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.

Crisis of the 17th Century Essay Example

Crisis of the 17th Century Essay Crisis of the 17th Century Name Institution Crisis of the 17th Century We will write a custom essay sample on Crisis of the 17th Century specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Crisis of the 17th Century specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Crisis of the 17th Century specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The 17th century oversaw a revolutionary period in Europe. Echoing contemporary historians, chroniclers and diarists have had an almost similar view that the 17th century was particularly troubled. A number of Historians have brought forward their reasoning in an attempt to explain the 17th century crisis. This paper will serve to compare and contrast two lines of reasoning behind the crisis – one by Eric J. Hobsbawm, and the other by Hugh Trevor-Roper. Even though these two historians based their reasoning on differing premises and distinct interpretations, both depicted a general crisis portrayed political unrest and economic distress, and producing various outcomes. Through his essay, â€Å"The Seventeenth Century Crisis†, Eric J. Hobsbawm addressed the debate on capitalism transition. Where many participants maintained that the collapse of the feudal economy occurred at the period of Black Death, Hobsbawm had a different view. He argued that most of the socioeconomic order occurred in the course of the booming sixteenth century. However, the end of this period oversaw the fatal obstruction of growth by feudal elements[1]. The ensuing deep and broad retrogression led to the creation of structural change opportunities where political revolution fostered economic transformation by removing obstacles. On the other hand, Hugh Trevor-Roper shifted his focus to pitting confrontations that affected the Renaissance’s intellectual, political, moral and fiscal system against opponents with reform ambitions. This reasoning ultimately spawned a range of enlightening, stabilizing, indecisive and radical initiatives in politics. Both lines of reasoning imminently gave an inspiration to critiques and gained widespread approval. However, early modernists were skeptical about the severity, duration and generality of the hypothesis proposed in each of the two arguments. Eric J. Hobsbawm maintained that the heterogeneity associated with trends across Europe and the economic structures precluded the general crisis and its appearance. Like Hugh Trevor-Roper, whose argument linked mid seventeenth century revolts with chronology, Hobsbawm posited discrete movement clusters supported by specific conflicts. Instead of presenting a general 17th century crisis drawn on similar patterns, both Hobsbawm and Roper suggest a crisis multiplicity that took place in numerous places simultaneously. According to Roper, not all social groups, however, experienced the crisis. For example, the living standards of wage earners consequently improved[2]. The validity of this statement was, however, questioned by the findings of Hobsbawm. Hobsbawm established that the downturn of the economic state was represented by only a consolidation and contraction phase within a capitalistic world system that came into existence in the 16th century. Hobsbawm minimized the intensity of distress encountered by the Netherland republic in the course of its â€Å"Golden age†, and the problems England encountered were presented as short-lived and mild[3]. A period characterized by difficulty and extends across a century struck both Hobsbawm and Roper as too protracted to be classified as a significant crisis (usually perceived as a dramatic and abrupt turning point) particularly when instability and stagnation than depression and revolt are grouped in several decades. Roper claims in his reasoning that the 16th century experienced more rebellion compared to the 17th century, and that those that took place in the mid 15th century were more severe than any other subsequent period. Taking a longer view convinced Hobsbawm that the crisis was endemic to the entire modern period rather than singly defining any century. More prevalent are the refinements and amplifications of the idea behind the 17th century crisis[4]. In terms of Roper’s description of the crisis in the 17th century, it can be outlined that uncertainty and insecurity that extended from the 16th century were what propelled the crisis. Hobsbawm endeavored to reassess the Thirty Years War that was previously considered as the aggravating factor of the crisis rather than its cause. He asserted that conflagration posed as a principal agent that propelled the crisis in Europe due to the large tax growth it provoked on all the involved states. Hobsbawm and Roper, through their crisis theories, helped illuminate the critical aspects surrounding the history of the 17th century slighted in other accounts. Some of these have included peripheries from Europe, such as Muscovy and Scotland, while other areas such as Iberia and Italy have been regarded as the hardest hit areas but suffered little alteration from the crisis. It is prudent to understand that other areas are outside Europe. Hobsbawm made the proposal that colonies in the overseas had played a significant role in the crisis centered in Europe, and he put into consideration the creation of settlements and fresh plantations as one of the major effects[5]. However, he discussed this as a form of colonialism in terms of new markets for manufacturers that offered a dynamic structure for economic growth in Metropolitan Europe. Nevertheless, Roper implemented his idea of the crisis to highlight the history of Latin America. He holds that elite discontent, popular rebellions, and government bankruptcies against the long-term demographic pressure as well as price inflation are what led to the â€Å"State breakdown†[6]. These include states across Eurasia such as China the Ottoman Empire, and France. In contrast, while putting into consideration the subsistence crisis in the Atlantic through the Pacific in the 16th century, Hobsbawm maintained that the consequences, cause, and location of the longer and larger crisis signaled a â€Å"new departure† in Europe. Numerous theoretical and empirical aspects of the crisis in the 17th century only amount to subjects of debate. Ultimately, neither Hobsbawm’s theory on economic development nor Roper’s view warrant much assent in current day. Nevertheless, even though these two historians based their reasoning on differing premises and distinct interpretations, both depicted a general crisis portrayed political unrest and economic distress, and producing various outcomes. However, the concept behind these two arguments has been widely appropriated if not selectively. Similar to intellectually fecund theories, these arguments continue to stimulate further research and explanations behind the 17th century crisis and its cause. Consequently, new interpretation outlines are continually making their way into the field. This finding implies continuity- for instance, the acceleration of agrarian specialization, initiated regional differentiation ruralization, and commercialization of the industry[7]. The major finding of this research includes colonies in the overseas having a role to play in causing the 17th century crisis. This and elite discontent, popular rebellions, and government bankruptcies against the long-term demographic pressure as well as price inflation are what led to the â€Å"State breakdown†. In conclusion, Hobsbawm and Roper had rather distinct views in their reasoning line on the crisis. The methodology used in attaining the results by the two historians was distinct. Consequently, their findings were also different, but they attempted to give a detailed and well-informed reason behind the crisis. Bibliography Hobsbawm, Eric. 2000. â€Å"The General Crisis of the European Economy in the Seventeenth Century†. Peasants in History: Essays in Honor of Daniel Thorner. 3-29. Goldstone, Jack A. 2008. â€Å"East and West in seventeenth century: political crises in Stuart England, Ottoman Turkey, and Ming China†. Comparative Studies in Society and History. Parker, Geoffrey. n.d. â€Å"Crisis and catastrophe: The global crisis of the seventeenth century reconsidered†. The American Historical Review (Trykt Utg.). 113. Trevor-Roper, Hugh. 2001. â€Å"The General Crisis of the Seventeenth Century: An overview†. The Spectator. 36. [1] Hobsbawm, Eric. 2000. † The General Crisis of the European Economy in the Seventeenth Century†. Peasants in History: Essays in Honour of Daniel Thorner. 3-29.

Savage Inequalities essays

Savage Inequalities essays Jonathan Kozol's Savage Inequalities is a haunting, disturbing look at the condition of some of America's schools. Throughout the book, he describes the conditions in several cities: crumbling school buildings, teachers who do not care about the students, astronomical dropout rates, abysmal environments, and much more. Savage Inequalities posits that the leading problem in the school system is the condition of these neglected schools, and that this constitutes a social problem. Kozol views this social problem, and its causes, from a conflict theorist perspective. The definition of a social problem, is as follows: "conditions, processes, or events that are identified as negative by analysts or by significant numbers of other people and that affect large numbers of people, stem from social causes, and/or can be solved through social action". The first clause in this definition of a social problem is its negativity, and whether or not it is recognized as a problem. It is difficult to argue that the conditions of these schools, and the areas in which they are located, can be anything but negative. These schools have administrative problems (Kozol 124), decaying buildings (Kozol 23-24, among dozens of other examples), and poor-quality teachers and guidance counselors (Kozol 113, others). They are overcrowded (Kozol 158-160), and it is assumed that the way to alleviate this problem is for half of the student body to drop out of school at some point (Kozol 112-113). Among these problems, the conditions of some of the school buildings are outstan dingly appalling; for example, at Morris High School, in the South Bronx, Blackboards . . . are "so badly cracked that teachers are afraid to let students write on them for fear theyll cut themselves. Some mornings, fallen chips of paint cover classrooms like snow. Teachers and students have come to see humor in the waterfall that courses down six flights of stairs after a heavy rain." O...

Evidence review Essay Example | Topics and Well Written Essays - 1750 words

Evidence review - Essay Example The underlying causes of bowel dysfunction maybe primarily associated with the bowel inflammatory conditions or it may result from other secondary factors which include injuries to the spinal cord, as a result of the side effects of certain medications or due to certain endocrine disorders as well as improper diets and infectious agents. Proper diagnosis and management of bowel dysfunction is essential for the health of the patient. The treatment is related to the type and the extent of the disease (Friedman 1994,Top of Form Stein 2003). This paper will encompass the pathologies which are associated with bowel dysfunction and serve to explain their underlying reasons along with their diagnostic criteria and the most appropriate treatment according to the condition of the patient. According to the National Institutes of Health Clinical Center, â€Å"Bowel dysfunction refers to problems with the frequency, consistency and/or ability to control your bowel movements.† (2007) This serves to explain the meaning that alterations in the motility of the small intestine and the normal bowel function can result in conditions which are referred to as bowel dysfunction. Constipation, diarrhoea and faecal incontinence are examples of bowel dysfunction. Constipation is a condition which may result due to a reduction in the bowel motility, hard faecal matter which cannot be expelled or if the amount of faecal matter is less than the amount which can be defecated. The defining factor of constipation can vary from one person to another as the bowel habits between different patients are variable. This is because a bowel frequency ranging from one per day to three per week is considered to be normal. If this frequency is reduced to less than one time in a period of three days, it can be referred to as constipation. If constipation exists for a long time, a more severe condition which is known as impaction may result. In this state the faecal matter is

Globalization on the U.S. Economy Research Paper

Globalization on the U.S. Economy - Research Paper Example Globalization is a concept whose recognition appeared only recently, although its evolution can be traced back to the middle age periods in Europe. Localism and centralization in trade and social interactions defined societies in pre-modern periods, in which people remained within the confines of their birthplaces for their entire lives (Torress 107). Trade was mainly conducted in market places within territories with long distance trades only being on luxury goods, which were exclusive for the rich. Leadership was mainly through kingships and monarchs used local power elites owing allegiance to them, with no form of centralised governing machinery whatsoever. However, in the wake of natural disasters like famines and droughts, increased demand for goods and religious commitments led to the interaction between different communities and kingdoms began to expand with merchants traversing large distances in search for sources and markets for their merchandise (Waters 121). The sixteenth century saw the explosion of the concept of globalisation and the transient of localism. Some of the developments included improvements in naval technologies, which opened up trade between territories oceans apart. There was European regeneration marked by moving away from the monarch leadership to statehood existing presently, and the emergence of the French and American Revolution principles (Watters 249). This was followed by the emergence of the industrial revolution, which saw great improvements in technology, inanimate traction, increased demand and supply leading to increased trade over long distances, colonialism and missionary work across the globe.

Network security fundamentals, security threats, and issues Case Study

Network security fundamentals, security threats, and issues - Case Study Example In addition, data and information (in the form of communication) are often distributed all the way through the network as apparent text (for instance it is not twisted or encrypted). Additionally, using the Internet it is also simple to imitate someone else as they are online. On the other hand, there is at the moment a great deal of suspicion on the subject of internet security, however an excellent information is that we have a wide variety of tools and technologies accessible which can ensure the maximum security of our network against illegal interruption (McConnell, 2004). Normally, the use of a firewall is associated with the Internet. In fact, with the growing popularity of the Internet, the term â€Å"firewall† is a great deal more frequently employed in computer networks. Similar to the firewalls that are used in buildings and homes, computer firewalls take steps as a fence between computers on a network. A firewall is critical for the companies that use a computer ne twork or for individuals with a stable connection to the internet (for instance through cable or DSL). In addition, in the absence of a firewall, any unauthorized person on the network would possibly be able to access, wipe out, and move around to the files or data and information stored in our computer. ... Certainly, in some cases firewalls also block the required transmission, and throughout a frequent practice of alteration, the filters can be tailored to enhance their effectiveness (Wynn, 2012) Moreover, a firewall encompasses a wide variety of associated applications and tools, installed at a network gateway server, which ensures the security of the resources (data, information, and other resources) of a private network from outside users or people from other networks. Additionally, the network firewalls also refer to the security policies that are utilized with the applications and programs. In addition, a business organization having an intranet that facilitates its staff members to get access to the extensive Internet usage makes use of a firewall to stop unauthorized people from getting access to its own confidential data and information resources as well as for keeping an eye on what other resources its own users are able to access. In this scenario, a firewall works directly with a router program, which determines the characteristics of each network packet to decide whether it should be allowed to move toward its target or not. Additionally, a firewall also encompasses or can be installed on a proxy server that formulates network requests in support of terminal users. In some cases, a firewall is installed in a specifically selected computer that is other than the remaining network with the intention that no received requests or queries can reach openly at confidential network resources (Rouse, 2007). At the present, organizations are able to choose from a wide variety of firewall solutions. In fact, there are numerous firewall transmission techniques and tools. In this scenario, one well-known technique is to