Strategic Corporate Finance ASSIGNMENT 2 Essay Example | Topics and Well Written Essays - 2500 words

Strategic Corporate Finance ASSIGNMENT 2 - Essay Example The company had ?1.69 worth net assets per share which has been improved to?1.72 in 2011. b) Cost of Capital The following are the computations in respect of calculating the weighted average cost of capital for Marks & Spencer. The cost of equity of M&S is found to be 4.5% whereas cost of debt is found to be 4%. The overall weighted average cost of capital after accounting for the value of equity and value of debt, is found to be 4.33%. Cost of Equity (CAPM)       Re = Rf + Beta (Risk Premium)          = 0.03 + 0.75 (0.02)       Re = 4.50% Cost of Debt       Rd = Annual Coupon    Current Bond Price          = 5    125       Rd = 4.00% Value of Equity Ve = Current Share Price x No. of Shares outstanding = 3.76 x 1600 = 6016 Value of Debt Vd = Current Bond Price x No. of Bonds Issued = 125 x 2489 = 3111                         100       Weights       Wd = Debt = 3111 = 34.09%    Debt + Equity 3111 + 6016          We = Equi ty = 6016 = 65.91%       Debt + Equity    3111 + 6016       WACC       WACC = [Wd x Rd] + [We x Re]          = [ 34.09% x 4%] + [65.91% x 4.5%]          = 4.33% c) Dividend Growth Model The following is the calculation of theoretical ex-right price by using Gordon’s dividend growth model. ... 7(1+0.02) = 693.6       K – g    0.045 - 0.02       From the above calculations, it can be noted that if the growth rate of dividend is zero, the theoretical ex-right price of the M&S share is around 377 pence. On the other hand, if the dividends are expected to grow at 2%, in that case there will be a massive growth in the share price of M&S such that it is likely to reach at 693 pence which is extremely high. Under the given circumstances, when the current share price id 363 pence, the theoretical ex-right price of 377 pence, seems to be more appropriate than the share price of 693 pence which seems quite optimistic. d) Value per sharing using the price earnings (p/e) ratio The following are the price earnings ratio of Marks & Spencer for the years 2011 and 2012. Price Earnings Ratio    31-Mar-12 11-Jan-13 P/E Ratio = 376 = 11.56923 = 363 = 11.2       32.5             32.5       It can be observed that the Price Earnings ratio of M&S was at 11.56 in the year 2011. However, it reduced to 11.2 in the last year because the share price of the company decreased. If the P/E ratio of retail industry is compared with that of M&S, it can be observed that the P/E ratio of M&S is significantly higher than that of the industry. The retail industry is following a P/E multiple of 8.5 times whereas M&S is having more than 11 times. This shows that the share price of M&S is over-valued as compare to other industry participants. Task 2 Introduction There are various views regarding a particular stock as different market participants look at the stocks with different objectives and views. However, the only thing which is followed by all the investors is the fundamentals (Babu, 2012). Fundamental is the concept in finance which deals with the performance of the company in the given

Victimization and racial boundaries (English Literature) Essay

Victimization and racial boundaries (English Literature) - Essay Example h other races and darker skin tones, this concept of ivory white skin remained the hallmark of beauty even before the ugly side of race relations reared its head in America. However, with the long span of history between the whites and the blacks, this connotation grew ever stronger, creeping even into the culture of blacks as they struggled against the restrictions their own skin color brought upon them. Lightness of skin tone became more than just a badge of beauty, but also represented a certain power and freedom that had long been denied black people. For black women, lighter skin meant better husbands, more comfortable lives and perhaps even a greater opportunity to experience what it was like to be white. For black men, having the power to seduce a white woman meant he had a power all his own, a means of defeating his oppressors and bringing the white devils down a peg or two. This concept of whiteness as a standard of beauty, power and control is found throughout Chester Himes ’ novel â€Å"If He Hollers, Let Him Go† and Toni Morrison’s novel â€Å"The Bluest Eye† as they each relate how issues of skin color have served to victimize the entire community. The concept that white is right is laced throughout Himes’ novel as Robert (Bob) Jones struggles to maintain balance and still get the job done in a work environment that unofficially discriminates against the black workers in numerous ways. The story opens with an introduction to Bob as a black man living with a black family in a barely adequate home and terrified of the race issues that he sees erupting around him in World War II Los Angeles. As the story unfolds, it is revealed that Bob is one of many Southern blacks who have moved to L.A. in the hope of finding his fortune in the wartime boom of production needs coupled with the shortage of white men available to work the necessary jobs. On the job, he has had some success, being the only black man to have been appointed to the position of

Law - Devolution Scheme Essay Example | Topics and Well Written Essays - 1500 words

Law - Devolution Scheme - Essay Example Firstly, the departmental responsibility has been divided and unsettled (House of Commons 2009). This is a clear suggestion of the downfall of the scheme. Clarification of where the responsibility of the system of devolution lies in the following things. Firstly, the coherence of the system must be maintained as a whole. The constitutional issues should be dealt with only when the need arises. Additionally, the mutual relationship between the Whitehall departments and the devolved administrations should not be replaced. Furthermore, the government of the UK should not be recentralized in the breaching of the sole purpose of devolution. Failure t act to the suggestions implicated above means that the devolution scheme will be scraped off and a federal United Kingdom created in which the responsibility of each department will be enforced in a written constitution. Questions have also risen as to whether the devolved governments, which are a part of the United Kingdom, should have indiv idual Secretaries of the State in the Cabinet (Raco 2003). The relationships which exist between the administrations which are continuing to mature, the Secretary of State’s role has continued to decrease. This has raised questions and it has created need that the separation of the offices must be put forward. Any suggestion to change the role of the Secretary of State for Wales must put in to consideration that the process is still new. If individuals Secretaries of the State are created in the cabinet, this will force the devolution scheme to be scrapped of and a federal system of government will be introduced in which individual secretaries of the states exist. According to Morelli and Seaman (2007), the devolution process of the United Kingdom in terms of both income and social inclusion does not have any income equality. An instance of the inequality in income of devolution can be seen in the two most established instances of devolution. That is Scotland and Wales. Accor ding to a survey done by the British Household Panel, its data suggests that devolution appears to have had no discernable force on inequality on income (Wright 2005). This type of weakness might also lead to a federal government or a union government. This will enable each state to concentrate on its income equality. The United Kingdom will no longer have powers to grant statutory powers to the other countries. This is an implication that a union state will have to be introduced or a federal government introduced. The issue of the constitution of the UK being an ever changing character may also result to the failure of the devolution scheme. Instead of possessing a single document, many statutes of the Parliament exist. The parliament is usually made up of the queen, the House of Lords and the House of Commons. The House of Commons habitually has the legislations’ weight (Bradley & Ewing 2003). If any changes are to be done to the constitution concerning the devolution schem e, all the parties involved must be questioned. In order to eradicate the fact that House of Commons and the United Kingdom legislature having all the statutory powers, this means that a union state will be introduced

The various ways in which the Hindus image God or the divine Essay

The various ways in which the Hindus image God or the divine - Essay Example The images are viewed as spiritual not material images that can assist the worshippers in reaching their God. Hindus describe the nature of God in various ways such as Acintya, Sanskrit, Shasta and murti. Acintya means the nature of God that is inconceivable beyond the thoughts and understanding of human beings. Sanskrit is a form of describing the nature of God .This means that when travelling from one place to another, this image can protect a worshipper throughout their destination. The Hindus also worship specific images that are known as arcya-vigraha.This means an image that can be worshipped .Another term that is used to describe the nature of God in Hindu religion is that of murti referring to a divine form of God (Clooney, 2005: 250). The scared images that are found in the Hindu temples and homes are installed according to specific rituals that are described in the scripture. For instance, devotees can go to the temple to take fruits and flowers and later on stand before the scared images in order to offer their hopes and prayers to them. In this case, the worshippers do not bow down to the stones or worship the statutes but they approach the images as a means of reaching God their maker (Clooney, 2005: 250).... The images of gods and goddesses are normally displayed in the stores, hospitals, altars and shrines of the Hindus homes. Hindus acknowledge the deities, but they consider only one to be supreme. They may also consider all gods and goddesses to be equal but they worship only one who is their favorite. They view all the divinities to be the manifestations of a single godhead (Clooney, 2005: 250). The Upanishads is a Hindu sacred text that refers to the Supreme Being known as the Brahman and is considered to be ineffable and it's beyond all human comprehension. Texts referred to as the purana claim that there is a divine entity that assumes a form and name that makes itself accessible to human kind. The Hindus speak of the Supreme Being as being the nirguna one. Are Buddhists being extreme or pessimistic when they assess that humans are rarely compassionate in a truly pure or selfless sense Buddhists are a family of beliefs and practices that are considered to be a religion that is based on the teachings that are attributed to Buddha. Buddha was also known as Siddhartha Gautama which means bound by a Nepal. This person lived and was taught in the Northern Eastern region of the Indian subcontinent where he died around 400 B.C.E in India. Buddha was believed to be a teacher who shared his insights in order to help the sentient beings so as to end their sufferings through understanding the nature of the phenomena; he escaped from the cycle of suffering and rebirth. Buddha passed a message of peace, hope, compassion, tolerance, understanding, wisdom, truth, respect and regard for life to persons that followed the Buddhism religion (Gyatso, 2001:51). The Buddhists that did

Business Management with psychology Personal Statement

Business Management with psychology - Personal Statement Example t combining both subjects will prove to be challenging as stated by Smith, (2012), I am equally self-motivated and independent minded as well as vocationally and intellectually ambitious. I want to study both business management and psychology as having two fields of skills and expertise will be imperative should I decide to change careers in the future. These days employers are putting more priority in the need for individuals who have vast subject skills and knowledge and not necessarily searching for a certain discipline (Smith, 2012). I have always had a passion for business and therefore having ample knowledge in psychology will help me understand many things for instance, people’s business aspects, as the most part of business management will involve dealing with people. Psychology will therefore help me understand how people think and also behave. Psychologists are experts in cognitive processes like thinking, memory and reasoning, people’s actions and inner expe rience and so should be business managers who are concerned with satisfaction of the employees and productivity. Therefore with this, it is clear that having a degree in both business management and psychology will enable me to have both overlapping and complimentary sets of skills. Currently I am studying Applied Business, which has helped me gain a great understanding of the running of business organizations, their management, the internal workings of markets and business they serve. By studying Applied Business, I am more aware of how business affects everyone and also how the environment people live in affects business. Additionally, I have developed a wide range of skills with examples of decision-making, communication and problem solving skills and also how to quantify and evaluate information. I have come to learn that communication skills are extremely vital not just in business but also in the way we relate with people and so having acquired them I am now able to express myself to the

Gender and Migration Essay Example | Topics and Well Written Essays - 500 words - 1

Gender and Migration - Essay Example Recently, temporary migration is the primary method of international migration particularly for the Asian women. The author has explored a number of probable causes of the migration of women traditionally. Poverty has conventionally been considered as the fundamental cause of the feminization of migration, but the scanty number of female migrants from the low-income countries like Bangladesh compliments this perception. High unemployment rate is also falsified as a driving factor for the feminization of migration because Pakistani women’s representation is minimal in the global migrating women despite the fact that they are less than half as employed as Pakistani men in number. In fact, numerous push and pull factors are working simultaneously. Religion is also not always the determinant of the female migration pattern. Even the network approach does not offer sufficient explanation for the origination of migration. Household roles significantly depict and impact the migration pattern. This book aims at making an integrative approach to determine the causal factors for Asian women’s migration. To accomplish this, the author simultaneously uses the method of agreement and the method of difference to identify the driving factors for Asian women’s migration. The author analyzes the state’s role at the macro level and the women’s autonomy and power of decision making at the micro level. Using social legitimacy, the author will tend to draw a link between the globalization forces and individual autonomy and state policy. The author has identified a very unique topic to explore. Yes, there is an obvious difference between the numbers of female migrants among various Asian countries. I believe that the difference primarily originates in culture. Factors that control Asian women’s migration on the second and third level are religion and need respectively. Asian countries vary in their culture. Countries like

Verbal abuse in relationships Essay Example | Topics and Well Written Essays - 2500 words

Verbal abuse in relationships - Essay Example Foul or demeaning languages refer to using words such as idiot or stupid or swear words to cause someone to think less of him or herself. Hence language is utilized to put down the other person and acquire a psychological advantage over the abused and where the abusers hence see themselves as superior. In this case, one person demeans the other via the utilization of language. Intimidating or hostile volume, tone, or intensity of the way the message is delivered might be seen as screaming, yelling or shouting or alternately, talking quietly though intensely, with the intention of instilling fear in the other person. Typically this type of verbal abuse makes the abused to comply due to fear of self-harm, above all scaring the abused that the issues might escalate to consist of physical abuse (Gary1). Threats are meant to intimidate or scare the victim into submission. It can be of bodily harm to an individual or other family, the person’s pet or friends. Threats can also include making total lies about an individual or exposing secrets such to either cause to appear bad in another person’s eyes or humiliate them. Threats can also be towards material goods as in telling someone they will demolish something. Furthermore, threats can also be financial, hence wanting to hold an individual captive by intimating poverty (Gary2). Sarcasm is the use of humor to disguise threatening or belittling language. Hence the information is conveyed in such a way in order to provide two different messages. The external message is that the intent is levity or humor whilst the inner message is one that, threatens, demeans or belittles. Since the conveyer of the message makes use of humor to disguise the message, the conveyer will attempt to deny the deeper message when confronted, hence leaving the receiver of the message rather disarmed and not able to protect themselves against