Eco Plastic Solution Essay

This case focuses on determination of the cost of capital for a firm. The student determines the cost of individual sources of financing, including long-term debt, preferred stock, and common stock. The cost of debt is adjusted for Eco Plastics’ 40% tax bracket. The company is considering a new financial structure, with the replacement of preferred stock financing with debt financing. Additional use of debt increases the common stockholders’ required rate of return. The student is asked to compare the two weighted average costs of capital and identify the better financial structure for Eco Plastics Company. a. Cost of debt: Proceeds from sale of $1,000 par value bond: $1,000 − (average discount & floatation costs) $1,000 − ($45 + $32) = $923 Subsequent payments: Interest payments ($1,000 Ãâ€" 0.105) + Par value Before-tax cost of debt N = 20, PV = $923, PMT = −105, FV = −1,000 Solve for I = 11.50% After-tax cost of debt: ri = rd (1-T) = 11.5% (1−0.4) = 6.9% b. Cost of preferred stock: rp = Dp à · Np = (0.095 Ãâ€" $95) à · ($95 – $7) = $9.02 à · $88 = 10.25% c. Cost of common stock: rj = RF + [bj Ãâ€" (rm − RF)] = 0.04 + [1.3 Ãâ€" (0.13 − 0.04)] = 0.04 + [1.3 Ãâ€" 0.09] = 0.04 + 0.1170 = 15.7% d. Weighted average cost of capital: ra = (wi Ãâ€" ri) + (wp Ãâ€" rp) + (ws Ãâ€" rn) = (0.30 Ãâ€" 0.069) + (0.20 Ãâ€" 0.1025) + (0.50 Ãâ€" 0.157) = 0.0207 + 0.0205 + 0.785 = 0.1197, or about 12% e. 1. Change in risk Premium: Change in beta Ãâ€" market risk premium = (1.5 − 1.3) Ãâ€" (0.13 − 0.04) = 0.2 Ãâ€" 0.09 = 0.018 Shareholders require 1.8% more per year New cost of common equity: rj = RF + [bj Ãâ€" (rm − RF)] = 0.04 + [1.5 Ãâ€" (0.13 − 0.04)] = 0.04 + [1.5 Ãâ€" 0.09] = 0.04 + 0.1350 = 17.5% Note: 17.5% − 15.7% = 1.8% 2. Revised weighted average cost of capital: ra= (wi x ri) + (ws x rn) = (0.50 Ãâ€" 0.069) + (0.50 Ãâ€" 0.175) = 0.0345 + 0.0875 = 0.1220 3. Eco Plastics’ CFO should retain the cheaper current financial structure. Replacing preferred stock financing with debt financing results in more risk to the stockholders. The increase in stockholders’ required rate of return is more than offsets the advantage of using the low cost debt. If Eco Plastics’ CFO were to revise the capital structure, share price would fall and shareholder wealth would not be maximized.

Revising Response to Pop Culture Essay Example | Topics and Well Written Essays - 1000 words

Revising Response to Pop Culture - Essay Example To many people, â€Å"True Life† lets them know they are not alone. The show sometimes focuses on very controversial issues that are not typically discussed openly, such as questioning one’s sexuality, dealing with debt or homelessness, or infidelity in relationships. MTV producers of the show really catch viewers’ attention with the title â€Å"True Life†. Every episode is further personalized with unique subtitle for every episode. Although what is aired may cause controversy at times, the show is still keeping audiences’ and the critics’ attention for its honest portrayal of the lives of young adults today. â€Å"True Life† allows viewers like myself to connect with people all over the world through a personal issue that is being shared. Finding a common ground between viewers and the subjects of the show, despite their differences, is what makes the show so popular. Many people do not realize how similar they are to someone from a different background until they are exposed to the other person’s daily life and how they deal with some of the same struggles and obstacles to achieving their goals. I think the show sends a very important message that despite our perceptions of people different from ourselves, at our core, we all face adversity and have to choose the paths we take to get to where we want to be. â€Å"True Life† is targeted mostly to MTVs typical audience of teens and young adults, however, in an interview with Betsy Forhan, MTV’s Executive Producer of â€Å"True Life†, we see how the show relates to other groups as well. â€Å"We have a constantly evolving audience and as the older people phase out, we have a brand new audience that is just being introduced to our show†, says Forhan. Forhan also credits the varied staff of the show with its appeal to so many people, â€Å"In our office, it’s a range of ages from our executives in their early 40’s t o the young people who are just out of college† (Forhan, 2010). Having a broad range of people work on the show to discover what’s happening now that will interest viewers in from different backgrounds really helps keep the â€Å"pop† in the popularity of the show. â€Å"You gotta keep moving with the times, things change so fast†. Forhan is also proud of the many awards her docu-series has won, including a 2005 GLAAD Media Award for Outstanding Documentary and a 2008 Emmy Award for Best Special Class Series. â€Å"True Life† has ultimately succeeded in doing what the producers intended: portraying the situations in life that are sometimes the hardest to accept. Anyone who has gone through an addiction of any sort, rehab or counseling, a big move, an uncontrollable disease or disability, perhaps an unexpected pregnancy or death, or even being gay can relate to at least one or more episodes. The show supports the notion, â€Å"that which does not ki ll you only makes you stronger† by letting the audience into the real dilemmas of people and watching them struggle, and hopefully succeed. Seeing others pull through, whether you know them or not, leaves you with a sense of being proud and keeping faith. At the end of the show, there is usually an update of how the subjects have faired after the show aired, which helps to further the emotional connection with the audience. There are negative sides to the show, however. One example would

The Trail of Your Blood in the Snow Essay Example | Topics and Well Written Essays - 500 words

The Trail of Your Blood in the Snow - Essay Example This research tells that one of Marquez seminal short story collections is Strange Pilgrims. While this collection contains an array of stories, one of the most indelible is ‘The Trail of Your Blood in the Snow’. This essay examines this story in terms of Marquez’s authorial techniques. One prominent consideration is Marquez’s implementation of syntax and diction. While authors such as Ernest Hemingway heralded a minimalist writing style, Marquez implements complex sentence structures. In the opening segment of the story, Marquez writes, â€Å"The Civil Guardsman, a rough wool blanket covering his patent-leather tricorn hat, examined their passports in the light of a carbide lantern as he struggled to keep his footing in the fierce wind blowing out of the Pyrenees†. This sentence is indicative of the richly-textured and descriptive sentences that are thematic throughout the story. While Marquez at-times contrasts these sentences with short and choppy statements, this remains the most dominant form of diction. Throughout the story, Marquez implements a number of notable literary elements. One such technique is the use of metaphor. In one instance, Marquez writes, â€Å"her adolescent dream pierced for the first time by lightning flashes of uncertainty†. In this instance lightning functions as a metaphor on the uncertainty that had suddenly overtaken Nena Daconte. In another instance, Marquez makes use of symbolism in the form of a saxophone. Throughout the story, Nena Daconte is characterized as having been a proficient tenor saxophone player. This character description is repeated in a number of instances and woven into the fabric of the text such that it becomes symbolic of her sexual prowess. Still, perhaps the most prominent authorial technique implemented in the story is the use of allegory. During the story, Nena pricks her finger and must enter a hospital. Billy Sanchez must then face the absurd levels of hyper-rat ionality and bureaucracy in the hospital. In this way, Marquez implements the hospital as an allegorical comment on bureaucratic structures. Eventually, Nena dies and because of this hyper-rationality, Billy is unable to be there or even be discovered.

Consumer behaviour Essay Example | Topics and Well Written Essays - 500 words

Consumer behaviour - Essay Example These characteristics cannot be controlled by the companies; therefore, a need to assess these elements in order to create an effective marketing plan. Marketing plans and strategies would be incomplete without paying much consideration to the customers. Customers will and should always be a part of the agenda in any marketing plan of any company. Because of the implications for profitability and growth, customer retention is potentially one of the most powerful weapons that companies can employ in their fight to gain a strategic advantage and survive in todays ever increasing competitive environment (Lindenmann, 1999). Consumers purchase products and services for the benefits derived from their use. While the study of economics focuses on outcomes, consumer behavior emphasizes the process. Rather than assuming perfect conditions, researchers of consumer behavior explicitly recognize the impact of situational elements on behavior and the variance among individuals faced with the same conditions† Which means that consumers buy products for the benefits they reap out of it, the study of consumer behavior investigates the steps, or the processes involved regarding the decisions made by the consumer (Jobber, 2007). Values are basically the basis of one’s attitude or restriction in attitude. Some examples of values include freedom, pleasure, inner harmony, and happiness. Heroes, on the other hand, refer to icons in the society that may have an impact on people of different levels. Examples of heroes are sports figure or pop culture figures. As stated that heroes may influence consumer behavior through their association with certain products and brands. The same goes with rituals, or symbolic activities commonly performed over and over, such as bathing, tooth brushing, attending to mass, to school, etc. Their involvement on the consumption of consumer products makes them important for consumer behavior. Finally, these symbols are equally important

Nursing Theory Term Paper Example | Topics and Well Written Essays - 750 words

Nursing Theory - Term Paper Example This essay discusses that King’s theory of goal attainment emphasizes upon the objectives which influence the relationship between a patient and a nurse. The underlying assumption on which this theory is based is that both the patient and the nurse interact with each other in the capacity of human beings. The two are open systems each of which intermingles with the environment as well. The theory of goal attainment is a systems model type of theory whose conceptual framework was retrieved from three fundamental systems of dynamic interaction, namely the social, interpersonal and personal interacting system. Because of its tendency to impact the behavior, perception is given extreme importance in the personal system. The reaction of groups or individuals gave rise to the interpersonal systems. King’s theory of goal attainment is quite relevant and applicable today. This theory highlights some key facts that are intuitively known by both the nurse and the patient. Interpe rsonal communication between the nurse and the patient is crucial for favorable results of the nursing practice. This theory analyzes the relationship between the nurse and the patient on three levels of social, interpersonal and personal interaction. The three jointly describe the interaction completely. Although the contemporary age is characterized by digital technology, which is frequently made use of by the nurse to interact with the patient, though the variables discussed in the King’s theory apply just as well as they do in verbal communication. The Division of Nursing is directed at providing the nursing care recipients with high quality of health care. Faculty achieves this through their research, teaching and community’s service. Nurses create their individualistic stance upon the health and life using a wide array of interpersonal relationships. The integration of intellectual, spiritual, physical and cultural elements facilitates this process. Both nurse an d the patient are influenced both externally and internally by a myriad of physical, social and biological components of the environment. Health is the name of an individual’s social, physical and spiritual well being. Nursing, on the other hand, is a field in which the professional counsels the patient in such a way that his/her health is restored. The most fundamental element of nursing is the care of patients. In order to facilitate optimal well being of the patient, the nurse works in an independent setting, though the environmental factors do govern the attitudes of both the nurse and the patient. King’s theory of goal attainment compares well with the philosophy of the Division of Nursing in that both acknowledge the significance of environmental factors upon the interaction between the nurse and the patient. Nevertheless, King’s theory places more emphasis upon the personal system while depicting the behavior of either of the two parties involved in the p rocess whereas the Division of Nursing makes a generic approach towards it by giving equal importance to each of the several components constituting the environment. My personal theory of nursing is that nurses maintain a caring relationship with the patients, irrespective of the theories of nursing. Nurses know their work. Nevertheless, their practice is consistent with the theories of nursing in general, and King’s theory of goal attainment in particular. I believe that factors affecting a nurse’s behavior and perceptions about the patient vary from one nurse to another. This is, to much an extent, an outcome of the way an individual thinks and the ideology of an individual. Since people vary in their opinions and ideologies, it is not quite reasonable to standardize the personal interacting system as the fundamental determinant of a nurse’s perceptions. King’s theory of goal attainment is relevant across the span of nursing practices because it tends t o explain some of the most fundamental concepts involved in the practice. As I said, I believe that one formula does not work for every individual because an

Individual differences and second language acquisition Essay

Individual differences and second language acquisition - Essay Example ional or biological factors enhance the differences amid humans, and there are ways that individuals use to learn their variations, although their interaction and introspection with other individuals can be similar. In this regard, it is crucial to evaluate the individual differences that influence second language acquisition. Among the factors that will be evaluate include; age, learning styles, individual motivation, learning strategies, sex, personality and aptitude. One of the most influential individual differences that affect the acquisition of second language is age. Ehrman, Leaver and Oxford (2003) hold that children and young individuals have a better chance of acquiring a second language as compared to older individuals; the argument is that there is a certain age limit at which children have the ability to acquire a second language at a faster rate. Beyond that age, physiological transformations in the brain force it to lose its capacity to intake new functions of acquiring a new language. For persons that have been deprived off the ability for linguistic input require a trigger that enhances the acquisition of the first language and this occurs at a critical period. Zafar and Meenakshi (2012) cite a case in which a 13 year old girl that had been abused and kept away from any languages was rescued; unfortunately, regardless of the numerous efforts to teach her the first language so as she would communicate, Genie never learnt the languag e. This finding led to a long and controversial debate which sought to determine the appropriate time in which an individual can acquire a new language. In other words, scholars held that there is a critical period at which an individual can acquire a new language and it is controlled by the physiological transformations that take place in the brain. The explanation given is that as an individual becomes older, the level of self-conscious increases and it hinders the ability to learn a second language. The sensitive

Gestational diabetes and implementation Orem self-care model Research Paper

Gestational diabetes and implementation Orem self-care model - Research Paper Example Insulin resistance in pregnant women is an adaptive change that ensures delivery of glucose from the mother’s system to the fetus. According to Wada et al. (2010), placental hormones, such as placental growth hormone and progesterone, increases the activity of p85 in the 3T3-L1 found in adipose cells; and inactivates the second messenger system responsible for insulin response. Unhealthy eating habits, such as too much sugar in the diet, can cause glucose to accumulate in the mother’s blood; and prolong its clearance from the system eventually leading to gestational diabetes. The complications associated with GDM include: preeclampsia--blood pressure above 140/90 mmHg and protein in the urine; preterm labor; and increased risk of infection. GDM effects on the baby include: macrosomia (birth weight of 4000 to 4500 g); neonatal hypoglycemia; jaundice; calcium or magnesium imbalance; and stillbirth. Health Issue â€Å"Each year, nearly 135,000 American women develop type 2 diabetes while they are pregnant...even though their blood sugar levels were normal before pregnancy† (Metzger, 2006, p. 243). ... The complications associated with gestational diabetes can jeopardize the health of the mother and the fetus; and can lead to death. Macrosomic infants are predisposed to shoulder dislocation and suffocation while the probability that the mother will have to undergo emergency caesarean section is increased (Vidarsdottir, Geirsson, Hardardottir, Valdimarsdottir, & Daqbjartsson, 2011). According to Ekabua et al. (2005), perinatal mortality rate is highest in infants weighing 4.0 to 4.4 kg (4000 to 4400 g), as well as in macrosomic babies delivered via caesarean section. Cause of death includes obstructed labor, which cut-off the oxygen supply to the fetus and ruptured uterus that cause the mother to hemorrhage as well as cut-off the oxygen supply to the fetus (Ekabua et al., 2005). According to Thadhani (2009), gestational diabetes and preeclampsia are linked to a high incidence and a high death rate during pregnancy and increases the woman’s predisposition to develop diabetes a nd cardiovascular diseases after pregnancy. Planned Intervention Prenatal care ensures that the pregnant woman and the fetus are healthy for the entire duration of the pregnancy. Prenatal care allows the obstetrician to detect early signs of pregnancy-induced complications, especially gestational diabetes and prevent it from causing untoward effects to the mother, as well as the fetus. Due to the increasing incidence of gestational diabetes, Leu and Zonszein (2010) suggests that early screening of all pregnant women, unless categorized under the low risk group, should be employed by health care providers. Glucose tolerance test should be administered between the 24th and 28th weeks of pregnancy, or earlier if gestational diabetes has occurred in past