT) divided by its WACC. Assuming that EBIT is constant, the value of the company is maximized by minimizing the WACC. The optimal structure is therefore the one that minimizes the WACC. Graphically, although both debt and equity costs rise with increasing financial leverage, the lower cost of debt causes the WACC to decline and then rise with increasing financial leverage. As a result, the companys WACC exhibits a U shape having a minimum value, which defines the optimum capital structure-the one that maximizes the owners wealth. Many people are wonder in the real world is there an optimum capital structure? Actually there is two main views are debating on this issue which is Traditional View and the Modigliani and Millers View (MM). Where the traditional view states that when a company involves debt c apital into its structure, the overall cost of capital drops. This is because the cost of debt is cheaper than cost of equity, but beyond a certain level the ordinary shareholders will requires higher return to compensate the extra risk that they are facing to. For further explanation and graphs please refers to Appendix 3. While the MM states two theories, one MM Model 1958 with taxation which said that the total value of the company or the WACC will nit change when the gearing level changes, this is because the way income is depends on the future operating generated by assets, so it makes no difference to the total value of the firm. Next theory is MM with taxation 1963, said that the cost of capital will decrease with increased in debt capital, this is because the interest paid are tax deductible. Thus, tax relief on debt interest is an extra advantage for shareholders. For further explanation and graphs please refers to Appendix 4. Lastly, there is one thing that the director should understand that the testing on these theories are complicated in practice and as such the optimal level of is an unsolved issue, but we can try to minimize the WACC as much as possible by balancing all the theories stated above. 5.0 Conclusion In conclusion, there is no specific ways or solution to guarantee maximum profits gain by the analysis or planning of the sources of financing, cost of capital or even capital structure. As Ball (1994), pg. 33 stated that ‘The answer is both yes and no. On the one hand, the research provides insights into stock price behaviour that were previously unimaginable. On the other hand, the theory of efficient markets (like all theories) is an imperfect and limited way of viewing stock markets, as research has come to show. Well, each company like Spry Plc. has its uniqueness with its own structure and development; cost of financing is just one of the ways to gain money besides debt and equity finance. A good financial planning must to consider other factors to find the most appropriate option such as the ability of company to generate cash flow, the duration of borrowing, the current gearing level, any restrictive covenants, and so on. 6.0 Appendix Appendix 1 Random Walk Theory A Random Walk Down Wall Street, written by Burton Malkiel in 1973, has become a classic in investment literature. Random walk theory jibes with the semi-strong efficient hypothesis in its assertion that it is impossible to outperform the market on a consistent basis. Malkiel puts both technical analysis and fundamental analysis to the test and reasons that both are largely a waste of time. In fact, he goes to great lengths to show that there is no proof to suggest that either can consistently outperform the market. Any success outperforming the market with technical analysis or fundamental analysis can be attributed to lady luck. If enough people try, some are bound to outperform the market, but most are still likely to underperform. Newpont Mining Corp. (NEM) random movement chart from Stockcharts.com The basic random walk premise is that price movements are totally random. Judging from the chart, the price movements of Newmont Mining (NEM)[NEM] over this 5-month period would appear to be quite random. Prices have no memory, therefore past and present prices cannot be used to predict future prices (as implied in technical analysis). Prices move at random and adjust to new information as it comes available. The adjustment to this new information is so fast that it is impossible to profit from it. Furthermore, news and events are also random and trying to predict these (fundamental analysis) is also a lesson in futility. Malkiel maintains that a buy and hold strategy is best and individuals should not attempt to time (or beat) the market. Attempts based on technical, fundamental or any other analysis are futile. Admittedly, he does have a point. Statistics have shown that the majority of equity mutual funds fail to outperform the market, as measured by the SP 500. Investors can easily buy index-based securities with very low transactions costs. (https://stockcharts.com/school/doku.php?id=chart_school:overview:random_walk_theory) Appendix 2 The Ryanair and Marconi share price chart and explanation Ryanair share price Data source: Yahoo Finance The Ryanair share price fell so dramatically in mid-January 2004 because the company announced that its profits for the current financial year would probably be worse than they had previously expected. Marconi corporation plc suffered a similar fate in terms of its share price which suddenly collapsed following announcements of serious financial problems within the group. Take a look at how their share price has since recovered: Marconi share price Data source: Yahoo Finance Dont forget that the stock market is actually just a second hand share market so even though no company ever wants its share price to collapse in the ways that we have just seen, these share price catastrophes do not directly affect the business. However, with such a depressed share price, companies might find it vey difficult to raise additional finance or reassure existing creditors that they are a worthwhile risk. If you look at the share price pages in newspapers such as the Financial Times, The Times, The Guardian and so on, the prices you will see there are mainly ordinary share prices. The importance of share prices to a business is that it gives an indication of the value placed on the company by the market for example if a company has 10 million shares and the current price is 500p each, then the value of the company its market capitalisation is  £50 million. If the share price plummets to 200p the company would only be worth  £20 mi llion. In such cases, companies become possible targets for takeovers. (https://www.bized.co.uk/learn/accounting/financial/sources/ordshares.htm) Appendix 3 WACC and traditional view of capital structure and cost of capital There are different ideas with regards to the impact of capital structure change on valuation and cost of capital. *The debt to equity ratio (B/S) influences V and WACC. Increase in V causes decrease in WACC and vice versa. In the range 0 to CS, as debt B increases, WACC falls, despite rising debt carries with it risk of residual income, shown in the increasing cost of equity, k. However, when the debt increase beyond CS, the continue increase effects of k now starts to offset the effects of a falling S/V, resulting a rise in WACC. This highlights an essential condition for shareowners profiting from capital structure optimisation, i.e. the firms ability to borrow on terms not available or attractive to individuals. Thus a target ratio of debt to equity finances is an important resource allocation for many firms. WACC stands for (market value) weighted average cost of capital, which can be express as equiv alent to the valuation ratio Q/V Q/V = (S/V)k + (B/V)i = WACC, where Q=division of expected earnings; S=equity capital; B=debt; V=market value; k=expected return of equity S; i=interest rate on debt B. This concept of WACC is that cost of each component of the firms capital structure is weighted relative to the overall market value, V. With this concept, finance managers by maximising overall market value, they will invariably minimise the weighted average cost of capital, creating a favourable financial position for investment in the future. Increase in V - decrease in Q/V - decrease in WACC (Odd Ball (2009) Discuss the impact of taxation on company capital structure decisions. Weblog. [Online] Available From: https://rg328.blogspot.com/2009/05/discuss-impact-of-taxation-on-company.html) Appendix 4 Modigliani Miller (MM Propositions I II) Capital Structure of Corporations If you read the chapter on Weighted Average Cost of Capital (WACC), you know that the best capital structure for a corporation is when the WACC is minimized. This is partly derived from two famous Nobel prize winners, Franco Modigliani and Merton Miller who developed the MM Propositions I and II. MM Proposition I MM Proposition I states that the value of a firm does NOT depend on its capital structure. For example, think of 2 firms that have the same business operations, and same kind of assets. Thus, the left side of their Balance Sheets look exactly the same. The only thing different between the 2 firms is the right side of the balance sheet, i.e the liabilities and how they finance their business activities. https://www.financescholar.com/m-m-proposition1a.jpg https://www.financescholar.com/m-m-proposition1b.jpg In the first diagram, stocks make up 70% of the capital structure while bonds (debt) make up for 30%. In the second diagram, it is the exact opposite. This is the case because the assets of both capital structures are the exactly same. MM Proposition 1 therefore says how the debt and equity is structured in a corporation is irrelevant. The value of the firm is determined by Real Assets and not its capital structure. MM Proposition II MM Proposition II states that the value of the firm depends on three things: 1) Required rate of return on the firms assets (Ra) 2) Cost of debt of the firm (Rd) 3) Debt/Equity ratio of the firm (D/E) If you recall the tutorial on Weighted Average Cost of Capital (WACC), the formula for WACC is: WACC = [Rd x D/V x (1-5)] + [Re x E/V] The WACC formula can be manipulated and written in another form: Ra = (E/V) x Re + (D/V) x Rd The above formula can also be rewritten as: Re = Ra + (Ra Rd) x (D/E) This formula #3 is what MM Proposition II is all about. Analysis of MM Proposition II Graph The above graph tells us that the Required Rate of Return on the firm (Re) is a linear straight line with a slope of (Ra Rd) Why is Re linear curved and upwards sloping? This is because as a company borrows more debt (and increases its Debt/Equity ratio), the risk of bankruptcy is even more higher. Since adding more debt is risky, the shareholders demand a higher rate of return (Re) from the firms business operations. This is why Re is upwards sloping: As Debt/Equity Ratio Increases - Re will Increase (upwards sloping). Notice that the Weighted Average Cost of Capital (WACC) in the graph is a straight line with NO slope. It therefore does not have any relationship with the Debt/Equity ratio. This is the basic identity of MM Proposition I and II, that the capital structure of the firm does not affect its total value. WACC therefore remains the same even if the company borrows more debt (and increases its Debt/Equity ratio) (FinanceScholar.com (no date) Modiglian i Miller (MM Propositions I II) Capital Structure of Corporations. [Online] Available From: https://www.financescholar.com/modigliani-miller-propositions.html) 7.0 References Andrew M. Chisholm (2002) An Introduction to Capital Markets: Products, Strategies, Participants. United Kingdom: John Wiley Sons, Ltd David Blake (2000) Financial Market Analysis. Second Edition. United Kingdom: John Wiley Sons, Ltd Eddie McLaney (2009) Business Finance: Theory and the Practice. Eighth Edition. New Jersey: Pearson Education Ltd Lawrence J. Gitman (1994) Principles of Managerial Finance. Seventh Edition. New York: Harper Collins College Publishers Biz/ed (2009) Sources of Finance. [Online] Available From: https://www.bized.co.uk/learn/accounting/financial/sources/index.htm FinanceScholar.com (no date) Modigliani Miller (MM Propositions I II) Capital Structure of Corporations. [Online] Available From: https://www.financescholar.com/modigliani-miller-propositions.html Free MBA.in (2008) Importance of Cost of Capital in Decision Making .[Online] Available From: https://www.freemba.in/articlesread.php?artcode=343stcode=10substcode=22 Free MBA. in (2008) Mode of Measuring Cost of Capital. [Online] Available From: https://www.freemba.in/articlesread.php?artcode=345stcode=10substcode=22 James Woepking (2007) International Capital Markets and Their Importance. The University of Iowa Center for International Finance and Development. [Online] Available From: https://www.uiowa.edu/ifdebook/ebook2/contents/part3-II.shtml Odd Ball (2009) Discuss the impact of taxation on company capital structure decisions. Weblog. [Online] Available From: https://rg328.blogspot.com/2009/05/discuss-impact-of-taxation-on-company.html Reem Heakal (2009) What is Market Efficiency? Investopedia. [Online] Available From: https://www.investopedia.com/articles/02/101502.asp?viewed=1 Richard Loth (2009) Evaluating A Companys Capital Structure. Investopedia.[Online] Available From: https://www.investopedia.com/articles/basics/06/capitalstructure.asp?viewed=1 StockCharts.com- Chart School (2009) Random Walk Theory. [Online] Available From: ht tps://stockcharts.com/school/doku.php?id=chart_school:overview:random_walk_theory Wikipedia (2009) Capital Market. [Online] Available From: https://en.wikipedia.org/wiki/Capital_Markets Wikipedia (2009) Capital Structure. [Online] Available From: https://en.wikipedia.org/wiki/Capital_structure Wikipedia (2009) Financial Market Efficiency. [Online] Available From: https://en.wikipedia.org/wiki/Financial_market_efficiency

Using a Ghost During the Elizabethan Period. Hamlet Free Essays

During the Elizabethan period, a ghost was seen as a common feature in most tragedy plays. Shakespeare’s Hamlet is a prime example of the use of a ‘ghost’ to entice fear and apprehension amongst the Elizabethan audience. The ghost can be seen as projecting several functions throughout the play, all of which are vital to the play’s ultimate impact. We will write a custom essay sample on Using a Ghost During the Elizabethan Period. Hamlet or any similar topic only for you Order Now An Elizabethan audience were highly superstitious, held Roman Catholic beliefs of purgatory and were extremely fearful of afterlife and the uncertainty that surrounded it. Such views were powerful connotations that aided Shakespeare to influence his audience with considerable impact. However, the implications of a ghost were seen as very different for a Elizabethan audience as compared with the perception of a ghost by a modern audience. Therefore it could be said that the disparity in how the ghost is received may diminish the play’s impact for a modern day audience. The audience of Shakespeare’s time were surrounded with highly religious concepts. During the period, whilst many were deemed protestants, there were many who challenged the idea of souls and their sins in relation to heaven and hell and continued to practise the old faith. Therefore an Elizabethan audience would have been familiar with the concepts of heaven and hell and the uncertainty surrounding ghosts. Whether the ghost of Old Hamlet is living in hell or purgatory is an issue which Shakespeare leaves open and unresolved. This leaves the Shakespearean audience with the question of whether there was hope of redemption for old hamlet and in relation, themselves. This can be seen as one of the various functions of the ghost in hamlet, by engaging into the religious mindset of Elizabethans, they would question its presence and would be intent on discovering its existence and nature throughout the play. How to cite Using a Ghost During the Elizabethan Period. Hamlet, Papers

Integrated Model Of Cause-Related Marketing Strategy Development

Question: Describe about the Integrated Model Of Cause-Related Marketing Strategy Development? Answer: Introduction: Avon is one of the Worlds major direct retailer company and achief worldwide beauty business. The company have an annual income of approximately 9 billion dollars. The products of Avon include fashion, home products and beauty. Avon is a company abrupt in custom, stuck by itsmain principles and values. The vision of this company is to become the company, which understands the demand of the clients and satisfy its clients by their services and products. Every day, Avon brings attractiveness to the life of all women in the world. The companys beauty means to find the correct shade of lipstick for a client. The company also provides an opportunity for woman to income by selling the products of Avon. Statement on the Thesis: The paper describes the strategies faced by Avon and how Avon overcomes all the problems by entering into Joint Venture strategy. Purpose of the Research: The research makes simple to estimate and recognize the strategies of Avon when they entered into the market. Avon maintains four strategies which includes Sufficient power to assure clients and tolerant challenges Protecting the expansion of chances through consumer By dealings with adding value and operational portfolio is changed. Building a trustable position in front of its customers (Cavusgil at el. 2014) The strategy of Avon was mainly developed to expand its business all over the World. The focus is on the transaction flow and maintains a balance sheet. Strategy of a company always maintains the financial condition of the company by giving the guarantee an equal strong growth from the last business. Objectives of the Research: The major aim of the research is to estimate and recognize the strategies followed by Avon. The research includes the hard work of Avon to spread its business all over the World. Domestic Strategy vs. International Strategy: A well business strategy supports the main business purpose and mission, and plans to operate as a path for continued success, growth and competitiveness. Businesses produce strategy for every field of business processes. Each approach includes short-terms plan and long-term plans resulting in the method and performance essential to achieve targets and goals (Liu et al. 2014). The marketing strategy of Avon: Avon pursues a worldwide strategy by appearing for the largely professional customs to produce and accomplish its business. The company follows economies of extent and possibility in marketing, manufacturing and logistics by choosing the mainly commercial ability scales and locations of business on an international basis. Avon sticks only with their products development if they find any new demand from consumers. Beside of producing multiple cosmetics, Avon was capable to locate an approach to create international products. Due of these, Avon was capable to retail its identical products in 45 countries. Just Avon need to change its way of marketing and packaging. The company goes through strict custom before entering its products in market. The US clients first tested the product of Avon, which they want to take worldwide, before entering the market. After approving the product by the US clients, the product goes for Avons Global Product Council. In every steps of entering into a mar ket, there are numerous steps (Ryan, 2014). Market Estimation: Estimating costs, benefits, and risks: Generally, it is almost easier to estimate the costs, benefits and risks to developed market condition of a country than to estimate the costs, benefits and risks to develop the economic condition of a country. Nevertheless, there is a reasonable quantity of subjectivity concerned apart from the questions raised in a market. This can be understood well be establishing an example suppose boss must not only approximate the costs required in beginning a foreign process, but the manager should also estimate the coasts of opportunity. Besides all this, the manager should also be concerned with the risks and benefits that may arise in future (Christopher et al. 2012). Example when the manager of Avon needed to Estimating costs, benefits, and risks: Avon needed to Estimating costs, benefits, and risks when the company faced problems like Field is not occupied Store is inactive Operation are not enough (Verbeke, 2013). In reaction, the methods that are taken by U.S. are declared as investing and strengthening in high possible districts, and growing agent interactions and relations. The company divides U.S. into 850 districts. According to the management, the 850 districts have a Hispanic population, and they improved themselves than others. Furthermore, average orders are from Hispanics and it is approximately 11% more than average order. An important step that Avon took in is to raise the entry fee in U.S. The companys strategy is to enhance the cost and include goods to the first course kit (David et al. 2014) Joint Venture: Joint venture (JV) is a intentional agreement involving two or more persons to involve in a definite venture or enterprise. Joint ventures are more or less similar with the partnerships the only difference between partnership and joint venture is that a partnership generally engages a progressing, continuing business relationship, but a joint venture is engaged with only single business venture (Killing, 2012). Advantages of Joint Venture: The advantages of joint venture in business are as follow - Joint venture is concern with the chance of expanding new ability and capability It permit a business to enter interconnected businesses or market and to achieve new technical knowledge Entrance to greater capital, which includes particular employees and technology It involvement of risks with the other partner It can be flexible that is it can have a restricted life span that can only cover a part of what is done. Thus, it limits both the promise and publicity of the business. In the age of consolidation and divestiture, Joint Ventures offer an innovative way for business to outlet from the non-primitive businesses. A business can slowly differentiate from rest of the business, and ultimately, retail it to any other companies. Approximately, 80 percent of joint ventures finish with deals from one partner to other (Saha at el. 2015). Disadvantages of Joint Venture: The advantages of joint venture in business are as follow - It is challenging for Joint ventures to takes effort and time in order to construct the accurate relationship and collaborating with any other business. The objectives of the enterprise are not 100% clear and conversed to every person involved in the joint venture. In joint venture, there is an inequity in point of knowledge, venture or property brought by different partners. Altered management and cultures styles effects in poor combination and collaboration. The partner in the joint venture does not give sufficient leadership and maintain in the early phases. Achievement in joint venture is responsible on systematic study and investigation of objectives (Liang at el. 2012). Joint Venture use by Avon: Avon possesses 60percent of the joint venture. The company made an initial venture of 1 million dollars and procedure to enhance its equity venture as extra funding is necessary to do so. Though the contract permits for manufactured goods supplied throughout worldwide, the business plans is to turn over its transaction operation steadily. To start this, the company have to inform to approximately 10 millions of its customers. The company will give the venture with some kit, cosmetics, technological capability and sale the product. It is permitting the technology and brand name to joint ventures. Avons strategy is to earn adaptable foreign money by selling its products abroad. At first, the venture will produce 80 - 90 fragrance and skin-care products (Dan, 2013) Conclusion: Under the leadership of Andrea Jung's, Avon faced numerous of challenges. Some challenges cannot be tackled but some were tackled successfully. Jung was correct in admitting that Avon's major capability is the direct selling of products and its core strength the brand name. Again focusing on the major capability, recovering efficiencies and adjusting to the surroundings with new proposals, Avon might overcome all the obstacles faced in the past and revolve the business in a new direction. Reference: Liu, G., Ko, W. W. (2014). An Integrated Model Of Cause-Related Marketing Strategy Development.AMS Review,4(3-4), 78-95. Ryan, D. (2014).Understanding digital marketing: marketing strategies for engaging the digital generation. Kogan Page Publishers. Christopher, M., Peck, H. (2012).Marketing logistics. Routledge. David, M. E., David, F. R., David, F. R. (2014). MISSION STATEMENT THEORY AND PRACTICE: A CONTENT ANALYSIS AND NEW DIRECTION.International Journal of Business, Marketing, Decision Science,7(1). Killing, P. (2012).Strategies for Joint Venture Success (RLE International Business)(Vol. 22). Routledge. Saha, A., Chattopadhyay, U. (2015). The Impact of International Joint Venture on Local Economy: A Case Study of Hero Honda.South Asian Journal of Business and Management Cases,4(1), 14-26. Liang, X., Lu, X., Wang, L. (2012). Outward internationalization of private enterprises in China: The effect of competitive advantages and disadvantages compared to home market rivals.Journal of World Business,47(1), 134-144. Dan, M. C. (2013). Why should university and business cooperate? A discussion of advantages and disadvantages.International Journal of Economic Practices and Theories,3(1), 67-74. Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., Rose, E. L. (2014).International business. Pearson Australia. Verbeke, A. (2013).International business strategy. Cambridge University Press.