Ismlamic banking theory verses practice. Case study of Iran Pakistan Essay

Ismlamic banking hypothesis stanzas practice. Contextual investigation of Iran Pakistan and UK - Essay Example A portion of the Quranic refrains (Yusuf Ali, 2000) with respect to these perspectives have been referenced underneath to expand the need and terrorizing towards the Islamic money related framework. â€Å"To those of feeble understanding make not over your property, which God hath made a methods for help for you.†¦?† (Yusuf Ali, 4:5, 2000). Private proprietorship is attested, yet in addition, saw as a trust, â€Å"Believe in God and His Apostle, and spend (in good cause) out of the substance whereof He has made you Heirs†¦Ã¢â‚¬  (Yusuf Ali, 57:7, 2000). Islam urges undertaking or endeavors to make riches, which is described as God’s abundance, â€Å"And when the Prayer is done, at that point may ye scatter through the land and look for the Bounty of God†¦Ã¢â‚¬  (Yusuf Ali, 62:10, 2000). Muslims are committed to satisfy agreements and stay faithful to their obligations, â€Å"O ye who accept! Satisfy all obligations....† (Yusuf Ali, 5:1, 2000). â€Å"†¦And satisfy (each) commitment, for (each) commitment will be enquired into (on the Day of Reckoning)†¦Ã¢â‚¬  (Yusuf Ali, 17:34, 2000). All trade ought to be made with the willing assent of the gatherings concerned, â€Å"O ye who accept! Eat up not your property among yourselves in vanities: yet let there be among you traffic and exchange by common great will.†¦Ã¢â‚¬  (Yusuf Ali, 4:29, 2000). The utilization of riches and the activity of the opportunity of big business are compelled by the commitment not to hurt others, however this must likewise be found in the viewpoint of the positive commitment to think about others and offer with them (Siddiqi, pp. 11-19, 2001). This is represented by the notable obligation to pay the zakat or poor assessment. Notwithstanding, that isn't all: the significant thing is the soul of agreeable, accommodating conduct as ordered by the Islamic perspective on life as a test, â€Å"He who made Death and Life, that He may attem pt which of you is best in deed† (Yusuf Ali, 67:2, 2000). These writings from the Quran (Yusuf Ali, pp. 1-576, 2000) are the significant wellsprings of direction for all the frameworks that Muslims

International Financial Reporting Essay Example | Topics and Well Written Essays - 3250 words

Worldwide Financial Reporting - Essay Example In addition, so as to clarify the idea, certain models have been examined for a theoretical association - Noka. IAS 16 arrangements with acknowledgment of property, plant and gear; and their devaluation charge count. It likewise gives direction on the most proficient method to decide the conveying estimation of these benefits and the treatment during removal of these fixed resources. So as to encourage the clients in perusing budget summaries, IAS 16 normalizes the acknowledgment, estimation, revaluation, deterioration and de-acknowledgment of property, plant and hardware; and gives direction on bookkeeping medications. The standard gives adaptability to associations regarding ensuing estimation of estimation of the fixed resource. In this way, it can either be expressed at unique cost (less impedance and deterioration), or can be revalued to express its reasonable worth (the present market esteem). The association must express the technique used to gauge the benefit in the exposure segment of the budget summaries. This would help clients in deciding if the first expense is utilized to esteem the advantage or if the market esteem is utilized to give a reasonable worth closer to the present market esteem. ... The association must express the strategy used to gauge the benefit in the revelation area of the fiscal reports. This would help clients in deciding if the first expense is utilized to esteem the benefit or if the market esteem is utilized to give a reasonable worth closer to the present market esteem. In any case, so as to guarantee the clients that revaluation was done appropriately, expansion revelations are required including date of revaluation, technique used to revalue, if autonomous valuer was included, and so on. The ramifications of conveying esteem is huge. This is on the grounds that by and large, associations would select to bring about extra costs of revaluing the benefit just on the off chance that they are sure that revaluation will help with expanding the conveying estimation of the advantage. This legitimately impacts the asset report. Devaluation The devaluation is the charge on utilization of the advantage; and is treated as a non-money cost. Toward the year's end, deterioration is charged to the pay explanation of the association. IAS 16 necessitates that associations utilize a devaluation technique steady to the helpful existence of the advantage (the period wherein monetary advantages can be acquired from the benefit). The strategy used to figure deterioration may fluctuate. What's more, associations are permitted to change the devaluation technique however it must be recorded under revelation segment alongside purposes behind the change. The suggestions might be huge. In the event that diminishing equalization strategy for devaluation is utilized, the organization will have the option to deteriorate the benefit quicker in the first place instead of straight line devaluation that requires same devaluation charge for the whole valuable existence of the advantage. De-acknowledgment or

Importance of Path Dependence in Management Essay

Significance of Path Dependence in Management - Essay Example The solid ramifications is that on-screen characters in a specific procedure become secured systems that are themselves a result of authentic possibilities. This point of view holds that wonders are unpredictable, and, subsequently, an aftereffect of commonly connecting factors which produce non-straight elements and input circles. The unpredictability of the talk on hierarchical change and development has just expanded. This is occasioned by two disparate perspectives. The primary view holds that new and progressively adaptable or liquid authoritative structures are on request while the subsequent view holds the faith in hierarchical inactivity and the authentic need of dynamic (Garud, Arun, and Peter, 2009:760). These two perspectives have gone up against directors who need to adjust between new thoughts and customs of an association or an industry. This is for the most part affected in ideas, for example, pioneering attitude where on-screen characters are progressively determined by the rationale of control which drives them to successfully actualise complex procedures. This has made way reliance basic to supervisors as they battle to comprehend the fundamental elements basic most authoritative procedures and past triumphs while connecting them with the real factors existing apart from everything else to imp rove food of a hierarchical exhibition and adequacy (Coombs and Hull, 1997:1-26). For a situation investigation of Toyota creation framework (TPS), the viewpoint of progress as a way reliance wonder advances the significance of this idea in the board (Driel and Dolfsma, 2009:67). In the first place, TPS made lock-in components well before the improvement of an appropriate instrument including relative rivalry. The contenders had the option to duplicate a portion of the TPS models with exactness and make extensive rivalry. In any case, through use of its noteworthy and dependable creation methods and showcasing techniques, they kept up dependability of a customer base that trusted in the items delivered by Toyota (Driel and Dolfsma, 2009:67).

College Essay Topics for Students

College Essay Topics for StudentsCollege essay topics for students are the most important aspects of writing assignments. Students will want to write effective papers and essays so that they can show their knowledge, education, and expertise to the examiners. These are the most fundamental essay topics that students should know.The topic is used in the first paragraph of the paper to introduce the topic and to define the context of the subject. It will also explain the research that was made and also how it was researched. Students must take note of the subtopic, or topic, of the study, which they are using in the research. For example, if a student wrote a research paper on the written languages of ancient Greece, he or she would make a research paper on Ancient Greek writing. The information he or she is researching must be relevant to the subject of the study.The context is also important. The topic of the paper should include information about the specific time period of time whe re the subject is happening. Students should also use the time period to present the background of the topic, to contextualize the information, and to identify the context of the research. Students also have to be able to differentiate what is in the study and what is learned from the information that is being presented. The level of understanding that the student has from the information presented is not the same as the level of understanding that a student would have to learn.The research is also important in the topic of the essay because it provides a background to the study that the student has undertaken. Students should use the research that they are researching as a tool to understand the study, the study's context, and the present time. This will allow the student to look at both the past and the present in the research.The research also can give the students an introduction to the subject and to the research methodology that they will use in the study. This knowledge is im portant to the students because they will need to know how they will do their research. It will also allow the students to know what they are going to be doing on the study or the essay. All the students need to know is that they will use research, and what they will be doing with it.The theme is the most basic information that students need to know before they begin any research. The theme is how the topic relates to other topics that the student has written on. The topic of the paper will typically be an introduction to the topic of the paper.Students will need to use the thesaurus to look for words that they are going to use in the topic. The thesaurus will enable the students to look for words that they already know and will use in the paper. Thesaurus can also enable the students to look for words that they are not familiar with and use these words in the paper. Writing assignment topics for college students will help the students write better papers and essays.

Louise Nevelson - Sky Cathedral - 2897 Words

Louise Nevelson— Sky Cathedral Presence Survey of World Art By Vyacheslav Borts The sculptress Louise Nevelson was a towering figure of American modernism. Born in 1899, she came to prominence in the late ‘50s, gaining renown for monochromatic structures built out of discarded wood. Critic Arthur C. Danto wrote, â€Å"There could be no better word for how Nevelson composed her work than bricolage—a French term that means making do with what is at hand.† (Danto 2007) Her pieces evolved and expanded in size across the latter 20th century, moving from smaller pieces to wall-sized ones, and the plays of volume therein, between light and mass, generated comparisons to numerous different movements. The following paper will examine these†¦show more content†¦The poignancy of this girl’s untimely death and the instant of life the Grave Stele captures are both magnified by the weight and constancy of the marble. By contrast, Nevelson achieves something like suppleness in Sky Cathedral by her use of multiple layers and multiple †Å"new† spaces that emerge from different vantage points. From the Attic Greek to the Augustan age brings one to the Imperial Procession, located on the North frieze of the Ara Pacis Augustae (Fig. 4). The first two sculptures put into conversation with Sky Cathedral were mortuary, but the Imperial Procession is celebratory. The first two are both smaller than four feet, but the Procession is life-sized, so its visual force is thus magnified. Finally, the individuals therein are not idealized types, in contrast to earlier Greek modes of statuary—they naturalistic depictions of many actual people in the line of the Caesars. The Ara Pacis took four years to build, due to its desired scale and quality, and that scale points to a salient evolution from the Greeks to the Romans. Riegl claimed this vector went from what he call[ed] the haptic objectivism of the Greeks—the delineation of the clarity of the object through an appeal to and a stimulation of the tactile associations of the viewer—to the optical objectivism of Roman art, in which the need to set the figure up in space as radically

Environmental Ngos And Global Environmental Issues

How environmental NGOs use the media to shape global environmental issues Even though there have been greatly public concerns about environmental issues since 1960s, practical action as the solution seems to be useless due to the limitation of state and pressure from the corporation. Moreover, the function of international organizations has also faced with difficulties in terms of enforcement and regulation; therefore, there has been wide gap between actors responding to the environmental issues. Environmental NGOs have adequately fulfilled this gap - owned multiple instruments to reach their goals, for example, conducting the environmental-concerned researches, lobbying in both domestic government and global governance and also TNCs, and more importantly raising public awareness and collective action from below (McCormick 2005: 92). Environmental NGOs, ‘agent of change’ works in all both levels; political sphere and civil society (Ford 2011:27). At political level, environmental NGOs act as a pressure group and lobbyist to government and TNCs . Another level is civil society in which environmental NGOs acts in domestic levels - within the nation boundaries, and also in global level, consequently there is part of possibility of global civil society in which people are not limited by nation boundary, but can share common value and perform collective action as a global citizen (McCormick 2005: 93). In doing so, environmental NGOs always politicize the issues by shaping globalShow MoreRelatedNon State Actors Essay1472 Words   |  6 PagesEnvironment now become a global issue. For that reason, non-state actors such as: NGOs and activists participate to solve this problem. However, their participations are almost affecting population’s idea or cooperating with firms and even lobbying policies (O’Neil, 2009). These actions can be considered as effort of non-state actors, but not directly protect environment. 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This new infrastructure makes it easier for â€Å"settlers, merchants, andRead MoreThe And Policy Talks, The Ecological Crisis958 Words   |  4 PagesEnvironmental Movement Proliferation In the academia and policy talks, the ecological crisis has turned into a well-established topic (Yearley, 1992). The rise of environmental politics in the 1960s was mainly driven by environmental movements and a resurgent global civil society. Jamison (1996), notedthat the movement focussed on creating awareness throughout the 1960s. For instance, the publication of Silent Spring by Rachel Carlson (1962), Paul Ehrlich’s The Population Bomb (1968) and GarrettRead MoreFactors that Affect the Awareness on Environmental Issues: A Case Study at Utem Malacca City Campus584 Words   |  3 Pages(Arfa Yunus, 2013). However, nowadays, environmental issues are not only become crucial topic in Malaysia, but also become a great concerns at the international level. 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Western consumers might be innocent, but they are benefiting indirectly from it since Chinese people will bear with the pollutions. It is also absurd that Beijing’s government focuses on moving factories to neighbor provinces like Hebei

Capital structure Corporate finance

Question: Describe about the Capital structure for Corporate finance? Answer: Different Sources of Finance In the given scenario a business will be established. The principle task is to forecast the required amount for investment. Therefore, it is important to identify the different sources funds for financing the business activities. A corporation will be established for manufacturing and retailing high quality doors and windows for commercial purpose. The business plan indicates that total 500,000 will be required for supporting the business activities. This amount is basically start up cost and it need to be sourced from external as well as internal sources of fund. In order to acquire the capital, the corporation can utilize the internal sources of finance such as personal savings and family contribution. On the other hand, the external sources of fund for starting this business will be bank loan, bond and lease financing (Berk and DeMarzo, 2007). In the following table, the different sources of finance have been mentioned along with the proportion. Sources Amount Percentage of Total Fund External Sources Bank Loan 300,000.00 60.00% Fixed debentures 50,000.00 10.00% Lease 75,000.00 15.00% Internal Sources Personal Savings 35,000.00 7.00% Family Contribution 40,000.00 8.00% Total 500,000.00 100% From the above table, it has been found that the external sources will be the major source of fund for starting the business. The internal sources of fund are only 15% of the total capital. Implication of Different Sources of Finance In this scenario, five different sources of finance have been chosen. This section will focus on discussing the legal and financial implication of each sources of finance External Sources: Bank Loan: Bank loan is thee principle source of finance for starting up the business. 60% of the total fund has been lent by the bank. This amount will be majorly spent for building infrastructure and acquiring fixed assets. In this case, the loan must be repaid to the bank at a certain interest rate. It will be counted as the long term liability of the company. The company will start repaying once it starts generating profit. It is expected that the company will repay the principal and interest within 5 years by making quarterly payments. Failing to pay the loan amount will be subject to the decision of the bank and legal steps can be taken by the bank in case of significant delay in repayments. Fixed Debentures: Debentures will be issued by the organization for raising debt capital which will contribute in acquiring 10% of the required fund. Debenture owner will be considered as the long term creditors of the corporation. The company has to pay a fixed rate of interest per annum regardless of the profit or loss of the company. The debenture holder must be paid the entire amount within the predetermined tenure. Any violation from the payment terms will lead the company to face legal consequences. Lease: Fixed asset of the company will bought by the leasing company o behalf of the company and it will be provided to the company. In this case, the ownership of the asset will remain with the leasing company. Throughout the leasing period, the company needs to pay rent. Finance lease has been chosen by the company (Artikis, 2007). Internal Sources: Personal Savings: Personal savings is employed funding the start up costs of the new business. This is personal savings which will not be directly paid back to the investor or the business owner. The business owner will get certain portion of the profit once the company starts gaining. Family Contribution: Family members of the owner have contributed for supporting the business activities. The business must pay back the amount within the promised tenure. However, no interest will be charged by the family members in this case (Berk and DeMarzo, 2007). Evaluation of Appropriate Sources of Finance This section will focus on discussing the advantages as well as disadvantages of each source of finance chosen for starting up the business. Bank Loan: Advantages Large amount has been arranged from this source. Long period has been allowed for repaying the loan. As the company is seeking a long term investment, bank loan is appropriate for this project. The bank does not interfere in how the money is spent within the organization. Tax benefit can be availed. Disadvantages: Collateral is required for getting loan. The amount needs to be repaid within the pre-determined tenure. The company needs to bear the cost of interest. High amount of loan will affect the gearing ratio of the company (Brealey, Myers and Marcus, 2004). Fixed Debentures: Advantages: The ownership of the company is not diluted by issue of debenture. The debenture interest is considered as expenditure and tax benefit can be availed. If the company has surplus fund, the debenture can be redeemed. Disadvantages: The amount needs to be paid to the debenture holder regardless of the financial position of the company. The interest amount needed to be paid within the agreed date. Lease: Advantages: The company needs not to pay the huge amount for purchasing the assets. The lease amount paid to the leasing company is pre-determined and it is fixed over the time. Inflation has no impact on the lease rent. Disadvantages: In case of lease, the ownership of asset remains with the lessor. The lease contract cannot be terminated according to the will of the lessee. Personal Savings: Advantages: Formal paperwork and procedure is not required. The money needs not be paid back to the owner. The company needs not to pay interest. Disadvantages: Large amount of fund is not available. The owner is losing opportunity cost. Family Contribution: Advantages: The amount can be received easily. The company needs not to bear the cost of interest. The lenders will be lenient in terms of paying back the amount (Harrison and Horngren, 2001). Disadvantages: The opportunity cost will be lost. The amount will be small. Identification and Analysis of Cost of Finance The cost of finance in case of the discussed scenario will be explained in this section. In case of bank loan, the cost of finance will be the rate of interest. The company has chosen to opt fixed debenture. Hence, the cost of debenture will be fixed rate of interest that needs to be paid to the debenture holders. In case of lease rent, the cost of finance can be calculated with the aid of lease rent, lease tenure and the asset value. Thus, the cost of external sources can be calculated. The cost of internal sources will be difficult to calculate. The cost investing capital of the owners and the cost of amount contributed by the family members can be referred the opportunity cost. In this case, opportunity cost can be considered as same as the risk free rate of interest or the interest rate of the government bonds. In order to calculate the overall cost of capital of the company, Weighted Average Cost of Capital (WACC) can be estimated. It means the cost of capital for each source of capital will be multiplied with the weight or the proportion (Madura and Madura, 2008). Importance of Financial Planning Financial planning is considered to be very important for the success of an organization. Financial planning is associated with pre-designing financial activities of the company on the basis of the present market situation along with the organizational goals. Financial planning helps in forecasting the financial activities of the company depending on the current economic factors and organizational goals. Therefore, budget is developed which ensures effective allocation of resources. All the activities are carried out by keeping parity with the budget. The financial planning of an organization helps in indicating the desired level of sales, profit and growth of the company. The other departments such as production, marketing etc act accordingly for meeting the financial objectives. Additionally, financial planning ensures that appropriate sources of fund have been chosen by the company. Investment planning is another important activity that helps in ensuring success of the organizatio n. Required Information for Decision Making For making rational decision, the management requires some significant and authentic information. First of all, the factors of macro environment must be accessed. For example the economic condition, demand, level of rivalry in the market must be analyzed by the organization for making right decision. Additionally, the information relating to the particular project such as forecasted cash flow, discount rate or cost of capital must be known by the management for making an informed decision which will be favorable for the organization (Smart, Megginson and Gitman, 2004). Impact of Different Source of Finance on Financial Statement Different sources of finance have distinct implication on the financial statement. In case of bank loan, debenture, the company will be including the interest amount as items of expenditure. Therefore, tax benefit will be obtained in these cases. However, the two internal sources of finance will not have any influence on the financial statement of the company. Preparation of Cash Budget for Hollywood Conservatories Ltd: Particulars June July August September Opening Balance 130,000.00 29,000.00 100,000.00 103,000.00 Sales 150,000.00 156,000.00 135,000.00 Cash Purchase 55,000.00 46,000.00 86,000.00 74,000.00 Credit Purchase - - 28,000.00 36,000.00 Rent 15,000.00 - - 15,000.00 Other Expenses 22,000.00 24,000.00 30,000.00 38,000.00 Repayment of loan 9,000.00 9,000.00 9,000.00 - Total Expense 101,000.00 79,000.00 153,000.00 163,000.00 Cash in hand 29,000.00 100,000.00 103,000.00 75,000.00 From the above, table the cash position of Hollywood Conservation Ltd can be estimated for four months. It has been found that the company will be able to maintain significant amount of surplus cash over the four months. Cash is necessary for undertaking the day to day activities of the organization. However, it must be considered that holding huge amount of cash does not have a positive implication of the company. In case of Hollywood Conservation Ltd, the cash balance is very high. It implies that the cash has not been properly utilized and the surplus cash is too high. Hence, the company must focus on utilizing the additional cash in some other activities for generating income (Smart, Megginson and Gitman, 2004). Price Calculation Price setting is considered to be one of the most important activities of an organization. The cost of product is given. First of all, the total profit will be calculated when 800 units are sold. From the following table, it has been found that total profit will be 27,600. Particulars Amount Variable cost per unit 65.00 Fixed cost per unit 50.00 Total cost per unit 115.00 Selling price per unit (Profit@ 30%) 149.50 Profit per unit 34.50 Profit for 800 units 27,600.00 It has been stated that the fixed cost can be completely recovered when the company manufactures 800 units. Further production will lead to additional fixed cost. Hence in case of production of units beyond 800 units, the selling price is calculated. It has been found that the selling price per unit is 214.50. Additionally, the profit for producing further 400 units has been calculated. It has been found profit in case of additional 400 units will be 19,800. Moreover, the total profit when 800 units and additional 400 units are sold has been estimated to be 47,400. Particulars Amount Variable cost per unit 65.00 Total fixed cost 40,000.00 fixed cost per unit 100.00 Total Cost per unit 165.00 Selling price per unit 214.50 Profit per unit 49.50 Profit for additional 400 units 19,800.00 Total profit 47,400.00 Identification of the Best Investment Proposal In the given scenario, the company has been considering three investment proposals. This section will focus on evaluation of the each project in order to make a rational investment decision. In this case, net present value and payback period are the two tools that has been used for assessing each project. Evaluation of Project A: Cash Flow Year Amount PVF PV Cumulative cash flow Outflow 0 - 60,000.00 1 - 60,000.00 - 60,000.00 Inflow 1 20,000.00 0.909091 18,181.82 - 40,000.00 Inflow 2 18,500.00 0.826446 15,289.26 - 21,500.00 Inflow 3 26,000.00 0.751315 19,534.18 4,500.00 Inflow 4 32,500.00 0.683013 22,197.94 37,000.00 Net Present Value 15,203.20 Payback Period (Years) 2.83 Evaluation of Project B: Cash Flow Year Amount PVF Cumulative cash flow Outflow 0 - 65,000.00 1 - 65,000.00 - 65,000.00 Inflow 1 24,750.00 0.909091 22,500.00 - 40,250.00 Inflow 2 24,750.00 0.826446 20,454.55 - 15,500.00 Inflow 3 24,750.00 0.751315 18,595.04 9,250.00 Inflow 4 24,750.00 0.683013 16,904.58 34,000.00 Net Present Value 13,454.17 Payback Period (Years) 2.63 Evaluation of Project C: Cash Flow Year Amount PVF Cumulative cash Flow Outflow 0 - 45,000.00 1 - 45,000.00 - 45,000.00 Inflow 1 20,000.00 0.909091 18,181.82 - 25,000.00 Inflow 2 15,000.00 0.826446 12,396.69 - 10,000.00 Inflow 3 12,500.00 0.751315 9,391.44 2,500.00 Inflow 4 25,000.00 0.683013 17,075.34 27,500.00 Net Present Value 12,045.28 Payback Period (Years) 2.80 From the above three tables, the net present value and payback period of each project have been calculated. Net present value refers to the total cash flow in terms of present value. The discounting rate has been considered as 10% in these projects. Higher amount of positive NPV value indicate greater financial feasibility of the project. In this case, it has been found that project A has the highest Net Present Value of 15,203.20. Hence, among these three projects, project A is considered to be most attractive (Ross, Westerfield and Jordan, 2004). Payback period is calculated for estimating the time period within which the initial investment can be recovered. It must be noted that the payback period do not consider the present value of cash flow. In case of these three projects project B has the minimum payback period, i.e. 2.63. Lower payback period indicates greater attractiveness of the project. However, the result of Net Present Value and payback Period indicate contradictory results. Project be A has the highest net present value which indicates best option for investment. On the other hand, the payback period of project A has been calculated to be highest among these three projects. Hence, project is A is the least attractive project in terms of payback period. However, in making final decision, NPV must be taken into consideration as it uses present value which is more rational. Hence, it can be concluded that project A must be chosen among these three projects (Madura and Madura, 2008). Explanation of Financial Statements Financial statements are analyzed for evaluating the financial performance of the organization. The major income statements include income statement, cash flow statement, balance sheet and statement of changes in equity. Income Statement: Income statement demonstrates how an organization has been managing the activities for generating profit. The major components of the income statement are sales, expenditure and net income of the firm. Balance Sheet Balance sheet is a comprehensive statement of the assets and liabilities of the firm. It reflects the position of the company in terms of its assets and obligations. Balance sheet is presented to the bank as a reliable basis (Harrison and Horngren, 2001). Cash Flow Statement Cash flow statement clearly indicates the cash generated as well as utilized by the company from operational activities, investment activities and financing activities. It helps in demonstrating the cash position of the company. Statement of Change in Equity Statement of changes in equity helps in estimating the equity of the owner in revaluating the assets along with the funds of the company such as reserve fund, welfare fund etc. Comparison Appropriate Format of Financial Statement The format of financial statements is different in case of different types of business such as sole proprietorship, corporation and partnership. In the following table, the formats of two major financial statement income statement and balance sheet have been compared. Type of Business Income Statement Balance Sheet Sole Proprietor The income statement is not complicated. The owner pays the income tax and it has not been shown in the income statement of the firm. The profit and loss of the firm has been reported without dividend. Balance sheet is considered to be the statement of the equity of the owner. In balance sheet equity refers to the equity of the owner. In the balance sheet drawings are not considered as the expenditure and these elements are not included in the income statement too. Partnership In this case, the income statement is complicated as there are several owners. Personal income tax is paid by the owners. Hence, it is not demonstrated in the income statement. The dividends are shared among the partners. Balance sheet is considered to be the equity of the owners. In the balance sheet, equity in the assets segment demotes the equity of the owners. In the balance sheet, interest on capital account, shares, profit, drawings etc are recorded. Corporation Income statement of corporation or public limited company is the most complicated one. Corporation is considered to be a legal entity and it has to pay tax on the business activities exhibited in the income statement. Profit or gain must be published by the corporation (Davies, Boczko and Chen, 2008). Balance sheet is considered to the statement of retained earnings. Equity refers to the equity of the shareholders. The change in the equity of the business must be recorded in the balance sheet. Ratio Analysis Distribution ('000) Retail ('000) Gross Profit 10,400.00 12,430.00 Revenue 40,870.00 26,540.00 Gross Profit Margin 25.45% 46.83% Net Profit 5,850.00 2,950.00 Revenue 40,870.00 26,540.00 Net Profit Margin 14.31% 11.12% Current Asset 2,510.00 5,070.00 Current Liabilities 1,950.00 2,950.00 Current Ratio 1.287179487 1.718644068 Current Asset 2,510.00 5,070.00 Inventories 2,420.00 2,370.00 Current Liabilities 1,950.00 2,950.00 Quick Ratio 0.05 0.92 Long term loans (Debt) 2,000.00 3,170.00 Capital (Equity) 3,000.00 5,500.00 Gearing Ratio 0.666666667 0.576363636 Gross profit margin is estimated to be higher in case of retail. On the other hand, net profit margin is estimated to be higher in case of distribution (Hansen and Mowen, 2005). Current ratio helps in depicting the capability of the company to meet the short term obligations by current assets. In both the cases, current ratio is higher than 1 and it has a positive implication. Quick ratio is estimated to be better in case of retail compared to distribution. Gearing ratio indicates the ratio between debt and equity. The debt to equity ratio is lower in case of retail which indicates that debt is lower and risk is lower (Coombs, Hobbs and Jenkins, 2005). References: Artikis, G. (2007).Capital structure. [Bradford, England]: Emerald. Berk, J. and DeMarzo, P. (2007).Corporate finance. Boston: Pearson Addison Wesley. Brealey, R., Myers, S. and Marcus, A. (2004).Fundamentals of corporate finance. Boston, Mass.: McGraw-Hill Irwin. Coombs, H., Hobbs, D. and Jenkins, D. (2005).Management accounting. London: SAGE Publications. Davies, T., Boczko, T. and Chen, J. (2008).Strategic corporate finance. London: McGraw-Hill Higher Education. Hansen, D. and Mowen, M. (2005).Management accounting. Mason, OH: Thomson/South-Western. Harrison, W. and Horngren, C. (2001).Financial accounting. Upper Saddle River, NJ: Prentice Hall. Madura, J. and Madura, J. (2008).International corporate finance. Australia: Thomson. Ross, S., Westerfield, R. and Jordan, B. (2004).Essentials of corporate finance. Boston, Mass.: McGraw-Hill/Irwin. Smart, S., Megginson, W. and Gitman, L. (2004).Corporate finance. Mason, Ohio: Thomson/South-Western.

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Management practices employed by multinationals in controlling and managing the financial risks The WritePass Journal

Management practices employed by multinationals in controlling and managing the financial risks ABSTRACT Management practices employed by multinationals in controlling and managing the financial risks ABSTRACTINTRODUCTION:IMPACT OF GLOBALIZATIONBMW: CORPORATE OVERVIEW LUFTHANSA: CORPORATE OVERVIEW FINANCIAL AND EXCHANGE RISKS EVALUATIONRISKS PECULIARITY: BMWRISKS PECULIARITY: LUFTHANSAFINANCIAL/MARKETING STRATEGIES TO MANAGE RISKSCONCLUSIONBIBLIOGRAPHYRelated ABSTRACT This study seeks to highlight the management practices employed by multinationals in controlling and managing the financial risks they are exposed to. It also assessed the management practices used by multinationals in the face of financial crisis using Lufthansa and BMW as case study. INTRODUCTION: Early learning of scholars has presented arguments that exchange risks have little impact on foreign activities especially by Multinationals. This view has been shared by Jorion (1991) who went on to question the activeness of financial managers who perform hedging as the risk associated with foreign exchange/currency exposure is minimal. This was also in line with the argument by Bodnar and Gentry (1993) who suggested that not many industries are faced by exchange risks depending on their significance. However, contrary to these views, recent studies have identified exchange rate to be of huge significance amongst the risks that multinationals face and thus questioned the measurement techniques used by earlier studies. This view is supported by Doukas et al (2001) who projected that organizations who engage in foreign activities will be more affected by exchange rate movement. Eitemal et al (2006) further explain that corporate organizations, mostly multinationals face a higher exchange risk exposure than their non-multinationals counterparts because of their higher degree of international business operations. In line of these contrasting views, the author however argues that firms wanting to exercise their international or global presence will be faced with distinctive financial management challenges. And as long as there is movement of capital and finance owed to the rapid movement of globalization, corporate organizations will continually be faced by global factors like reactions to movements in currency markets (such as a undervaluing of a currency) . Dominguez et al (2001) go further to argue that even emerging markets are likely to be faced with a significant level of financial risk exposure as they may be relatively less efficient and for the reason that both developing and developed countries are open to such risks. Therefore, firms must be flexible in their approach by demonstrating an ability to diversify their consumers, contractors and financial sources. IMPACT OF GLOBALIZATION BMW: CORPORATE OVERVIEW BMW, an independent German automobile and engine manufacturing company is a global leader in premium car sales and is known for its performance and luxury vehicles. It has under its ownership the Mini brand, BMW motorcycles and the Rolls-Royce motor cars. A commanding international company with presence in over 120 countries, the BMW Group has business activities broken down into manufacturing, assembly and sales of automobiles and a financial services arm whose primary aim is to provide financial credit to dealers and customers. Its strategic investors make up 46% of its shareholdings, while institutionalized investors breakdown include North America 15.8%, United Kingdom and Ireland: 11.8%, Other Europe: 5.7%, Germany: 4.8%, Rest of the world: 2.5%. Other investors make up the rest with 12.7%. Its financial arm provides financial and investment advice to customers and dealers alike which extends into offering financial credit which is used in the lease or purchase of its automobiles or spare parts. It therefore offers flexible and attractive payment options which also ensure that its finances circulate within the group. BMW has been to known to practice operational flexibility in a bid to handle foreign exchange shocks and has began exploration of emerging countries like China for investments and long-term commitment for service. Establishment and entrenchment of BMW in emerging markets has emerged and identified by its operations in China for instance. China is currently its fourth largest market with huge potential even though representing only 5% has been boosted by the Chinese government offering incentives and subsidies to urge purchases. LUFTHANSA: CORPORATE OVERVIEW Deutsche Lufthansa AG (Aviation Group) is an international aviation company with strategic business segments providing mobility and services for airlines. A German based company serving more than 500 destinations across the world with code sharing agreements. Its business operation is segmented into passenger airline services, MRO (maintenance, repair and overhaul), provision of IT services, logistics and catering for its own airlines and extensively to external customers. However, providing passenger airline services is the hub of its business activity. It is a premium brand with global service offering via a fleet of over 500 aircrafts (which makes the company very liquid) with its major target market being Europe, America and Asia. Lufthansa is one of the leaders in the provision of maintenance and overhaul services for external airlines, servicing government, organizations and leasing companies. It also extends this service to its own airlines. Its catering segment also provide airline cuisine as it is located at international airports of over 40 countries catering to regular customers and international airlines. Its Europe segment contributes the highest of the company’s total revenues, with sizeable contribution in North America, Asia/Pacific and the Middle East.   However, it continues to strive given the significant exposure in competitive markets like Europe visible through the improvement of the flights and other business operations in Asia, North America and the Middle East. Even at this, a successful diversification of its flights to other market regions to reduce the economic, political and geographical risks has not been fully achieved. FINANCIAL AND EXCHANGE RISKS EVALUATION Extending operations into a global landscape is becoming increasingly challenging even as companies wish to exert global presence, they are increasingly faced by the risks that expose the unpredictability of cash flow. They are constantly faced with emerging dimensions of risks varying from long run against short run investment risks, certain against uncertain transaction risks, and risks relating to value of cash flows. Multinational corporations like BMW and Lufthansa are therefore faced with risks such as transaction risks which identifies the impact on exchange rate changes on the value of cash flows that lie in the future that has been committed but whose nominal value is known. It refers to committed transactions for which the company is expecting receivables or payables from export or import contracts. Profits or losses may arise if exchange rates fluctuate between the date of purchase and the date of payment. They may also be faced with economic risks which refer to varying cash flows based on the impact of changes in macroeconomic activities such as inflation, economic growth and or interest rates. Inflation generally increases the cost price of goods due to an increase in costs of input which may lead to a cut back in purchases. Economic growth on the other hand may increase the demand of a product as people may increase their purchase or consumption at these periods. Another major risk faced by MNCs such as the companies under study is translation risk which refers to the degree of influence of foreign exchange rates on the value of foreign assets and liabilities. The seeming liability for multinational companies facing translation risks is the volatility of the currency at hand and the currency with which it is being measured against. Even as the risks mentioned above account for the major risks that multinational organizations may face, they may also be faced with some other types of risks. Country risk refers to risks that are associated with particular countries which make them higher volatility for investments. A proper country risk analysis will ensure that a corporate organization will monitor countries with excessive risk and therefore avoid entrance into such country. Government laws or bans on certain items may also have an impact on the sale of certain products while interest rates, inflation and exchange rates all have an impact on the other therefore making the consideration of entry into a country more complex. It is also pertinent to recognise that there may be political influence in some countries arising so that local companies may thrive in the face of foreign competition. Therefore, considering the nature of globalization, even though it has encouraged borderless trading, multinational corporations have to recognise the risks associated with operating in a host country.            RISKS PECULIARITY: BMW The BMW group enjoys the exclusivity of three premium brands that are not overlapping and doing well independently. With a keen focus on research and development, it has developed innovative display in the manufacturing of groundbreaking engines. It has therefore enjoyed success due to its unique designs and a carving a niche for itself in the luxury brand sector. However, due to its setup and base mainly in Germany, cost competitiveness may continually be a worry given that more competitors are recognising the cost advantage of emerging markets and therefore shifting their production activities to these locations. It must therefore locate a balance between cost efficiency and the status it derives from the German engineering quality. BMW, having a huge base in Germany may pose a risk as there may be considerable currency fluctuation in other countries of operation which may result in uncertainty in cash flows. Selling to its American market may result in converting the Dollar revenue to Euros for instance, and a decline or a weakening of the Dollar makes the expected Euro income equivalence to be lower. It also faces cross-border purchases which consumers may engage in to avoid some costs mainly on currency value differences with people going to Canada for instance to purchase an automobile and driving it back into the US. These fluctuations are beyond the company’s control and may on only react to the changes which may have been caused by changes in the economic position of such country, speculation, demand and supply factors on currencies, consumer index, foreign investment and or Gross National Income (GNI). BMW also faces the risks of specification given the nature of the product it sells. Product specifications especially for countries outside Europe will be a huge concern as it may require new production lines to cater for this change. Also, risks associated with late delivery of goods or damages while shipping as was the reported case of a sunken ship containing BMW automobiles many of which were beyond repairs. Being a premium brand, BMW has to contend with high cost of producing its high quality parts and still staying within the reach of consumers who are now more exposed to cost effective automobiles given the rising of oil prices. RISKS PECULIARITY: LUFTHANSA Risks associating with the airline industry are becoming more complex even as the industry is becoming more competitive. The business model applicable in the industry attracts a lot of capital, labour and technology input. Additional business dynamics like increase in oil prices, frequent risk of terrorism, charges that are specific to countries, unfavourable weather conditions and disruption of air-traffic are all risks associated with security and safety, hazards issues and operational risks that have characterised the airline industry. A peculiar situation was the abnormal weather in December 2010 which had a huge impact on air traffic as over 4,000 flights were cancelled. The industry is also characterised by cyclic demand, domestic and international competition which is growing by the day, increasing gearing levels, regulatory hindrance like landing rights or ownership restrictions. The concern of interest rate is particularly of great significance to airlines as it affects their debt financing. Also, the debt-to-equity ratio of the airline industry is thus equally high as it is capital intensive which makes borrowing more difficult. Bartram (2002) highlighted this further by pointing out the impact of interest rate and the succession of business cycle considering the effects on demand by customers.   Carter et al (2002) also argued that due to expected costs of distress, there is a considerable level of underinvestment. When airlines are strained and therefore resort to sell off their fleet of aircraft, this may be a representation of financial distress as the aircrafts are sold off at heavily discounted amounts. The industry is equally faced with currency risks which may affect international or domestic demand in relation to the home country currency value. For instance, if the Canadian dollar depreciates, there will be an increase in demand for flights into and within Canada by non-residents while the residents may substitute local travels for international locations. The predictability of these currency changes being close to impossible equally makes the airline operators more exposed to these risks. A considerable contribution of airline operating cost is the cost of jet fuel which also poses a risk to Lufthansa. Although, the level of profit responsiveness may be dragging as airline tickets are sold in advance, future commitment to advertised lower fares in the short term. However, in the medium/long term its profitability decreases in relation to direct and indirect cost of fuel. Carter et al (2002) further illustrate that airlines are in a dilemma of underinvestment whenever a revenue generation opportunity presents itself during the periods of high cost of jet fuel. The further weight of the air traffic tax adopted in Germany and Austria for instance means that fuel costs cannot be passed on in full to consumers due to the sensitivity of pricing. FINANCIAL/MARKETING STRATEGIES TO MANAGE RISKS For BMW, recognition of the potentials of emerging markets both for demand and production units has helped diversify its risk. Its focus traditionally had been on European market, but with the steady growth of the Chinese automobile industry, there was a need to break its unilateral brand structure and embrace innovation. However, completion is becoming strife in the Chinese region as competitors have recognised the potentials it offers and focus is shifting gradually away from product competition to a comprehensive demand for brand and services. Adopting localised sustainable development in the Chinese market by adding traditional local elements will also attract demand within this newly acquired market. Also, BMW may choose to relocate its manufacturing and supply units to final markets whose currencies are less prone to currency exchange risks. This can be done through an investment in localised procurement and production units. Shifting its base to final markets and having its suppliers do likewise ensures that BMW is guaranteed input cost safety. Whilst doing this, it can also assure its suppliers of sustainable income which reduces their vulnerability in time of fluctuations.   Even as it tries to satisfy global appeal by developing unified product models, BMW cuts costs and alleviates risks by adopting flexible means of customizing its models to fit regional tastes in markets representing huge demands on short notice. For instance, it developed a longer version of one of its models solely for Chinese customers due to high demand. It can then focus supply of its marketing plans and products to markets with stronger currencies with less likelihood for fluctuations. As the largest market outside Europe, the US plays a vital position in BMW’s business plans as it established production lines for its 3 and 5 series models in the country due to increasing demand. Even at the point of establishing the plant, most of its cars were manufactured in Europe and transported to the US and sales of the cars may become more profitable as the dollar weakens. It then may build its competence to identify and take advantage of a strong currency market. It is also striving to ensure there is a plant in china by 2012, thus making sure most of its costs are denominated in local currencies. However, all these strategies are not as expedient as currency hedging. Hedging refers to an investment that is made in order to alleviate the risk of adverse price movement in an asset. Exchange rate risk can also be neutralised (hedged) through financial instruments, such as exchange rate derivatives or foreign currency debt (financial hedges), as well as through the operational setup of the exporting firm (operational hedges). Financial derivatives have today become standard tools for hedging risks related to exchange rates, interest rates or commodities prices. Accordingly, Bartram et al (2009) further argued that organizations do not only use financial derivatives, but operational hedging and foreign currency debt may be crucial to their management of financial risk.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Even as the hedging strategy may be applicable to Lufthansa AG as well, it can be argued in accordance to the views of Kim et al (1993) that diversification is considered to be a chief instrument which corporations can adopt in order to manage the financial risks facing them. This is in line with the view of the author as hedging is still a rather speculative attribute and can still lead to a loss or a profit. It can be further argued that a business ought not to fully hedge all of its firm value from all risks because when future hedges are applied and the prices go up in the first few years, there will be a large marginal impact on the cumulative futures covering the multiple years. And as a form of international strategy, Lufthansa formed the Star Alliance with other airlines which afforded it an almost faultless network of intercontinental connections which provided it with the needed expansion. Lufthansa also hedges fuel prices to dea l with fuel price risk for a time sphere of two years mostly by means of time combined options. The hedging transactions are based on fixed rules and map the average of crude oil prices over time. Sales of international tickets, fuel purchases, aircraft and spare part maintenance also present some form of currency risk to Lufthansa and it performs hedging on the main currencies it uses which are the US Dollar, the Yen, Euro and the Sterling. Being a very liquid company (Lufthansa owns about 75% of its fleet of aircrafts), considering its financial strength, Lufthansa is considered a worthy partner by investors and banks. Thus, future investment plans can be met through borrowing at an already determined action plan and the duration of such investment is limited to one year. The risks and opportunities facing the group, is defined mainly by macroeconomic factors and a resulting effects on passenger and cargo demand. In this regard, Lufthansa relies on its capability to regulate its resources and capacity in a flexible manner in order to adapt to changing market conditions and therefore cut costs.    CONCLUSION Organizations are faced with financial risks arising from a combination of sources either from an exposure to changes in market prices either through interest rate or exchange rate fluctuations and/or financial risks emerging from an interaction with suppliers or customers. Given that corporate risk management can lower the present value of bankruptcy and financial distress costs, firms with a high probability of default and/or high financial distress costs should be more likely to engage in corporate hedging. Companies with international supply chains and international markets will face not only exchange rate risk from the financial accounting perspective, but risks to their competitive positions and cost-revenue dynamics as a result of steep and large declines in the dollar’s value. Financial hedging strategies are suitable for mitigating small and short-term currency fluctuations. But to avoid the effects of huge, long-term shifts in a currency’s value, the likes of BMW and Lufthansa are however advised to adopt operational hedging strategies. These provide the flexibility to dynamically manage supply chains and markets, thereby allowing some degree of difference and efficient management of the cost-revenue equation as international macro-economic forces influence the global marketplace.    BIBLIOGRAPHY Alan Shapiro,2006. Multinational Financial Management, Wiley 8th edition Jorion, P., 1991. The Pricing of Exchange Rate Risk in the Stock Market, Journal of Financial and Quantitative Analysis, 26, 3, September 363-376. Bodnar G. and Gentry W., 1993. Exchange Rate Exposure and Industry Characteristics: Evidence from Canada, Japan and U.S., Journal of International Money and Finance, February, 29-45. Doukas J., P. Hall and L. Lang, 2001. Exchange Rate Exposure at the Firm and Industry Level, SSRN working paper series Eiteman, David K;Moffett, Michael H;Stonehill, Arthur, (2006) Multinational business finance11th ed Published  Boston, Mass. ; London : Pearson/Addison-Wesley Bartram, S.M. 2002, ‘The interest rate exposure of nonfinancial corporations’, European Finance Review, vol. 6, pp. 101–25. Carter, D.A., Rogers, D.A. Simkins, Betty J. 2002, ‘Does fuel hedging make economic sense? The case of the U.S. airline industry’, Working paper, Oklahoma State University. http://investor-relations.lufthansa.com/en/fakten-zum-unternehmen.html Bartram, S.M., G.W. Brown, and J.E. Hund 2007. â€Å"Estimating Systemic Risk in the International Financial System. â€Å"Financial Economics 86(3), December, 835-869. Kim, W. C., Hwang, P., Burgers, W. P. 1993. Multinationals diversification and the risk-return trade-off. Strategic Management Journal, 14: 275-286. Dominguez, K. and L. Tesar 2001. A Re-Examination of Exchange Rate Exposure, NBER Working Paper Series. (Forthcoming, American Economic Review: Papers and Proceedings, 2003)

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Violence and Victimization - Essay Example The frequency of occurrence of such instances is dependent on various factors. Such factors form the basis for the argument that proposes social causes to violent behavior. It may be argued that people whose parents demonstrated violent behavior are more likely to be violent as compared to those whose parents were more peaceful (Besemer, 2014). That may lead to a linkage of such behavior to biological traits. However, a closer study may reveal other factors that result in such connection between the parents and their offspring. Human beings are social beings, and therefore tend to learn and adapt to different environments. Socialization thus brings out different traits in them. One can, therefore, draw conclusions as to the correlation between violent behavior and social structures (Laland and Brown, 2011). For instance, for those cases where the violent acts of someone have led to a linkage to the violent acts of the parents, it may be possible to establish social causes to such a link. It may be that the person may have experienced violence in their childhood, which affects their actions causing them to be violent. Studies indicate that children from abusive families tend to be more abusive as they grow (Besemer, 2014). Also, those exposed to violence in their childhood end up with violent tendencies in their later years. That is because they develop a form of retaliation to adversity and based on their past, this turns out to be violence. Another important social factor to violent behavior is the relationship a mother has with her child. Where there exists a poor mother-child relationship, chances are that the child may develop violent tendencies in future (Besemer, 2014). That may be because the child may experience frequent punishment from the mother as a result of the anxious attachment between them. Apart from such maternal punitiveness and paternal inattentiveness, other social factors among peers also

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Statment for ucas - Personal Statement Example Of most importance is that I received awards with two prestigious prizes in Europe entitled ‘The Small Montmarte in Bitola in Macedonia and TheEvora’ which appeared in the local dailies at the time. It is about this time when I joined the Roedean School in the United Kingdom where I sat for my GSE and passed well. Then, I joined the Lancaster University where I accomplished my first year in Fine Arts. I became convinced that I had a passion for Architecture hence put extra efforts to become an architect. I became fascinated in applied art as opposed to previously drawing and/ or creating. Nevertheless, I was certain that there existed a strong connection between doing arts and architecture. Moreover, aesthetic perspective suggests that the hand is the most direct linkage between my mind and the paper. Another reason that inspired me further in Architecture was during my Course at the Lancaster University, there was investigation of modernism history that has a huge impact on the course. Scholars affiliated to this field have continually described architecture to suit the normal life. Forinstance, an English critic of Aestheticism, Walter Pater declared that â€Å"all art continually aspires to the condition of music†. Another English artist, William Morris argued that â€Å"architecture was the primary form to which other arts could be related, and it could be a meeting place for artists and craftsmen†. In a general sense, the Maslow’s hierarchy of needs, physiological needs is the physical requirements for human survival. As such, architecture is a shelter, a protection, a necessity but also exists as a form of art, and the discovery of cave by the Caveman and the building of the Orthodox by the Ancient Greek. Pertaining to achievements,I participated in a Guinness World Records art project known as â€Å"Brushstrokes over

Business Ethics Essay Example for Free

Business Ethics Essay As we have discussed the ethical issued related to production and distribution of wine, we will now focus on the ethical issues relating to the consumption of wine. The consumption of wine in U. S. has been on the rise since last fifteen years. The U. S. ranks 34th in wine consuming nations with wine consumption of 7. 69 liters per capita per annum. The consumption of wine in 1994 was 404 million gallons which increased to 658 million gallons in the year 2008. These figures show the growing popularity of wine in U. S. Consumption grew 2. 5% per annum. As capita income per person has increased, the wine consumption has also seen a increasing trend. According to U. S. Beverage Marketing Corporation, the organic wine consumption have rise in last few years. As people are getting environmental and health conscious, they are turning towards organic products. In 2003/04, organic wine consumption was about 6. 5% of total beverage market in U. S. , which increased to 9. 5% in the year 2007/08. This signifies the important aspect of change in the human nature that is turning to the products which is beneficial to both humans and environment. The type of wine customer consumes depends on the number of factors namely per capita income, household size, preference of quality over price etc. The nutrition facts of wine are minimal. There is no cholesterol or fat present in the wine. Generally, the alcohol content ranges in between 10-15%. Over consumption of wine can be dangerous to health as it can cause unconsciousness and high blood pressure. Nutrition Facts (Serving Size 6 oz) Amount per serving| Red Wine| White Wine| Calories| 123| 115| Protein| . 28 grams| . 14 grams| Cholesterol | 0| 0| Sodium | 8. 5 milligrams| 8. 5 milligrams| Carbohydrates| 2. 9 grams| 1. 35 grams| Vitamin B1(Thiamin)| . 01 %| . 01 %| Vitamin B2 (Riboflavin)| . 05 %| . 01 %| Vitamin B3 (Niacin)| . 13 %| . 12 %| Organic wine is the wine produced from organically grown grapes without adding any sulfites. Organic wine is the best quality wine obtained without relying on chemical fertilizers. The most important aspect of producing organic wine is the matching of unique characteristics of growing region with the most suitable variety of grapes. Different varieties of grapes need different soil and climate to grow. Usually, warm and dry climates are suitable for growing quality grapes and these climates protect the grapes against moulds and other diseases resulting from humid climate. The smaller sized grapes are suitable and desired for the production of organic wine because we get the distinctive taste for a particular wine from grape’s skin and the smaller grapes has high skin to juice ratio as compared to the large sized grapes. But the yield per field of small sized grapes is considerably low, which increase the cost of production per unit volume. The grapes in the organic vineyard are usually handpicked which allows only the ripest and healthiest grapes to be picked up. This process also minimizes the damage to the soil and the fruit. This accounts for the difference in taste of the wine. But this handpicking of grapes increase the labor costs. Low yield and handpicking of grapes, along with other factors, increase the overall production costs. Thus, organic wine is generally expensive than the regular wine. It is far better in quality and taste than the regular cheap wine. The consumption of organic wine has effect on the environment. As the grapes have been grown naturally, no pesticides or insecticide had been used and re-plantation of oak trees to replace the cut oak trees helps in preserving the nature and benefits the world around us by preserving the soil and help reducing the pollution to both air and soil. It helps maintain the balance of nature. The organic wine production is an ethical business process. Nobody feels cheated in this process, as the customer gets the quality products for the dollars he/she spends and know what he is getting as there is no deception on the labels, and the producer get the return for following the sincere ethical processes. Customers get the value for the money spent as they get high quality wine with distinctive taste. On the other hand, the producer earns enough to cover his costs of production and also makes a profit. The environment is also saved through this ethical business practices which is the biggest gain. On the other hand, the regular wine can be produced with the large sized grapes and the insecticides and pesticides are used on a large scale. As the yield of large grapes is more, the cost of production per unit volume is low. This results in lower prices. The regular wine is pretty cheap and available in abundance qualities. Thus, it is affordable to people with low income. It is cost friendly to both the wine producers and the customers. Wine producers can adopt mass production of the regular wine as the production costs are low and there are no special regulations to be followed, this result in increased profits. Customers are also attracted to the low- priced wine as they have to spend less and get their wine desire satisfied with this low priced regular wine as compared to costly organic wine. But there are consequences of drinking cheap wine. The production of regular wine has an adverse effect on the environment. As the consumption of regular wine is increasing, so does the adverse effects. The use of unlimited pesticides, insecticides and other chemicals not only pollute the soil but also the air we breathe. It even spoils the water bed beneath the soil. The deforestation of the oak trees is rapidly increasing. The effects are adverse than we could even think and they are long termed/ lived. The cheap wine could have health consequences too. The sulfites present in the wine can degrade person’s health. The cheap wine has much higher sulfur content than expensive organic wines. The consumption of this cheap wine could results in allergies, breathing problems, skin rashes, itches and nausea. Overindulgence of wine can raise the blood pressure which could be harmful. In the recent years, the genetically engineering wine production is on the rise. It is the method of wine production using the gene altered grapes. The genetically engineered vineyards are more resistant to the fungal diseases than the traditional vineyards. The main motive behind the genetical engineering is to make vineyards more resistant to diseases and increase the output of grapes. The researched concluded that these disease resistant plants would need very less pesticides, thus lowering the use of pesticide in production process. This is really beneficial for the environment. But it is feared that the genetically altered genes may result in uniformity of taste of different wines. But according to the reports; people have not accepted the genetically engineered wine. They have rejected the concept of genetically engineered wine as the fears of taste uniformity have raised concerns. According to the report by Greenpeace, California wine makers may have to face mass consumer rejection if they accepted the genetically engineered grapes for their wine production process. British retailers have also threatened California wine makers to quit importing their wine if they adopted the genetically engineered wine making process. Fact is that, Britain is the largest importer of California wine as it imports 30% of the state’s wine. Researchers have found out that the gene which is inserted into the wine grapes create a protein similar to that present in the bee venom. This could cause anaphylactic shock in some people and can also create other health issues. This deadly substance could not be put out the production process of the genetically engineered wine.

Floods of 1998 in Bangladesh and Shrewsbury :: Papers

Floods of 1998 in Bangladesh and Shrewsbury Causes, Effects and responses to flooding In Shrewsbury The Severn Valley floods, Shrewsbury, UK 1998: Causes ====== The human causes of the floods were summed up by the then Shadow Countryside Minister Tim Yeo MP, he said 'the flooding had increased because of the housing developments on Greenfield sites.' By this he means that by covering the land with tarmac in urban areas humans have increased the rate of surface runoff and decreased the saturation levels of the ground. When surface runoff is high rainwater reaches the river faster. It would appear that the speed in which the water reached the river was too fast for the river to handle. The river filled up reaching bank-full discharge and then overflowing its banks onto the flood plain. The flood plain of the River Severn is built on, therefore, when the river floods it floods onto residential areas. With the building of these urban areas the amount of vegetation in the area surrounding the river was reduced, this affects the river two ways. It reduces the amount of interception, which in turn increases the speed of runoff into the river. The lack of vegetation also leads to the saturation of the ground. During the months of October and November the rainfall in the Severn Valley was high, as the water soaked into the ground it became saturated. More vegetation in the area would have meant the vegetation using the water would have decreased the amount of water in ground storage. Physical factors of the flood in 1998 are many; however, the most important one was the amount of rainfall. In October 1998 many areas received record amounts of rainfall caused by a 'hurricane'. This 'hurricane' brought very heavy rain and strong winds. The fact the rain was heavy means that the river did not have time to dissipate the water quick enough and the runoff was too fast, making the river rise t such an extent that it flooded.

Valuation Project Report

Valuation project report Valuation of the Incentive Stock Options for Procter & Gamble Co. Name: Haining Jiang Company background: In this valuation project, I will analyze a company which is mature and I am interested in. The name of the company is Procter & Gamble Co. the Procter & Gamble Company, together with its subsidiaries, engages in the manufacture and sale of a range of branded consumer packaged goods. The company operates in five segments: Beauty, Grooming, Health Care, Fabric Care and Home Care, and Baby Care and Family Care.In the year of 1837, William Procter and James Gamble settled in the Queen City of the West, Cincinnati, and established themselves in business. As a result, a new company was born: Procter & Gamble. Procter & Gamble became into a listed company at a stock price and dividend which are $ 1. 7 and $ 0. 01 per month respectively in 19 Jan. 1970. For many years, P & G keep following their purpose and social responsibility at every and every corner in the world: â€Å"We will provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come.As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and work to prosper. † Until now, P & G has become the largest consumer packaged goods company in the world at $ 67. 17 of the share price and $ 0. 562 of dividend per month. Main contents: 1. Discounted dividend valuation The most basic model is the Gordon Growth Model, which prices the stock by the dividend and future growth of dividends. The formula would be like this: V0=D0 (1+g)(r-g)=D1r-gWhere D0 is today’s dividend, which would be $ 2. 21 in our case. r is the cost of capital, r will be calculated like: Assume : The market premium = 6%* The risk-free rate = 3%* Given number in the case: ? = 0. 27 So, r = 0. 03 + 0. 27 x 0. 06 = 4. 62% The best way to estimate g is: The term g can be viewed as the return on owner’s equity times the earnings retention rate b. b = (1 – dividend payout ratio) = 1 – 58% = 42% return on equity = 14. 05% So, Sustainable growth rate = gs = 42% x 14. 05% = 5. 901% r< g, so we may meet a big problem when using the V0 formula above.But, as far as we all know, it is not possible that the firm can grow faster than r forever. The high return will attract other investors into the market to compete and the firm’s rate will eventually fall. And, I determine the long-run growth rate of dividends, gL = 3%*. g < r. Even if this data is not real in the true P&G case, I think it’s will be fine to continue our model. V0=D0 (1+g)(r-g)= $ 2. 21x(1+0. 03)(0. 0462-0. 03)=$ 140. 51 1) Two-stage dividend growth When the P & G is growing faster than r, one can use a multistage model, where the growth stages are broken into two parts.The first is the supernormal growth phase call gs , which is the rate that is higher than r. So we can assume: at the first period ( r < g ): gS = 5. 901% (as we calculated above) n = 3*; At the second period ( r > g ): r = 4. 62% (as we calculated above) gL = 3% (as we calculated above) D0 = $ 2. 21 (real data from P&G) ; As we all know the formula is: V0 = t=1n[ Dt1+rt+ Vn(1+r)n] Vn= D01+ gsn(1+ gL)(r- gL) So, V3= 2. 21Ãâ€"1+ 0. 0593(1+ 0. 03)(0. 0462- 0. 03) = $ 166. 88 V0 = 2. 21x(1+0. 059)1(1+0. 0462)1+ 2. 21x(1+0. 059)2(1+0. 0462)2+ 2. 21x(1+0. 059)3(1+0. 0462)3+ 166. 88(1+0. 0462)3 = $ 152. 27 2) Three-stage dividend growth We assume the P & G company experienced a life-cycle with a three stages that are: an early, development stage with high growth, a maturing phase with moderate growth, and a declining phase with little, no, or negative growth. The current dividend of $ 2. 21 per share will not change. Dividends are expected to grow at a rate of 10%* for 2 years. Following that, the dividends are expected t o grow at a rate of 8%* for 2 years. After the total 4 years, the dividends are expected to grow at a rate of 4%* per year, forever. The rate of return unchanged: 4. 2% (as calculated in 1. 1). We can break the calculation in to six steps: (1) Calculate the dividends for years 1 through 5: year| Dividend growth rate| Dividend| 1| 10%| 2. 431| 2| 10%| 2. 674| 3| 8%| 2. 888| 4| 8%| 3. 119| 5| 5%| 3. 275| (2) Calculate the present value of each of these dividends for years 1 through 5: Year| Dividend| Present value| 1| 2. 431| 2. 3236| 2| 2. 674| 2. 4430| 3| 2. 888| 2. 5220| 4| 3. 119| 2. 6035| 5| 3. 275| 2. 6130| (3) Calculate the present value of the dividends beyond year 4: P4= $ 3. 275(0. 0462-0. 04) = $ 528. 23 (4) Calculate the present value of the price at year 4:PVP4 = $ 528. 23(1+0. 0462)4 = $ 440. 92 (5) Calculate the sum of the present value of the dividends: PVdividends in year 1-4= t=110Dt(1+0. 0462)t = $ 12. 51 (6) Calculate the price today as the sum of the present value of dividends in years 1-4 and the price at the end of year 4: P0=$ 440. 92+$ 12. 51 = $ 453. 43 3) The uses of the dividend valuation models (1) The price-earnings ratio also known as the price-to-earnings ratio or PE ratio, is the ratio of the price per share to the earnings per share of a stock. Let us observe these data from P&G firstly: ?| 2012| 2011| 2010| stock price| $66. 6| $64. 50| $60. 44| current earings per share| $3. 82| $4. 12| $4. 32| P/E ratio| 17. 37173| 15. 65534| 13. 99074| dividend payout ratio| 58%| 50%| 42%| If we take the DVM and divide both sides by earnings per share, we arrive at an equation for the price earnings ratio in terms of dividend payout, required rate of return, and growth: P0E0= Dividend payout ratio x (1+g)r-g We can conclude the information below according to the above formula: Increase in dividend payout rate will cause increase in P/E ratio, this point is also obviously in the table above, the data comes from the real P&G case.Increase in r will cause decrease in P/E ratio Increase in growth rate will cause increase in P/E ratio. (2) we can also use the DVM to relate the price-book value ratio to factors such as the dividend payout ratio and the ROE. We assume the B0 indicate the current book value per share and ROE0 indicate the current return on book equity. As we all know: ROE0 = E0B0 , and P0=D0 (1+g)(r-g)=D1r-g ; So, we can get the formula easily below: P0=B0x ROE0 x D0E0x (1+g)(r-g) So we could get the conclusion through analyzing the above formula: increase in B0 will increase in P0; ncrease in ROE0 will increase in P0; increase in D0E0 will increase in P0; increase in g will increase in P0; increase in r will increase in P0; I believe there are plenty of other conclusions we can get from those formulas, I just mention some of them in my valuation report here. But in other words, we can fully use the DVM to find all the related fundamental factors to have further understanding through DVM. 4) What if there no d ividends? I think it’s acceptable and expectable if the P&G isn’t paying dividends now, but chooses to reinvest its money.It is a sign that the dividends in the future will be even larger. Of course, I won’t stick around with the company long enough to receive any of those dividends. But because of the growth of the company, I will realize that the eventual dividends will be even larger with the increasingly share price. After that, I can sell me shares to someone else to get my profit from it. Summary: â€Å"Valuation is the process of determining what something is worth at a point in time. When we value investments, we want to estimate the future cash flows from these investments and then discount these to the present.This process is based on the reasoning that no one will pay more today for an investment than what they could expect to get from that investment on a time and risk adjusted basis. †1 I think the paragraph I cited above not only give us the best conclusion of by valuation project report, but also tell us a definitely reason we study finance. Please Note: If the number followed a * behind it, it means this number is assumed and the others without * are all real data from P&G company finance report. 1: cited from the â€Å"Dividend Valuation Models†, by Pamela Peterson Drake, Ph. D. , CFA.

Argumentative Gun Control Essay - 1422 Words

Argumentative Gun Control Paper The issue of Gun Control has been on the minds of humans for hundreds of years. How do we protect ourselves and our loved ones? How do we keep such a dangerous weapon out of the hands of the wrong person? Inside the Second Amendment we are granted the right to Bear Arms. Having that amendment gives each person the ability to carry a weapon if they choose, so how can we control who should or shouldn’t carry? According to an article evaluated from Kovandizic and Marvell, each year in America we can see the most violent crimes have been committed using firearms. â€Å"In 2000 firearms were involved in 66% of homicides, 26% of robberies, 6% of aggravated assaults, and 8% of all violent crime victims faced†¦show more content†¦This group has very strong ties with many members of legislation; it also has many lobbyists and supporters in our government. Among the many members of congress, former presidents George Bush and Ronald Reagan were and are members of the NRA. One of the NRA’s most noticeable acts happened a few years ago, they tried to repeal the ban on assault weapons. The second group mentioned was the Gun Owners of America. The Gun Owners of America is another group that is against gun control. The GOA preserves and defends the rights of gun owners through legislation. They publish books, articles, and videos on gun issues and how those issues affect people. They also conduct seminars for the press and Congress about issues on the Second Amendment, and gun issues. The GOA opposes bans on semiautomatic weapons, armor piercing ammunition, and handguns. You know a little about two major groups for gun control, now let’s take a look at a couple groups that are pro-gun control. The major group for gun control is Handgun Control, Inc. (HCI), which is headed by Sarah Brady. Mrs. Brady is the wife of James Brady, who was shot during an attempt on President Reagans life in 1981. Another major group is the Coalition to Stop Gun Violence (CSGV), which was formerly known as the National Coalition to Ban Handguns. The CSGV believes that handgunsShow MoreRelatedArgumentative Essay Gun Control1410 Words   |  6 Pages English 101 Argumentative/Persuasive Essay 4/12/2013 Word Count 1,255 Readability 12.3 There are new proposed gun control laws in the aftermath of the massacre at Sandy Hook Elementary School in Newton, Connecticut that occurred on December 14th, 2012. 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The two sides consist of the liberal point of view and the conservative point of view. The liberals believe that the availability of firearms to the pe ople in the country is a major issue, and that the U.S. government isRead MoreArgumentative Essay On Gun Control749 Words   |  3 PagesAs deciding to what topic I would choose to write a research paper on, the choice was quite simple. The major topic of many discussions today are about guns, gun control and how deadly they can be. The question at hand in my book is simple, are guns bad or are people bad? I believe that legal citizens, who can pass a background check with no prior felonies, should be entitled to the right to purchase and obtain a firearm. With that being said, there are quite a few loopholes in the current