Physical Resources - 1545 Words

Introduction: In our assignment we choose Bahrain specialist hospital to describe his physical resources . In this hospital there are different kind of department and we choose one of these department which is x-ray department to describe and explain there of his physical resources. Task 1: The physical resources that we choose are: (1) Building and facilities: Building is the place used by a business for its operation. building plays an important role in the image of a business . so the Bahrain specialist hospital geometric shape of the building suggests psychological comfortable for the patent there are signs on the road that indicate the location and†¦show more content†¦Of course , the management also has a major responsibility in operations management to plan for efficient working of staff and machine utilization. Organization can compute machine productively also to compare out put over a period to know about the productivity levels. Productivity is the level of output (goods manufactured or services provided) in relation to the cost of producing the products or service. (A) The performance of three physical resources that we choose is building facilities, Plant machinery. First of all the performance of building must be comfortable for patient, also the hospital have a lot of rooms should be organized with the number of patient in a proprat way. For example it should be have large room that have available many beds .between the beds should be have enough space between them, to let patient move between them easily. The passages should be huge, have good lights the ventilation should be available signs to lead patient to the place or floor they want. Also in the rooms there should be available to the patient different kind of facilities like clean toilet, television so the patient do not feeling bored. Scand the performance of equipment resource like: Beds mattress should be strong, fullyShow MoreRelatedPhysical And Technological Resources Used At Heaton Manor1136 Words   |  5 Pages Physical and technological resources used at Heaton Manor Both the physical and technological resources need to be managed carefully in Heaton Manor. Physical resources include the building, maintenance and security of the premises. However, the Technological resources include the physical equipment and designs and drawings. Physical Resources These are the resources that the business needs to maintain in order to carry out its activities. They include things like the buildings, facilitiesRead MoreEssay on UNIT BA490 COURSEWORK manage physical resource1477 Words   |  6 PagesManage physical resource Outcome 1 Explain the importance of using sustainable resources: Sustainability means more than merely lasting or surviving; it means designing and delivering health care that uses resources in ways that don’t prejudice future health and wellbeing.The importance of using sustainable resources is to protect our natural resources. Using sustainable resources and materials is good for the environment and it is cost efficiently. Explain the potential impact of resource use onRead MoreManaging Physical Resources737 Words   |  3 PagesRole Of A Resource Manager The successful resource manager is someone with the ability to do a number of things well.   Obviously, they need to have top-notch people skills and be able to effectively set and articulate performance goals and standards.   They need to be able to evaluate individual performance against those goals and provide meaningful and constructive feedback to the people that they manage.   They also need to be mindful of team dynamics (the strengths and weaknesses of the individualsRead MoreThe Role Of The Moe On Physical Resources804 Words   |  4 PagesChapter Two Literature Review 1. Examine the extent to which policy of the MOE regarding physical resources are adhered to by the school management team. Within the Jamaican society, the educational system is largely governed by the Ministry of Education and Youth; an entity responsible for policies, regulation and reform surrounding education. The Ministry is geared towards meeting public expectations and standards outlined for various levels of the system (Standards for Educational InstitutionsRead MoreThe Importance Of Physical Resource Management784 Words   |  4 PagesMelbourne, VIC. Enman has the experience and a special methodology to work with remote industrial sites, including overseas, such as China, Korea, Japan, Philippines and Indonesia. Our normal hours of operation are 9am-5pm weekdays. The physical resources we will be providing are our consultants and team leader, with supporting service for communication. The site visit will normally be conducted by the team leader and one energy consultant. Enman expects the Department to arrange liaison withRead MoreManaging The Human, Financial And Physical Resources Of A Hotel1191 Words   |  5 Pageshave chosen is Hotels. This is an organisation that I am very familiar with as I work part-time in a hotel. It is important to manage the human, financial and physical resources of a hotel. Thus, hotel management is concerned with activities that relate to employees (human resources), money (financial resources) and facilities (physical resources). Planning, organizing, directing, and controlling the activities of a hotel are accomplished with and through people. For these different applications areRead MoreP3: Describe the Main Physical and Technological Resources Required in the Operation of a Selected Organization696 Words à ‚  |  3 PagesInsurance Insurance is a type of physical resource. Insurance is a resourec that protects businesses from losses due to any type of events that can occur during the normal course of business. There are many types of insurance within businesses. these include, insurance for a property damage, insurance for legal liability and insurance for employee-related risks. Some of these Insurance are used within Topshop. This is used within the business as it allows them to reduce the financial impact ofRead MoreP3 Describe the main physical and technological resources required in the operation of your selected organisation1129 Words   |  5 Pages Tesco and Resources Tesco use both physical and technological resources. Physical resources are resources that are available to business organisations in the form of buildings and other machineries needed for the day to day running of the organisation. A few examples would be: Buildings and Facilities: All businesses need buildings which they control from, this can range from someone’s front room, or tower blocks all over the world, buildings play an important role in the image of a businessRead MoreP3+M1 – Describe and Explain the Main Physical and Technological Resources Required in the Operation of a Selected Organisation917 Words   |  4 PagesUnit 2 P3+M1 – Describe and explain the main physical and technological resources required in the operation of a selected organisation The business which I am going to choose is Tesco PLC. Physical resources are resources that are available to business organisations in the form of buildings and other machineries needed for the day to day running of the organistaion Building and facilities; * all businesses need premises which they operate from, this can range from someone’s front room,Read MoreBUSINESS STUDIES unit 2 - p3, m1, d11488 Words   |  6 Pagesmain physical and technological resources required in the operation of a selected organisation. M1 – explain how the management of human, physical and technological resources can improve the performance of a selected organisation. In this assignment I will describe the main physical and technological resources required in an organisation, and how the management of human, physical and technological resources can improve the performance of Tesco. Physical resources Some of the main physical resources

Is Insanity Normal Essay - 3468 Words

Is Insanity Normal? Works Cited Missing We’re all mad here. I’m mad. You’re mad -The Cheshire Cat from Lewis Carroll’s Alice’s Adventures in Wonderland Have you ever questioned your sanity? Have you ever wished you could change, for even one day, and be the person that others wanted you to be? Have you ever actually made that change, either by choice or by force? Do you think you’re normal? Maybe you’ve lived the most normal life you could imagine. Or maybe not. Maybe you’re life is so abnormal and outrageous that you don’t wish to be normal. Have you ever questioned your sanity? Introduction Insanity appears in various forms and we all know how to mentally picture it. We can create clear images of insane individuals in our†¦show more content†¦Everyone experiences its symptoms differently, so, clearly, we should not classify any two individuals together. Unfortunately, madness is defined by stereotypical ideals and not as an accepted difference. It has become the inability to be sane. We have a clear distinction between sane and insane. Most would agree that we consider the former, normal, and the latter, abnormal. As John Dupre, author of, Normal People, wrote, The idea that there are normal and abnormal ways for people to be and to behave is a very familiar one. So also is the idea that abnormality- or deviance- is something regrettable, deplorable, and even, in some cases, punishable (221). Depending on which category one fits into, he or she may be effortlessly accepted or completely rejected. The way we define insanity obviously pushes away differences. Because society seems exclusively to accept those who act within a narrow range of barriers and not those who act outrageously, anyone who does this runs the risk of being considered unnecessarily mad or insane and, unfortunately, this may sometimes result in him or her being committed or banned from society. As Lennard J. Davis author of Constructing Normalcy states, †¦the problem is not the person with disabilities, the problem is the way that normalcy is constructed to create the ‘problem’ of the disabled person (9). The fact is that society has created a stigma that establishes,Show MoreRelatedThe Insanity Defense And The Defense1428 Words   |  6 Pages The insanity defense was first used by U.S. Congressman Daniel Sickles of New York in 1859 after he had killed his wife s lover, Philip Barton Key. The insanity defense asserts that a criminal defendant should not be found guilty due to the defenda nt s â€Å"insanity,† but insanity in this context refers to a very specific dysfunction. The theory behind the defense is that a person who is insane lacks the intent required to perform a criminal act because the person either does not know that the actRead MoreWhy We Crave Horror Stephen King Analysis1004 Words   |  5 PagesCaught up in our lives, we all begin to lose our sense of feeling like a normal person. By watching the peculiar events and characters in a horror movie, a person can replenish their normality. Stephen King offers another example from a horror movie that compares humans to the ugly personae in a horror movie--â€Å"Freda Jackson as the horrible melting women in Die, Monster, Die!† (King, â€Å"Why We 1) makes us feel, to put it bluntly, normal. King continues to use this example to prove we are â€Å"light- years fromRead MoreReview Of Ken Kesey s One Flew Over The Cuckoo s Nest 1603 Words   |  7 Pagessanity and insanity are affected b y many different aspects and according to common knowledge, insanity has a direct correlation to mental illness. Likewise, sanity seems to have a direct link to what is considered normal. One Flew Over the Cuckoo’s Nest by Ken Kesey describes the connection that both insanity and sanity have to mental illness and the people that suffer from it. Furthermore, it describes how the people who work in the mental ward are connected to how sanity and insanity are perceivedRead MoreNot Guilty By Reason Of Insanity847 Words   |  4 Pagesreason of insanity is defined as â€Å"a verdict rendered by a jury in a criminal case that finds that the defendant was insane at the time of committing the crime as determined by application of the rest for insanity used in the jurisdiction compare guilty but mentally ill...† (FindLaw Legal Dictionary). This means that someone who has committed a crime cannot be tried as guilty for the crime at hand due to the determination that the defend ant is â€Å"insane†; â€Å"a state of mind that prevents normal perceptionRead MoreFrankenstein, By Mary Shelley1544 Words   |  7 Pagesthis concept and gives us her interpretation of it. Throughout the novel, both characters undergo a series of experiences that build on each other, which consequently leads them to their insanity. Shelley’s use of the characters’ personal experiences in her novel Frankenstein, explicate the triggers of insanity. Victor Frankenstein’s pursuit of knowledge creates an obsession that ultimately consumes him. Victor, who even as a young child â€Å"was more deeply smitten with the thirst for knowledge,† wasRead MoreInsanity Plea Essay example1098 Words   |  5 Pageswith the verdict of not guilty by reason of insanity. About a year before, Hinckley shot Ronald Reagan because he was infatuated with the famous actress Jodie Foster. He thought shooting Reagan would impress her and lead her to fall in love with him. After the verdict was announced, the public responded with dismay because they felt as though Hinckley should pay for what he had done. Following the uproar, the United States revised and limited the insanity plea with the hopes that fewer people wouldRead MoreFrankenstein, By Mary Shelley1544 Words   |  7 Pagesthis concept and gives us her interpretation of it. Throughout the novel, both characters undergo a series of experiences that build on each other, which conseq uently leads them to their insanity. Shelley’s use of the characters’ personal experiences in her novel Frankenstein, explicate the triggers of insanity. Victor Frankenstein’s pursuit of knowledge creates an obsession that ultimately consumes him. Victor, who even as a young child â€Å"was more deeply smitten with the thirst for knowledge,† wasRead MoreEffects of Isolation in the Yellow Wallpaper1245 Words   |  5 PagesThe Effect of Isolation Through out the story â€Å"The Yellow Wallpaper,† written by Charlotte Perkins Gilman, and the film, â€Å"Santa Sangre,† the main characters finds themselves led into a state of insanity. In the story â€Å"The Yellow Wallpaper,† the narrator explains that she is suffering from post partum depression, leaving her husband to treat her with rest cure or bed rest. During this time, she is placed in a solitary room with walls covered in yellow wallpaper. Similarly, through out â€Å"Santa SangreRead MoreThe Mentally Ill1679 Words   |  7 Pages Throughout history, human societies have had conflicting views on insanity and how it is defined in life. Primitive cultures found peace within shamans and witch doctors because they believed the insane were possessed by evil spirits. From then on, in Roman and Greek cultures, there was a somewhat progressive ideology that mental illness came from biological and emotional ailments. They believed in treating those with mental disorders humanely and respectfully which is an attitude that has beenRead MoreThe Insanity Plea For Pleading Insane1616 Words   |  7 PagesOver the years the abuse of insanity plea, has troubled our American Justice System in our world today. The growth in this defense has increased so much that the expansion has asked the question; whether or not insanity plea is a worthy and justified defense to be used in the courts. The Insanity defense is when a criminal defendant can be found to have been legally insane when that defendant committed the crime they did at the time. In some cases, the criminal defendant pleads insane and gets a

Capital Structure Question Solution Free Essays

string(55) " of the restructuring is captured by the shareholders\." FINE 3100 Problems for Midterm – Additional Capital Structure Problems Question 1 Belgarion Enterprises Asset beta, the riskiness of the firm, can be found as the weighted average of the betas of its debt and equity, where the weights are fraction of the firm financed by debt and equity: ? A = D/V ? D + E/V ? E = . 5 ? 0 + . 5 ? 1. We will write a custom essay sample on Capital Structure Question Solution or any similar topic only for you Order Now 4 = . 7 To find the beta of the firm with no debt, find ? o or ? u using the formula for levered equity: ? E,L = ? o + [? o – ? D] D/E ( 1 – TC) Rearrange to find ? o = ? E,L + ? D D/E ( 1 – TC) 1 + D/E ( 1 – TC) Since the debt beta is zero, the equation simplifies to: ?o = ? E,L = 1. 4 / ( 1 + (. 5/. 5) ? (1 – . 4) ) = . 875 1 + D/E ( 1 – TC) The asset beta is higher if the firm has NO DEBT, in the otherwise perfect financial markets world. The firm with debt has an asset that the firm no debt does not: the interest tax shield. The riskiness of the tax shield is lower than the riskiness of the firm’s operating assets (its business risk). In fact, in this case, the interest tax shield is riskless because the debt is riskless. The beta of the levered firm’s assets is lower than beta of the unlevered firm’s assets. Remember, bankruptcy is costless in this problem. If bankruptcy is not costless, the result may not hold – by increasing leverage, the probability of bankruptcy goes up and therefore the expected costs of bankruptcy increase. In this case, the firm’s riskiness may well increase with leverage). Question 2 Little Industries a) Current market values EL = 300,000 ? $3 = $900,000 Value per bond: (. 05 ? 1000)/. 1 = 50/. 1 = $500 Total bonds: D= (. 05? 100,000)/. 1 = $50,000 VL = D + EL = 50,000 + 900,000 = $950,000 b) Current required rates of return Debt: rD = 10 % (given) Equity: rE,L = (EBIT – I) ? (1 – TC) = (270,000 – 5,000) ? (1 – . 4) = . 1766666 = 17. % EL 900,000 WACC = (D/VL) ? rD ? (1-TC) + (EL/VL) ? rE. L = (50,000/950,000) ? .1 ? (1-. 4) + 900,000/950,000 ? .177 = . 1708 c) For case of perpetual debt: VL = Vu + Tc D Therefore: Vu = VL – Tc D = 950,000 – . 4 ? 50,000 = 950,000 – 20,000 = 930,000 NOTE: another way to solve for the unlevered firm value is to first calculate the unlevered cost of equity and then use it to discount the unlevered firm’s cash flows 1. Unlevered cost of equity Recall: rE. L = r0 + (r0 – rD) D/E (1 – Tc) Rearrange the formula for r0: 0 = [rE,L + rD D/E (1 – Tc) ]/ [1 + D/E (1 – Tc)] = (. 177 + . 1? 50,000/900,000 ?. 6)/(1+50,000/900,000?. 6) = . 1741935 VU = EU = EBIT ? (1- TC)/r0   = 270,000 ? .6/. 1741935 = 930,000 d) (i) After restructuring, the firm will be 30% debt financed. Let D* be the total debt after refinancing and VL* be the total firm value after refinancing. It must be true that: D* = . 3 ? VL* Since VL = Vu + Tc D, then VL* = Vu + Tc D* Substituting for D* VL* = Vu + Tc . 3 ? VL* Solve for VL* (1 – . 3? TC) VL*  = Vu VL*  = Vu/ (1 – . 3? TC) = 930,000/ ( 1 – . 3 ?. 4) = 1,056,818. 2 And D* = . 3 ? VL*  = . 3 ? 1,056,818. 2 = 317,045. 5 EL* = . ? VL*  = . 7 ? 1,056,818. 2 = 739,772. 7 (ii) By issuing new debt and retiring equivalent value of equity, total firm value increases VOLD  = 950,000 VNEW = 1,056,818. 2 Increase in firm value = 1,056,818. 2 – 950,000 = 106,818. 2 Since the required rate of return to debt is unchanged, we can assume that all of the benefit of the restructuring is captured by the shareholders. You read "Capital Structure Question Solution" in category "Papers" On the announcement of the proposed restructuring, the total value of equity will increase by the increase in firm value: Value of existing equity on the announcement = 900,000 + 106,818. 2 = 1,006,818. 2 New share price = 1,006,818. 2/300,000 = $3. 356 To figure out the number of shares repurchased, first figure out the dollar value of the new debt issued: New debt issued = New total debt – previous total debt = 317,045. 5 – 50,000 = 267,045 Shares worth $267,045 are repurchased, at $3. 356 per share Total shares repurchased = $267,045/$3. 356 per share = 79,572 shares Share remaining = 300,000 – 79,572 = 220,427 (iii) New required return to equity Method 1: rE. L = r0 + (r0 – rD) D/E (1 – Tc) = . 17419 + (. 17419 – . 1) ? (317,045. 5/739,772. 7) ? .6 = . 193 Method 2: Interest on total debt, I = . 1 ? 317,045. 5 = 31,704. 5 rE,L = (EBIT – I) ? (1 – TC) = (270,000 – 31,704. 5) ? 1 – . 4) = . 193 EL 739,772. 7 New WACC = . 3 ? .1 ?. 6 + . 7?. 193 = . 1531 e) (i) Because the model assumes bankruptcy costs are zero, it does not consider the potential downside of increasing leverage. With bankruptcy costs, the expected costs of bankruptcy increase with leverage, offs etting the benefit of reduced taxes. (ii) Given D* = 317,045. 5 and Interest = 31,704. 5 EL = (EBIT – I) ? (1 – TC) = (270,000 – 31,704. 5) ? (1 – . 4) = 571,909. 1 EL . 25 Total firm value: V = D* + EL = 317,045. + 571,909. 1 = 888,955 Now, taking into account the impact of the bankruptcy costs, on the announcement of the increased leverage, the firm value FALLS: Change in firm value = 950,000 – 888,955 = -61,045 New equity value on the announcement = 900,000 – 61,045 = 838,955 New share price on the announcement = 838,955/300,000 = $2. 80 Share price falls from $3 to $2. 80!!! Therefore, the restructuring is a bad idea if the new required rate of return to equity rises to 25%. Question 3 Mighty Machinery Initial situation: market value of debt = . 08? 50m/. 08 = 50 m market value of equity = 8 m ? 20/sh = 160 m market value of firm = 210 After Restructuring: Assume that all change in value is borne by the shareholders. So the loss of the tax shield will impact shareholders only. Value of lost tax shield = Tax rate ? change in debt = . 35 (-10m) = – 3. 5m New firm value = old value + value of tax shield = 210 – 3. 5 = 206. 5 m New debt value = old debt + change in debt = 50m – 10 m = 40m New equity value (at the actual restructuring date) = new firm value – new debt value = 206. 5 – 40 = 166. 5 m New share price: Given that shareholders bear all of the impact of the reduced tax shield, given efficient financial markets, the value of the equity will fall by 3. m ON THE ANNOUNCEMENT of the plan. Thus, at the announcement, total equity is worth 160 – 3. 5 = 156. 5m or $19. 5625 per share ($156. 5m/8m = 19. 5625). Another way: the NPV of the restructuring is -3. 5m, which is all borne by shareholders. The change in share price will be -3. 5m/8m = -$0. 4375, giving a new share pric e of $20 – . 4375 or $19. 5625. ii) Shares issued = $10m/$19. 5625 or 511,182 Check: final share value/new number of shares = 166. 5/8. 511182 = $19. 5625. (iii) Use the formula: rE = r0 + (r0 – rD) D/E (1 – Tc) Rearrange the formula for r0: r0 = [rE + rD D/E (1 – Tc) ]/ [1 + D/E (1 – Tc)] = [. 5 + . 08 ? 50/160 ? (1-. 35)]/[1+50/160 ? (1-. 35)] = . 138181818†¦. Then New rE = r0 + (r0 – rD) (new D/new E) (1 – Tc) = . 138 + (. 138-. 08) (40/166. 5) (1-. 35) = . 1429 The restructuring causes rE to fall, as expected. The leverage is lower, the risk of equity is lower, shareholders’ required rate of return falls. b) You answer this question! Question 4 NOTE: This was a particularly tricky question. Part marks were given for wrong answers. Assume that it is valid to use the CAPM†¦this is ok, given the perfect financial markets assumption. Need to get all of the components of WACC: rD = current yield-to-maturity, 9% Market value of D = (. 08 ? 2. 5m )/. 09 = 2. 22222m TC = 35% What about value of equity and cost of equity Use a competitor to figure out†¦the closest company to GLC is All Lawn Chemicals. The most complete way to go is to figure out the unlevered cost of equity of All Lawn (reflecting the business risk), and value GLC at this rate. This will give us the unlevered value of GLC. Next, use GLC’s current capital structure to get GLC’s levered value of the firm and its equity. Next calculate the cost of equity, given GLC’s current capital structure†¦. 1. Find unlevered cost of capital for All Lawn Use the same rearrangement of the cost of equity formula in question 6: rE = r0 + (r0 – rD) D/E (1 – Tc) Rearrange the formula for r0: r0 = [rE + rD D/E (1 – Tc) ]/ [1 + D/E (1 – Tc)] Use CAPM to find current rE of All Lawn: rE = rf + ? ? MRP = . 075 + 1. 2 ? .07 = . 159 r0 = [. 159 + . 09 ?. 3? (1-. 35)] / [1+. 3? (1-. 35)] = . 14774 Value of firm for GLC  : V L = OCF ? (1 – tc) + tcD RU V = 1. 5M * (0. 65) + 2. 222M*(0. 35) .1477 VL = 7. 37892M Value of Equity for GLC: VL = Ve + VD = 7. 37892M = 2. 222M + Ve Ve = 7. 37892 – 2. 222 = 5. 1569M Ve = 5. 1569M = y R equity = (OCF – Interest expense)(1 – tax rate)/ Value of equity = { ($1. million – . 08x$2. 5 million) . 65}/5. 1569= . 163858 =16. 39%. OR 1. Find unlevered cost of capital for All Lawn Use the same rearrangement of the cost of equity formula in question 6: rE = r0 + (r0 – rD) D/E (1 – Tc) Rearrange the formula for r0: r0 = [rE + rD D/E (1 †“ Tc) ]/ [1 + D/E (1 – Tc)] Use CAPM to find current rE of All Lawn: rE = rf + ? ? MRP = . 075 + 1. 2 ? .07 = . 159 r0 = [. 159 + . 09 ?. 3? (1-. 35)] / [1+. 3? (1-. 35)] = . 14774 2. Value of Unlevered GLC Vu = [OCF – Taxes] / r0 = [1. 5 ? (1-. 35)] /. 14774 =6. 59943 3. Value GLC with its current capital structure VL = Vu + Tc D = 6. 59943 + . 35 ? . 22222 = 7. 37721 4. Value GLC’s equity and its required rate of return Thus: EL = VL – D = 7. 37721 – 2. 22222 = 5. 15499 and rE = r0 + (r0 – rD) D/E (1 – Tc) = . 14774 + (. 14774 – . 09)? (2. 22222/5. 15499)?. 65 = . 1639 5. Calculate GLC’s WACC Wacc = (2. 22222/7. 37721)?. 09?. 65 + (5. 15499/7. 37721)?. 1639 = . 1322 Question 5 a) False. Although often increases in firm value increase equity value, it is not always the case. When debt is risky (that is, there is a chance that the debt will not be paid the full promised interest and principal), improvements in firm val ue may go partly or totally to debt holders. This means that the debt has become less risky: there is less chance that the bondholders won’t get the promised interest and principal repayments. An example: when a firm is in financial distress, a value-increasing investment may only increase the value of the debt – and none of the value goes to shareholders. See kit and also the Barclay, Smith, Watts article. b) False. All that is necessary for the risk of equity to increase is that the firm’s operating cash flow be variable. Whenever you add the fixed interest payments, the result is to intensify the variability of the cash flows to shareholders (they get paid only after the fixed payments have been made to the debtholders). Look at the kit, – risk of equity increased with the addition of debt – and there is no chance of bankruptcy in this example (debt is riskless – no matter what state of the world occurs, the debtholders get their promised payments). c) False. For this answer, assume perfect financial markets and keep the firm’s investment and borrowing constant. If you don’t make these assumptions, then we have to make other assumptions about the state of the financial markets. These ones make our story easy). It is true that a shareholder may have to sell shares at the bottom of the market to create homemade dividends. But if the firm increases its dividend, they too will have to sell shares at the bottom of the market!! If we assume that the firm is currently payi ng out the money they have, the rest is tied up in investment plans and no new borrowing is made, if the dividend is increased, THE FIRM WILL HAVE TO GO TO THE MARKET AND SELL SHARES to pay for the higher dividend. The risk of selling shares at the bottom of the market has not gone away and shareholders still get stuck with it – either they pay for it directly when they sell their shares or indirectly when the firm brings in new shareholders who pay less for their shares than if it had been the top of the market. So this is not a valid reason why the firm paying a dividend will increase firm value. d) Uncertain. What the answer depends on is whether the bond holders anticipated correctly the chances and costs of distress/bankruptcy. If bondholders correctly anticipate distress and the costs associated with it, they will pay less for the bonds than if the costly distress did not occur. Shareholders end up paying the costs – because the company gets less for the bonds sold – raising the cost of debt financing. Of course, if bondholders do not correctly anticipate the distress, then they share in the costs. e) THIS IS A POST MIDTERM QUESTION True. Cost savings are much more likely to be achievable than revenue increases – firms have control over their production process but not over their customers. f) False. This question is very much related to a). Shareholders will not be willing to contribute more money to positive NPV projects when the bulk of the benefit goes to bondholders. See the references in a). g) True. The messy formula for the impact on firm value of adding debt when both personal and corporate taxes are considered is outlined in the kit. This happens when (1-TB) (1-Tc)(1-TS)†¦.. Translating: 1-TB is the after-all-taxes cash flow of a $1 of bond income, (1-Tc)(1-TS) is the after-all-taxes cash flow of $1 of equity income (because first corporate taxes are paid and then personal taxes on equity income are paid). If investors get less in their pocket, after all taxes, when $1 of bond income is paid then after a $1 of equity income, they won’t want the firm to borrow – pay only dividend income and less total taxes (corporate plus personal) are paid. Firm value will be lower if the company borrows!!! h) True. This follows from the â€Å"free cash flow problem† discussed in Barclay, Smith and Watts. A company with lots of cash but few investment opportunities (low growth) puts management into temptation: spend the money on projects they like but aren’t necessarily positive NPV. For such a firm, a high dividend payout (high dividends/net income) and high interest and principal obligations keeps the cash out of the hands of manager and gives them fewer opportunities to make negative NPV investments, increasing the value of the firm. i) True. Given these assumptions, adding debt creates a new asset: a tax shield. The tax shield is a â€Å"gift† from the government, increasing the firm’s after-tax cash flows. This tax shield is lower risk than the assets of the business – it depends on the riskiness of the firm’s debt (and we assume that the tax rate doesn’t change). Thus total risk of the levered firm is lower than if it is unlevered (the levered firm has the same business risk plus the lower risk tax shield – the overall risk is lower). j) THIS IS A POST MIDTERM QUESTIONS False. All valuation methods requiring assumptions to be made. Earnings capitalization is a simpler valuation method than discounted cash flow– but it is loaded with strong assumptions about the future cash flows/earnings such as constant growth, constant dividend payout and unchanging capital structure. ) True the firm will have received the cash without having to issue new shares, however, the firm will also have missed out on raising equity when these warrants are not exercised and the warrant holders (and other potential investors) are disappointed and may not invest in this firm in subsequent rounds of equity financing if they were not able to benefit from their warrant purchase. Warrants are not like call options. With call options the firm in not involved in the transaction. With warrants the firm’s reputation and ability to raise financing is affected. How to cite Capital Structure Question Solution, Papers

Waste Disposa in Bauleni Compound free essay sample

TABLE OF CONTENTS PAGE 2. Acknowledgements 3. Dedication 4. Introduction and Background 5. Location 6. Problem Statement 7. Aims and Objectives 8. Methodology 9. Primary and Secondary Data 10. Limitations ACKNOWLEDGEMENTS DEDICATION INTRODUCTION â€Å"Since the beginning of time people have needed to find a way of disposing of their trash† (Bassis Luke). Proper garbage disposal is important to ensure everyones safety from possible health hazards. The improper waste disposal of garbage is a major sociological problem today due to its capability of contaminating the area in which we live and it’s potential to be lethal to all living things. Its effects increase the risk of adverse health effects in humans and animals, causes damage to eco-systems and accelerate the destruction of our environment. The more waste we generate, the more we have to dispose of. Bauleni houses many people and businesses hence many foreign people come to the area and leave lot of litter. So to say, the residents are the ones that are responsible for cleaning the area. It is true that they do clean the area but the litter or garbage that is collected is not thrown away properly. BACKGROUND In 1998, Bauleni was declared an improvement Area. resume writing service geelong Bauleni was a traditional village, which then transformed into an informal urban settlement. Bauleni was originally settled by farm workers after the owner of the farm left Mr. Bauleni, an ex farm worker, was unofficially in charge of the settlement. Then with the increase in population, the activities changed from agricultural to service based. Land for subsistence became scare. Alternative means of earning a living had to be found. The village was transformed to an informal settlement. After Mr. Bauleni’s death, the local party (UNIP) branch officials took over the management. In 1990, HUZA, the Local Authority and the residents started upgrading the Bauleni area. HUZA became involved only after it became apparent that the government did not have sufficient resources and that its low cost housing initiatives would not resolve the housing problem. Within the upgrading the infrastructure and services provided include: storm drains, markets, clean water supply, improved sanitation, and education and health facilities. LOCATION PROBLEM STATEMENT The improvement in the standard of living of Bauleni residents has come with a stream of both negative and positive effects on the people and their environment. This project focuses on the negative effect. Mainly that of improper garbage disposal and its impact on the environment and lives of the people. The improper waste disposal of the members of Bauleni compound causes threat to the health of their families and to the environment. The residents are not well aware of the effects that they may face in the future if they will not learn how to become responsible on their own trash, may be it from their own homes or from outside their house. AIMS AND OBJECTIVES AIMS Find out the causes, effects and opinions of the improper garbage disposal and the initiative taken by both the government and residents. OBJECTIVES i. Investigate methods of disposal. ii. Investigate what hazards the improper methods of disposal have brought about. iii. Find out opinions of Bauleni residents. iv. Find out their proposals on solving the situation. v. Find out what has been done so far on the matter vi. Find out government involvement. METHODOLOGY The collection of data was done in two parts. Namely primary and secondary data. Primary data is the information which was obtained in the field. Secondary data on the other hand was that obtained from texts in books and a series of internet sites. PRIMARY DATA This was collected in the following ways . FIELD TRIP; I went to Bauleni on an individual trip to acquire the necessary first hand information on the garbage disposal. i. INTERVIEWS; I devised a questionnaire. The questionnaire covered the aims and objectives of the project. A total of 20 random individuals were interviewed. ii. OBSERVATIONS;I moved from the market place to the places of residence and o bserved the ways of the people in the two different environments. I observed the HUMAN INDUCED HAZARDS. iii. PHOTOGRAPHS; I also took a series of photographs. SECONDARY DATA The information written by other people was gathered and compiled. LIMITATIONS Whilst in the field I encountered a number of hindrances. These include the following i. Communication was limited as most of the folk did not speak English. As I could not speak the language I had to ask a friend to translate for me. ii. Food was another setback. The places selling food were in a rather unsanitary state. There was stagnant water and swarms of flies. I preferred not to risk eating there and so went hungry. iii. There were no ablution facilities as well. After a certain point I was in a very bad state of discomfort. LITREATURE REVIEW CAUSES OF IMPROPER DISPOSAL There is no one cause, but some contributing causes are: 1. Ignorance. Example: People throw mercury batteries in a fireplace and mercury fumes are given off. Mercury is toxic and may cause serious birth defects. many electronics stores will take back old batteries to be recycled. The normal alkaline battery is safe in the garbage. 2. Laziness. Example: People pour used motor oil down the storm sewer which drains into the local river. It should be taken to a service station that has oil recycling. 3. Greed. Example: Instead of paying to have an old roof taken to a landfill, a farmer burns the shingles at night causing air pollution.