Declaration of Independence and the Constitution Essay

Declaration of Independence and the Constitution Introduction   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Declaration of Independence and the Constitution are two major documents that changed the history of the United States of America, from that of a colonized nation to that of an impendent nation that would have its government. The Declaration of Independence was a document that was written specifically to the government of Great Britainin 1176, July 4th as a notification to the monarchy that America was a free state and no longer a colony of the British. The United States became a country on its own and had its government. The Declaration of Independence provided several reasons that had made the USA to reach a decision of not having a relationship with Britain and its rule. On the other hand, the constitution which was signed in the year 1878 provided an outline the laws, the rights as well as creation of a government that was centralized in the United States. The approval of the constitution by the states led to the formation of feder al governments, which provided the right for each state to practice its own rule under the US Constitution. The existing government of the United States was established as a result of the US constitution. The grievances as raised in the Declaration of Independence were fully addressed by the US Constitution through Bill of Rights, The US Government structure and Laws on trade in the United States. Therefore,without the constitution, the present United States would have not been in existence and the strength of the US government would have been without effect.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Declaration of Independence outlined several grievances which the United States people had concerning the rule of the British during colonial time. From the Declaration of Independence, some of the grievances which were noted include: The British had cut out any trade relations between the United States and the outside world, something that affected the economy of the United State. Upon the enactment of the constitution, free trade was allowed whereby the Americans could trade with any country or states that they preferred without interference from the British, â€Å"For cutting off our Trade with all parts of the world.†(Archives.gov, n.p). The British did not allow the Americans to trade beyond their borders and most of the trade was for the benefit of the British. The Constitution solved this issue of trade by opening up the borders of the United States to the outside world for trade and movement of people. Therefore, without the constitution, the present United States would have still remained economically undermined and unstable as a result of the restrictions on trade.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The other grievances which were raised on the Declaration of Independence include the imposing of taxes on the people of America without gaining their consent, â€Å"For imposing Taxes on us without our Consent.†(Archives.gov, n.p). Under the British colonial rule, the citizens of the United States were required to pay taxes without their consent at a rate that was decided by the British. The enactment of the constitution however resolved this issue of taxes by enacting the right of people to pay taxes while at the same time enjoy the benefits of the taxes which they pay. The constitution gives the people the right to question why they pay taxes and how much they are supposed to pay, something that did not happen during the colonial time of the British in the United States of America.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Furthermore, from the Declaration of Independence, the grievance raised by the Americans includes the deprivation of many cases such as the right to a trial by jury, â€Å"For depriving us in many cases, of the benefits of Trial by Jury.† (Archives.gov, n.p). The British colonial masters in the United States never allowed the citizen of the United States to face trial under a jury, hence promoted injustices and lack of equity within the judicial system. The enactment of the constitution resolved this injustice of being tried without a jury by making a provision in the constitution. It is provided in the constitution that every individual has the right to a trial by jury as stipulated under the constitution (Declaration of Independence ; Constitution of the United States of America ; Bill of Rights ; Constitutional Amendments, 2-10). The constitution declared that all Americans were to be accorded fair and just trial involving the ju ry and that no one should be subjected to a trial without a jury.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Furthermore, still on matters of justice and trial of people in the United States, under the Declaration of Independence, another grievance that was raised was the issue of being tried in another territory away from where one had committed an alleged offense, â€Å"For transporting us beyond Seas to be tried for pretended offences.†(Archives.gov, n.p). The British Colonial masters never bothered to seek for evidence or make investigations before subjecting an individual to trial in their courts way from the place where one was alleged to have committed an offense. However, this was resolved by the constitution through the enactment of law that says no one should be put to trial without sufficient investigations and evidence gathered on the matter of concern(Declaration of Independence ; Constitution of the United States of America ; Bill of Rights ; Constitutional Amendments, 2-10). Therefore, it can be observed that without the con stitution of the United States, injustices and unfairness would have continued in the current United States.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In addition to the above mentioned grievances, the other grievance raised as per the Declaration of Independence was that on suspension of the American Legislature an instead taking of all power by the British and becoming the sole legislature, â€Å"For suspending our own Legislatures, and declaring themselves invested with power to legislate for us in all cases whatsoever.†(Archives.gov, n.p). This action by the British meant that no laws would be passed without the British having been the bones to do it. In other words, all laws in America were to be formulated and enacted according to the system of the British rule and by the British(Declaration of Independence ; Constitution of the United States of America ; Bill of Rights ; Constitutional Amendments, 2-10). To address and resolve this issue, the constitution of the United States outlined the various arms of government and ensured that every arm of government, including the leg islature had its role clearly outlined.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Last but not least, the other grievances that were raised in the Declaration of Independence by the United States to the Crown of Britain included the talking away of the charters of the United States as well as the abolishment of the valuable laws of the US, â€Å"For taking away our Charters, abolishing our most valuable Laws, and altering fundamentally the Forms of our Governments.†(Archives.gov, n.p). Furthermore, the alteration of the form of government of the United States was also part of the grievances raised in the Declaration of Independence(Declaration of Independence ; Constitution of the United States of America ; Bill of Rights ; Constitutional Amendments, 2-10). Under the US Constitution, these grievances were addressed through the provisions in the constitution which outline how the US government structure should look like and the way all arms of government should operate. Furthermore, the constitution bestowed the r ight to elect leaders on the citizens hence addressing the issue of charters that were taken away by the British. References Archives.gov, The Declaration of Independence: A Transcriptionviewed from http://www.archives.gov/exhibits/charters/declaration_transcript.html on 15th October 2014 Declaration of Independence ; Constitution of the United States of America ; Bill of Rights ; Constitutional Amendments. S.l.: Filiquarian Pub, 2007. Print. P.2-10 Source document

Steroids in Sports

Steroids in Sports In many places around the world today, sports competitions are increasing in popularity due to the quest to win, to be the best. Many athletes will do anything to win, whether that means breaking the rules or cheating. The desire to win is imbedded into all humans, especially when professional athletes of today’s age are becoming icons and are viewed as figures of greatness by their rare abilities to perform at such a high level. The quest for money and fame is also a common reason for athletes to cheat or bend the rules.Steroid use is the most common form of cheating in all sports today. Other than the fact that they are harmful to your body, they are taking away from sports and sending the wrong messages to aspiring athletes. The issue that is currently being addressed in the sports industry is that if so many people are already using steroids, such as bodybuilders and athletes, then why not make them legal and let people use them at their own risk? Or rat her should we just keep them illegal due to their harmful health risks and promotion of unfair advantages in sports?Before getting into the ethical concerns about the legalization of steroids, let’s talk about what steroids are and how they work. A steroid is a synthetic substance similar to the male sex hormone testosterone. The most common use of steroids is having them injected into skeletal muscles or they are taken in powder and pill form. There are so many types of steroids and each of them has its own value. Many types of steroids are used for medical conditions and health problems. These types of steroids are prescribed by doctors. Any type of steroid that is not prescribed by a doctor is illegal.Steroids that are taken by athletes and other abusers take them in cycles of weeks and months. This is called cycling. Cycling involves taking several doses of steroids over a definite period of time, stopping for a period, and then starting again. Along with this method, ste roid users often use the â€Å"stacking† method during their cycles (NIDA 1). This is when users will combine several different types of steroids to get maximal results while minimizing negative effects. There are many effects from the use of steroids, some positive and some negative.Though there are more negative effects then there are positive ones, many of the positive effects of steroids include treatment for medical conditions. Anabolic steroids can be legally prescribed to treat conditions like delayed puberty as well as diseases that result in loss of lean muscle mass, such as cancer and AIDS (NIDA 1). Short term effects of steroids are the ability to train harder and longer and an increase in lean muscle mass and strength. Minor negative side-effects include excessive hair growth, oily skin, acne, and a deepening voice.These are just minor short term side-effects though. The effects of steroid use that are the main concerns of users are increased risk of cancer, heart attack and liver disease. Also, increased blood pressure, increased risk of atherosclerosis, and obstructive sleep apnea may occur (NIDA 2). For men, shrinkage of the testicles, baldness, and risk of prostate cancer are things to be aware of. For women, common side-effects are facial hair, male-pattern baldness, and a deepening voice. Lastly, adolescence taking steroids may stunt their growth and accelerate puberty changes.The use of steroids in baseball has been revealed, and was put out in the open. Steroids have been utilized in baseball for decades, but just lately have arrived into the lime light. In the summer of 2003, the USADA obtains a secret fluid, brought in anonymously. This fluid, ‘the clear', turns out to be Tetrahydrogestrinone. It's an untraceable steroid utilized by some of the world's top athletes. Later it is disclosed that Trevor Graham, a sprint adviser to some of the elite sprinters, submitted the steroid and the baseball steroid era began.The steroid wa s traced back to Victor Conte at BALCO labs, and it is finally discovered out that Patrick Arnold was the pharmacist who evolved the steroid. Barry Bonds' name is cited as one of BALCO's large-scale clients. In fall of 2004, steroid checking starts under the MLB's new collective bargaining agreement. Barry Bonds undergoes random checking, and proceeds on to win his 7th organization MVP. Over the next couple of years, some athletes are connected to BALCO and anabolic steroids. Many athletes came ahead and accepted their steroid usage while some still asserted innocence.In 2007, previous Senator George Mitchell issues a 409 piece report, after a 21 month enquiry considering steroids in baseball. The report titles 89 people engaged in baseball who have are suspect of utilizing steroids. Again, some athletes eventually accept to utilizing steroids, while there are still numerous, which have been suspect, deny utilizing anabolic steroids. In the years after 2007, more proof is discovered opposing many MLB players and some apologies are made. Anabolic steroids are still utilized in baseball today, and ball players still undergo drug tests.Professional sports needs the most gifted athletes in the world, and people will manage anything they can to get the intended for display, even if it is endangering their career. Tetrahydrogestrinone, opened the eyes of newspapers and followers around the world to not only steroid use in baseball, but steroid use in all sports. Not a day goes by without hearing about a steroid associated case, or an athlete failing the drug test. Fans and parents anticipate professional athletes to be models. Because of baseball's steroid scandal, steroids are better liked than ever, in both adults, and teens.Several associations, and retired athletes, for example Jose Canseco, are now conversing to juvenile teens about steroid edge consequences, steroid misuse, and hazards of anabolic steroids. Major League Baseball had an established steroid rule which was made in 2002. Under this rule, a first time violation would only result in therapy for the player. Not one contestant was ever suspended. After the BALCO scandal, Major League Baseball eventually determined to buckle down and topic harsher punishments for steroid users.The new principle, which was acknowledged by Major League Baseball players, was handed out at the start of the 2005. It stated that the first positive test will result in a suspension of up to ten days. The second positive test will result in a suspension of thirty days. The third positive test will result in a suspension of sixty days. The fourth positive test will result in a suspension of one full year. Finally, the fifth positive test will outcome in a punishment at the discretion of the Commissioner of Major League Baseball.Players will be checked not less than one time per year, with a possibility that some players can be checked many times per year. Bud Selig, the Commissioner of Major League Basebal l, successfully made the living principle and has suggested even harder punishments for positive tests than the ones in place today. The new punishments that Bud Selig has suggested are a â€Å"three strikes and you're out approach†. This is that the first positive test would result in a fifty game suspension. The second positive test would result in a one-hundred game suspension.Finally, the third positive test would result in a lifetime suspension from Major League Baseball. These new suggested punishments are much harsher than either of the first two, although, they should be acknowledged by both the players before any changes can be made. Under the present rule, the first Major League ballplayers have been suspended for checking positive. The Mitchell Report, or Report to the Commissioner of Baseball of an Independent Investigation into the Illegal Use of Steroids and Other Performance Enhancing Substances by Players in Major League Baseball, is the outcome of previous Un ited States Senator George J.Mitchell's enquiry into the use of anabolic steroids and human development hormone in Major League Baseball. The 409-page Mitchell Report, issued on December 13, 2007, shows the use of illegal game enhancing substances by players and the effectiveness of the MLB pharmaceutical checking program. It's still present that Senator Mitchell's recommendations considering the management of past illegal drug use and future avoidance practices. The Mitchell Report names eighty-nine Major League Baseball players who are supposed to have used steroids or drugs.George Mitchell, a previous United States Senator and prosecutor, was nominated by Baseball Commissioner Bud Selig on March 30, 2006 to enquire the use of performance-enhancing drugs in MLB. Mitchell was nominated throughout a time of argument over the journal Game of Shadows, which chronicles thought complete use of performance-enhancing drugs, around some distinct kinds of steroids and development hormone by Barry Bonds. Bud Selig determined to start the method of ending the illegal use of steroids and performance enhancing drugs after reading Game of Shadows.The term was made after some influential people of the US Congress made opposing remarks about the effectiveness and honesty of MLB anti-performance enhancing drug policies. In recent news in sports today, many players are being caught using illegal substances of performance enhancing drugs. For example, San Francisco Giants outfielder, Melky Cabrera, was caught using illegal performance enhancing drugs late in the 2012 season. He was sentenced to the 50 game suspension and this also takes a toll on his popularity which was increasing due to his MVP caliber stats. His suspension is the most significant in-season ban by MLB since Manny Ramirez received his first 50-game suspension in 2009† (Lacques 1). Though the Giants won the World Series without Melky Cabrera, they most likely will not offer him a contract extension in the 2013 season, in which he will be a free agent. Steroids may also cause inner turmoil within players. They may become disliked by other teammates because they are harming themselves and cheating. It is not fair to those who don’t take steroids and work out hard to make themselves become a better player.For example, Dustin Pedroia, 5’ 6† second baseman for the Red Sox, won MVP of the league in 2008 without any steroid use. On the other hand, Alex Rodriguez, Yankees third baseman, who has won multiple MVP’s recently admitted to three years of steroid use. As far as the fans know, steroids could have helped him during his years of greatness. That leaves many people to believe he is a great player, but did not put in the hard work like Dustin, who earned the respect of millions with his work ethic and determination.I believe that the use of steroids or any performance enhancing drugs should remain illegal in sports. The United Nations Educational, Scientific, and Cultural Organization (UNESCO)  division on anti-doping believes that â€Å"doping jeopardizes the moral and ethical basis of sport and the health of those involved in it†Ã‚  (Ashby 1). I agree with UNESCO because steroids will cause an unfair advantage for many people in sports. Sports will no longer be about who has the most talents or puts the most work into becoming better but more about who has the better steroids to make them better.The National Football League created its own policy on steroids and performance enhancing drugs because they believe it threatens the integrity of athletic competition (Ashby 1). Many people are beginning to believe that legalizing steroids will benefit sports because it will create a higher, faster level of play. It is also argued that since many athletes are being caught using them anyways that they should just be made legal to stop with the suspensions and taking away of titles earned by players while using steroids.For example, the US Anti-Doping Agency stripped cyclist Lance Armstrong of his seven Tour de France titles and banned him from the sport for life for doping. There are some who believe it is wrong to take his titles away but in my belief I think that it is only right for his titles to be stripped. Well, maybe not all seven of them, but the ones in which he was using steroids during. There are many psychological and physical side effects to your body from continued steroid use. Psychologically, a player may go from a state of well-being to a state of depression.Players tend to have outbursts known as â€Å"roid rage†, which is a feeling insecurity when they are playing bad even though they are on this drug. Mood swings and intense aggression and violence have also been known to occur. Some players feel that steroid use will benefit their career by making them a better player. This is not true. Most are looking for a quick way to increase their speed, endurance, muscle mass and physical size. They want to have a stronger physique which gives them confidence as well as strength to perform better on the baseball field. Some also tend to get addicted to the steroid habit.Some players who have been injured, mildly or dramatically, require this drug to recover from the injury, but then cannot live without it. Jason Giambi, former Yankee first baseman, was overweight, slow, and a poor hitter at the beginning of his career. In order to maintain his position on the team, he chose to take steroids after workouts to alter his body. This had an immediate effect, but after he was caught, he went from being a well-rounded player, back to slumps in his game and having to work hard like everyone else. There is also the business standpoint that leaves many people to think that steroids should be legal.Former baseball players Mark McGwire and Sammy Sosa put on two of the most memorable baseball seasons in 1998 and 1999. Fans became invested in the home run races, especially in 1998 when McGwire shattered Roger Maris’ 37-year-old single season home run record. More jerseys were sold that offseason than in any other. This view is that steroids will cause many players to break records and there will be an increase in fans. My view is that the players who take steroids and break records are breaking the records of those who actually worked hard and stayed clean while achieving them.This, to me, is a good way to describe the unfairness due to the fact that sports won’t be about achieving greatness and success through hard work, determination, and great talent, but by having some talent and taking lots of steroids. Based upon research and studies of the dramatic effects steroid use, I believe that steroid should remain illegal unless used for medicinal purposes. Reasons being the negative and long lasting effects it can have on one's body, along with the negative effect that they will cause in the change of the integrity and fairness of sports.Numerous anti -doping policies have been created to stop the use of steroids in sports today and I feel that with a strong push towards a clean and fair game, these organizations might be able to nearly eliminate steroids from many sports. Major athletes may enjoy the results but are clueless to extent of the damage it will cause them in the future. Lastly, there is no reason for people to harm their bodies for short term results and according to April Ashby, â€Å"Steroids have no place in sports† (Ashby 1).

Issues in Terrorism Essay Example | Topics and Well Written Essays - 750 words

Issues in Terrorism - Essay Example 230). However, the thing that needs to be understood is that in a historical sense, the definition of the term terrorism had been increasingly dependent on the interests and intentions of the powers who tried to define terrorism. Hence, the meaning of the term terrorism will always go on changing in the future in consonance with the agenda of the powers which extend the majority narrative. Before elaborating on the relativity of the definition of terrorism, it will indeed be insightful to try to circumscribe the concept of terrorism within the domain of some widely accepted commonalities. It is a reality that in all ages and times, terrorism did evince some common traits and characteristics. To begin with, it would not be wrong to say that terrorism does happen to be a radical and extreme genre of political manipulation (Stout, 2002, p. 65). Most of the times the terrorists do resort to acts of extreme violence to create an environment of uncertainty and intimidation so as to make people get convinced about the ubiquity and potency of their power and sway. The other particular thing is that the aim of terrorism is always to disseminate a pervasive sentiment of panic and fear. Besides, terrorists also resort to acts of violence to accrue media and popular attention. Also, the most important thing about terrorism is that it contradicts and defies the sacrosanct human va lues and aspirations. Now, if one considers some of these characteristics that are common to the configuration of a viable definition of terrorism, it is possible to contrive a definition of terrorism which may not be concrete, but still manages to convey a malleable meaning and intent that could be grasped by human logic and ethics. However, the sad thing is that if one takes into consideration the historical realities, the act of defining terrorism has always been subservient to the intent and aspirations of the dominant narrative. It is said that

Research Paper Essay Example | Topics and Well Written Essays - 2250 words - 5

Research Paper - Essay Example Compassion fatigue refers to a stress condition which is characterised by gradual diminishing of compassion among care providers. The problem has been commonly diagnosed among individuals working directly with trauma victims from different societies. The condition is commonly characterised by hopelessness, negative attitude, constant anxiety and stress, and insomnia. This kind of stress becomes detrimental to the individuals both personally and professionally. Compassion fatigue results in individuals becoming less productive, and developing feelings of incompetence. As individuals involved in providing care to traumatised individuals, such feelings consequently cause the individuals to become cynical; hence reluctant in providing assistance (Slocum-Gori et al. 2013). The condition has commonly being referred as secondary traumatic stress (STS), because it results from an individual becoming stressed out of factors stressing others. Burnout refers to exhaustion which results from continued performance of work related responsibilities. The characteristics of burnout become visible following an individual’s continued long term exhaustion, which slowly makes the individual beginning diminishing interest in work. Burnout shows similar characteristics and effects like compassion fatigue and has been increasingly likened with compassion fatigue (Alkema et al. 2008). Psychologists have described compassion fatigues as a form of burnout experienced among caregivers, in facilities providing assistance to traumatised individuals. This research seeks to identify the various sources of compassion fatigue and burnout among individuals working within various organisations. These elements have continuous had detrimental effects on the individuals within the professional and personal perspectives. The article will seek to explore the causes and effects of these stress factors observed among individuals working within care

Trends of violence in juvenile crimes Research Paper

Trends of violence in juvenile crimes - Research Paper Example This paper investigates the current trends in violent juvenile crimes and its reasons. Criminal and violent activities among children are increasing day by day because of the changing life styles among children. Lack of parental care, drug and alcohol addiction, influence of print media, television and internet upon children were some of the main reasons for the childish offenses. Adult crime and juvenile crime are dealt separately by the court. For example, shooting and killing of another person by an adult and a juvenile will be considered differently by the court. â€Å"There are somewhere between 250,000 and 300,000 cases of child sexual abuse each year in the U.S.† (Understanding Juvenile Sex Offenders) â€Å"Juveniles account for about one-quarter of the sex offenses in the U.S.† (JONES, p.1) Most of the juveniles who suffered sexual abuse will hide it from the public view because of shame. Compared to adults, juvenile offenders are more dangerous since in most cases, their abusive behaviour will continue throughout their life span. Some of the juvenile crimes may not be much harmful to the society whereas some other crimes may be violent also. Gun usage is not controlled much in the American society and the juveniles are using it just like a toy in their hands. Even simple juvenile clashes result in shooting incidents which kill or injure lot of innocent people because of the immaturity. The accused terrorist, Mohammad Kazab, who has been caught alive from the recent Mumbai terrorist attack, has argued that he was not an adult, in the court where the trial of the Mumbai attack is going on. Whether it is right or wrong it is a proven fact that juveniles are currently engaged in more dangerous violent activities than before. AK 47 or Missile launchers are not a surprising thing for at least some of them. Reports from Sri Lanka have showed that the Liberation tigers of Tamil Elam (LTTE) have

First thing First Essay Example | Topics and Well Written Essays - 250 words

First thing First - Essay Example I said, "Honey, Pastor Jamal is going to be on Paula White Ministry and youve got to see it." He said "Ok." I was happy that he was willing to watch with me. As he stood in the middle of the room watching, I stood right behind him. After the program was off, I asked what his thought on first fruit was. He said it made sense. After introducing the idea to him, I left the room. I waited until the next morning and while we were sitting at the table I said, " Honey, I was hoping you give first fruit with your first paycheck in January." He understood why I wanted him to participate and loved how I explained it to him, but he had already made plans to use the money for something else. There was no changing his mind. He had his heart set on using his first pay check to purchase parts for his motorcycle. Since getting his motorcycle chrome out was a big deal to him, I had to drop the issue for the moment, but I was not finished with him yet. Later that evening I repeated what he had said about first fruit and how he agreed that it is important back to him. He finally said, "Well, I knew you were going to do what you wanted anyway. If it makes you happy go ahead." After thinking about it, I did not use his check for first fruit. I paid the bills and decided to ask about giving first fruit two months before the New Year. I would still use the same approach, but I would start earlier in getting him prepared to give up his whole pay

This is an individual assignment. You are to research an actual Essay

This is an individual assignment. You are to research an actual example of IT leveraging business advantage at an operational level - Essay Example The presence of fierce competition and cost restraints in the present world economic scenario make a proactive approach to envision the future results beforehand and implement appropriate measures to achieve desired results and targets is absolutely necessary. In this report the role played by the IBM Corporation in developing such strategies to enhance multifarious businesses with hardware and software solutions has been studied. The latest innovative ideas implemented by this leader in automation and IT have been incorporated in the report. Practical implementation of an IT strategy by a leader in an online gaming industry has been studied and researched up to some extent from the results obtained by it after choosing a particular IBM product. Information Technology (IT) has grown at a tremendous pace in the last decade and has left no aspect of business or human life untouched. Banking, Healthcare, Education, The Stock Market, etc. are on the verge of being exclusively run using IT. The growth in the IT industry however has not been uniform, as advances in hardware and software development have been influenced by the exclusive needs and requirements of large corporation and governments. This has produced a haphazard pattern of growth in the IT sector and the experts in the field have initiated efforts only very recently to restructure it to be uniform, efficient as well as cost effective. Almost all businesses in the developed and the developing countries are being run using latest and the most modern aspects of IT. Institutions like banks, the hotel industry, fast food chains, fast moving consumer goods industry and others have surpassed their competitors by miles using IT to leverage their businesses. One such organization is the IBM Corporation which was the pioneering organization in ushering the computer age in this century.

Pressures for Change Essay Example | Topics and Well Written Essays - 1250 words

Pressures for Change - Essay Example Barrett was barely a year old at the organization when America started the war on Iraq. This was in 2001. The war was solely a political move that had dire consequences on different aspects of the American economy. It strained the economy as more money was needed to fund the fight. In this case, the money could only be sourced from public fund which is tax collected. This resulted in a shift in the purchasing forms of most the American market. The war also affected international markets. For instance, sympathizers of the Iraqi government started discriminating against American products and Intel was one of the companies that felt the consequence of the discrimination. Intel manufactures computer chips and sells them off to other companies some of which are situated overseas (Palmer, Dunford & Akin, 2009). The poor performance following this had detrimental consequences on the firms’ standings at the stocks market since low sales meant lower profits resulting to low dividends t o its share holders. As a result, investors began shying off from Intel’s shares and this was to blame for the poorest price of twenty dollars that the company’s share got to by September 2001. This poor performance caused by the geopolitical factor needed effective change to reverse. It was a trend that could have seen this leading market player liquidated within the shortest period and the chief executive office Craig Barrett could not have known what would have hit him. Being the aggressive individual he was, he noticed the need initiate change and introduce a brand into the market that could sustain the buying trends at the time. It is with this in mind that he launched faster and smaller processors at lower prices. With this type of product, the firm shifted its market target from the high end citizens to the middle and low class who coincidentally formed the majority of the population. He also was forced to diversify the firm’s operation. He transformed th e company from merely making the microprocessors to a manufacturer of other information and communication appliances. In as much as the move to begin manufacturing other communication and information appliances was a good one, it was bound to impact negatively on the general sale of the firm’s products. Intel initially manufactured these micro chips and sold them to other manufacturers of ICT products such as Toshiba, Acer, and Hewlett Packer (HP). This meant that these other secondary firms would buy these chips in bulk and use them to manufacture their products. But since Intel would still reserve the copyright laws, they would always indicate that their products had Intel chips. This acted as a platform for further advertisement for Intel’s products. It is, therefore, only logical that when Intel began manufacturing such appliances as computers and mobile phones, it started competing for the very limited market with its former customers. This would not have been rec eived positively by these companies as they started treating Intel as a competitor and not a supplier. This further reduced the sales of the firm’s products and contributed to the poor price of the firm in the year 2001 and early 2002. With a poor performance, and the changes that the chief executive officer was making in the firm, the company was most definitely taking a newer shape. The

Intercultural Relations Essay Example | Topics and Well Written Essays - 2000 words

Intercultural Relations - Essay Example However, critics believe otherwise. Pointing to its â€Å"anarchic and competitive character† (Cox 2), they instead see globalisation â€Å"an exploitative phenomenon† (Prempeh 586) that â€Å"has often perpetuated poverty, widened material inequalities, increased ecological degradation, sustained militarism, fragmented communities, marginalised subordinated groups, fed intolerance and deepened crises of democracy† (Scholte 53). These adverse effects of globalisation as encapsulated in the following terms: â€Å"disempowerment, marginalisation, exclusion and inequality† (Prempeh 596) cultivate and encourage racial discrimination, especially so that historically racism has been an effective tool in rationalising and covering-up exploitation (Shah, section 1, par. 2; Sivanandan, par. 1) in favour of the powerful. Globalisation proponents proudly claim globalisation has equalised the playing field for all nations and races in almost all spheres of life; thus, it has transcended nation-states; that today we are more than our nationality but citizens of the world – we are a cosmopolitan – a multi-cultural world free from national prejudices. With this rosy picture being painted about globalisation, this world could have been a better and safer place to live in. But then, why do we have ogre things such as ethnic tensions/wars (â€Å"Greek Albanians† BBC News), racial profiling (Monbiot, par. 2), racial crimes like racial bombing (â€Å"Racist bomb† BBC News) and race riots (â€Å"Spain Struggles† BBC News), and war on terrorism (Bidwai, par. 18-19)? With these grim pictures around the world, anti-globalisation forces see globalisation nothing but a tool of neo-liberal market forces to systematically exploit the economy of the world through â€Å"racism, sexism, xenophobia, and other oppressions† (Gorski 4). Anytime, anywhere and anyhow, racism is evil. It is damaging as it disempowers people by

Dream Vacation Essay Example for Free

Dream Vacation Essay While some people may be quite content to lounge around the city of Karnak all summer as the mosquitoes suck away at their skin, a more perfect spot than this does exist. Pack every suitcase in the house because for the perfect summer time getaway for one who has limited time to head out of Pulaski County, Austin, Texas is the place to be. (64) A traveler on a short schedule will appreciate the time conscious travel plans that can be to arrive in Austin. Flying out of St. Louis on June 7 you can find yourself on Texas soil in just three hours. An added advantage to choosing to stay in the mid-west is the avoidance of high travel costs. With advance planning a round trip ticket to Austin will cost as little as $198.00. (68) Upon landing in Austin, you may rent a car from Avis. They maintain an office on the grounds of Austin Bergstrom International Airport so their facilities are extremely convenient. Their rates are comparable to other car rental agencies. The rate for your state, June 7 through June 10, is just $73.14 a day and that includes the standard rental rate, all surcharges, and local taxes. You will be able to travel in Austin comfortable in a Grand Am or similar style vehicle. (82) Read more: Dream vacation essay At the heart of Austin you will find many hotel accommodations. A highly recommended choice is The Driskell Hotel because of its antique treasures, stunning rooms and soaring ceilings. Adding to the charm of the hotel is a legend that tells of the top floor of the Driskill Hotel being haunted by a playful ghost. As posted on the Internet by an anonymous guest of the hotel, The Driskill Hotel is a must see when coming to the Austin area. From the grandest of suites, to the astonishing lobby, to the ever-so-tasteful Driskill Grill and Bar, The Driskill Hotel is a well rounded hotel and ranks with some of the best in the world! Staying in elegance comes with a cost. The beautiful suites that place you high above the streets of Austin where you can nearly reach out and touch the clouds from the balcony will empty your wallets at a rate of $250.00 a night. The numerous amenities that accompany the room make the price reasonable. Not only will you have a balcony from which you can look out over the city of Austin to see the  bright night lights, you will sleep cozily in a queen size bed, enjoy the open-air feeling with the 19 foot ceilings, and be able to stay in touch through email with the T1 connection. (223) To relieve the stress that has built up during the school year, a visit to the Aziz Salon and Day Spa would be the high point of one of your days. At Aziz you will receive a one-hour therapeutic massage or 30 minute body scrub and 30 minute massage, deep pore cleansing facial, a light lunch, a full manicure and pedicure followed by a warm paraffin treatment, hair and scalp stress relieving oil treatment, shampoo and blow dry, and a personal consultation and makeover with make-up artist. Your skin will feel as soft as a fuzzy peach and will radiate like a gold medallion. The cost, $300, is small in comparison to all of the wonderful treatments you will experience. (120) Taking in some of the country atmosphere of Texas wont be hard to do even after a day of elegance at Aziz and a luxurious night sleep at The Driskell Hotel. On Friday, June 8 you can catch a great performance by the BR5-49. The name of the band doesnt give away any hints as to their style of performing, but a quick background search on the Internet reveals all a listener needs to know. As stated by Craig Shelburne, These guys are hugely entertaining, and their most enthusiastic fans arent afraid of the hillbilly factor. Listening to their music will make you feel as though you are on the range herding cattle abroad a beautiful appaloosa. As the notes from their guitars leave the strings and tickle your ears, you will feel gratification for having spent the $35.00 to purchase a ticket to this event. (146) Many people would think of Tex-Mex when selecting restaurants, but one restaurant that deserves to be considered is the Chinese restaurant Tien Hong. This restaurant has more than just the sweet and sour pork that is stereotyped as the main Chinese dish. A fantastic mouth watering treat is the dim sum they serve. The taste will leave you wanting more even after you find out you are eating chicken feet. The price is quite inexpensive for a fest of Chinese food. Most meals can be purchased for under $15.00. (89) Any further attractions and time fillers are left up to the imagination. If the hotel pool doesnt do the trick for a quick swim, theres Barton Springs Pool. The downtown streets are lined with quaint shops such as Elegante, which specializes in Latin American imports, and Cantus Mexican Hierberia Imports, which sells herbs and healing ointments of all varieties and for all occasions. The locals are friendly and can point you in the right direction if something specific comes to mind during your stay. (84) Austin, Texas may not hit the list of many vacation planners as the ideal dream vacation, but for a short, relaxing get-a-way from the daily grind of teaching, Austin can be a pleasurable vacation that wont break your bank account while rewarding you with the enjoyments of life that often get placed on the back burner during the school year. (60)

Impact of the Sugar Regime Reform

Impact of the Sugar Regime Reform THE CAP REFORMS: 2005-2007 SOURAV ROY THE SUGAR REGIME REFORM (2005-06) The European Union (EU) forms one of the largest sugar producers in the world. This position was formed through the application of protectionist policies ranging from production and prices to exports and imports that is applicable throughout the EU. The policy that is prevalent in Europe with regard to sugar regulation is commonly known as the CMO (Common Market Organisation). Since its inception in 1968 the CMO had hardly undergone any reform. Taking into account all the reforms that the EU’s Common Agricultural programme (CAP) had gone through the 1992 MacSharry Reform, Agenda 2000, and the 2003 CAP reform- the sugar market of Europe had escaped through all the reform periods. But the 2003 reforms gave rise to certain factors which led to the need for reforming their sugar market. First the Everything-But-arms (EBA) initiative that led the EU to withdraw tariff from 48 developing countries which means that there availability of more quantity of sugar. Secondly, the sugar re gime of EU does not comply with the EU’s WTO export rules which in turn imply that EU cannot export out-of –quota sugar. Thirdly, there was addition of 10 more countries in the EU which led to the increase in the imbalance of demand and supply of sugar. The main purpose of the CMO is to ensure uninterrupted sugar production within the countries of the EU where sugar production is feasible. This is made possible through the National Production Quota given to the producers of sugar within the EU. There also exists an intervention price – a minimum amount that is guaranteed to the producers of sugar so that they have the incentive for continuous sugar production. The EU under takes several mechanisms in order to protect the domestic sugar industry. Firstly, EU imposes high restrictive quotas on import of sugar substitutes. Secondly, high amount of subsidies are given to dispose off the excess amount of supply and maintain high domestic prices. The 2005 sugar reform under the CAP of EU aims at (1) lowering the production of sugar at places where the cost of inputs are higher or where the rate of yield is low (2) to bring the export subsidies in line with rules laid down by the WTO (3) to reduce the import of sugar from the EBA countries into the EU (4) to reduce the price gap between sugar and other substitutes of sugar. The main elements of the new sugar regime reform 2006 are as follows: Over a four year period beginning in 2006/07 the intervention price for sugar is reduced from 631.9 Euros to 404.4 Euros per ton, that amounts to a cut of about 36% In order to compensate for the price cut, the farmers were entitled to receive a compensation amounting to 64.2% of the price cuts. Farmers in those countries giving up at least 50% of the quota on sugar are provisioned to receive a coupled payment (coupled with production) of 30 percent of the income loss along with all possible national aids. Unlike the previous reform, in this reform the A and B quota are coupled together into a single quota amounting to 17.4 million tons of sugar. In order to encourage the system of quota, a voluntary restructuring scheme is introduced for a maximum period of 4 years. The scheme involves buying out quota from th producers of sugar and encouraging factory closures. With regard to the management of the supply side, it consists of both the old and the new system mechanisms. An important feature is the replacement of the intervention system with a reference price. The supply management mostly depends on the private storage system when market prices fall below the reference price. The border protection measures did not undergo a change except for cutting down on the quotas and the tariffs in order to bring them at par with the WTO commitments. Non preferential import duties including the special safeguards were not affected by the new regime. An examination of the market reveals some effects of the current sugar regime reform. Although the existing reform has been replaced by a new reform, there still exist some price support policies which have the potential to limit the extent to which the goals of the reform policy can be achieved. Moreover, high import barriers will continue to shield the domestic sugar industry. The inability of quota holders to trade quotas across member states may restrict the degree of industry adjustment toward greater cost efficiency. The application of the new sugar reform regime is going to alter the sugar market for the EU. According to the estimates given by the EU commission, a cut in the export of sugar due to the due to the rules set out by the WTO there is going to be a reduction in the production of sugar amounting to be around 2 million. High cost regions like Ireland, Greece, Italty and Portugal would face a lot of trouble while the low cost regions would be in a advantageous position to increase production. With regard to trade, shipments of sugar were expected to increase to the EU from the EBA countries after 2009 but there exists certain uncertainty regarding this. Under the SWAPS provision, the EBA countries could import sugar at world price and then export locally produced sugar within the EU. Even with the lower intervention prices, very few people within the EU believe that EBA countries will be able to export raw sugar at a reasonably low price. Under the reform, only the ACP countries within the LDC group (i.e., Malawi, Zambia, and Zimbabwe) have the potential to offset losses in their current quota exports to the EU by increasing their export volumes under the EBA Initiative. THE 2007 REFORM In order to have an environment-friendly development the various sections of CAP are monitored. On the November 2007 the commission declared that there will be a â€Å"Health Check up† on the various reforms of CAP. It gives the direction that the CAP should undertake to continue the reform process that started in 2003 with the introduction of SPS (Special Payment Scheme). It mainly focuses on three measures: Simplifying the SPS scheme. Market measures New environmental challenges. Simplifying the Single Payment Scheme According to the CAP Health Check, the Single Payment Scheme should be developed in the following ways: standardising the application of the system in order to limit cases where aid is still granted under a coupled support system; continued adaptation of the principle of cross-compliance, which promotes sustainableagriculture whilst taking account of societys new requirements; Reviewing the allocation of aid: limiting the higher level of payments and increasing the minimum area threshold required for small amounts. Market developments In order to encourage effectivecompetitionon agricultural markets, the Commission intends to review some CAP management instruments which no longer meet market requirements, in particular measures concerning cereals and dairy products. New environmental challenges This illustrates the new challenges that the CAP could contribute towards meeting: climate change, bio-energy and water management, as well as other challenges such as biodiversity.

To Reinvent Oneself :: College Admissions, Personal Narrative

Before I go about fixing the world, I must first try a little self-improvement. Many people walk through life without really considering who they are and fewer still ask themselves if that is who they want to be. In my experience this is because most folks can't see how to go about changing themselves and some even think that this is somehow a betrayal of their essence. To reinvent yourself you need three things. A vision of who you want to be. You need to know how to make a change in yourself and finally you need to have the courage to do it. Your vision can be reached through many paths. Look at those things that you take pride in about yourself and contrast them with those things that embarrass you. This should start to indicate where your soul is trying to head. Next flesh out the ultimate form that you would take if you followed this path. And now you have your vision. But don't think this will remain constant throughout your life. As you change, grow and learn you will want to alter your vision. This is a good and normal thing, so fear not. The method that I have found to change myself is simplicity itself. Become an actor. Take one part of yourself at a time and start acting as if you had already achieved that modification. It will feel awkward and false at first but the more you practice it, including the feelings behind the actions, the more it will become natural to you. Eventually you will be acting correctly without even thinking about it and your motivation will become a part of who you are. Then you are ready to tackle the next part of yourself that needs improvement. You will need courage to do this. Remember, all of your friends and family are expecting you to stay the same. Whether you know it or not you are partly who you are because of a desire to meet these expectations. It is therefore natural for you to fear the confusion and perhaps rejection of those nearest and dearest to you.

Viewers Perceptions of On-Air Cursing Essay -- essays research papers

This study used a 2 x 2 x 2 design to examine the effects of warning labels, bleeping, and gender on viewers' perceptions and enjoyment of a docu-drama. We also examined the individual difference variable of verbal aggressiveness to test for possible interactions. Overall, the warning labels increased enjoyment of the program containing profanity among college students. Bleeping had no effect on either program liking or perceptions of realism; however, bleeping decreased perceptions of the program's offensiveness, and increased viewers' perceptions of profanity frequently estimates. Lastly, verbally aggressive participants perceived the program as more realistic, and the language as less offensive ********** The Telecommunications Act of 1996 mandated that broadcasters in the United States adopt program age and content ratings in order to help viewers make program viewing decisions. Since then, not only have program ratings and warning labels become a more familiar sight on television programs, but the very content that viewers are being warned about (e.g., profanity) appears to be occurring more frequently (Bauder, 2002). Research has examined the effect of age and content ratings and warning labels on children's program liking and perceptions of content, and found that in some circumstances, warnings and ratings have effects opposite those intended by the legislators (see, for example, Cantor & Harrison, 1996). Considerably less research has examined the effect on adults' perceptions of content (however, see Bushman, 1997). Furthermore, a majority of the research examines the effects of ratings and warnings on violent content (e.g., Cantor & Harrison, 1996; Cantor, Harrison, & Nathanso n, 1998; Herman & Leyens, 1977) or educational content (Krcmar & Albada, 2000). Little, if any research has examined the effect of ratings and warnings on attitudes toward, and perceptions of, other potentially objectionable material such as cursing. It may be interesting to ask, therefore, if assigning a warning label affects how adult viewers interpret and recall cursing when it appears in television programs. In addition to the use of program warnings, there are increasing numbers of cable channels available to viewers which may have served to loosen some norms regarding appropriate standards for programming. For example, in a recent airing of A Sea... ...estudy/main.asp Pashler, H.E. (1999). The psychology of attention. Cambridge, MA: MIT Press. Rohsenow, D. J., & Bachorowski, J. (1984). Effects of alcohol and expectancies on verbal aggression in men and women. Journal of Abnormal Psychology, 93, 418-432. Triesman, A. (1964). The effect of irrelevant material on the efficiency of selective listening. American Journal of Psychology, 77, 533-546. Underwood, G., & Murray, N. (1971). Shadowing and monitoring for selective attention. Quarterly Journal of Experimental Psychology, 23, 284-295. Wurtzel, A., & Surlin, S. (1978). Viewer attitudes toward television advisory warnings. Journal of Broadcasting, 22(1), 19-31 Marina Krcmar (Ph.D., University of Wisconsin, Madison) is an Associate Professor in the Department of Communication Sciences at the University of Connecticut. Her research interests include effect of violent television on children and the impact of media policy on families. Steve H. Sohn is a doctoral candidate in the Department of Communication Sciences at the University of Connecticut. His research interests include media effects on body image and media effects on consumers' advertising message process. Viewers Perceptions of On-Air Cursing Essay -- essays research papers This study used a 2 x 2 x 2 design to examine the effects of warning labels, bleeping, and gender on viewers' perceptions and enjoyment of a docu-drama. We also examined the individual difference variable of verbal aggressiveness to test for possible interactions. Overall, the warning labels increased enjoyment of the program containing profanity among college students. Bleeping had no effect on either program liking or perceptions of realism; however, bleeping decreased perceptions of the program's offensiveness, and increased viewers' perceptions of profanity frequently estimates. Lastly, verbally aggressive participants perceived the program as more realistic, and the language as less offensive ********** The Telecommunications Act of 1996 mandated that broadcasters in the United States adopt program age and content ratings in order to help viewers make program viewing decisions. Since then, not only have program ratings and warning labels become a more familiar sight on television programs, but the very content that viewers are being warned about (e.g., profanity) appears to be occurring more frequently (Bauder, 2002). Research has examined the effect of age and content ratings and warning labels on children's program liking and perceptions of content, and found that in some circumstances, warnings and ratings have effects opposite those intended by the legislators (see, for example, Cantor & Harrison, 1996). Considerably less research has examined the effect on adults' perceptions of content (however, see Bushman, 1997). Furthermore, a majority of the research examines the effects of ratings and warnings on violent content (e.g., Cantor & Harrison, 1996; Cantor, Harrison, & Nathanso n, 1998; Herman & Leyens, 1977) or educational content (Krcmar & Albada, 2000). Little, if any research has examined the effect of ratings and warnings on attitudes toward, and perceptions of, other potentially objectionable material such as cursing. It may be interesting to ask, therefore, if assigning a warning label affects how adult viewers interpret and recall cursing when it appears in television programs. In addition to the use of program warnings, there are increasing numbers of cable channels available to viewers which may have served to loosen some norms regarding appropriate standards for programming. For example, in a recent airing of A Sea... ...estudy/main.asp Pashler, H.E. (1999). The psychology of attention. Cambridge, MA: MIT Press. Rohsenow, D. J., & Bachorowski, J. (1984). Effects of alcohol and expectancies on verbal aggression in men and women. Journal of Abnormal Psychology, 93, 418-432. Triesman, A. (1964). The effect of irrelevant material on the efficiency of selective listening. American Journal of Psychology, 77, 533-546. Underwood, G., & Murray, N. (1971). Shadowing and monitoring for selective attention. Quarterly Journal of Experimental Psychology, 23, 284-295. Wurtzel, A., & Surlin, S. (1978). Viewer attitudes toward television advisory warnings. Journal of Broadcasting, 22(1), 19-31 Marina Krcmar (Ph.D., University of Wisconsin, Madison) is an Associate Professor in the Department of Communication Sciences at the University of Connecticut. Her research interests include effect of violent television on children and the impact of media policy on families. Steve H. Sohn is a doctoral candidate in the Department of Communication Sciences at the University of Connecticut. His research interests include media effects on body image and media effects on consumers' advertising message process.

Essay --

Being located in the Middle East next to the Mediterranean Sea and surrounded by Lebanon, Turkey, Iraq, Jordan, and Israel, Syria has continued to be a struggle area for different regions to take control of and rule over. Since 1500 B.C. the land of Syria has been ruled by many different empires and rulers including the Persians, Arabs, and Ottoman Turks. However, since gaining its independence in 1946 Syria has been a home to 21 million people including those from many different ethnic and religious groups including: Kurds, Armenians, Assyrians, Christians, Druze, Alawite Shia, and Arab Sunnis. With its capitol at Damascus, the government of Syria has gone through a lot of change since it reached its independence in 1946 from the French. It began as a parliamentary republic which is a republic where the executive branch of government is accountable to the legislative branch. However in the time since then their government has not held firm and strong. Military coups, or groups of people that are usually the military who attempt to get rid of the existing government and replace it, have made many attempts to try to overthrow the government of Syria and replace it with their own. These attempts ultimately began to weaken Syria’s government. They joined a union with Egypt that lasted only 3 years because it was torn down by a military coup. A short time after, Syria began to be less and less democratic and the citizens began to lose more of their rights. In 1970 Hafez al-Assad became president and led the Baath government which was mostly led by the Alawites. W hen he died in 2000 his son, Bashar al-Assad became president. Since then Syria has endured many revolts and ultimately led to a civil war breaking out in 2011... ... on by so much rain that these camps have become flooded and just more miserable and almost uninhabitable for these poor refugees attempting to stay away from the violence of the civil war (CBSnews). The rise in violence against women has also been an outcome of the civil war. With many women being raped, tortured, and used to act as forms of showing control and intimidation towards the enemies. Lauren Wolfe wrote an article saying that, â€Å"everyone from the direct victims of the attacks to their children, who may have witnessed or been otherwise affected by what has been perpetrated on their relatives†, she is saying that it is not only the women that are being the victims, but the families of these victims who usually see what is happening to them (Bernard). The basic human rights that everyone should be guaranteed are continually stepped on in Syria.

Inflation Is Assumed

Inflation is assumed Chapter 1 True / False Questions 1. Inflation is assumed to be a temporary problem that does not affect financial decisions. FALSE 2. Financial Capital is composed of long-term plant and equipment, as well as other tangible investments. FALSE 3. Real Capital is composed of long-term plant and equipment. TRUE 4. During the 1930s, financial practice revolved around such topics as the preservation of capital, maintenance of liquidity, reorganization of financially troubled corporations and bankruptcy. TRUE 5. In the mid 1950s, finance began to change to a more analytical, decision-oriented approach.TRUE 6. Recently, the emphasis of financial management has been on the relationship between risk and return. TRUE 7. The most common partnership arrangement carries limited liability to the partners. FALSE 8. In terms of revenues and profits, the corporation is by far the most important form of business organization in the United States. TRUE 9. Dividends paid to corporat e stockholders have already been taxed once as corporate income. TRUE 10. One advantage of the corporate form of organization is that income received by stockholders is not taxable since the corporation already paid taxes on the income distributed.FALSE 11. A corporation must have more than 75 stockholders to qualify for Subchapter S designation. FALSE 12. Profits of a Subchapter S corporation are taxed at corporate tax rates. FALSE 13. Corporate governance issues have become less important to the financial community during the first decade of the new millennium. FALSE 14. Agency Theory examines the relationship between companies and their customers. FALSE 15. A major focus of the Sarbanes Oxley Act is to make sure that publicly traded companies accurately present their assets, liabilities and income in their financial statements.TRUE 16. The Sarbanes Oxley Act is primarily intended to increase public scrutiny of private companies that had previously been exempt from many public dis closure requirements. FALSE 17. Timing is not a particularly important consideration in financial decisions. FALSE 18. Maximizing the earnings of the firm is the goal of financial management. FALSE 19. Insider trading involves the use of information not available to the general public to make profits from trading in a company's stock. TRUE 20.Financial markets exist as a vast global network of individuals and financial institutions that may be lenders, borrowers, or owners of public companies worldwide. TRUE 21. Money markets refer to those markets dealing with short-term securities having a life of one year or less. TRUE 22. Money markets refer to markets where excess corporate cash is exchanged for foreign currencies that can earn a higher return than domestic money. FALSE 23. Capital markets refer to those markets dealing with short-term securities having a life of one year or less. FALSE 24. The primary market includes the sale of securities by way of initial public offerings.TR UE 25. High quality initial public offerings are usually sold in a primary market, such as the New York Stock Exchange. However, low-quality stocks must usually be sold in secondary markets, such as NASDAQ. FALSE 26. Although NASDAQ is a secondary market, some of the firms traded there, such as Microsoft, are large enough to move to the primary market if they so desire. FALSE 27. The secondary market characteristically has had stable prices over the past 20 years. FALSE 28. In the United States, stocks sold on either the New York Stock Exchange or NASDAQ are considered sold in the primary market.FALSE 29. New issues are sold in the secondary market. FALSE 30. Existing securities are traded in the secondary market. TRUE 31. Many companies have cross-listed their stock on multiple international stock exchanges and more than several hundred foreign companies have listed their shares on the New York Stock Exchange. TRUE 32. Financial management requires both short-term activities as wel l as long-term planning such as raising funds. TRUE Multiple Choice Questions 33. What is the primary goal of financial management? A. Increased earnings B. Maximizing cash flow C. Maximizing shareholder wealthD. Minimizing risk of the firm 34. In the past, the study of finance has included A. mergers and acquisitions. B. raising capital. C. bankruptcy. D. all of these. 35. Professor Merton Miller received the Nobel prize in economics for his work on   A. dividend policy. B. investment theory. C. working capital management. D. capital structure theory. 36. Professors Harry Markowitz and William Sharpe received their Nobel prize in economics for their contributions to the   A. options pricing model. B. theories of working capital management. C. theories of risk-return and portfolio theory. D. heories of international capital budgeting. 37. Proper risk-return management means that A. the firm should take as few risks as possible. B. the firm must determine an appropriate trade-off between risk and return. C. the firm should earn the highest return possible. D. the firm should value future profits more highly than current profits. 38. One of the major disadvantages of a sole proprietorship is   A. that there is unlimited liability to the owner. B. the simplicity of decision making. C. low organizational costs. D. low operating costs. 39. One of the major advantages of a sole proprietorship is   A. hat the owner has limited liability. B. that stock in the proprietorship can be easily transferred. C. that it is exempt from many tax rules that would otherwise apply when employees are hired by the firm. D. low operating costs. 40. The partnership form of an organization A. avoids the double taxation of earnings and dividends found in the corporate form of organization. B. usually provides limited liability to the partners. C. has unlimited life. D. simplifies decision making. 41. A corporation is A. owned by stockholders who enjoy the privilege of limited lia bility. B. easily divisible between owners.C. a separate legal entity with perpetual life. D. all of these. 42. With a Subchapter S corporation A. income is taxed as direct income to stockholders. B. stockholders have the same liability as members of a partnership. C. the number of stockholders is unlimited. D. life of the corporation is limited. 43. A Subchapter S corporation A. is similar to a partnership in that is carries unlimited liability. B. is a separate legal entity which is treated like a normal corporation. C. has all the organizational benefits of a corporation and its income is only taxed once. D. all of these. 44.Corporate governance is the A. relationship and exercise of oversight by the board of directors of the company. B. relationship between the chief financial officer and institutional investors. C. operation of a company by the chief executive officer (CEO) and other senior executives on the management team. D. governance of the company by the board of director s with a focus on social responsibility. 45. Many companies such as Tyco, Enron, and WorldCom that suffered financial distress in the late 1990s and early 2000s,   A. committed fraud. B. had failed corporate governance oversight. C. went bankrupt. D. ll of these are true. 46. Agency theory examines the relationship between the A. shareholders of the firm and the firm's investment banker. B. owners of the firm and the managers of the firm. C. board of directors and large institutional investors. D. shareholders and the firm's transfer agent. 47. Agency theory would imply that conflicts are more likely to occur between management and shareholders when   A. the company is owned and operated by the same person. B. management acts in the best interests of maximizing shareholder wealth. C. the chairman of the board is also the chief executive officer (CEO). D. he board of directors exerts strong and involved oversight of management. 48. Agency problems are least likely to arise in whi ch organizational form? A. sole proprietorship B. limited partnership C. corporation D. subchapter S corporation 49. Institutional investors are important in today's business world because   A. as large investors they have more say in how businesses are managed. B. they have a fiduciary responsibility to the workers and investors that they represent to see that the firms they own are managed in an ethical way. C. as a group they can vote large blocks of stock for the election of board members.D. all of these. 50. The increasing percentage ownership of public corporations by institutional investors has   A. had no effect on corporate management. B. created higher returns for the stock market in general. C. created more pressure on public companies to manage their firms more efficiently. D. taken away the voice of the individual investor. 51. The Sarbanes-Oxley Act was passed in an effort to A. protect small business from large corporations dominating the market. B. ensure that pa rtnerships divide profits among partners in a fair manner. C. guarantee outside auditors can control corporate accounting practices.D. control corrupt corporate behavior. 52. Maximization of shareholder wealth is a concept in which   A. increased earnings is of primary importance. B. profits are maximized on a quarterly basis. C. virtually all earnings are paid as dividends to common stockholders. D. optimally increasing the long-term value of the firm is emphasized. 53. Which of the following is not a true statement about the goal of maximizing shareholder wealth? A. It takes into account the timing of cash-flows. B. It is a short-run point of view which takes risk into account. C. It considers risk as a factor. D. None of these. 54.Insider trading occurs when A. someone has information not available to the public which they use to profit from trading in stocks. B. corporate officers buy stock in their company. C. lawyers, investment bankers, and others buy common stock in compan ies represented by their firms. D. any stock transactions occur in violation of the Federal Trade Commissions restrictions on monopolies. 55. The major difficulty in most insider-trading cases has been   A. that lenient judges have simply released the guilty individuals. B. that insider trading, even though illegal, actually serves a beneficial economic and financial purpose.C. that inside trades have not been legally well defined. D. inside trades actually have a beneficial effect on the wealth of all stockholders. 56. Money markets would include which of the following securities? A. common stock and corporate bonds. B. treasury bills and commercial paper. C. certificates of deposit and preferred stock. D. all of these. 57. Capital markets do not include which of the following securities:   A. common stock B. commercial paper C. government bonds D. preferred stock 58. When a corporation uses the financial markets to raise new funds, the sale of securities is made in the   A. rimary market. B. secondary market. C. on-line market. D. third market. 59. Corporate restructuring has been one result of more institutional ownership. Restructuring can cause   A. changes in the assets and liabilities of the firm. B. the sale of low-profit margin divisions. C. the removal of current management and/or large reductions in the workforce. D. all of these. 60. The internationalization of the financial markets has   A. allowed firms such as McDonalds to raise capital around the world. B. raised the cost of capital. C. forced companies to price everything in U. S. dollars. D. all of these. Chapter 2True / False Questions 61. The income statement is the major device for measuring the profitability of a firm over a period of time. TRUE 62. The income statement measures the increase in the assets of a firm over a period of time. FALSE 63. Operating profit is essentially a measure of how efficient management is in generating revenues and controlling expenses. TRUE 64. Ac counting income is based on verifiably completed transactions. TRUE 65. The P/E ratio is strongly related to the past performance of the firm. FALSE 66. When a firm has a sharp drop off in earnings, its P/E ratio may be artificially high. TRUE 67.The real value of a firm is the same from an economic and accounting perspective. FALSE 68. A balance sheet represents the assets, liabilities, and owner's equity of a company at a given point in time. TRUE 69. The investments account represents a commitment of funds of at least one year or more. TRUE 70. Asset accounts are listed in order of their liquidity. TRUE 71. Accumulated depreciation shows up in the income statement. FALSE 72. Total assets of a firm are financed with liabilities and stockholders equity. TRUE 73. Book value per share and market value per share are usually the same dollar amount. FALSE 74.Book value per share is of greater concern to the financial manager than market value per share. FALSE 75. Book value is equal to net worth. TRUE 76. Equity is a measure of the monetary contributions that have been made directly or indirectly on behalf of the owners of the company. TRUE 77. Stockholders' equity is equal to liabilities plus assets. FALSE 78. Retained earnings shown on the balance sheet represents available cash on hand generated from prior year's earnings but not paid out in dividends. FALSE 79. Retained earnings represent the firm's cumulative earnings since inception, minus dividends and other adjustments.TRUE 80. The statement of cash flows helps measure how the changes in a balance sheet were financed between two time periods. TRUE 81. Cash flow is equal to earnings before taxes minus depreciation. FALSE 82. An increase in an asset represents a source of funds. FALSE 83. Assume that two companies both have Net Income of $100,000. The firm with the highest depreciation expense will have the highest cash flow, assuming all other adjustments are equal. TRUE 84. An increase in inventory represe nts a source of funds. FALSE 85. An increase in a liability account represents a source of funds on the cash flow statement.TRUE 86. An increase in accounts receivable represents a reduction in cash flows from operations. TRUE 87. An increase in accounts payable represents a reduction in cash flows from operations. FALSE 88. The purchase of a new factory would reduce the cash flows from investing activities on the statement of cash flows. TRUE 89. The sale of corporate bonds held by the firm as a long-term investment would increase cash flows from investing activities on the statement of cash flows. TRUE 90. Paying dividends to common shareholders will not affect cash flows from financing activities. FALSE 91.The sale of a firm's securities is a source of funds, whereas the payment of dividends is a use of funds. TRUE 92. Depreciation is an accounting entry and does not involve a cash expense. TRUE 93. Free cash flow is equal to cash flow from operating activities minus necessary ca pital expenditures and normal dividend payments. TRUE 94. An increase in accounts receivable results in a cash inflow on the statement of cash flows. FALSE 95. A decrease in bonds payable results in a cash outflow on the statement of cash flows. TRUE 96. An increase in accrued expenses results in a cash outflow on the statement of cash flows.FALSE Multiple Choice Questions 97. Which of the following is not one of the three basic financial statements? A. Income Statement B. Statement of Retained Earnings C. Statement of Cash Flows D. Balance Sheet 98. Which of the following is not subtracted out in arriving at operating income? A. interest expense B. cost of goods sold C. depreciation D. selling and administrative expense 99. Increasing interest expense will have what effect on EBIT? A. increase it B. decrease it C. no effect D. not enough information to tell 100. The residual income of the firm belongs to A. creditors. B. preferred stockholders.C. common stockholders. D. bondholders . 101. Allen Lumber Company had earnings after taxes of $580,000 in the year 2006 with 400,000 shares outstanding on December 31, 2006. On January 1, 2007, the firm issued 35,000 new shares. Because of the proceeds from these new shares and other operating improvements, 2007 earnings after taxes were 25 percent higher than in 2006. Earnings per share for the year-end 2007 was   A. $1. 67 B. $1. 45 C. $1. 81 D. None of these 102. Consider the following information for Ball Corp. [pic] What is the Operating Profit for Ball Corp? A. $71,450 B. $90,000 C. 120,000 D. None of these 103. Candy Company had sales of $240,000 and cost of goods sold of $108,000. What is the gross profit margin (ratio of gross profit to sales)? A. 75% B. 55% C. 73. 3% D. None of these 104. Density Farms, Inc. had sales of $500,000, cost of goods sold of $180,000, selling and administrative expense of $70,000, and operating profit of $90,000. What was the value of depreciation expense? A. $170,000 B. $230,000 C. Less than $170,000 D. None of these 105. Elgin Battery Manufacturers had sales of $900,000 in 2006 and their cost of goods sold represented 65 percent of sales.Selling and administrative expenses were 9 percent of sales. Depreciation expense was $10,000 and interest expense for the year was $8,000. The firm's tax rate is 30 percent. What is the dollar amount of taxes paid? A. $151,200 B. $145,800 C. More than $151,800 D. None of these 106. A firm with earnings per share of $5 and a price-earnings ratio of 15 will have a stock price of   A. $20. 00 B. $75. 00 C. $3. 00 D. the market assigns a stock price independent of EPS and the P/E ratio. 107. Earnings per share is A. operating profit divided by number of shares outstanding. B. et income divided by number of shares outstanding. C. net income divided by stockholders' equity. D. net income minus preferred dividends divided by number of shares outstanding. 108. Reinvested funds from retained earnings theoretically belong to:   A. bond holders. B. common stockholders. C. employees. D. all of these. 109. The firm's price-earnings (P/E) ratio is influenced by its   A. capital structure. B. earnings volatility. C. sales, profit margins, and earnings. D. all of these. 110. Which of the following factors do not influence the firm's P/E ratio:   A. past earnings. B. shares outstanding.C. volatility in performance. D. none of these. 111. Which of the following would not be classified as a current asset? A. Marketable securities B. Investments C. Prepaid expenses D. Inventory 112. An item which may be converted to cash within one year or one operating cycle of the firm is classified as a   A. current liability. B. long-term asset. C. current asset. D. long-term liability. 113. Which of the following would not be included in the balance sheet investment account? A. stocks of other corporations B. long term government bonds C. marketable securities D. investments in other corporations 14. Which of the followi ng is not a primary source of capital to the firm? A. assets B. common stock C. preferred stock D. bonds 115. The major limitation of financial statements is A. in their complexity. B. in their lack of comparability. C. in their use of historical cost accounting. D. in their lack of detail. 116. Net worth is equal to stockholders' equity A. plus dividends. B. minus preferred stock. C. plus preferred stock. D. minus liabilities. 117. Book value is the same as A. stockholders' equity. B. fixed assets minus long-term debt. C. net worth. D. current assets minus current debt. 118.Total stockholders' equity consists of A. preferred stock and common stock. B. common stock and retained earnings. C. common stock and capital paid in excess of par. D. preferred stock, common stock, capital paid in excess of par and retained earnings. 119. The net worth of a firm A. is usually the same as the firm's market value. B. is based on current asset costs. C. is based on current liabilities. D. none of these. 120. The orientation of book value per share is __________, while the orientation of market value per share is ___________. A. short term, long term B. future, historical C. historical, future D. ong term, short term 121. A statement of cash flows allows a financial analyst to determine   A. whether a cash dividend is affordable. B. how increases in asset accounts have been financed. C. whether long-term assets are being financed with long-term or short-term financing. D. all of these. 122. A firm's purchase of plant and equipment would be considered a   A. use of cash for financing activities. B. use of cash for operating activities. C. source of cash for investment activities. D. use of cash for investment activities. 123. Depreciation is a source of cash inflow because A. it is a tax-deductible non-cash expense.B. it supplies cash for future asset purchases. C. it is a tax-deductible cash expense. D. it is a taxable expense. 124. Depreciation tends to A. increase cash flow and decrease income. B. decrease cash flow and increase income. C. affect only cash flow. D. affect only income. 125. Given the following, what is free cash flow? [pic] A. $115,000. B. $235,000. C. $185,000. D. $165,000. 126. Assuming a tax rate of 35%, depreciation expenses of $400,000 will   A. reduce income by $140,000. B. reduce taxes by $140,000. C. reduce taxes by $400,000. D. have no effect on income or taxes, since depreciation is not a cash expense. 27. Assuming a tax rate of 30%, the after-tax cost of interest expense of $200,000 is   A. $60,000 B. $140,000 C. $200,000 D. $120,000 128. Assuming a tax rate of 40%, the after-tax cost of a $200,000 dividend payment is   A. $200,000 B. $70,000 C. $130,000 D. none of these. 129. Farah Snack Co. has earnings after taxes of $128,750. Interest expense for the year was $20,000; preferred dividends paid were $18,750; and common dividends paid were $30,000. Taxes were $15,000. The firm has 100,000 shares of common stock o utstanding. Earnings per share on the common stock was   A. $0. 90 B. $1. 10 C. $0. 5 D. $0. 80 130. Gerry Co. has a gross profit of $880,000 and $360,000 in depreciation expense. Selling and administrative expense is $120,000. Given that the tax rate is 40 percent, compute the cash flow for Gerry Co. A. $456,000 B. $240,000 C. $600,000 D. None of these 131. Hoover Inc. has current assets of $360,000 and fixed assets of $640,000. Current liabilities are $90,000 and long-term liabilities are $160,000. There is $90,000 in preferred stock outstanding and the firm has issued 10,000 shares of common stock. Compute book value (net worth) per share   A. $84. 00 B. $66. 00 C. $75. 00D. None of these 132. The best indication of the operational efficiency of management is   A. net income. B. earnings per share. C. earnings before interest and taxes (EBIT). D. gross profit. 133. A corporation can increase their earnings per share by   A. increasing tax-deductible expenses B. increasing Treasury stock C. decreasing depreciation D. decreasing retained earnings From End of the Chapter 2 Problems 5. Given the following information, prepare, in good form, an income statement for Goodman Software, Inc. Selling and administrative expense$ 50,000 Depreciation expense80,000 Sales400,000Interest expense30,000 Cost of goods sold150,000 Taxes18,550 2-5. Solution: Goodman Software, Inc. Sales$ 400,000 Cost of goods sold 150,000 Gross Profit250,000 Selling and administrative expense50,000 Depreciation expense 80,000 Operating profit120,000 Interest expense 30,000 Earnings before taxes90,000 Taxes 18,550 Earnings after taxes$ 71,450 6. Given the following information prepare in good form an income statement for the Kid Rock and Gravel Company. Selling and administrative expense$ 60,000 Depreciation expense70,000 Sales470,000 Interest expense40,000 Cost of goods sold140,000Taxes45,000 2-6. Solution: Kid Rock and Gravel Co. Income Statement Sales$ 470,000 Cost of goods sold$ 140, 000 Gross profit$ 330,000 Selling and administrative expense$ 60,000 Depreciation expense$ 70,000 Operating profit$ 200,000 Interest expense$ 40,000 Earnings before taxes$ 160,000 Taxes$ 45,000 Earnings after taxes$ 115,000 7. Prepare in good form an income statement for Virginia Slim Wear. Take your calculations all the way to computing earnings per share. Sales$600,000 Shares outstanding100,000 Cost of goods sold200,000 Interest expense30,000 Selling and administrative expense40,000Depreciation expense20,000 Preferred stock dividends80,000 Taxes100,000 2-7. Solution: Virginia Slim Wear Income Statement Sales$600,000 Cost of goods sold 200,000 Gross profit400,000 Selling and administrative expense40,000 Depreciation expense 20,000 Operating profit340,000 Interest expense 30,000 Earnings before taxes310,000 Taxes 100,000 Earnings after taxes210,000 Preferred stock dividends80,000 Earnings available to common stockholders130,000 Shares outstanding100,000 Earnings per share$ 1. 30 8. Prepare in good form an income statement for Franklin Kite Co. , Inc.Take your calculations all the way to computing earnings per share. Sales$900,000 Shares outstanding50,000 Cost of goods sold400,000 Interest expense40,000 Selling and administrative expense60,000 Depreciation expense20,000 Preferred stock dividends80,000 Taxes50,000 2-8. Solution: Franklin Kite Company Income Statement Sales$900,000 Cost of goods sold400,000 Gross profit500,000 Selling and administrative expense60,000 Depreciation expense20,000 Operating profit$420,000 Interest expense40,000 Earnings before taxes$380,000 Taxes50,000 Earnings after taxes$330,000 Preferred stock dividends80,000Earnings available to common stockholders250,000 Shares outstanding50,000 Earnings per share$5. 00 9. Lasar Technology, Inc. , had sales of $500,000, cost of goods sold of $180,000, selling and administrative expense of $70,000, and operating profit of $90,000. What was the value of depreciation expense? Set this problem up as a partial income statement, and determine depreciation expenses as the plug figure. 2-9. Solution: Lasar Technology, Inc. Sales$500,000 Cost of goods sold $180,000 Gross Profit$320,000 Selling and administrative expense70,000 Depreciation Expense (plug figure) 160,000Operating profit$ 90,000 10. The Ace Book Company sold 1,500 finance textbooks for $185 each to High Tuition University in 2008. These books cost Ace $145 to produce. Ace spent $10,000 (selling expense) to convince the university to buy its books. In addition, Ace borrowed $80,000 on January 1, 2008, on which the company paid 10 percent interest. Both interest and principal of the loan were paid on December 31, 2008. Ace’s tax rate is 25 percent. Depreciation expense for the year was $15,000. Did Ace Book Company make a profit in 2008? Please verify with an income statement presented in good form. -10. Solution: Ace Book Company Sales (1,500 books at $185 each)277,500 Cost of goods sold (1,500 books at $145 each ) 217,500 Gross Profit60,000 Selling expense10,000 Depreciation expense 15,000 Operating profit†¦Ã¢â‚¬ ¦35,000 Interest expense 8,000 Earnings before taxes27,000 Taxes @ 25% 6,750 Earnings after taxes20,250 11. Carr Auto Wholesalers had sales of $900,000 in 2004 and their cost of goods sold represented 65 percent of sales. Selling and administrative expenses were 9 percent of sales. Depreciation expense was $10,000 and interest expense for the year was $8,000.The  firm’s tax rate is 30 percent. a. Compute earnings after taxes. b. Assume the firm hires Ms. Hood, an efficiency expert, as a consultant. She suggests that by increasing selling and administrative expenses to 12 percent of sales, sales can be increased to $1,000,000. The extra sales effort will also reduce cost of goods sold to 60 percent of sales (there will be a larger markup in prices as a result of more aggressive selling). Depreciation expense will remain at $10,000. However, more automobiles will have t o be carried in inventory to satisfy customers, and interest expense will go up to $15,000.The firm’s tax rate will remain at 30 percent. Compute revised earnings after taxes based on Ms. Hood’s suggestions for Carr Auto Wholesalers. Will her ideas increase or decrease profitability? 2-11. Solution: Carr Auto Wholesalers Income Statement a. Sales$ 900,000 Cost of goods old (65% of sales) 585,000 Gross Profit$ 315,000 Selling and administrative expense (9% of sales) 81,000 Depreciation 10,000 Operating profit 224,000 Interest expense 8,000 Earnings before taxes 216,000 Taxes @ 30% 64,800 Earnings after taxes $ 151,200 2-11. (Continued) b. Sales $1,000,000Cost of goods sold (60% of sales) 600,000 Gross profit 400,000 Selling and administrative expense (12% of sales) 120,000 Depreciation 10,000 Operating profit 270,000 Interest expense 15,000 Earnings before taxes 255,000 Taxes @ 30% 76,500 Earnings after taxes$ 178,500 Ms. Hood’s ideas will increase profits. 15. E lite Trailer Parks has an operating profit or $200,000. Interest expense for the year was $10,000; preferred dividends paid were $18,750; and common dividends paid were $30,000. The tax was $61,250. The firm has 20,000 shares of common stock outstanding. . Calculate the earnings per share and the common dividends per share for Elite Trailer Parks. b. What was the increase in retained earnings for the year? 2-15. Solution: Elite Trailor Parks a. Operating profit (EBIT)$200,000 Interest expense 10,000 Earnings before taxes (EBT)$190,000 Taxes 61,250 Earnings after taxes (EAT)$128,750 Preferred dividends 18,750 Available to common stockholders$110,000 Common dividends 30,000 Increase in retained earnings$80,000 [pic] Dividends per Share = $30,000/20,000 shares = $1. 50 per share b. Increase in retained earnings = $80,000 16.Johnson Alarm Systems had $800,000 of retained earnings on December 31, 2008. The company paid common dividends of $60,000 in 2008 and had retained earnings of $640 ,000 on December 31, 2007. How much did Johnson earn during 2008, and what would earnings per share be if 50,000 shares of common stock were outstanding? 2-16. Solution: Johnson Alarm Systems Retained earnings, December 31, 2008$800,000 Less: Retained earnings, December 31, 2007 640,000 Change in retained earnings$160,000 Add: Common stock dividends 60,000 Earnings available to common stockholders$220,000 Earnings per share [pic] 17.Mozart Music Co. had earnings after taxes of $560,000 in 2008 with 200,000 shares of stock outstanding. The stock price was $58. 80. In 2009, earnings after taxes increased to $650,000 with the same 200,000 shares outstanding. The stock price was $78. 00 a. Compute earnings per share and the P/E ratio for 2008. The P/E ratio equals the stock price divided by earnings per share. b. Compute earnings per share and the P/E ratio for 2009. c. Give a general explanation of why the P/E changed. 2-17. Solution: Mozart Music Co. a. EPS (2008)[pic] = $2. 80 P/E Ra tio (2008)= Price/EPS =[pic] = 21X b. EPS (2009)[pic] = $3. 5 P/E Ratio (2009)= Price/EPS=[pic]= 24X c. The stock price increased by 34% while EPS only increased 16. 1%. 20. Nova Electrics anticipated cash flow from operating activities of $6 million in 2008. It will need to spend $1. 2 million on capital investments in order to remain competitive within the industry. Common stock dividends are projected at $. 4 million and preferred stock dividends at $. 55 million. a. What is the firm’s projected free cash flow for the year 2008? b. What does the concept of free cash flow represent? 2-20. Solution: Nova Electronics a. Cash flow from operations activities$6. 0 million – Capital Expenditures1. 20 – Common stock dividends. 40 – Preferred stock dividends . 55 Free cash flow$3. 85 million b. Free cash flow represents the funds that are available for special financial activities, such as a leveraged buyout, increased dividends, common stock repurchases, acqui sitions, or repayment of debt. 21. The Rogers Corporation has a gross profit of $880,000 and $360,000 in depreciation expense. The Evans Corporation also has $880,000 in gross profit, with $60,000 in depreciation expense. Selling and administrative expense is $120,000 for each company.Given that the tax rate is 40 percent, compute the cash flow for both companies. Explain the difference in cash flow between the two firms. 2-21. Solution: Rogers Corporation – Evans Corporation | |Rogers |Evans | |Gross profit |$880,000 |$880,000 | |Selling and adm. expense |120,000 |120,000 | |Depreciation |360,000 60,000 | |Operating profit |$400,000 |$700,000 | |Taxes (40%) |160,000 |280,000 | |Earnings after taxes |$240,000 |$420,000 | |Plus depreciation expense |$360,000 |$60,000 | |Cash Flow |$600,000 |$480,000 | | | |Rogers had $300,000 more in depreciation which provided $120,000 (0. 40 ( $300,000) more in cash flow. | | | 22. Horton Electronics has current assets of $320,000 and fi xed assets of $640,000. Current liabilities are $90,000 and long-term liabilities are $160,000. There is $90,000 in preferred stock outstanding and the firm has issued 40,000 shares of common stock. Compute book value (net worth) per share. 2-22. Solution: Horton Energy Company Current assets |$320,000 | |Fixed assets |640,000 | |Total assets |$960,000 | |–Current liabilities |90,000 | |–Long-term liabilities |160,000 | |Stockholders’ equity |$710,000 | |–Preferred stock obligation |90,000 | |Net worth assigned to common $620,000 | | | | |Common shares outstanding |40,000 | | | | |Book value (net worth) per share |$15. 50 | 23. The Holtzman Corporation has assets of $400,000, current liabilities of $50,000, and long-term liabilities of $100,000. There is $40,000 in preferred stock outstanding; 20,000 shares of common stock have been issued. a. Compute book value (net worth) per share. b. If there is $22,000 in earnings available to common stockholders a nd Holtzman’s stock has a P/E of 18 times earnings per share, what is the current price of the stock? c. What is the ratio of market value per share to book value per share? 2-23. Solution: Holtzman Corporation |a.Total assets |$400,000 | |–Current liabilities |50,000 | |–Long-term liabilities |100,000 | |–Stockholders’ equity |$250,000 | |–Preferred stock |40,000 | |Net worth assigned to common |$210,000 | |Common shares outstanding |20,000 | |Book values (net worth) per share |$10. 50 | |b. Earnings available to common |$22,000 | |Shares outstanding |20,000 | |Earnings per share |$1. 10 | | [pic] | |c.Market value per share (price) to book value per share $19. 80/$10. 50 = 1. 89 | 24. Bradley Gypsum Company has assets of $1,900,000, current liabilities of $700,000, and long-term liabilities of $580,000. There is $170,000 in preferred stock outstanding; 30,000 shares of common stock have been issued. a. Compute book value (net worth) per share. b. If there is $42,000 in earnings available to common stockholders and Bradley’s stock has a P/E of 15 times earnings per share, what is the current price of the stock? c. What is the ratio of market value per share to book value per share? 2-24. Solution: Bradley Gypsum Company |a.Total assets |$1,900,000 | |–Current liabilities |700,000 | |–Long-term liabilities |580,000 | |Stockholders’ equity |$ 620,000 | |–Preferred stock |170,000 | |Net worth assigned to common |$ 450,000 | |Common shares outstanding |30,000 | |Book values (net worth) per share |$ 15. 00 | |b. Earnings available to common | | |stockholders |$ 42,000 | |Shares outstanding |30,000 | |Earnings per share |$ 1. 40 | | [pic] | |c.Market value per share (price) to book value per share $21. 00/$15. 00 = 1. 40 | Chapter 14 True / False Questions 148. Capital markets consist of securities having maturities greater than one year. TRUE 149. The capital structure of the f irm consists of long-term debt and equity. TRUE 150. Capital markets are becoming increasingly international as investors and issuers seek out the best risk-return opportunities. TRUE 151. Upon entering the capital markets, an investor might invest in common stocks, preferred stock, negotiable certificates of deposit, and convertible securities. FALSE 152.In the last decade, the US has invested substantially more in foreign countries than foreign countries have invested back in the US. FALSE 153. Municipal securities are called tax exempt because no federal taxes must be paid on interest received. TRUE 154. The stock market far exceeds the bond market in terms of size of new capital raised. FALSE 155. The capital markets serve as a way of allocating available capital to the most efficient user. TRUE 156. The main reason for the small amount of financing with preferred stock is that dividends on preferred stock are not tax deductible as are interest paid on bonds. TRUE 157. Retained earnings account for the majority of internally generated corporate funds. FALSE 158.When an investor buys stock in the stock market, he is purchasing shares from a company. FALSE 159. Internal funds generated by corporations include retained earnings and non cash expenses such as depreciation and deferred taxes. TRUE 160. Households and the government are mainly considered to be suppliers of funds while corporations are generally considered users of funds. FALSE 161. Financial intermediaries channel funds into the capital markets from the household sector. TRUE 162. Brokers on an organized stock exchange act as an agent for the person buying or selling securities. TRUE 163. Brokers actually own the securities they buy and sell on the floor of the exchange. FALSE 164.The NASDAQ National Market is composed of large nation-wide companies that are traded in the over-the-counter market. TRUE 165. The strong form of the efficient market hypothesis states that prices reflect all public in formation. FALSE 166. The efficient market hypothesis is generally concerned with the impact of information on the behavior of stock prices. TRUE 167. The weak form of the efficient market hypothesis states that an investor can profit by using past price data. FALSE 168. Markets are efficient when prices adjust rapidly to new information, continuous markets exist and large dollar trades can be absorbed without large price movements. TRUE 169.The Sarbanes-Oxley Act of 2002 holds the CEO legally accountable for the accuracy of their firm's financial statements. TRUE 170. The Sarbanes-Oxley Act of 2002 holds a firm's internal auditors legally accountable for the accuracy of their firm's financial statements. FALSE 171. The future of the NYSE is uncertain due to their unwillingness to adapt to the increase in internationalization and electronic trading in the markets. FALSE Multiple Choice Questions 172. Evidence of how global markets are linked was provided in 1997 and 1998 when intern ational markets reacted to   A. the collapse of Asian currencies in Thailand, Indonesia, Malaysia and Korea. B. Russia's default on its sovereign debt. C. Japan's seven years of economic stagnation.D. a and b are true. 173. When global capital markets collectively react to international events like Russia's default on its sovereign debt, it is common to find   A. that there is no impact on multinational companies' ability to raise capital. B. an impact on the ability to raise capital. C. that Wall Street firms are so diversified that they are not affected by this event. D. All of these are true. 174. Which of the following is not a money market instrument? A. Treasury bills B. Commercial paper C. Negotiable certificates of deposit D. Treasury bonds 175. Global capital markets are influenced by A. interest rates. B. investor confidence. C. elative economic growth. D. all of these. 176. Companies list their stock around the globe to A. capitalize on the inefficiency inherent in fo reign markets. B. increase liquidity for their stockholders. C. provide opportunities for the sale of new stock in foreign countries. D. b and c are correct. 177. Foreign investors have preferred to invest in the United States due to all but one of the following reasons:   A. less stringent regulation of securities markets. B. political stability of the U. S. government. C. the U. S. dollar is the world's international currency. D. all of these are reasons that foreign investors prefer to invest in the United States. 178.With respect to the United States and its relationship with the rest of the world, it can be said that   A. the U. S. has invested more dollars in the rest of the world than foreign countries have invested in the U. S. B. the U. S. has actively helped foreign countries finance their government deficits. C. foreign investors hold large positions in U. S. government securities. D. All of these. 179. Financial instruments in the capital markets generally fall under what category in the Balance Sheet? A. Short-term liabilities and equities. B. Long-term liabilities and equities. C. Near cash assets. D. None of these. 180. Corporations prefer bonds over preferred stock for financing their operations because   A. referred stocks require a dividend. B. bond interest rates change with the economy while stock dividends remain constant. C. the after-tax cost of debt is less than the cost of preferred stock. D. none of these. 181. Federally sponsored credit agencies include all but which of the following? A. Securities Investor Protection Corporation (SIPC) B. Federal Home Loan Banks (FHLB) C. Student Loan Marketing Association (Sallie Mae) D. Federal National Mortgage Association (Fannie Mae) 182. Which of the following is an internal source of funds? A. Cash flow from depreciation (tax shield) B. Net loss C. Repurchase of debt securities D. Bank loan 183.The major supplier of funds for investment in the whole economy is   A. businesses. B. hous eholds. C. government. D. financial institutions. 184. Financial intermediaries serve which of the following purposes? A. Financial intermediaries allow for indirect investment in the capital markets by households. B. Aid in the flow of funds through the economy. C. Help provide allocation of funds to the best investments. D. All of these. 185. Which of the following are benefits of financial intermediaries? A. Increase market liquidity B. Provide a direct market for investors C. Act as agents of the government D. Only a and b 186. The purpose of secondary trading is to A. rovide liquidity and competition between investments. B. provide a market to issue securities not handled in primary trading. C. provide jobs for brokers and dealers. D. provide lower commissions than on the organized exchanges. 187. The most important capital markets in the world (in terms of dollar value) are located in   A. New York. B. London. C. Toronto. D. Tokyo. 188. Which Stock Exchange is known as the m ost liquid? A. NASDAQ B. AMEX C. CBOT D. NYSE 189. Middle to small size companies that are centered in one city or state would most likely be found on the   A. NASDAQ National Market. B. NASDAQ Small Cap Market. C. Supplemental list. D. New York Stock Exchange. 190.The emergence of trading via ECNs has A. offer a unique advantage not offered by the NYSE B. lowered the cost of trading. C. made trading more difficult for small investors. D. all of these are true. 191. Which of the following is not a criterion for an efficient market? A. Prices adjust rapidly to new information. B. Large dollar amounts of securities can be absorbed without price destabilization. C. Each successive trade is made at a price close to the previous trade. D. Computerized handling of transactions. 192. Security markets are efficient when each of the following exist except   A. security prices follow the leading indicators such as the DJIA very closely. B. he markets can absorb large dollar amounts of sto ck without destabilizing the price. C. prices adjust rapidly to new information. D. there is a continuous market where each successive trade is made at a price close to the previous trade. 193. The efficient market hypothesis deals primarily with   A. random speculation in securities. B. the degree to which prices adjust to new information. C. degrees to which price movements are the result of past trends. D. how an investor can significantly outperform the market in general. 194. The efficient market hypothesis has several forms. The weak form states that   A. past price data is unrelated to future prices. B. prices reflect all public information. C. ll information both public and private is immediately reflected in stock prices. D. none of these 195. Security markets provide liquidity A. by allowing corporations to raise funds by selling new issues. B. by creating a market in which owners may easily turn an investment into cash through its sale. C. a and b are both correct. D. neither a nor b are correct. 196. The semi-strong form of the efficient market hypothesis states that   A. past price data is unrelated to future prices. B. prices reflect all public information. C. all information both public and private is immediately reflected in stock prices. D. none of these 197. The strong form of the efficient market hypothesis states that   A. ast price data is positively correlated to future prices. B. prices reflect all public information. C. all information both public and private is immediately reflected in stock prices. D. none of these 198. Security markets are affected by all of the following except:   A. interest rates B. global crises C. book values of equity D. emotions 199. Financial intermediaries include all of the following except:   A. commercial banks B. life insurance companies C. corporations D. pension plans 200. The purposes of security legislation include all of the following except:   A. protect against fraud B. ensure market efficiency C. reduce insider trading D. provide a global competitive advantage