Mixing Music and Politics Essay -- Pop Music Politics

Many have thought the entertainment world should be separate from the world of politics. Some celebrities go on to be involved in politics, such as Ronald Reagan and Sonny Bono, but rarely does an entertainer command a large sphere of influence in the world of entertainment and politics simultaneously. While entertainers can move the masses, their voice is usually discarded among politicians. In addition to this, many have highlighted the negative influence of the entertainment industry, and particularly rock music, on American culture. Often, it is seen as a corrupting force that leads people astray. For many people, rock and roll seems to highlight all that is wrong with American popular culture. These critics fail to take note of the potential that rock stars have for positively affecting their world. Bono, of U2, is an example of an entertainer that breaks the rule. Since the early days of U2, Bono has believed in, and pushed for, political change. He has used his status as a pop culture icon to fight poverty and other issues that pose a threat to the stability and livelihood of many of the worlds' citizens. He has proven that rock stars can transcend the cultural baggage that is normally attached to them, and positively impact reality. Bono is an entertainer who has the ability to both move the masses and, at the same time, play an active and effective role in fostering positive humanitarian change. In recent years, the press has been filled with negative images of rock stars. Nearly every major news magazine has run articles that speak to the negative effects of pop music in regards to racism, violence, and sex. Pop musicians, such as Two Live Crew and Judas Priest have been placed on trial for explicit lyrics.... ...umph of Vulgarity: Rock Music in the Mirror of Romanticism. New York: Oxford, 1987. Pettifor, Ann. "Jubilee: Supporting Economic Justice Campaigns Worldwide." rev. 1 Dec. 2002. 2 Dec 2002 <www.Jubilee2000uk.org>. Rompalske, Dorothy. "Rock Star to the Rescue." Biography Oct 2002: 56-61. Academic Search Elite. Palni SiteSearch. Goshen College Good Library. 26 November 2002. Waddel, Ray. "Uw on Career High with Elevation Tour." Billboard 23 Jun 2001: 97. Wicke, Peter. Rock Music: Culture, Aesthetics and Sociology. New York: Cambridge, 1990. Wroe, Martin. "U2.com" Rev. 21 Nov. 2002. 23 Nov. 2002 <WWW.U2.com>. Wurtzel, E. "Me2." The New Yorker 17 Feb 1992: 75. "U2." The New Grove Dictionary of Music and Musicians. Ed. Stanley Sadie. New York: Grove, 2001. "U2's Spiritual Journey Defies Categorization." Christian Century 13 Feb 2002: 12-18.

Ancient Egyptian Religion And The Monotheistic Religion Of Moses :: Religious History Essays

Ancient Egyptian Religion And The Monotheistic Religion Of Moses In the glorious Eighteenth Dynasty, when Egypt became for the first time a world power, a young Pharaoh ascended the throne about 1375 B.C., who first called himself Amenhotep (IV) like his father, but later on changed his name to Akhenaten (1370-1358 B.C.). This king undertook to force upon his subjects a new religion, one contrary to their ancient traditions and to all their familiar habits. It was a strict monotheism, the first attempt of its kind in the history of the world, as far as we know; and religious intolerance, which was foreign to antiquity before this and for long after, was inevitably born with the belief in one god. But Amenhotep’s reign lasted only for seventeen years; very soon after his death in 1358 B.C. the new religion was swept away and the memory of the heretic king proscribed. From the ruins of his new capital, which he had built and dedicated to his god, and from the inscription in the rock tombs belonging to it, we derive the little knowledge w e possess of him.1 This spark of monotheism can be traced back to Akhenaten’s father Amenhotep III. During his reign, ideas about the uniqueness of the sun god Re were developed in some de-tail. Some Egyptian priests conceived the possibility that all gods were part of a unique god from which all life originated and based on their experiential knowledge of nature (at least as they perceived it in Egypt) the sun was a good candidate for this universal god. 1 Freud, Sigmund. Moses and Monotheism. (New York: Vintage Books; 1934), p. 21. Political conditions at that time had begun to influence Egyptian religion as well. During the prosperous reigns of Thotmes III (1490-1436 B.C.) and Amenhotep II (1436-1412 B.C.), Egypt had expanded its frontiers in all directions and the nation was becoming increasingly difficult to govern. Egypt was the richest state in the world and Pharaoh represented the supreme power behind Egyptian prosperity. Annexed territories that belonged to Nubia and Syria were fully engaged in trade with the empire and the idea of a supreme and unique ruler was in perfect agreement with the idea of a supreme and unique god. In fact, the so-called revolution of Akhenaten is now thought to have been a political rather than a religious movement, a reaction to events outside Egypt.

Commentary: An Advancement of Learning by Seamus Heaney Essay

In An Advancement from Learning by Seamus Heaney, he describes a retrospective childhood experience. The narrator compels himself to face a deep-seated and preposterous fear which he consequently conquers. He shares his terror and revulsion by implementing vivid and vibrant imagery presented in nine quatrains. The conquest of an irrational fear depicted in this poem is perhaps a metaphor for overcoming greater fears in life. As the title suggest, this poem is about An Advancement of Learning- facing and subsequently conquering sometimes strong and private fears. Heaney describes a lone stroll along a polluted, ‘oil-skinned’ river bank. The almost sombre introspective tone of the opening two stanzas rapidly changes into one of revolt and terror as a rat emerges from the river. In a moment of panic, the poet attempts to escape, only to find another on the far bank, which encouraged a deeper impact. The second rat provoked the author to question his response to and fear for these animals. He then ‘incredibly’ decides to courageously maintain his ground and face the rodent. Despite Heaney providing the reader with a vibrant image of the animal to reinforce his contempt, he almost battles the rat until he ‘stared him out’. Eventually, as if the narrator won the ongoing battle, the rat retreats into a sewage pipe. Heaney then advances his way and triumphantly crosses the bridge, as he conquered a fright which has bedevilled him since childhood. An Advancement of Learning is written in nine quatrains consisting of short and sharp lines, which almost present the reader with a succession of flashing images. Heaney employs a loose and alternate rhyming scheme- stanzas one, three, six, eight and nine follow the pattern abcb, whereas stanzas two and four follow the abac pattern. Where the seventh stanza follows the abab pattern, Stanza five has the different but effective rhyming scheme abbc. The regularity of the rhythm in this stanza contributes to the reader’s sense of the poet’s rising self control. Heaney makes active use of enjambment and caesura to emphasise many of his emotions and sentiments. The astute use of enjambment from lines ten to sixteen increase the tempo and excitement of the poem, which in turn aid to convey the poet’s  fright and aspiration to flee. Furthermore, the writer applies enjambment between one stanza and the next to allow his descriptions to flow smoothly, which appropriately reflects the fluidity of the river described. Interesting is that the verses reflect the writer’s gradual gaining of self control. The main entity in the poem is the bridge as it symbolises the tree stages in the writer’s conquest of fear. At the sight of the first rat, the poet initially refuses to cross the bridge. Once faced with his ‘enemy’, he establishes a ‘dreaded Bridgehead’ which in military terms means to hold a defensive position. He is fearful but determined. Finally, as the poet defeats his foe and fear, he, with a vestige of triumph, ‘walked on and crossed the bridge.’ The bridge is mentioned at these three key stages of Heaney’s experience as well as structurally in the first, central and closing stanzas to emphasise the stages of overcoming his fear gradually. Heaney’s most striking feature in terms of style and language are unmistakably his effective use of alliteration and sibilance, as well as the appealing use of lexis. The repetition of the sharp consonant sounds s and c, especially conspicuous in the third stanza, contribute to both the sickening nature of the rat and the writer’s feelings towards it. An example of words carefully chosen to enhance and reflect the meaning of the poem is ‘Insidiously listening’, which is despite its impact, neither alliteration nor assonance. The narrator also employs extraordinary and emotive vocabulary, such as ‘slimed’ and ‘nimbling’ to describe the rats, allowing the reader to accurately experience the fear and loathing which he suffered. Remarkable about this poem is that as the writer overcomes his revolt and fright, the description of the animal becomes more forgiving. Where at the beginning the rodents were Insidious, ‘slobberedâ€℠¢ and ‘slimed’ around, they are, less forbiddingly, observed as animals with ‘the raindrop eye’ and ‘the old snout’ towards the end. This indicates how the writer’s fear and terror disappears with the rat into the sewage pipe, and how he now views the rodent in its proper perspective. An Advancement of Learning successfully conveyed the writer’s feelings and  emotions while conquering a lifelong phobia. The use of enjambment and caesura as well as the alternating rhyming patterns, which reflected the increasing order of the situation, all contribute to the vibrant image the reader is provided with. Furthermore, the poet employed the motif of the bridge as a foundation for the poem’s structure while adding more dimension to the text by enforcing it as a symbol of the poet’s route to overcoming his deep-rooted fears.

In my military life I have learned about aspects of other cultures Essay

A military career is not only a way to apply one’s potential toward the noble cause of defending people; for me it was also a chance to travel and to expand my knowledge of other cultures and nations. I have a twenty-year military career to look back upon. During this time I was three times deployed to Iraq, once to Bosnia, and visited Japan for six week field exercise. This, in my opinion, is an impressive record of dealing with other cultures due to diversity of these nations and their relative difference from the US. These cultures were indeed very different. One reason may be the fact that they are located at such a distance from each other and my homeland that it seems that during travels you are spanning a huge distance and land in another world. Indeed, the Southern European setting of Bosnia is very different from Iraqi deserts and the cluttered Japanese landscape. Most of all, however, I was impressed with differences in lifestyles, attitudes and different aspects of culture that I had to deal with. I realized quite often how individualistic our culture really is, with every person defending one’s own point of view, without fear that others may disagree. In Japan, for instance, I often saw that people are not willing to impose their individual ideas. Instead, they are more willing to draw on the ideas and perceptions of the group they belong to. In fact, they always seem to have this feeling of a group in the background that stands ready to support them, a quality that even made me envious of them at times. I think it is very useful for a person to see how people in different cultures perceive individualism, or â€Å"the importance of the individual as compared with collective goals and efforts† (Couto, Cabral 2004). At the same time, I found it frustrating at times how the Japanese tend to treat Westerners as outsiders. As one gets to know them more closely, one learns that their society, too, is composed of â€Å"many groups and sub-groups — and not always in perfect harmony and cooperation as it may look on the surface† (â€Å"Culture Schock 101†). One learns that there is often a division of ‘them† and â€Å"us† between the Japanese and the arrivals, so that one can spend a lot of time there without getting close to the natives. I think there is no reason to get frustrated about it just as there is little reason to be frustrated about people being different from us altogether. Acceptance helps good relations and can often overcome differences since ultimately it is not similarity, but mutual sympathy and liking that matters in human interaction. Quite a few times, I had misunderstandings with our Japanese counterparts, like, for instance, invitations to dinner that people in Japan do not really intend to make. I several times fell for these invitations only to find out later that they meant simply an invitation to good cooperation. It took me a while to realize that people make these invitations to promote the general air of harmony in relationships. I later found out how important harmony is to the Japanese and began to avoid actions that could disrupt it. When we were in Iraq, this was surely different from Japan, partly because of the political aspects, and partly because Arab culture and in particular Iraqi culture is so different. I think my first surprise was the food that proved to be something in my taste, so that I learned a couple of recipes and brought them back to the US. Then another thing that captured my eye was all the material culture they had, like ancient artefacts and modern things that are so elaborate, elegant and at the same time bright and eye-catching. Then one more thing that soon becomes obvious is the importance of religion to the Iraqi people who think in Islamic terms about their daily happenings so that their whole philosophy is inextricably linked to their religion and its doctrine. In the US it often feels as if people leave their faith behind the doors of the church when they leave the Sunday service, but in Iraq they are committed to thinking about faith on a daily basis. It is like a glass through which they see the world, thinking about it in terms of what Islam wants them to do. I think a great part of learning about other cultures and their peculiar traits is that you get a more complete picture of your own background, putting it in context. Things that seemed natural and obvious begin to look different because now you have a chance to assess them from a different viewpoint. I recently came upon the article that talks about US culture as promoting â€Å"the behavior of women like drunken, sexually aroused yobs as a way for them to â€Å"be one of the guys†, a way for them to be funny and â€Å"with it† and cool† (Faisal 2003). Without having been there, I would probably feel hurt by this description. Now, in contrast, knowing the way of life people live over there I can understand how our world might look to them. Indeed, it is often hard to bridge the gap between cultures, but with a bit of common sense a person can make it, once one realizes that many values are vastly different across the globe. As for Bosnia, I was pleased to find out that in this relatively poor area people are so hospitable and sociable. I think that Bosnia, too, has a collectivist culture, but it is one that is relatively easy for foreigners to penetrate. I enjoyed seeing the neighborhood networks that are so well-developed in their culture and how people get together in locales called kafane and kafici. I also had time to realize that it is not in fact a homogeneous culture but one that includes great diversity, including divisions between Muslims and Christians. I believe that my background allows me to realize many cultural issues that would otherwise have escaped my attention. Dealing with individuals coming from other cultures on a daily basis allows insights into deep-seated cultural values and assumptions. At the same time, presence in the country acquainted me with material aspects of other cultures. For someone new in the culture, even ordering dishes in a local cafe can be a problem since one does not know what to choose. However, as one gets hold on daily happenings, one is ready for realization of more complex things. Bibliography Couto, Joao Pedro, & Vieira, Jose Cabral. â€Å"National Culture and Research and Development Activities. † Multinational Business Review (Spring 2004). 26 Nov. 05 . â€Å"Culture Shock 101. Japanese Culture — A Primer For Newcomers. † 26 Nov. 05 . Faisal, Amr Al. Raunchy Sexy Things. 2003. 26 Nov. 05 .

Musical Theatre – Fiction Assignment

Andrea drives a car through busy New York traffic (‘A Good Start of the Day’) and receives a phone call from Miranda who orders her to get her car from auto care, her dog from a vet, and bring them to Miranda’s house. When Andrea comes to report to Miranda that everything has been done, her boss tells her that she was supposed to bring the car and the god to the office instead of Miranda’s house. She tells her assistant that everything should be by the door of her office in 15 minutes (‘15 Minutes’). The atmosphere in the headquarters of ‘Runway’ is tense and almost hysterical (‘The World of Fashion’). When Andrea fulfills these directions, they leave for a preliminary show of the latest collection of a prominent designer (‘Behind the Scenes’). Andrea proves to be more qualified than Emily, and Miranda decides to take Andrea on an important business trip to Paris — the fact that deeply offends and disappoints Emily (‘Paris, Je T'aime Moi Non Plus’). When Andrea comes home that night, she realizes that she forgot about her boyfriend’s birthday (‘This Not-so-special Day’), and their relationship teeters at the lip of abyss. Act 2 Miranda and Emily arrive to Paris; they attend top-notch fashion shows and receptions (‘Eurostar’). Andrea occasionally meets Christian whom she knows from New York, and the romantic atmosphere of Paris makes her spend a night with him. However, in the morning she realizes that she made a mistake and finds herself missing Nate (‘Charms Are Frail’). On board of the plane that carries her back to New York, Andrea reconsiders her lifestyle and values (‘Home Again’). She is unhappy to return to her busy workplace (‘The World of Fashion: Reprise’). She decides to quit her job and strike a better balance between her professional and private life. Before leaving, she presents all the designer clothes to Emily (‘These Little Pieces of Fabric’) and in this way denounces the importance of looks and fashion. The musical ends with a scene of Andrea reunion with Nate (‘Being True to Yourself’). Character List Andrea Sachs: She is a young graduate from Midwest who has just moved to New York to look for a job at a magazine or newspaper. At the beginning, she is confident of her abilities, yet she is easily confused by vibrant New York life and tough approach of her new boss. Miranda Priestley: She is a powerful and authoritarian editor of the ‘Runway’ magazine. She has connections both in the press world and in the world of fashion; however, she often demonstrates her power by maltreating her subordinates. Emily: She used to be the first assistant to Miranda before the arrival of Andrea who proved to be more competent and was promoted to Emily’s position. Nigel: He is the art director of ‘Runway’ who often advices Andrea on how to dress with taste and deal with Miranda’s whims. Nate: He is Andrea’s boyfriend who suffers from lack of attention and condemns her girlfriend paying too much attention to her job and her looks. Christian: He is a magazine writer who fancies Andrea and eventually seduces her into a romantic adventure in Paris. Chorus: Chorus, together with Nigel, performs ‘The World of Fashion’ song and serves the purpose of conveying the atmosphere of fashion industry characterized by (quoting ‘Sunset Boulevard’ musical) ‘whispered conversations in overcrowded hallways.’ Song List Act 1 A Good Start of the Day (upbeat) 15 Minutes (upbeat) The World of Fashion (dance) Behind the Scenes (upbeat) Paris, Je T'aime Moi Non Plus (ballad) This Not-so-special Day (ballad) Act 2 Eurostar (upbeat) Charms Are Frail (ballad) Home Again (ballad) The World of Fashion: Reprise (dance) These Little Pieces of Fabric (upbeat) Being True to Yourself (ballad) Spectacle There are three different set: headquarters of the ‘Runway’ magazine, Andrea and Nate’s apartment, and Paris. The first set features the use of bright lights, crowd, hallstands, and various posters from fashion shows. The second set should convey the calm and comfortable atmosphere of New York middle-class couple. The third set features some of the landmarks of Paris (e.g. Eiffel Tower) and creates the atmosphere of excess, lush, and festivity. Almost all costumes used in the musical should be expensive and fashionable designer clothes; the only character that wears casual clothes in Nate. No special effects are used, but the song ‘The World of Fashion’ is accompanied by a ballet. The theme of the musical is the balance between professional and public life and hard choices people have to make. It also deals with the ability to stay honest and kindhearted under the pressure from inhibiting circumstances.

Stock and Debt

CHAPTER 12 QUESTIONS 12-1Operating leverage affects EBIT and, through EBIT, EPS. Financial leverage generally has no effect on EBIT—it only affects EPS, given EBIT. 12-2Because Firm A has a higher fixed operating costs, its operating income will change by a greater percentage than Firm B’s operating income if sales change. Firm A has a higher degree of operating leverage than Firm B. 12-3If sales tend to fluctuate widely, then cash flows and the ability to service fixed charges also will vary. Consequently, there is a relatively large risk that the firm will be unable to meet its fixed charges.As a result, firms in unstable industries tend to use less debt than those whose sales are subject to only moderate fluctuations. 12-4The tax benefits from debt increase linearly, which causes a continuous increase in the firm’s value and stock price. However, bankruptcy-related costs begin to be felt after some amount of debt has been employed, and these costs offset the benefits of debt. See Figure 12-5 in the textbook. 12-5Carson does have leverage because its EPS increases by a greater multiple than its sales when sales change. According to the information that is given, Carson’s DTL is 4 = 20/5.Because we have no information about either the firm’s operating fixed costs or its fixed financing costs, we cannot state whether the firm has operating leverage, financial leverage, or both. 12-6EBIT depends on sales and operating costs that generally are not affected by the firm’s use of financial leverage, because interest is deducted from EBIT. At high debt levels, however, firms lose business, employees worry, and operations are not continuous because of financing difficulties. Thus, financial leverage can influence sales and cost, hence EBIT, if excessive leverage causes investors, customers, and employees to be oncerned about the firm’s future. 12-7Expected EPS generally is measured as EPS for the coming years, and we typically do not reflec t in this calculation any bankruptcy-related costs. Also, EPS does not reflect (in a major way) the increase in risk and ks that accompanies an increase in the debt ratio, whereas P0 does reflect these factors. Thus, the stock price will be maximized at a debt level that is lower than the EPS-maximizing debt level. 12-8A firm can change the proportion of debt it uses in its capital structure. If the firm has too much (little) debt, it can reduce (increase) the proportion of debt in its capital structure.Such as change should decrease the firm’s WACC, and thus increase its value. 12-9Absolute’s optimal capital structure is 40 percent debt (= $20,000,000/$50,000,000), because the market price of the company’s stock ($130. 75) is maximized at this point. 12-10With increased competition after the breakup of AT&T, the new AT&T and the seven Bell operating companies’ business risk increased. With this component of total company risk increasing, the new companie s probably decided to reduce their financial risk, and use less debt, to compensate.With increased competition the chance of bankruptcy increases and lowering debt usage makes this less of a possibility. If we consider the tax issue alone, interest on debt is tax deductible; thus, the higher the firm’s tax rate the more beneficial the deductibility of interest is. However, competition and business risk have tended to outweigh the tax aspect as we saw from the actual debt ratios of the Bell companies. The Bell companies and the new AT&T lowered their debt ratios, for reasons along these lines. 2-11Several possibilities exist for the firm, but trying to match the length of the project with the maturity of the financing plan seems to be the best approach. The firm might want to finance the R&D with short-term debt and then, if the project’s results are successful, to raise the needed capital for production through long-term debt or equity. Another possibility would be to issue convertible bonds, which can be converted to common stock—a lower interest rate would be paid now, and in the future (presumably the stock price will increase with the new process) investors would trade in the bonds for stock.One also should keep in mind that this project, and R&D in general, is extremely risky and debt financing might not be available except at extremely high rates. For this reason, many R&D companies have low debt ratios, instead paying low dividends and using retained earnings for financing projects. Under Debt financing the expected EPS is $5. 78, the standard deviation is $1. 05, the CV is 0. 18, and the debt ratio increases to 75. 5%. (The debt ratio had been 70. 6 percent. Under Equity financing the expected EPS is $5. 51, the standard deviation is $0. 85, the CV is 0. 15, and the debt ratio decreases to 58. 8 percent. At this interest rate, debt financing provides a higher expected EPS than equity financing; however, the debt ratio is significan tly higher under the debt financing situation as compared with the equity financing situation. Because EPS is not significantly greater under debt financing, but the risk is noticeably greater, equity financing should be recommended.INTEGRATIVE PROBLEMANSWER: Business risk is the uncertainty associated with a firm’s projection of its future operating income.It also is defined as the risk faced by a firm’s stockholders if the company uses no debt. A firm’s business risk is affected by many factors, including: (1) variability in the demand for its output, (2) variability in the price at which its output can be sold, (3) variability in the prices of its inputs, (4) the firm’s ability to adjust output prices as input prices change, (5) the amount of operating leverage used by the firm, and (6) special risk factors (such as potential product liability for a drug company or the potential cost of a nuclear accident for a utility with nuclear plants).ANSWER: Oper ating leverage is the extent to which fixed operating costs are used in a firm’s operations. If a high percentage of the firm's total operating costs are fixed, and hence do not decline when demand falls, then the firm is said to have high operating leverage. Other things held constant, the greater a firm’s operating leverage, the greater its business risk. [pic] ANSWER: Financial leverage refers to the firm’s decision to finance with fixed-charge securities, such as debt and preferred stock. Financial risk is the additional risk, over and above the company's inherent business risk, orne by the stockholders as a result of the firm's decision to finance with debt. [pic] ANSWER: As we discussed above, business risk depends on a number of factors such as sales and cost variability, and operating leverage. Financial risk, on the other hand, depends on only one factor—the amount of fixed-charge capital (financing) the company uses. [pic] ANSWER: Here are the f ully completed statements: The expected TIE would be larger than 2. 5x if less debt were used, but smaller if leverage were increased. [pic] ANSWER: The optimal capital structure is the capital structure at which the tax-related benefits of leverage are exactly offset by debt’s risk-related costs.At the optimal capital structure, (1) the total value of the firm is maximized, (2) the WACC is minimized, and the price per share is maximized. [pic] ANSWER: Here is the sequence of events: 1. CDSS must first announce its recapitalization plans. 2. The company’s stock would have some market price before the announcement, in this case, $20 per share. The company would have to estimate (a) the price it would have to pay for the repurchased shares and (b) the method to be used for the repurchase (open market purchases, or a tender offer). 3.For simplicity, we assume that the firm could repurchase stock at its current price, $20, which also happens to be its book value per share. In actuality, investors would probably reassess their views about the firm’s profitability and risk under the new capital structure, and the stock price probably would rise. No current shareholder would be willing to sell at a price very far below the expected new price, although some would be afraid the recap plan might not go through, and those stockholders would sell out at a lower-than-expected price.Therefore, the stock price would adjust quickly to a new equilibrium that reflects the recapitalization. 4. CDSS would purchase stock, then issue debt and use the proceeds to pay for the repurchased stock. After the recapitalization, the company would have more debt but fewer common shares outstanding. A new EPS could be calculated, and the price would settle into its new level. [pic]4. ANSWER: The analysis for the debt levels being considered (in thousands of dollars and shares) is shown below: At Debt = $0: [pic] At Debt = $250,000: Shares repurchased = $250,000/$20 = 12,5 00.Remaining shares outstanding = 100,000 – 12,500 = 87,500. Note: EPS and TIE calculations are in thousands of dollars. ) [pic] At Debt = $500,000: Shares repurchased = $500,000/$20 = 25,000. Remaining shares outstanding = 100,000 – 25,000 = 75,000. (Note: EPS and TIE calculations are in thousands of dollars. ) [pic] At Debt = $750,000: Shares repurchased = $750,000/$20 = 37,500. Remaining shares outstanding = 100,000 – 37,500 = 62,500. (Note: EPS and TIE calculations are in thousands of dollars. ) [pic] At Debt = $1,000,000: Shares repurchased = $1,000,000/$20 = 50,000. Remaining shares outstanding = 100,000 – 50,000 = 50,000. (Note: EPS and TIE calculations are in thousands of dollars. [pic] [pic] ANSWER: We can calculate the price of a constant growth stock as DPS divided by rs minus g, where g is the expected growth rate in dividends: [pic] Because in this case all earnings are paid out to the stockholders, DPS = EPS. Further, because no earnings are plowed back, the firm’s EBIT is not expected to grow, so g = 0.Here are the results: Debt Level DPS rs Stock Price $ 0 $3. 00 15. 0% $20. 00 250,000 3. 26 15. 5 21. 03 500,000 3. 56 16. 5 21. 58* 750,000 3. 86 18. 0 21. 44 1,000,000 4. 8 20. 0 20. 40 * maximum ANSWER: A capital structure with $500,000 of debt produces the highest stock price, $21. 58, hence it is the best of those considered. ANSWER: We have seen that EPS continues to increase beyond the $500,000 optimal level of debt. Therefore, focusing on EPS when making capital structure decisions is not correct—while the EPS does take account of the differential cost of debt, it does not account for the increasing risk that must be borne by the equity holders. ANSWER: Currently, Debt/Total assets = 0%, so total assets = initial equity = $20 x 100,000 shares = $2,000,000.WACC = ($500,000/$2,000,000)[(11%)(0. 60)] + ($1,500,000/$2,000,000)(16. 5%) = 1. 65% + 12. 38% = 14. 03%. NOTE: If we had (1) used the equilibri um price for repurchasing shares and (2) used market value weights to calculate WACC, then we could be sure that the WACC at the price-maximizing capital structure would be the minimum. Using a constant $20 purchase price, and book value weights, inconsistencies might creep in. [pic] ANSWER: If the firm had higher business risk, then, at any debt level, its probability of financial distress would be higher.Investors would recognize this, and both rd and rs would be higher than originally estimated. It is not shown in this analysis, but the end result would be an optimal capital structure with less debt. Conversely, lower business risk would lead to an optimal capital structure that included more debt. ANSWER: The three degrees of leverage are calculated below: S = $1,350,000 New debt = $500,000 @ 11% VC = 0. 6S F = $40,000 (Note: Calculations are in thousands of dollars. ) [pic] [pic] DTL = DOL x DFL = 1. 08 x 1. 12 = 1. 21. The degree of operating leverage is defined as the percent age change in perating income (EBIT) associated with a given percentage change in sales. Because our company’s degree of operating leverage is 1. 08, this means that a given percentage increase in sales will lead to an 8 percent greater increase in EBIT. For example, if sales increased by 100 percent, then EBIT would increase by 108 percent. The degree of financial leverage is defined as the percentage change in EPS associated with a given percentage change in EBIT. Because CDSS’s degree of financial leverage is 1. 12, this means that if EBIT increased by 100 percent, then EPS would increase by 112 percent.The degree of total leverage shows the combined effects of operating and financial leverage on the firm’s earnings per share. It is defined as the percentage change in EPS brought about by a given percentage change in sales, and it is calculated as DOL x DFL. Because CDSS’s DTL is 1. 21, a 100 percent increase in sales would produce a 121 percent increa se in EPS. The degree of leverage concept is useful for planning purposes, as it gives an idea of what will happen to earnings as sales vary. Investors can use the concept to consider firms with different leverages if they expect sales to rise or fall. [pic]ANSWER: Because it is difficult to quantify the capital structure decision, managers consider the following judgmental factors when making capital structure decisions: (1)The average debt ratio for firms in their industry. (2)Pro forma tie ratios at different capital structures under different scenarios. (3)Lender/rating agency attitudes. (4)Reserve borrowing capacity. (5)Effects of financing on control. (6)Asset structure. (7)Expected tax rate. ANSWER: The following figure presents a graph of the situation: [pic] The use of debt permits a firm to obtain tax savings from the deductibility of interest.So the use of some debt is good; however, the possibility of bankruptcy increases the cost of using debt. At higher and higher leve ls of debt, the risk of bankruptcy increases, bringing with it costs associated with potential financial distress. Customers reduce purchases, key employees leave, and so on. There is some point, generally well below a debt ratio of 100 percent, at which problems associated with potential bankruptcy more than offset the tax savings from debt. Theoretically, the optimal capital structure is found at the point where the marginal tax savings just equal the marginal bankruptcy-related costs.However, analysts cannot identify this point with precision for any given firm, or for firms in general. Analysts can help managers determine an optimal range for their firm’s debt ratios, but the capital structure decision still is more judgmental than based on precise calculations. ANSWER: The asymmetric information concept is based on the premise that management’s choice of financing gives signals to investors. Firms with good investment opportunities will not want to share the benef its with new stockholders, so they will tend to finance with debt. Firms with poor prospects, on the other hand, will want to finance with stock.Investors know this, so when a large, mature firm announces a stock offering, investors take this as a signal of bad news, and the stock price declines. Firms know this, so they try to avoid having to sell new common stock. This means maintaining a reserve of borrowing capacity so that when good investments come along, they can be financed with debt. 12-17Computer-Related Problem a. If the outstanding debt has to be refunded at the new higher interest rate, expected EPS would decline under either financing plan. However, EPS would decline more if debt financing were used. Therefore, ebt financing has become relatively less attractive than stock financing. The output generated by the model is given below:ETHICAL DILEMMA A BOND IS A BOND †¦ IS A STOCK †¦ IS A BONDOCK?Ethical dilemma: Wally is evaluating whether to use a new (to the United States) financial instrument to raise funds to finance Ohio Rubber & Tire’s (ORT) expansion plans. The new instrument, which is called a bondock, has some characteristics of traditional debt and some characteristics that are similar to common equity. The cost of capital associated with bondocks is slightly higher than traditional debt, but significantly lower than common equity.If ORT’s expansion plans are successful, both its bondholders and its stockholders will receive handsome returns. However, if the expansion plans are not successful, then it appears that stockholders can still benefit but at the expense of bondholders. ORT’s executives are some of the company’s major stockholders, so it appears that they would be in favor of issuing bondocks. Discussion questions: ?Is there an ethical problem? If so, what is it? The question here is whether it is appropriate to use a new financial instrument called a bondock to raise funds needed for expansi on.Because the cost of capital associated with a bondock is slightly higher than the cost of debt but significantly lower than the cost of equity, management thinks that it might be appropriate to use this medium to raise funds to invest in risky ventures. If the expansion investment is successful, both the bondholders and the stockholders will benefit. Of course, the benefit to stockholders will be greater than the benefit to bondholders. On the other hand, if the expansion investment is unsuccessful, both bondholders and stockholders will suffer financial losses.But, because the market values of the bondocks will decline significantly, the firm could benefit by repurchasing these financing instruments in the capital markets. In this case, stockholders would benefit at the expense of bondholders. As a result, the ethical question is whether ORT should raise funds using bondocks knowing that there is a possibility that its stockholders will gain at the expense of its bondholders. ?I s it appropriate for ORT to use bondocks to raise funds that are needed for expansion? Is there an ethical dilemma here? Maybe not. Remember that investors take risks when purchasing the stocks and bonds of firms.In this case, ORT would be wise to use bondocks if the purpose is to raise funds for expansion while trying to lower the cost of capital associated with â€Å"going to† the financial markets. It might be argued that it is unethical for ORT to use bondocks if the intent is to benefit executives who receive bonuses and incentives in the form of the company’s stock. It also might be argued that it is unethical if the intent is to harm the position of bondholders.However, if the primary objective is to increase the value of the firm, then it is difficult to argue that issuing this new financial instrument is unethical. What would you do if you were Wally? It seems that the best solution is for Wally to try to get more information about the new financial instrument called a bondock. Because little is known about bondocks and they appear to be rather complex financial instruments, Wally should gather more information about the risks as well as the benefits to ORT associated with using this medium to raise funds for expansion. Once he has performed his due diligence, Wally should determine whether using bondocks will benefit the firm and its investors in general.If the answer is â€Å"no,† then bondocks should not be used. References: The following articles might be assigned for background material: Emily Thornton, â€Å"Gluttons at the Gate,† BusinessWeek, October 30, 2006, pp. 58-66. David Henry, â€Å"Cross-Dressing Securities,† BusinessWeek, March 13, 2006, pp. 58-59

Implementing ISO 9000 and Investor in People initiatives in working Essay

Implementing ISO 9000 and Investor in People initiatives in working place. Business Initiatiaves - Essay Example In today’s competitive world, every organisation wants to stay ahead of others, for which they strive to run more efficient businesses aimed at achieving maximum benefits using minimum resources. This has led to a formal, structured business process in which an organisation first sets a vision derived from its core values and ethics, develops a business plan based on its goals and priorities and then formulates business strategies to achieve the goals and hence put the business plan in action. A major business plan can often redefine the direction in which the organisation will proceed in the near or distant future (Bianca, 2013). There are several motivators that can cause an organisation to formulate a business plan and develop strategies to implement the plan such as, market-related motivators like, improving customer satisfaction, evolving with changing market dynamics and targeting a new market segment, competition-related motivators like, increasing market share, expandi ng product line, diversifying business, improving product quality, mergers and acquisitions, outperforming competitors and toppling market leaders, economic motivators like, job cuts and pay cuts, increasing market share and sales volume, reducing operational and manufacturing costs and improving productivity, operations-related motivators like, increasing productivity of employees, improving working environment and work culture and adopting new technology, environment-related motivators like, discontinuing using toxic chemicals, reducing pollution and carbon footprint, lowering energy consumption and adopting biomaterials as well as brand-equity motivators like, increasing brand visibility and recognition, creating brand loyalty and improving brand perception and brand image. Sometimes, multiple motivators may closely interact together. For instance, an organisation may decide to reduce its carbon footprint, improve the environment and be eligible for receiving special tax incentiv es from the government. Another organisation may want to introduce several new lines of products to target new market segments, create brand equity and generate more revenues. This means that at the core, every new move that an organisation makes is primarily tied to its commercial benefits. Almost all business plans and strategies are designed privately by organisations in consultation with internal employees. Such parties often tend to focus only on the desired outcomes and ignore the associated negative implications. This leads to achieving the desired goals at the cost of several other exploitations which not only backfire at the organisations, but also harm the entire society. The growing list of poor business plans and strategies of organisations around the world has prompted governments to undertake several measures that help organisations to take a holistic approach during chalking out initiatives, so that all the parties involved (such as, employees, customers and investors ) reap the benefits together. This has led to the creation of several business standards that draw from benchmark business practices in their respective industries and these standards are promoted to organisations for adoption. The adoption of a business standard helps an organisation to