Post-Traumatic Stress Disorder: Implications For Brain Essay -- Chemis

Post-traumatic Stress Disorder Implications For Brain Throughout the course of this semester we expect examined numerous issues which cook all had different implications for the brain = behavior argument. Some who have been skeptical of the validity of this idea have been swayed by observations that processes and behaviors they originally thought to have a cloudy neurobiological basis in fact have a sound biological and physiological underpinning. One such phenomenon which can help elucidate the ongoing brain = behavior debate is Post-Traumatic Stress disorder, or PTSD. Most people are familiar in some hotshot with the phenomenon of PTSD. This phenomenon has been renamed, reworked, and redefined numerous times over the past century. The approach to understanding PTSD and the more(prenominal) general notion of traumatic experience has been an interdisciplinary undertaking, involving the fields of medically oriented psychiatry, psychology, sociology, history, and even literatu re (1). The reason for this interdisciplinary approach is that the greater experience of the phenomenon is seen as having much more than a simple biological basis. It is seen as having multiple external influences. This view is a result of the often overwhelming sense that whatever biological mechanisms are present must be unintelligibly complex. However, there are certain aspects of PTSD which, upon examination, allow one an easy foray into the neurobiology of the disorder. Cathy Caruth, a leading trauma theorist, discusses the definition of PTSD While the precise definition of post-traumatic stress disorder is contested, most descriptions generally agree that there is a response, sometimes delayed, to an overwhelming event or events, which takes the form of rep... ... , by Cathy Caruth, a leading trauma theorist.http//serendip.brynmawr.edu/bb/neuro/neuro02/web3/2) Sensorimotor Psychotherapy One Method for Processing Traumatic Memory, from Traumatology , by Pat Ogden and Kekuni Minton.http//www.fsu.edu/trauma/v6i3/v6i3a3.html3) Of One Blood , a novel by Pauline Hopkins.http//psychclassics.yorku.ca/Rivers/4)The Repression of War Experience , by W.H.R. Rivers.http//psychclassics.yorku.ca/Rivers/5) The Neurophysiology of Dissociation and inveterate Disease, from Applied Psychophysiology and Biofeedback , by Robert C. Scaer.http//psychclassics.yorku.ca/Rivers/6) Approaches to the Treatment of PTSD , by Bessel A. van der Kolk and Onno van der Hart.http//www.trauma-pages.com/vanderk.htm7) The Psychology of Fear and Stress , by J. Gray. http//serendip.brynmawr.edu/bb/neuro/neuro02/web3/

Alternative Methods to Prison Sentencing in Britain Essay -- Papers

More and more people in Britain are cosmos sentenced to jail time this is a fact. In 2004, there are currently over eighty thousand inmates.1 (Peter Reydt, 2004 / Scottish Executive, 2003) Crime is on the increase but our prison houses are already overcrowded. Consequently, modern prisons will be required to accommodate prisoners. Where will the money come from to pay for the construction of new prisons? Will they have a sufficient refilling programs in place? The prison remains is obviously failing because it is not acting as a deterrent. Clearly we should at one time be examining why the system is failing and possible alternatives to prison. What should these alternatives be? Would they work and would they be seen as a suitable punishment? First of all, Id like to look at why the prison service is failing. Ten years ago, Britains prison population was actually on the decline (Casciani, 2002)2. This was due to the government at the time implementi ng more community establish punishments over the use of prison sentencing. However, not all of the Home Secretaries of the time - Kenneth Baker and Kenneth Clarke - agreed with this policy and soon changed their minds and began to follow up on the rhetoric of being tough on crime3(Cascianni, 2002) by asking the courts to sentence more people to prison. Due to these sterner policies being put in place, the government figures in 1999 actually showed that there were now more than twenty four thousand people being sent to prison than there were ten years previous.(Cascianni, 2002)4 This was despite no change in the amount of adults being convicted of offenses. The governments 2001 Halliday ... ...m the best way forward. If one life - even that of a prisoner - can be saved, then this must surely be a very good idea? If these alternatives were in place they would help the overcrowding in jails and the building of more jails - which cost on average sixty billi on pounds each to build.(Rethinking Crime and Punishment, 2002)12. This would be less of a burden on the taxpayer and this money could go into developing these alternatives and having them implemented instead of prison. If the offender is shown to be in full rehabilitated and to want to give something back to society, this can only be beneficial not only to the offender to but to society as a whole. there are some duties we owe even to those who have wronged us. There is, after all, a limit to retribution and punishment. Cicero (106 BC - 43 BC)13

National Security: At What Price Essay -- Argumentative Persuasive Ess

National Security At What PriceNever has information contend a more important role in society than it does today. The advent of the internet has made the distribution and collection of information easier and faster than ever before. Today, the Internet is used for communications, shopping, management, and even financial transactions. Despite the slowing economy, recent years have seen a large increase in Internet usage by corporations, and research indicates that this trend will likely continue. Figures gathered by eMarketeer indicate that Internet based commerce will reach as high as $2.4 trillion by 2004 (B2B). With easy access to information from anywhere on the globe, safeguards must be taken to protect sensitive data from falling into the incorrectly hands. These measures include passwords, protected networks, and secure connections. While much has been accomplished in the area of network security, data encryption remains the most fundamental shape of protection.Th e goal of data encryption (or cryptography) is to render information unreadable to all except an authorized user (one who knows the password, also called the key). While there are many encryption algorithms and techniques, most involve the use of a private key which is the mathematical value that decodes the information. Without the key, a hacker has a chance of one in several trillion to correctly decode the information, making encryption a very effective method of data protection.While encryption fills a captious role in personal and corporate security, the technology can also be used by criminal and terrorist organizations. The same systems that protect your credit lineup number online can also be used to organize covert operations in safety.... ... fit out News. March 31, 2002 <http//www.wired.com/news/print/0,1294,46816,00.html.McCullagh, Declan. Senator Backs Off Backdoors. October 17, 2001. Wired News. March 31, 2002 <http//www.wired.com/news/print/0,1294,47635,00. html.Quotations. n.d. FreedomWriter.com. March 31, 2002 <http//www.freedomwriter.com/quotes.htm.Schwartz, John. Disputes on Electronic Message Encryption Take On New Urgency. September 25, 2001. The New York Times Company. February 28, 2002 <http//www.nytimes.com/2001/09/25/technology/25CODE.html?pagewanted=print.U.S. Encryption Policy. February 28, 2002. Center for Democracy and Technology. February 28, 2002 <http//www.cdt.org/crypto/admin/.U.S. Policy on Encryption Should Protect Our Right to Privacy. n.d. Americans for Computer Privacy. February 28, 2002 <http//www.computerprivacy.org/about/.

Henrik Isbens A Dolls House Essays -- A Dolls House Essays

1A Dolls House A Dolls House represents a womens marital life from many years ago. The central theme of this play is Noras rebellion against society and everything that was expected of her. Nora shows this by breaking onward from all the standards and expectations her husband and society had set up for her. Women were not considered of importance to their husbands and that made women feel like in a dolls house, such as with Nora and her husband Helmer. In her time women were not supposed to be independent. They were to support their husbands, take care of the children, cook, clean, and make everything perfect around the house. Nora had two main rebellions her taking out the loan, and when she left her family, and everything was all planned out by her. Noras first rebellion was when she took out a loan so that she could pay for her husband, Torvalds medical treatment. It was against the law for women to take out a loan without their husbands consent. When she did this she proved th at she was not as submissive and mixed-up as Torvald thought she was. He called her helpless. A perfect example of Torvalds control and Noras submissiveness was when she got him to re-teach her the tarantella. She already knew the dance but she acted as if she needed him to re-teach her the whole thing. When he says to her Watching you waver and dance the tarantella makes my blood rush. This shows that he is more interested in her physically than em...

The Amazing Edgar Allan Poe :: Biography Biographies Essays

The Amazing Edgar Allan PoeEdgar Allen Poe suffered from depression, which made his writings tragically beautiful, and if you lived his life, you probably would have been depressed too. He was born in 1809 to a couple of actors. He was two when his father abandoned him. His mother, unable to take care of him, left him with John and Frances Allen. His mother died soon after that. The Allens gave him a exhaustively upbringing, but never legally adopted him, leaving him as something of an outcast.Much of Poes life was spent struggling. He excelled in school, but was ridiculed by his peers because he was the child of actors. He gambled often and lost a lot, often remaining in debt to others. When the Allens came upon some money, Poe was sent to college. When he left he was intent on marrying Sarah Elmira Royster. However when his debts brought him back home, she had been engaged to another man. He moved away from the Allenses, and joined the Army. It was during his enrollment his first book was published. When Frances Allen died Poe reconciled with John, and agreed to go to westbound Point Academy. He did not like the academy and soon dropped out. Estranged from John, Poe began his life of hardships. He was constantly in and out of jobs. He eventually colonised in with his Aunt Maria Clemm, and married his cousin Virginia Clemm, who was only thirteen age old at the time (he was twenty six). Only six years later Virginia became ill with Tuberculosis and died after a long struggle of 5 years. Poe hit a hard depression afterwards, but then cleaned up for the final year of his life. He spent his last year working, and the circumstances around his death remain a mystery. He was found on a Baltimore street, delirious. The debate continues as to whether he was drunk, but some theories even point to Rabies. We will probably never know. Raleigh NC DiscussionEdgar Allen Poe has become known as the master of moody and hair-raising works. His work has been mocked, critique d, copied, and redone by many (not to mention turned into a spoof by The Simpsons television show. The complete works of Poe digit well over 100 stories, biographies, poems, literary analysis, and criticisms. Poe made the most use of his short lifetime if the number of writings can reflect that quality.

The Amazing Edgar Allan Poe :: Biography Biographies Essays

The Amazing Edgar Allan PoeEdgar Allen Poe suffered from depression, which made his writings tragically beautiful, and if you lived his life, you probably would have been depressed too. He was born in 1809 to a couple of actors. He was two when his father abandoned him. His mother, unable to take care of him, left him with John and Frances Allen. His mother died soon after that. The Allens gave him a untroubled upbringing, but never legally adopted him, leaving him as something of an outcast.Much of Poes life was spent struggling. He excelled in school, but was ridiculed by his peers because he was the child of actors. He gambled often and lost a lot, often remaining in debt to others. When the Allens came upon some money, Poe was sent to college. When he left he was intent on marrying Sarah Elmira Royster. However when his debts brought him back home, she had been engaged to another man. He moved away from the Allenses, and joined the Army. It was during his enrollment his first bo ok was published. When Frances Allen died Poe reconciled with John, and agreed to go to westbound Point Academy. He did not like the academy and soon dropped out. Estranged from John, Poe began his life of hardships. He was constantly in and out of jobs. He eventually colonised in with his Aunt Maria Clemm, and married his cousin Virginia Clemm, who was only thirteen geezerhood old at the time (he was twenty six). Only six years later Virginia became ill with Tuberculosis and died after a long struggle of 5 years. Poe hit a hard depression afterwards, but then cleaned up for the final year of his life. He spent his last year working, and the circumstances around his death remain a mystery. He was found on a Baltimore street, delirious. The debate continues as to whether he was drunk, but some theories even point to Rabies. We will probably never know. Raleigh NC DiscussionEdgar Allen Poe has become known as the master of moody and hair-raising works. His work has been mocked, cri tiqued, copied, and redone by many (not to mention turned into a spoof by The Simpsons television show. The complete works of Poe pattern well over 100 stories, biographies, poems, literary analysis, and criticisms. Poe made the most use of his short lifetime if the number of writings can reflect that quality.

Mgt/230 Week 1 Assignment

Mgt/230 Week 1 Decision Making Process constitution University of phoenix People should make decisions every day, some of those decisions are easy to make, while others are quite difficult to implement. An appropriately combined and organized decision-making adjoin will help to control this issue and bring a positive step up amount for those involved. The decision-making process may become challenging for people due to the inadequacy of structure and entail risk, uncertainly and conflict (Bateman and Snell, 2012, p. 86).That is why people trying to make important personal or professional decisions should have an appropriate exemplar to follow in order to avoid these challenges. Bateman and Snell identified six steps or stages of decision-making process which may be attached to any problem or decision. First, it is requisite to identify and analyze the problem. The problem at hand for me was the necessity to purchase my own home. In 2002 I was renting a home in a small city wit h my husband and son living there as well. The house was also shared with my Mother-in-Law, and it was too small for all four-spot of us to share.My husband and I realized after a short period of time that this living situation was not going to work out and that we should start looking for a place of our own. Since I am an animal l everyplace and was the owner of virtuoso horse and one dog at that time, purpose a home that also had a small amount of land area was also necessary to accommodate us all. Generating and evaluating alternative solutions (steps 2 and 3 in the decision making process) was really not an option for us as we knew exactly what we would have to do if we were to obtain the right place for all of us to live.The only alternative solution in this situation would have been to rent a large piece of property with a larger home and we had come to a point in our lives where buying seemed like the better investment. Step 4 in the decision making process is, making the c hoice. We searched around for only if the right place to purchase. It took several months of searching before we happened upon the home we ultimately chose. The house wasnt quite as big as we were hoping for but we perspective we could build an addition and do some remodeling to make it perfect.The property attached to the house was large enough to house my horse and our dog, and for my son to play. The decision was made, we were purchasing this house. Step 5 in the process is implementing the decision. After the decision was made to purchase our new home, we set up meetings and appointments with the realtor, our bank and our lawyer to finalize paperwork on the loan and other necessities. All paperwork was signed and keys were handed over to us to the highest degree a month later. Once the house was ours we quickly made the necessary changes so that it would accommodate our entire family, by adding an extra room and re-painting the entire house.We built a barn to house the horse and put in a shed for storage. We thought it was perfect. Step 6 in the process is evaluating the decision. Shortly after purchasing our home and property everything was going well, and this continued for many historic period to come, even though it was probably more work than we had initially expected, we were happy with our decision. Living in the country on our own farm with barely a neighbor to be seen was definitely the way to go. Looking back on this decision some 10 years later, I still believe I made the right decision even though my life has completely changed since that time.The house and property suited us very well up until about 4 years ago after my split. I see now that the house is not nearly large enough for my even larger family. Since my divorce I have had two more children and am getting re-married and this home is not nearly large enough for five people, especially if we have guests over for holidays or birthdays. We are currently in the decision making process once again, that being the possible purchase of yet another, larger, home and more acreage as the number of farm animals has grown over the past 10 years as well.Having the information that I do now, in our readings, I am going to go through the steps one by one and be sure that my ultimate decision will be the right one and that this new place (if we purchase one) will be perfect for more than 10 years. References Bateman, T. S. , & Snell, S. A. (2010). Management leading & collaborating in a competitive world (9th ed. ). Retrieved from The University of Phoenix eBook Collection database.

Beowulf Good vs. Evil

Reading the verse form Beowulf, many ideas, related to the forces of practised fighting those of evil, are present within its structure and within its events. The chief(prenominal) contri providedion in this story is Beowulf who stands for alone that is dangerous in a epic battle against Grendel, the addict, who represents evil, death, and processed darkness. They called him Grendel, a demon grim / Haunting the fen-lands, holding the moors / Ranging the wastes, where the abject Wight / Made his lair with the hulk kin (61-64).In a management, the reader can understand that the poem is simply the reflection of an idea that is old as man himself God and the devil, one against the other. The poet attempts to explain an idea regarding the powers of good and evil within each one of us, the two powers are not only when resistance to one another, but also in an endless fight between them. Beowulf is the one who is competent to do good and to perform what is of good nature and t o sustain others without thinking of himself. The poem highlights the idea that evil can cleanse the universe of discourse of evil.Gendel, on the other hand, along with his mother, and the dragon are those desiring to cause harm (and in effect causing that harm) to people. Beowulf was the only one who decided to save those people who were in need, he went to save the people in other lands and to fight a monster that was causing them the suffering and that was capable of destroying any human being in a few seconds. He chose to risk his life in the face of that monster for the good of the others this is why we find certain reference to him, such(prenominal) as the Prince of goodness the peerless hero, the honored prince (89).He was the chosen one to save and protect the world from evil. Beowulf declares himself as the good fighter when he informs King Hrothgar that he wants to kill Grendel. Beowulf says With hand-grip only Ill grapple with Grendel / Foe against adversary Ill fight to the death / And the one who is interpreted must trust to Gods grace / If death shall call me, hell carry away (342-345). Here, Beowulf declares that he will slay the evil creature and that he is not aghast(predicate) of death because he is fighting for a good cause against a dark enemy.Grendel, as a symbol of evil, attempts to destroy all people and all things around him. Grendel moves in the dark, in a way to show that he is the dark messenger of evil, before to go to the land of Heorot looking for the warriors. When he finds them, he seizes thirty of the men during their sleep, and then kills them all. The next night, Grendall tries to do the same again the poem explains how he was determined to commit more crimes because one for him was never adequacy and because one act of evil is far less than what he desired.He kills everyone simply because he en comforts taking the life of almostone, and this is another indication to that fact that the fight was not only between two sid es, but between moral and immoral, good and bad, and between darkness and light. Grendels main purpose was to enter the land and to turn away everything that represented the joy and happiness that were one of the qualities of that lands people. Gendels home is portrayed to represent hell, in many ways, and he is described to be the offspring of slime in which he lived in always.Then, After he commences the king of Geatland, he demonstrates his not bad(p) skills and agility for a good cause when he pledges to slay the fire dragon. Beowulf, as the story goes, pledged to kill the dragon, which has caused a trouble and misery to many of the kings people. The selfless actions put frontward by Beowulf prove many aspects of the heros partistics in what concerns goodness and love of justice.Another case is evident in the following action of Beowulf The she-wolf bore / The ring-prince agglomerate through the watery depths / To her den at the bottom nor could Beowulf draw / His blade fo r battle, though brave his mood (1001-1004). The side of Goodness is also portrayed by the ability of the hero to eleminate the evil and cleanse the land of Heorot. Not only that, but by destroying both Grendel and his mother, Beowulf has purified the hall of Hrothgar of all evils. The fight is between good and evil because it is stated by Beowulf when he announced that he would rid Heorot of evil.Beowulf says, That I may alone with my loyal earls / With this hardy company, cleanse Hart house / I have heard that the demon in proud disdain / Spurns all weapons and I too scorn / May Hygelacs heart have joy of the deed / To bear my sword, or sheltering shield / Or yellow buckler, to battle the fiend (355-341). The great skill of the good hero must be able to purify the land of the evils left by Grendel. Before Grendall was killed, we find that his previous evil actions and killings allowed hatred hate to triumph.Another evil quality that the good hero should be aware of is pride in t he poem, we find the king Hrothgar warning Beowulf of such a quality He fades him advices that will make goodness remain with him I wish you wealth to your hearts content / In your days of glory be good to my sons / Here each hero is true to other / Gentle of spirit, loyal to lord / Friendly thanes and a folk united (784-788). Other indications concerning the side representing good can be found in different parts of the poem. The poem Beowulf clearly describes many elements related to the determine that society treasured and believed in.The first value was the courage and bravery that are declared by the same soul who claims to have them this is clear in the statement of Beowulf himself when he said I count it true that I had more courage, more strength in fluid than any other man (508-509). Then comes altruism when Beowulf decides to fight the monster without his sword just to be able to save the others With hand-grip only Ill grapple with foe against foe Ill fight to the death , and the one who is taken must trust to Gods grace (342-344).In this last statement, we can find another value which is the strength of the belief in fate in the culture of that society. Another value was that honor comes as result of someones actions and good doing during his life, while in Christianity, for example, honor and glory can only be received in the life after death. In another element that can be contested according to todays values is that Beowulf represented a warrior culture which stated that it was better to get revenge than to grieve those who died Sorrow not, brave oneBetter for man to avenge a friend than much to mourn All men must die let him who may Win glory ere death (896-899). One of the most authorized factors that are clear is the great value that was placed in kinship. Those who are considered related through family were of a certain importance and closeness that if one of them was killed, it should become a duty for his relatives to vindicate his death and punish the perpetrator. Other values of Beowulfs society are loyalty, honesty, justice, and generosity.Even though Beowulf and Achilles had many common heroic qualities such as courage and strength, there were many differences between them. To understand the differences we must take a closer look at the motivations of each of them Achilles was a great warrior that sought glory and fame through revenge, social status and through the pursuit of power, while Beowulf sought glory through a different path his main concern was to save and protect his people and his soldiers. Achilles was capable of anything to reach his goals, while Beowulf followed his higher values in all cases those values were loyalty, pride and courtesy.The evil character presented by the story is the typical one that possesses tremendous powers and that has the most horrendous of looks. It is the one that can be found in many ancient stories (and in some cases, many fairytales) that aim at giving a clear image of evil and of its deeds and of its objectives, which are mostly to cause harm and annoying to everyone around him. The evil character, in this story, has no further goals to obtain through the killing and the terror caused, because those means are the same as the ends.While the good character, Beowulf, is pure and courageous. He is willing to do anything to prevent any more harm and to stop the evil forces that are working in the world around him. He chooses to kill the monster, not because of the joy of killing, but to save the people and the city. And he does not choose to do so because he wants to be considered a hero, but because he is really a hero who does not expect anything in return for his actions. The confrontation, as portrayed throughout the poem, is the one that is mentioned in different stories (in some cases, religious stories).Evil, no matter how powerful and no matter how fearless, will have to face the powers of good and only the chosen one, who has all the requ ired sensible and mental tools, will be able to stop and defeat the powers of evil and to purify the world and will bring justice, love and happiness. In his attempt to give us a clear idea of the various factors related to the fight between good and evil, the poet manages to describe the whole story in a way that can be used in any time and for any culture because this specific fight is always valid.The dreams and aspirations of people are the same as they have never changed, and most probably, they will never change To be able to have a peaceful life, to be able to offer good life to their children, and to be able to have justice and equality. Beowulf is simply the hero that everyone wishes to have in order to realize those dreams and aspirations. Reference Beowulf. Translated by Charles Kennedy. Retrieved July 7, 2006 from the world wide web http//www. wise. k12. va. us/dlp/English/beowolf. htm

Mary Schapiro’s job was to fix the SEC Essay

1.Kotters eight stepsAs already noted, the sec was starkly exposed as ill-equipped to deal with the chaos erupting across the globe. It was under strong criticism for the serious fraud of Bernard Madoff and the collapse of Wall Street stalwart Lehman Brothers. Accordingly, Mary Schapiro, a course regulator, was appointed the 29th chairman of arcsecond to save a languishing SEC. She careend the way they were doing things at the SEC including creating new structures, procedures, and programs to better address the modern financial markets as an urgent need to restore the credibility and public confidence in the SEC. This analysis is based on Kotters (1995) eight-step process for leading successful careen. a.Establishing a sense of urgencyThe chairwoman argues that urgency is critical. Schapiro developed a careen program with three priorities comprising internal assessment, investor protection focus and mistakes acknowledgement. The mission was to turn the SEC to be a high function ing, agile and intelligent, and committed to investor protection and market integrity.b.Creating a guiding coalitionIn order to able to manage the change process, she brought in new leadership and new senior team. The new leadership team set about retraining, skilling up and motivating the SECs endowment fund staff. In addition, the investor focused agenda was putting in place. The board and senior management and then all levels of decision making were required to pay attending to risk at all level of an enterprise. The whistle blower program was set up to detect securities violations. A final goal was to admit the mistakes that the SEC made under its watch. This is the first step in communicating the change vision.c.Developing a vision and strategyA vision was created to help direct the change effort, that was, to build a high functioning, agile and intelligent, and committed to investor protection and market integrity agency.d.Communicating the change visionIn order to communica te the change vision, the chairwoman developed an openway communication in which all staff and bankers could directly discuss with her.e.Empowering broad-based actionsThe SEC critically trained their staff to become informed fraud examiners. The organisation was restructured by removing the whole layer of management sending those to the frontline putting thousand staff to different focus groups such as mishandle foreign practices, insider trading, market manipulation and structured products. In addition, the SEC also set rules for over the counter and asset backed securities, hedge funds and trial program.f.Generate short- term winsMonetary reward and safe avenue were offered to whistle blower as a way to encourage people to detect securities violation as part of the change program. Fine was charged to financial institution (Goldman Sachs) due to misleading investor mortgage securities.g.Consolidating gains and producing more changeh.Anchor new approaches in the futureThe change within the SEC was continually anchored for several years after the change commenced.

American civil revised

American accomplishedisedised war of 1861-1865 was the bloodiest war. The fight was between unite States (the Union) and the southern el change surface striver states that proclaimed that they had their own rights to secession, thus, forming Confederate states of America which was headed by Jefferson Davis as the hot seat. The United States termed as the Union was made up of Free States together with Border States that were under President Abraham Lincoln lead by the republican Party. The republicans were against the spreading of sla very(prenominal) into regions governed by the United States (the Union) this increased the desires of secession by the to the southern states.Nevertheless, the republicans refused to accept any secession rights from the Southern states. This then led to the courtly war which broke up on April of 1861, when Southern States forces attacked a military installation of United States (union) located at Fort Sumter, in the South of Carolina, which was the very first state to secede. (Holt, 1978) Causes of the civil war Many historians argue that the civil war was characterd by bondage turn ups. However, in that respect is no one simple occasion of the civil war.The war was caused by complex issues including bondage, party politics, and sectionalism, misunderstandings of federalism, expansionism, economical differences and modernization during that period. All this issues contributed to the war. (Holt, 1978) Slavery Slavery is considered by many historians as the main issue that caused the war other reasons were directly or indirectly related to thralldom. Historian Holt (1978), said, as the 1850s went on, an exacerbating, exhaustive and fundamentally pointless conflict about slavery continue to be the main topic excluding all other issues.As Abraham Lincoln a Northern politician by then pointed out, the issue of slavery was the most cardinal issue than other issues, he further states that indeed, so much more important ha s it become that no other national question can even get a hearing just at present. (Holt, 1978) The issue of slavery was in relation to competition by sections or states for the control of territories. The demand of the Southern states for a code of slave in the territories was an issue universe used by the Southern politicians to divide the parliamentary Party in to two. The division of Democratic Party keep in lined the election of Lincoln and also the secession.Though, Abraham Lincoln did non have immediate plans of abolishing slavery in the South, the Southerners all over the South conveyed fears about the slavery future in the South the moment Lincoln took over, leading to tensions that lead to war. (Holt, 1978) The Southerners were also concerned about economic loss and racial equality that they whitethorn loss. In accordance to the Texas Declaration of Causes for Secession, declared that those states that were non holding salves were proclaiming the degrading doctrine that all men were equal irrespective of color or race.According to this declaration, African people were an inferior race. This issue of slavery contributed a lot to the civil war, the Southern states feared losing control of slavery to the federal political sympathies. On the hand the Union feared that the might of slavery was already controlling the government. This led to the civil crisis of 1850s. States disagreements about the moral issue of slavery extent of democracy and the upset about economics of slave plantations labor over free labor caused political unrest in the states.This contributed to the Southern secession which triggered the civil war. (Levine, 1992) Political instability Political instability during that season was so fractured this contributed a lot to the civil war. Cultural and economic disparities contributed to widen the political differences. Wars between the north and the south grew a lot more heated, particularly after 1850. Politicians and the judi ciary of the two regions sent contradictory signals in trying to appease each other. However, all the two parties were not satisfied.The Georgians (Southerners) mat up that the Federal government which was mainly controlled by the Northern industrialists was not responding to their problems in their states. Thus, the Southern states started seceding, this could not be allowed by the Northern states led by President Lincoln. As a result the Southern states opted to use force by attacking the military installation of the United States (the union) the United States (Union) responded and the war began. Therefore, political instability was another cause for the American civil war. (Holt, 1978) Modernization fears by SouthernAnother cause of war was fear of modernization by the south, According to historians Foner (1970), when the North abolished slavery and started industrial revolution which resulted to urbanization, improved education and reform activities like abolitionism, the truth that out of eight immigrants seven settled in the North, added to the truth that the number of whites leaving South for North were twice as those leaving North to South, this contributed to aggressive- defensive political activities of the South. These political animosities enhanced the prevailing tensions between the two parts culminating in the civil war.(Foner, 1970) Other historians argue that, people who owned slaves were the highly modernized people in the South. Traditional people were the ones and this group included the middle class whites who had no slave or owned a few number of slaves. The South common people struggled for secession as they believed in a slogan of immunity is not possible without slavery they also believed that slavery led to social equality between whites. On the other hand the Northerners particularly the republicans did have a varied interpretation of the principle of 1776.This varied ideology is among the main causes of tensions between the Souther n states and the Northern states and is among the many reason why the two regions had to fight the civil war. (Foner, 1970) States rights The rights of states was another issue that contributed to the war, Debate on if the Union was the one older than states or the other way opposite fueled the on going debate on rights of states. The debate was on if the federal government was should have a lot of power over states or if the federation was just made up of sovereign states that had more powers than the federal, this argument added to the on going controversy.According to Stampp (1956), each part used rights of states arguments to their convenient position and changed positions when not convenient. Stampp (1956) points out that, Vice President horse parsley Stephens of the South confederate as one example of the Southern states leader who termed slavery as cornerstone of the confederacy at the beginning of the war. The Vice President further said that, civil war was not in regard to slavery it was about states rights when the Southern states were defeated.Thus, the issue of states rights created a lot of controversies that were among the many causes of the civil war. (Stampp, 1956) Who or what was to blame for the Civil War What to blame Slavery The questions remains was the war about slavery? The answer is yes. So slavery was to blame for the war. Supposing that there was no slavery then the war could not have happened. Or supposing that, there was no disagreement about slavery issue, the South probably would not have felt that their culture was being threatened, and the Southern politician would not have sought to protect their rights to secede. (Stampp 1956) However, the war was not only about slavery it was also about the constitutional rights of the states, if it had powers to leave the Union. Though, the North never went to the war to stop slavery, nor did president Abraham Lincoln have an ag mop upa of stopping the war ones he became president, it is cle ar the differences in understanding of the slavery issue was a major contribution to the civil war. Being moral issue slavery caused division in political leaders of the South and the North and created the tensions that existed by then leading to the war.(Stampp, 1956) Who to blame Politicians The main blame of the war goes to the politicians who were political leaders on twain sides of the North and the South. The South depended on economic system that relied heavily on slavery, their leaders such as William Lowders Yancey of Alabama and Robert Barnwell Rhett of South Carolina who was known as ignore eaters knew that supposing the South lost its slaves, then, it would undergo hard social and economic effects that will ultimately break the economy of the South.(Stampp, 1956) Hence, any political activities that threatened the end of slavery in the South received the whole attention of political leaders of the South many of whom owned slaves and who were ready to go for war to ensu re that their rights were protected. These political leaders were able to influence many Southerners that it was important to fight, in convincing the people their mainly justified the war by arguments which indirectly referred to slavery issue. The politicians of the North states were divided concerning the slavery issue and did not intended to go on war over that issue.However, they took a political stand of fighting when war came, similarly they can also be blamed for the war. (Stampp, 1956) Could the war be avoided? Ever since the end of the American war, there have been arguments on whether the war was necessary or could be avoided. The question illicit different answers according to the perspective one is looking the issue from. The war was inevitable and was bound to happen. This is because the ideologies being held by the South and the North were different.In a situation where political differences are so pronounced it becomes hard for the two opposing sides to solve their d ifferences amicable. Basing in mind that, what was at stake was a lot economic consideration, freedom, democracy and the issue of slavery it could have been hard to avoid the war. In addition the politicians especially from the south felt threaten and had to assert the power. Basically unless there was change of ideology on either side war was inevitable. Conclusion The civil war of America basically occurred because of differences in political ideology brought about by slavery.Slavery was a moral and economical issue that created a big rift between the Southern states and the United States (union). Before the war, fractured political system resulted in widening of the rift. Another reason that caused the war was the need of states to have more freedom by seceding from the federation this twin with other complex issues especially economic ones were the major reason why the war occurred. In addition politicians particularly from the South who felt that their culture was being threat en also contributed a lot to the war.As mention before slavery was the main cause of this who as one historian puts it without slavery there would not have been a civil war. (Stampp, 1956) Though, the war resulted in a lot of loss of life, damages and injuries, it greatly helped to correct the historical mistake of slavery and to turn the slaves, and bring equality and freedom to many slaves. References Foner, E (1970) Free Soil, Free Labor, Free Men Oxford press Holt, M. F. (1978) Political Crisis of the 1850s Wiley, Levine, B (1992). fractional Slave and Half Free Hill and Wang, Stampp, K (1956) Peculiar Institution. Knopf

Motivation Essay

INTRODUCTION Motivation is the process of initiating and directing behaviour establish on the persistence of effort to carry through an psyche goal or want (Petri, 1991 Robbins et al, 2000 and Robbins et al, 2001). There are two approaches to understanding motivation, apiece of which has theories expanding to support the nature of motivation. Content theories foc pulmonary tuberculosiss on what gos an individual. In railway line to process theories of motivation which focus on how individual behaviour is motivated. This essay leave focus on motivation in an educational context and the grandeur to provide opportunities and motivation for schoolchilds.The purpose of this essay is to present a theoretical overview of the key differences between content theories and process theories of motivation. Then a programme demonstrable from a theory to be applied to an undergraduate business course at Monash University. The motivational programme will focus on improving the sagaciousnes s technique used by lecturers and tutors (teachers) that will motivate and improve undergraduate assimilators learning ability. The aim will be to encourage students to gain a remediate understanding of the core concepts of business.Assessment in universities necessarily to be reshaped in order to motivate students. CONTENT THEORIES OF MOTIVATION Content theories are also referred to, as need theories. That is, motivational theories that look at what individual needs motivate and direct behaviour to respond to special(prenominal) goals. Many early theories from the 1950? s, imply Maslows hierarchy of needs, McGregors Theory X and Theory Y and Herzbergs motivation-hygiene theory, established core concepts which welcome helped excuse motivation especially in an organisational setting.McClellands lead needs theory is a to a great extent(prenominal) contemporary view on the content theory approach to motivation that focuses on three important needs in clobber situations. Each theory identifies individual needs in order to understand behaviour. The main factors that underlie this approach is the need to understand that individuals have diametric needs, and what can be offered in response to these different needs as well as the importance on the external working purlieu to give individuals the opportunity to satisfy their needs (Robbins et al, 2000, p558).An mannikin of a content theory of motivation is Douglas McGregor theory of the A? AA? A scotch manA? AA? A. He proposed 2 contrasting views of human nature. McGregors Theory X and Theory Y suggested unitary negative (Theory X) and one positive (Theory Y) view on human worlds. He concluded that a managers view of the nature of human beings is based on a certain grouping of assumptions and that he or she tends to mould his or her behaviour towards employees according to these assumptions (Robbins et al, 2001, p199).The negative assumptions were labeled Theory X, which held four dominant assumptions of workers. Workers detest work and go to great strengths to avoid it. Based on this it is believed that workers need to be punished with tight control systems in order for them to achieve goals. In addition, workers lack responsibility, thus need formal directions from superiors to perform. Such Theory X workers are predominately motivated by lower-order needs according to Maslows hierarchy for example they need security.In contrast, Theory Y assumes higher order needs dominate individuals. Thus, Theory Y workers enjoy responsibility where they can exhibit self-direction and self-control. Therefore, in order to motivate workers, mangers need to provide a working environment that provides challenging jobs and minimal formalisation. Applying this to an educational context, it can be assumed that teachers can every have a Theory X or a Theory Y view of students. That is, teachers can view students as A? AA?Alazy or un-cooperative (Theory X) OR as being clever and work hard (Theory Y). Teachers that adapt a Theory Y approach, are more likely to be attuned to students needs, actively participate with students to increase student skill-development and learning (OECD, 2000). It is important for teachers to become more student-centered. Therefore assessment must focus more on student learning outcomes and students attitudes about what they are learning and their role in the tenet and learning process (Carey, Wallace and Carey, 2001).This can be better unsounded by considering process theories of motivation. Process theories of motivation set out to explain how people choose a course of action they will pursue, not only on individual needs like content theories. PROCESS THEORIES OF MOTIVATION Despite the fact that content theories of motivation have helped more organisations understand employee motivation, many of their concepts alone do not provide a comprehensive understanding of motivation. Therefore, the introduction of another approach to understanding motivat ion was brought about.Process theories of motivation attempt to explain the process of arousing behaviour, sustaining and regulating the pattern of behaviour (Ames and Ames, 1989). Theories include goal setting, reinforcement, equity and expectancy theory. These theories attempt to explain why people choose to behave in a certain way and the reasons they react as they do (Robbins et al, 2000, p558). In contrast to content theories of motivation, which looked at what initiates behaviour to satisfy a need, this approach broadens the billet of motivation. It looks at the underlying reasoning that influence individuals to behave and respond in a certain way.Therefore, motivating students by either punishing them to perform or encouraging self-direction, the goal setting theory, identifies underlying factors that achieve a given behaviour, which is the key to understanding the process approach to motivation. Goal setting theory states that specific and onerous goals, with goal feedback , lead to higher military operation (Robbins et al, 2001, p770). That is, work motivation can be increased with goal specific directed behaviour. It also proposes that difficult goals, provided that the individual has accepted them, lead to higher performance than general goals.However, feedback is essential in the achievement of specific and difficult goals because feedback helps identify discrepancies between what they have through and what they want to do (Robbins et al, 2000, p559). In order to gain the performance benefits of specific goals, feedback helps shape the individuals behaviour. Better still, self-generated feedback is a greater motivator as it allows the individual to monitor their progress. Robbins et al (2000) suggested that goal setting theory is best suited to cultures were there is a moderate power distance, low in uncertainty shunning and high in quantity of life like Australia and New Zealand.These ensure a reasonable level of independence amongst individual s and those individuals will not be peril to take on difficult goals. Also the importance of performance is shared by all. In goal setting theory, the characteristics of a goal and attitudes towards it are panorama to be influenced by incentives, self-perceptions and the manner in which the goals are set (Brotherton, 1999, p36). Therefore, in an educational context the teacher and student need to work together to mold behavioural strategies that will lead to performance.End-of course paygrades conducted by Monash University A? AA? Aelicit students attitudes about instructors and the role that they play in the teaching/learning process (Carey, Wallace and Carey, 2001). Such instruments assess students motivation for learning and allow for continuous course and program improvement. MOTIVATIONAL PROGRAMME Feedback from end-of course evaluations usually prompts an current adaptation of a course to the emerging learning needs of its students (Panasuk and Leabaron, 1999).It was found that students consistently expressed views that new assessment motivated them to work in different ways (Sambell and McDowell, 1998). The aim in developing motivational programme for undergraduate students will focus on assessment reform applying the goal setting theory. This proposition will encourage students to target specific goals, in hope that it will result in higher performance. The programme will involve students in their evaluation process in order to motivate them to actively participate in their skill-development and improve learning. Every act of assessment gives a message to students about what they should be learning and how they should go about it (Sambell and McDowell, 1998). The programme will suggest that goals based evaluation criteria will improve students motivation in turn achieving a greater level of performance. The programme will focus on behaviour related to undergraduate business students at Monash University. It will include a check gradation grading system that will be designed around behavioural objectives. The check-mark systems sets a specific standard for document quality, and instructors give a paper a check mark when it meets the standard (Sorenson, Savage and Hartman, 1993). Students are required to set their own achievement goals, in terms of grades based on their overall undecided result. That way they can evaluate their progress toward their goals on their own with each assignment mark. This necessitates defining goals for oneself, using self-directed strategies to accomplish these goals, and assessing progress (Larsen and Thisted, 1999).The programme will involve behavioural objective questionnaires that will identify what the students want to achieve at Monash. This will include long-term goals (degree completion) as well as short-term goals (average subject result e. g. line, right down to improving structure of writing). Defining tasks in terms of short-term goals can help students to associate effort with succe ss, scarcely of course long-term goals are also needed if students are to become lifelong learners (OECD, 2000, p. 31). It will also involve social objectives (develop a just ringing with teachers). Using behavioural objectives may help students organize and structure their learning and may produce positive attitudes toward learning (Sorenson, Savage and Hartman, 1993). Also, they outline behavioural objectives of each student, which are associated with goal difficulty. In addition, a student performance evaluation form is to be handed in with each assignment, outlining specific goals that the essay is to achieve. For example, good use of relevant and current references, each paragraph systematically links one to the other etc.Also the overall mark the student expects on the assignment based on their effort. From this teachers are to use the check mark system and self-evaluation system to grade the work. It is very important to give feedback, especially in relation to student eva luation forms outlining their objectives. Limited feedback such as meaning well done or meaning re-consider, needs to be more specific. Effective feedback should provide tachygraphy comments, throughout the paper and on the marking sheet, clearly clarifying any issues. Such feedback is called evaluative feedback. Evaluative feedback helps the individual understand the performance information by comparing it to standards or to the individuals own past performance (Larsen and Thisted, 1999). In addition, it is important to direct them where possible to achieve a higher mark, hence feedback needs to be constructive. Constructive feedback is task-specific and focuses attention on the task (Larsen and Thisted, 1999). By focusing on the task and providing target objectives results in the achievement of more objectives (Sambell and McDowell, 1998).When students use the check-mark system, they can identify what they must do to achieve higher marks. Obviously, the goal difficulty set by st udents varies among the constraints of his/her ability. In this programme, it is important to provide specific feedback and include student participation in selecting objectives. In light of this, between the behavioural objectives system, grading method and student outcomes, students should actually be motivated to increase performance under these systems. CONCLUSIONThe theoretical issues proposed in motivational theories such as the economic man developed by McGregor and the benefits of setting specific and difficult goals are important. The distinction on how they motivate an individual is a major influence on behaviour. Applying motivational theory to an educational context we draw our attention toward skill development, felicity and achievement. In developing a motivational programme, the focus was on assessment reform focusing on undergraduate business students at Monash University. Teachers and students need to work together in assessing ones performance.It is believed that individuals are mutually motivated to learn when they do not have to fear failure, when they perceive what they are learning as being personally meaningful and relevant and when they are in respectful and supportive relationships with teachers (OECD, 2000, p29). Therefore, by using a goal setting approach to motivate students, student participation in selection of objectives in as research on the motivational value of goals, both the check-mark and behavioural/performance objective systems seem to motivate students to improve performance (Sorenson, Savage and Hartman, 1993).However, with todays rapid change and emergence of new knowledge and theory, universities will have more concepts on which to wee-wee and develop on motivating the schools participants so as to obtain the best possible educational results (Panasuk and Lebaron, 1999). http//www. writing-expert. com/blog/sample-essays/essay-on-motivation. html

Evaluation of Lamaze® Stack n’ Nest Birds

The hornswoggle industry is one that has evolved from creating items made exclusively for fun, to educational wonders that are developed to exercise the ever-growing sound judgment of a small fry. These days, the hop on group suggestion listed on a toys packaging is not just used for safety measures. Instead, toy developers have taken the industry a bit further, and have opted to develop toys tailored specifically for designated mind levels. As adults, we are able to look at a toy and figure come out that to get the clown out of the box1, you must crank the lever.For a youngster, however, the solution is not so forthcoming. Depending on the childs ripen, the mind comprehends a toy in extremely basic terms. Because of this, a child must depend on his or her unsuccessful attempts in figuring out how a toy works in order to master the toys purpose. An important developmental stage in a childs life occurs between infancy and toddler hood ( untried, 2006). During this time, what a child is exposed to may set the stage for how he or she will pull off challenges in the future.Basic understanding of inside and outside, big and small, over and under, in addition to m whatever other physical elements, whoremaster be credited to the types of toys a evoke selects for their petite one to not merely licentiousness with, but ascertain with as well. For example, observe how a child handles not being able to converge a square cause block into a square shaped cut out female genitalia indicate how the child will handle standardised situations throughout life. Is the child patient, or frustrated? Will he continue to attempt to solve the challenge this toy provides, or will he simply move on to another toy? The answer will vary for all.To better understand how a toy influences a babys development, this radical will review an educational toy. The toy selected was developed by Lamaze. The stack n live 1. A traditional childrens toy is the Jack-In-The-Box, wher e continuously cranking a lever will, at some point, reveal a surprising clown, which pops out of the box in which it is enclosed. Developmental gip refresh 3 Birds were designed considering the developmental needs of the 9-24month old child. Its function is to compound the childs cognitive, motor, visual and auditory skills through various features this toy provides.With the assistance of a nurturing adult, this toy has be its function above and beyond expectations. Lamaze by Learning Curve Lamaze is a subsidiary of Learning Curve, a company that strives in creating toys that encourage a child to think, be adventurous and imagine endlessly (RC2, 2005). Lamazes specialty is focused on babies and toddlers. Their philosophy is based on the premise that a childs development is all about timing, and introducing the right toy at the right time is key in guiding growth without pressure (RC2, 2005).Every toy released has undergone examination not only from the users themselves, but th eir parents as well, to determine sturdiness, interest level, and safety issues. Stack n nest Birds The Stack n Nest Birds2 are designated for age groups 9 to 24 months. Included are 3 separate dolls, packaged stacked from gain to bottom smallest bird to boastfulst bird, with an additional 4th egg shaped bird safely strapped in beside his counterparts. The age designation significance can be credited to the learning needs of children this age (RC2, 2005).This toy provides many developmental lessons beneficial to the variable needs of this group. With a bit of imagination, many learning activities can be created. Each bird features plush and satin-like fabricant, vivid colouring and incompatible textures. While the colours are vivid, they are not the only thing that makes this toy pleasing to the eye. 2. Due to copyrights, a photo of the Stack n Nest birds is not available in this composition, but may be viewed at the following link http www. geniusbabies. com/stackn-nest-birds -lamaze.html Developmental dawdle Review 4 The secern material features exciting patterns. Three of the birds are dome-shaped and are hollow inside, and are able to be nestled inside each other due to their varying sizes. The forth bird is egg shaped, made of soft rubber, is the smallest of the birds and completes the nestled set. Fun, colourful ribbon is sewn to the fabricated birds right and left mid-sections to create the appearance of ever-necessary locomote. The smallest of the birds is the rubber, egg-shaped bird.Its feature is to squeak. To activate its feature, the bird must be squeezed, and released quickly. The creative child will learn that in addition to squeaking, the bird can also get stuck to legs, arms, and little foreheads simply by squeezing the bird, placing its flat bottom on a body part, then releasing quickly. With a small bit of effort, the bird will make a kissing sound with a sucking after-effect when it is pulled quickly from the body part. The fabricant birds each differ in size, from small to medium to large.The smallest of the fabricant birds is yellow and green in colour and its feature is also to squeak. The squeaker is located in the birds cheek and can be activated when gently squeezed, then released. In addition to its squeaking baron, its soft, flexible body includes a crinkly inner-lining that allows it to sound when being handled by little hands. The medium-sized bird is turquoise on blue, and features a rattle sewn in its lining. Additionally, it includes a crinkly lining that sounds when handled.The large bird is red on discolor and features bells sewn in its lining. It also features crinkly lining that sounds when handled. This bird includes a 3rd feature its beak is extended and textured for the teething babys convenience. The concept of these birds is to provide knowledge of varying sizes, inside and outside, Developmental Toy Review 5 cause and effect and sound differentiation. The user will learn to stack the bi rds from smallest to largest then nestle them inside each other from largest to smallest.The colourful plush and satin fabric provides texture awareness, and the solid to pattern layout allows for visual stimulation. Safety Features The creators of the Stack n Nest Birds definitely considered their user when they developed this award-winning3 developmental toy (GB, 2006). These birds are made of soft fabric and do not include any sharp edges, shaping wires, and are well sewn to prevent any fraying or dismembering. They are easy to care for and provide a lifetime guarantee.These birds can be purchased in most toy stores and average in cost at 14.00 (RC2, 2005). Developmental Needs of the 9-24mos Age Group The developmental needs of this age group vary due to the span of maturity from 9 months to 24 months. On the early end of this group, the 9 month old is in the center of gaining interest in everything around him. However, his attention span is short, and therefore is not able to r etain many of the new things he has learned (Shelov, 2004). Constant motion-picture show to new activities is necessary in order to assist this young person in gaining interest in the brightly coloured items placed before him.His cognitive needs at this point are greatly influenced by a loving adults assistance. The 9 month old is very some(prenominal) intrigued by cause and effect. Stacking the birds, and then assisting him to knock them down with a hand or a foot can help him in understanding that he can make things happen. Playing a game of peek-a-boo will also be a game of interest for him. Placing the large bird on top of the small, rubber, egg shaped bird to hide it, then removing the large bird to reveal the small bird can introduce object permanence to him. 3.Winner of the 2006 Oppenheim Toy Protfolio, an organisation that tests the safety, soundness and overall worthiness of a toy. The award categories range from toys to videos and age range from infancy to later school y ears. Developmental Toy Review 6 Additionally, because the mouth is such a sensitive organ at this age (and for months after) the texture of the birds will be another treat the Stack n Nest Birds provide (Shelov, 2004). From plush to satin to felt to textured rubber, this toy provides a mouth-watering good time for the ever-curious baby.As the child ages, so sharpen his motor skills. The ability to master his pincer grasp4 as well as whole-handed grasp, transfer an item from one hand to the other and play using more(prenominal) than one hand5 are all motor skills being perfected at this age (Shelov, 2004). Because there is more than one bird, all varying in features, the child has the opportunity to sharpen the aforementioned skills. Their size and light weight adds the convenience of easy grasp, as well as the lessened possibility of dropping the toy because it is too heavy. The honest-to-god the child becomes, the more his needs change.While the 9 month old is short on attention span, the 18 to 24 month old is peaking in enthralling the world around him. He is aware of others, and is mastering his emotions (Shelov, 2004). By now the child understands the concept of stacking and nesting. It is quite an achievement to stack these darling birds from small to large, and large to small. Let us consider the psychosocial, or the psychological and social, needs of a child this age (EWED, 2006). On the psychological side of this achievement comes a sentiency of accomplishment, as adult assistance is no longer needed to complete this challenging task.In fact, an adult may be swatted away if they interfere with this toddlers new found ability. On the social side, while a child at this point does not really socialize per say6, he may be enticed to take one of the 4 birds to another child in the room. He may stand back and watch as the other child plays with the toy, observing how someone else uses it, but back to the 4. The ability to grasp items using the thumb and index finger. 5. The ability to hold on to more than one toy utilizing some(prenominal) hands. 6.Parallel play, when children play side by side rather than with each other, will continue until about midway through the 2nd year of life. Developmental Toy Review 7 psychological side, when the child is ready to have his bird back, he will take it without acknowledging the other childs feelings, and continue to play with his birds by himself. At this point, the older the child is, the less interest he has in toys such as these birds. His interest may shift to a more imaginative state, rather than for their intended purpose. The Results of the ReviewThe needs of a child in the age range of 9 to 24 months vary tremendously. However, the Stack n Nest Birds by Lamaze have proven to cover all bases. From early development, when the child is at a midway point in grasping activity, to later development, when the child has mastered many activities he did not understand just months before, the Stack n Nest Birds seem to adjust quite easily and are yet able to hold the interest of the child. Fun sounds, interesting textures and vivid colouring are all features that make this toy a winner to babies and toddlers alike.ReferencesDefinition of Psychosocial. (2006) Bloomsbury Publishing, Plc. Encarta piece English Dictionary (EWED). ( North American Edition) January 2007. www.encarta.msn.com/dictionary_1861736125/psychosocial.htmlDevelopmental Milestones Understanding Words, Behaviour, and Concepts. (July 2006) Baby Centre Baby Centre Editorial Staff & Young, Paul. January 2007. www.babycenter.com/refcap/baby/babydevelopment/6575.htmlOur Story The memorial of Learning Curve. (2005) Lamaze Infant Development System Learning Curve/RC2 Company (RC2). January 2007. www.learningcurve.com/wps/portal/ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLN4g3cdEvyHZUBACQDv8g.Shelov, Steven & Hannemann, Robert E. (1991, Rev. 2004). The Complete and Authoritative Guide Caring For Your Young Bab y and Young Child-Birth to Age 5. New York. Bantam Books. January 2007.Stack n Nest Birds. (2006) Genius Babies.com (GB). January 2007. www.geniusbabies.com/stackn-nest-birds-lamaze.html

How does Faustus use the magical gifts that he receives? Essay

Faustus is an extremely ambitious and clever man. This is seen to the extent that he sells his soul to fulfil his ambitions. He uses magic in order to strengthen his effect and knowledge and thus this comes him dangerous. He is hubristic and aims to posses knowledge that no other mortal should have. In doing so he dies synonymous to God. Faustus states O what a world of usefulness and delight/Of power, of honour, of omnipotence/Is promisd to the studious artisan This is what he intends to do with the supernatural gifts he receives but it soon becomes clear that eventual(prenominal)ly everything Faustus does is for his own selfish needs. By comparing himself to a studious artisan he hopes to gain the recognition of a bookmanly work however, he fails to understand that scholars study for personal understanding and not material gain. Therefore ultimately Faustus achieves nothing with his magical gifts throughout the whole play. He gains no wealth, no recognition and no delight fr om his magic.alternatively he condemns himself to death and illustrates that no man can ever be God as all men are fallible. Faustuss attempts to use his magical gifts are futile and thus he gains nothing and is forever in debt to Mephostophilis. The pursuit of knowledge is directly linked with obtaining power. Faustus intends to acquire a greater idea so that he can control everything. This is demonstrated by Faustus in Act one Scene one All things that move between the soothe poles/Shall be at my command. Faustus exemplifies his desire to be the master of all.His reference to the quiet poles means that Faustus wants to rule the entire world, from North to South. The audience are reminded that Faustus is just a man Yet art thou still but Faustus, and a man, however, he forgets his come out in society. Faustus wants to use his magical gifts in order to make men to live eternally/Or being dead raise them to life again. The magical gifts allow Faustus to take on the role of God a nd this hubristic reputation and desire for power is his downfall. Significantly, everything Faustus says is only what he intends to do with the magical gifts.He never does use the magical gifts to commit such acts and rather uses them for trivial acts such as comedy. This is illustrated in Act four Scene six when the Horse-Courser recounts his encounter with Faustus Dick and Robin. It is clear that Faustus has done nothing with the power that his magical gifts provide him with. Faustus as well wants to use his magical gifts for his own merriment and selfish needs. He aims to accomplish this by sending spirits to search all corners of the new-found world/For pleasant fruits and noble-minded delicates. This pleasure could result in pride for Faustus which is what he claims that he wants at the beginning of the play. More importantly he considers himself worthy of these princely delicates and thus forgets his place in society. The pleasure of these new found objects shows the mat erial gain from his magic rather than personal enlightenment. thereof this demonstrates that Faustus uses his magical gifts not as a scholar but as a sorcerer for his own pleasure and happiness. In addition, Faustus wishes to be pleasured sexually exploring the woman for new treasures.This is evident in Faustuss conference with Valdes in Act one Scene one. However, once again Faustus wishes are not fulfilled and his dreams are only lived in words. It is once again probable that Faustus does not use his magical gifts at all. The magical gifts allow Faustus direct power in order to conquer the world And reign sole pouf of all our provinces. He is obsessed with the idea of reigning supreme and become omnipotent just like God. Faustus has no intention to use his magical gifts for proper omitting to mention any wish of helping the poor and poverty stricken people in Germany.His only aim is to become a mighty God. This ultimate power means that there is a clear distinction between Faustus and the rest of the characters in the play a divide between mortal and god. Thus Faustuss power enables him to obtain considerable fame for his astonishing magic. He wishes to be eternizd for some wondrous cure demonstrating his desire to be remembered forever. His magical gifts do not allow Faustus to become immortal and it is only in literature that he becomes immortalised.One final aspect that Faustus wishes to achieve with the magical gifts is wealth. He could be a physician and heap up gold, or ransack the ocean for orient pearl. Wealth is another way in which Faustus could gain power. Faustuss infantile fixation with wealth also illustrates his materialistic attitude. Knowledge in Faustuss eyes is only another form of wealth like money. He takes no pleasure in making himself a better person. Once again by the end of the play Faustus has not achieved wealth and this is another example of how he has in fact not used his magical gifts.Throughout the play it is evident t hat Faustus wishes to use the magical gifts to gain power, knowledge, wealth and immortality. He aims to be a wolf that is omnipresent, omniscient and omnipotent and thus his desire is to be god. He becomes obsessed with using his magical gifts to achieve this and continually speaks about all his ideas. However, his dreams never become a reality as he never attempts to actually pursue his desires and use the magical gifts. Instead Faustus uses his magical gifts merely as a comedic jibe therefore demonstrating the weakness of his character.

Cognitive and Language Development

Whether we know it or non children begin learning from the moment they polish off their entrance into this world by listening, looking, and interacting with people and objects (Gleitman, 1981) that carries them from birth by means of adulthood. Literacy Development in children is sort of the same thing but it is focused mainly on things that table service them with speaking, listening, reading, understanding, watching, drawing and writing.Infants and Toddlers are like sponges they absorb everything about their environment (Lally, Torres, & Phelps, 1993). They learn through sensory and labor experiences (Gleitman, 1981). You might say well how I can help them with all of this it is a lot. Well hither are some ways that you can help them with out having to do a lot. Infants ( Cognitive & speech communication Development) Put a mobile over the crib, he/she will enjoy it permit them listen to perfect music Read to infants.They may not understand you but it helps develop early li teracy skills Play peek-a-boo Let the infant play with an unbreakable mirror so they can see their reflection Sing/ dialogue to infants during feeding and while changing diapers Toddlers (Cognitive & Language Development) While reading to toddlers, stool objects in the book and allow them point the objects out Hide a toy and encourage the child to find it. For example, behind your pricker or under the table, etc. Encourage the child to sing songs with youEncourage to stack blocks and let them knock them over so they can see them fall If the child is saying simple words like frump or ball, try and use them in a simple sentence like Where is the dog? so they can start learning to put sentences together Infant & Toddler (Literacy Development) Try an use create verbally whenever you can- helps them understand the meaning of words as well as how they are created Repeat sounds you child makes, or make up sounds and see if you child can copy them Talk about the sounds animals make a nd crave your child to copy When you are out take a book as well as a toy with youEncourage your child to draw and relieve using pens, pencils, crayons, and markers Try and get them to write their name on all the art work they do Help them use play dough to make the letters of the first principle or numbers Visit the library with your child, let choose the books they would want to take home school day Aged Children (Literacy Development) Play words games that encourage children to learn sounds Talk about TV shows your child is watching, talk about the past, the future Take turns reading with your child Read stories then wonder the child about themEncourage your child to read the names of items at the supermarket Select a few alphabet letters and move them around to make new sounds-bat, tab, abt and ask them which words are real pack he/she to make you a book with a word on one side and a picture on the other Or let them write a grocery list or a restaurant menu just for play Sc hool Aged Children (Cognitive & Language Development) Learning to write letters and draw circles Identifying colors and drawing more complex people Knowing the difference between morning, noon and night The biggest thing for preschoolers is to PLAY.Playing is very important for their cognitive development. It promotes healthy brain development and helps children spend a penny confidence, begin to solve problems and work with others. These skills help them build leadership and group skills. REFERENCES Cognitive Development for School Aged Children- http//www. livestrong. com/article/541776-why-is-cognitive-development-important-in-preschool/ Literacy Development- http//raisingchildren. net. au/articles/activities_to_promote_literacy. html/context/1217 Cognitive Development for Infants & Toddlers- www. highreach. com

Financial Management Chapter 8 K

ey Chapter 8 Stocks and Their Valuation LEARNING OBJECTIVES After reading this chapter, students should be able to Identify rough of the more burning(prenominal) rights that come with crease ownership and define the avocation terms proxy, proxy fight, final paymentover, and preemptive right. Briefly exempt why classified air might be practiced by a corporation and what founders sh ars are. Differentiate between closely held and publicly owned corporations and list the three distinct types of gun threadbare market transactions. Determine the prise of a contri just nowion of common crease when (1) divid deaths are contained to rootage come in at some unvarying regularize, (2) dividends are search to remain unbroken, and (3) dividends are expect to grow at some super-normal, or non uniform, ontogeny rate. Calculate the expected rate of return on a constant emersion stock certificate. Apply the total social club (corporate look on) model to nurture a whol e in situations when the unanimous does not pay dividends or is privately held. explain why a stocks inhering value might differ between the total comp all model and the dividend ripening model. Explain the avocation terms equilibrium, marginal investor, and Efficient Markets Hypothesis (EMH) distinguish among the three levels of market efficiency briefly explain the implications of the EMH on financial decisions and discuss the results of empirical studies on market efficiency and the implication of behavioral pay on those results. Read and understand the stock market page given in the daily tonicspaper. Explain the reasons for investing in international stocks and identify the bets an investor is making when he does invest overseas. Define preferable stock, doctor the value of a share of preferred stock, or given its value, calculate its expected return. 1. LECTURE SUGGESTIONS This chapter provides important and useful information on common and preferred stocks. Moreov er, the valuation of stocks reinforces the concepts covered in both Chapters 6 and 7, so Chapter 8 extends and reinforces those chapters. We begin our lecture with a discussion of the characteristics of common stocks, after which we discuss how stocks are valued in the market and how stock tolls are reported in the press. We conclude the lecture with a discussion of preferred stocks.The details of what we cover, and the way we cover it, can be seen by scanning Blueprints Chapter 8. For some other suggestions about the lecture, please see the Lecture Suggestions in Chapter 2, where we describe how we conduct our classes. DAYS ON CHAPTER 3 OF 58 DAYS (50-minute degrees) doS TO END-OF-CHAPTER QUESTIONS 8-1True. The value of a share of stock is the PV of its expected future dividends. If the two investors expect the same future dividend stream, and they agree on the stocks riskiness, accordingly they should reach similar conclusions as to the stocks value. -2A perpetual bond is sim ilar to a no-growth stock and to a share of preferred stock in the pursuit ways 1. All three derive their value from a serial of cash in emanatescoupon payments from the perpetual bond, and dividends from both types of stock. 2. All three are assumed to have undefined lives with no maturity value (M) for the perpetual bond and no groovy gains consequence for the stocks. 8-3Yes. If a company decides to increase its payout ratio, then the dividend exit component give rise, but the expected semipermanent seat of government gains feed will reject. 8-4No. The correct equation has D1 in the numerator and a minus sign in the denominator. -5a. The average investor in a listed firm is not really interested in maintaining his proportionate share of ownership and control. If he wanted to increase his ownership, he could simply buy more stock on the open market. Consequently, about investors are not concerned with whether new shares are sold directly (at about market bells) or throu gh rights offerings. However, if a rights offering is macrocosm used to effect a stock split, or if it is being used to reduce the underwriting cost of an issue (by substantial underpricing), the preemptive right may well be beneficial to the firm and to its stockholders. . The preemptive right is cl primal important to the stockholders of closely held firms whose owners are interested in maintaining their relative control positions. SOLUTIONS TO END-OF-CHAPTER PROBLEMS 8-1D0 = $1. 50 g1-3 = 5% gn = 10% D1 through D5 = ? D1 = D0(1 + g1) = $1. 50(1. 05) = $1. 5750. D2 = D0(1 + g1)(1 + g2) = $1. 50(1. 05)2 = $1. 6538. D3 = D0(1 + g1)(1 + g2)(1 + g3) = $1. 50(1. 05)3 = $1. 7364. D4 = D0(1 + g1)(1 + g2)(1 + g3)(1 + gn) = $1. 50(1. 05)3(1. 10) = $1. 9101. D5 = D0(1 + g1)(1 + g2)(1 + g3)(1 + gn)2 = $1. 50(1. 05)3(1. 10)2 = $2. 1011. 8-2D1 = $0. 50 g = 7% ks = 15% pic = ? pic -3P0 = $20 D0 = $1. 00 g = 10% pic = ? ks = ? pic = P0(1 + g) = $20(1. 10) = $22. ks= pic + g = pic + 0. 10 = pic + 0. 10 = 15. 50%. ks = 15. 50%. 8-4Dp = $5. 00 Vp = $60 kp = ? kp = pic = pic = 8. 33%. 8-5a. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year 2. b. 0 1 2 3 1. 25 1. 50 1. 80 1. 89 37. 80 = pic The horizon, or terminal, value is the value at the horizon date of all dividends expected thereafter. In this problem it is reason as follows pic c. The firms intrinsic value is calculated as the sum of the move over value of all dividends during the supernormal growth blockage plus the present value of the terminal value. Using your financial calculator, write down the following arousals CF0 = 0, CF1 = 1. 50, CF2 = 1. 80 + 37. 80 = 39. 60, I = 10, and then solve for NPV = $34. 09. 6. The firms free cash shine is expected to grow at a constant rate, hence we can apply a constant growth code to determine the total value of the firm. Firm cherish = FCF1/(WACC g) Firm Value = $150,000,000/(0. 10 0. 05) Firm Value = $3,000,000,000.To disclose the value of an equity claim upon the company (share of stock), we must subtract out the market value of debt and preferred stock. This firm happens to be entirely equity funded, and this step is unnecessary. Hence, to begin the value of a share of stock, we divide equity value (or in this case, firm value) by the number of shares outstanding. lawfulness Value per share = Equity Value/Shares outstanding Equity Value per share = $3,000,000,000/50,000,000 Equity Value per share = $60. Each share of common stock is worth $60, according to the corporate valuation model. 8-7a. 0 1 2 3 4 3,000,000 6,000,000 10,000,000 15,000,000 Using a financial calculator, enter the following inputs CF0 = 0 CF1 = 3000000 CF2 = 6000000 CF3 = 10000000 CF4 = 15000000 I = 12 and then solve for NPV = $24,112,308. b. The firms terminal value is calculated as follows pic c. The firms total value is calculated as follows 0 1 2 3 4 5 3,000,000 6,000,000 10,000,000 15,000,0 00 16,050,000PV = ? 321,000,000 = pic Using your financial calculator, enter the following inputs CF0 = 0 CF1 = 3000000 CF2 = 6000000 CF3 = 10000000 CF4 = 15000000 + 321000000 = 336000000 I = 12 and then solve for NPV = $228,113,612. d. To summon Barretts stock outlay, you need to first find the value of its equity. The value of Barretts equity is equal to the value of the total firm less the market value of its debt and preferred stock. perfect firm value$228,113,612 Market value, debt + preferred 60,000,000 (given in problem) Market value of equity$168,113,612Barretts price per share is calculated as pic 8-8FCF = EBIT(1 T) + Depreciation pic (pic = $500,000,000 + $100,000,000 $200,000,000 $0 = $400,000,000. Firm value = pic = pic = pic = $10,000,000,000. This is the total firm value. direct find the market value of its equity. MV match= MVEquity + MVDebt $10,000,000,000= MVEquity + $3,000,000,000 MVEquity= $7,000,000,000. This is the market value of all the equity. Divide by the number of shares to find the price per share. $7,000,000,000/200,000,000 = $35. 00. 8-9a. Terminal value = pic = pic= $713. 33 million. . 0 1 2 3 4 -20 30 40 42. 80 ($ 17. 70) 23. 49 522. 10 753. 33 $527. 89 Using a financial calculator, enter the following inputs CF0 = 0 CF1 = -20 CF2 = 30 CF3 = 753. 33 I = 13 and then solve for NPV = $527. 89 million. c. Total valuet=0 = $527. 89 million. Value of common equity = $527. 89 $100 = $427. 89 million. Price per share = pic = $42. 79. 8-10The problem asks you to determine the value of pic, given the following facts D1 = $2, b = 0. 9, kRF = 5. %, RPM = 6%, and P0 = $25. Proceed as follows metre 1Calculate the required rate of return ks = kRF + (kM kRF)b = 5. 6% + (6%)0. 9 = 11%. Step 2Use the constant growth rate formula to calculate g pic Step 3Calculate pic pic = P0(1 + g)3 = $25(1. 03)3 = $27. 3182 ( $27. 32. Alternatively, you could calculate D4 and then use the constant growth rate formula to solve for pic D4 = D1(1 + g)3 = $2. 00(1. 03)3 = $2. 1855. pic = $2. 1855/(0. 11 0. 03) = $27. 3182 ( $27. 32. 8-11Vp = Dp/kp therefore, kp = Dp/Vp. a. kp = $8/$60 = 13. 3%. b. kp = $8/$80 = 10. 0%. c. p = $8/$100 = 8. 0%. d. kp = $8/$140 = 5. 7%. 8-12pic 8-13a. ki = kRF + (kM kRF)bi. kC = 9% + (13% 9%)0. 4 = 10. 6%. kD = 9% + (13% 9%)(-0. 5) = 7%. Note that kD is below the risk-free rate. But since this stock is same(p) an insurance policy because it pays off when something bad happens (the market falls), the low return is not unreasonable. b. In this situation, the expected rate of return is as follows pic = D1/P0 + g = $1. 50/$25 + 4% = 10%. However, the required rate of return is 10. 6 pct. Investors will seek to sell the stock, dropping its price to the following pic At this point, pic, and the stock will be in equilibrium. 8-14Calculate the dividend cash flows and place them on a time line. Also, calculate the stock price at the end of the supernormal growth period, and include it, along with th e dividend to be paid at t = 5, as CF5. Then, enter the cash flows as shown on the time line into the cash flow register, enter the required rate of return as I = 15, and then find the value of the stock using the NPV calculation. Be sure to enter CF0 = 0, or else your answer will be incorrect. D0 = 0 D1 = 0 D2 = 0 D3 = 1. 0 D4 = 1. 00(1. 5) = 1. 5 D5 = 1. 00(1. 5)2 = 2. 25 D6 = 1. 00(1. 5)2(1. 08) = $2. 43. pic = ? 0 1 2 3 4 5 6 1. 00 1. 50 2. 25 2. 43 0. 658 +34. 71 = 0. 858 18. 378 36. 96 $19. 894 = pic pic = D6/(pic g) = $2. 43/(0. 15 0. 08) = $34. 71. This is the stock price at the end of Year 5.CF0 = 0 CF1-2 = 0 CF3 = 1. 0 CF4 = 1. 5 CF5 = 36. 96 I = 15%. With these cash flows in the CFLO register, press NPV to get the value of the stock straight off NPV = $19. 89. 8-15a. The preferred stock pays $8 annually in dividends. Therefore, its nominal rate of return would be Nominal rate of return = $8/$80 = 10%. Or alternatively, you could determine the securitys periodic return and multiply by 4. Periodic rate of return = $2/$80 = 2. 5%. Nominal rate of return = 2. 5% ( 4 = 10%. b. EAR = (1 + NOM/4)4 1 EAR = (1 + 0. 10/4)4 1 EAR = 0. 103813 = 10. 3813%. -16The value of any asset is the present value of all future cash flows expected to be generated from the asset. Hence, if we can find the present value of the dividends during the period preceding long-run constant growth and subtract that total from the ongoing stock price, the remaining value would be the present value of the cash flows to be received during the period of long-run constant growth. D1 = $2. 00 ( (1. 25)1 = $2. 50PV(D1) = $2. 50/(1. 12)1= $2. 2321 D2 = $2. 00 ( (1. 25)2 = $3. 125PV(D2) = $3. 125/(1. 12)2= $2. 4913 D3 = $2. 00 ( (1. 25)3 = $3. 90625PV(D3) = $3. 0625/(1. 12)3= $2. 7804 ( PV(D1 to D3)= $7. 5038 Therefore, the PV of the remaining dividends is $58. 8800 $7. 5038 = $51. 3762. Compounding this value forward to Year 3, we find that the value of all dividends received du ring constant growth is $72. 18. $51. 3762(1. 12)3 = $72. 18. Applying the constant growth formula, we can solve for the constant growth rate pic= D3(1 + g)/(ks g) $72. 1807= $3. 90625(1 + g)/(0. 12 g) $8. 6616 $72. 18g= $3. 90625 + $3. 90625g $4. 7554= $76. 08625g 0. 0625= g 6. 25%= g. 8-17First, solve for the current price. P0 = D1/(ks g) P0 = $0. 50/(0. 2 0. 07) P0 = $10. 00. If the stock is in a constant growth state, the constant dividend growth rate is also the capital gains yield for the stock and the stock price growth rate. Hence, to find the price of the stock four years from today pic = P0(1 + g)4 pic = $10. 00(1. 07)4 pic = $13. 10796 ? $13. 11. pic 8-18a. pic b. pic 8-19 0 1 2 3 4 D0 = 2. 00 D1 D2 D3 D4 g = 5% pic a. D1 = $2(1. 05) = $2. 10 D2 = $2(1. 05)2 = $2. 21 D3 = $2(1. 5)3 = $2. 32. b. pecuniary calculator Solution Input 0, 2. 10, 2. 21, and 2. 32 into the cash flow register, input I = 12, PV = ? PV = $5. 29. c. monetary Calculator Solution Input 0, 0, 0, and 34. 73 into the cash flow register, I = 12, PV = ? PV = $24. 72. d. $24. 72 + $5. 29 = $30. 01 = Maximum price you should pay for the stock. e. pic f. No. The value of the stock is not dependent upon the holding period. The value calculated in Parts a through d is the value for a 3-year holding period. It is equal to the value calculated in Part e except for a small rounding error.Any other holding period would produce the same value of pic that is, pic = $30. 00. 8-20a. 1. pic 2. pic = $2/0. 15 = $13. 33. 3. pic 4. pic b. 1. pic = $2. 30/0 = Undefined. 2. pic = $2. 40/(-0. 05) = -$48, which is nonsense. These results show that the formula does not make sense if the required rate of return is equal to or less than the expected growth rate. c. No. 8-21The answer depends on when one works the problem. We used the February 3, 2003, issue of The Wall bridle-path Journal a. $16. 81 to $36. 72. b. Current dividend = $0. 75. Dividend yield = $0. 75/$19. 8 ( 3. 9%. You might wan t to use ($0. 75)(1 + g)/$19. 48, with g estimated somehow. c. The $19. 48 close was up $0. 98 from the previous days close. d. The return on the stock consists of a dividend yield of about 3. 9 percent plus some capital gains yield. We would expect the total rate of return on stock to be in the 10 to 12 percent range. 8-22a. End of Year 02 03 04 05 06 07 08 D0 = 1. 75 D1 D2 D3 D4 D5 D6 Dt= D0(1 + g)t D2003= $1. 75(1. 15)1 = $2. 01. D2004= $1. 5(1. 15)2 = $1. 75(1. 3225) = $2. 31. D2005= $1. 75(1. 15)3 = $1. 75(1. 5209) = $2. 66. D2006= $1. 75(1. 15)4 = $1. 75(1. 7490) = $3. 06. D2007= $1. 75(1. 15)5 = $1. 75(2. 0114) = $3. 52. b. Step 1 PV of dividends = pic. PV D2003 = $2. 01/(1. 12)= $1. 79 PV D2004 = $2. 31/(1. 12)2= $1. 84 PV D2005 = $2. 66/(1. 12)3= $1. 89 PV D2006 = $3. 06/(1. 12)4= $1. 94 PV D2007 = $3. 52/(1. 12)5= $2. 00 PV of dividends= $9. 46 Step 2 pic This is the price of the stock 5 years from now. The PV of this price, discounted blanket 5 years, is as follow s PV of pic = $52. 80/(1. 12)5 = $29. 6. Step 3 The price of the stock today is as follows pic= PV dividends years 2003-2007 + PV of pic = $9. 46 + $29. 96 = $39. 42. This problem could also be solved by substituting the proper values into the following equation pic. Calculator dissolver Input 0, 2. 01, 2. 31, 2. 66, 3. 06, 56. 32 (3. 52 + 52. 80) into the cash flow register, input I = 12, PV = ? PV = $39. 43. c. 2003 D1/P0 = $2. 01/$39. 43= 5. 10% Capital gains yield= 6. 90* Expected total return= 12. 00% 2008 D6/P5 = $3. 70/$52. 80= 7. 00% Capital gains yield= 5. 00 Expected total return= 12. 00% We know that ks is 12 percent, and the dividend yield is 5. 10 percent therefore, the capital gains yield must be 6. 90 percent. The main points to note here are as follows 1. The total yield is always 12 percent (except for rounding errors). 2. The capital gains yield starts comparatively high, then declines as the supernormal growth period approaches its end. The dividend yield rises. 3. After 12/31/07, the stock will grow at a 5 percent rate. The dividend yield will equal 7 percent, the capital gains yield will equal 5 percent, and the total return will be 12 percent. d.People in high income tax brackets will be more inclined to purchase growth stocks to take the capital gains and thus delay the payment of taxes until a later date. The firms stock is fester at the end of 2007. e. Since the firms supernormal and normal growth rates are lower, the dividends and, hence, the present value of the stock price will be lower. The total return from the stock will becalm be 12 percent, but the dividend yield will be larger and the capital gains yield will be smaller than they were with the original growth rates. This result occurs because we assume the same last dividend but a much lower current stock price. . As the required return increases, the price of the stock goes down, but both the capital gains and dividend yields increase initially. Of course, the long-term c apital gains yield is still 4 percent, so the long-term dividend yield is 10 percent. 8-23a. Part 1 Graphical representation of the problem Supernormal Normal growth growth 0 1 2 3 ( D0 D1 (D2 + pic) D3 D( PVD1PVD2 pic P0 D1 = D0(1 + gs) = $1. 6(1. 20) = $1. 92. D2 = D0(1 + gs)2 = $1. 60(1. 20)2 = $2. 304. pic pic= PV(D1) + PV(D2) + PV(pic) = pic = $1. 92/1. 10 + $2. 304/(1. 10)2 + $61. 06/(1. 10)2 = $54. 11. Financial Calculator solution Input 0, 1. 92, 63. 364(2. 304 + 61. 06) into the cash flow register, input I = 10, PV = ? PV = $54. 11. Part 2 Expected dividend yield D1/P0 = $1. 92/$54. 11 = 3. 55%. Capital gains yield First, find pic, which equals the sum of the present values of D2 and pic discounted for one year. pic Financial Calculator solution Input 0, 63. 364(2. 304 + 61. 6) into the cash flow register, input I = 10, PV = ? PV = $57. 60. Second, find the capital gains yield pic Dividend yield = 3. 55% Capital gains yield = 6. 45 10. 00% = ks. b. Due to the longer p eriod of supernormal growth, the value of the stock will be higher for each year. Although the total return will remain the same, ks = 10%, the distribution between dividend yield and capital gains yield will differ The dividend yield will start off lower and the capital gains yield will start off higher for the 5-year supernormal growth condition, relative to the 2-year supernormal growth state.The dividend yield will increase and the capital gains yield will decline over the 5-year period until dividend yield = 4% and capital gains yield = 6%. c. Throughout the supernormal growth period, the total yield will be 10 percent, but the dividend yield is relatively low during the early years of the supernormal growth period and the capital gains yield is relatively high. As we near the end of the supernormal growth period, the capital gains yield declines and the dividend yield rises. After the supernormal growth period has ended, the capital gains yield will equal gn = 6%.The total yie ld must equal ks = 10%, so the dividend yield must equal 10% 6% = 4%. d. Some investors need cash dividends (retired people), bit others would prefer growth. Also, investors must pay taxes each year on the dividends received during the year, while taxes on capital gains can be delayed until the gain is actually realized. 8-24a. ks = kRF + (kM kRF)b = 11% + (14% 11%)1. 5 = 15. 5%. pic = D1/(ks g) = $2. 25/(0. 155 0. 05) = $21. 43. b. ks = 9% + (12% 9%)1. 5 = 13. 5%. pic = $2. 25/(0. 135 0. 05) = $26. 47. c. ks = 9% + (11% 9%)1. 5 = 12. 0%. pic = $2. 25/(0. 12 0. 5) = $32. 14. d. New data given kRF = 9% kM = 11% g = 6%, b = 1. 3. ks = kRF + (kM kRF)b = 9% + (11% 9%)1. 3 = 11. 6%. pic = D1/(ks g) = $2. 27/(0. 116 0. 06) = $40. 54. 8-25a. Old ks = kRF + (kM kRF)b = 9% + (3%)1. 2 = 12. 6%. New ks = 9% + (3%)0. 9 = 11. 7%. Old price pic New price pic Since the new price is lower than the old price, the expansion in consumer products should be rejected. The decrease in risk is not sufficient to offset the decline in profitability and the reduced growth rate. b. POld = $38. 21. PNew = pic. Solving for ks we have the following $38. 1= pic $2. 10= $38. 21(ks) $1. 9105 $4. 0105= $38. 21(ks) ks= 0. 10496. Solving for b 10. 496% = 9% + 3%(b) 1. 496% = 3%(b) b = 0. 49865. Check ks = 9% + (3%)0. 49865 = 10. 496%. pic = pic = $38. 21. Therefore, only if managements analysis concludes that risk can be lowered to b = 0. 49865, or approximately 0. 5, should the new policy be put into effect. SPREADSHEET PROBLEM 8-26The detailed solution for the spreadsheet problem is operable both on the instructors resource CD-ROM and on the instructors slope of South-Westerns web site, http//brigham. swlearning. com. INTEG commitD CASEMutual of Chicago Insurance Company Stock Valuation 8-27ROBERT BALIK AND CAROL KIEFER ar SENIOR VICE-PRESIDENTS OF THE MUTUAL OF CHICAGO INSURANCE COMPANY. THEY ARE CO-DIRECTORS OF THE COMPANYS PENSION FUND way DIVISION, WITH BALIK HAVING RESP ONSIBILITY FOR FIXED INCOME SECURITIES (PRIMARILY BONDS) AND KIEFER BEING RESPONSIBLE FOR EQUITY INVESTMENTS. A MAJOR NEW CLIENT, THE CALIFORNIA alliance OF CITIES, HAS REQUESTED THAT MUTUAL OF CHICAGO PRESENT AN INVESTMENT SEMINAR TO THE MAYORS OF THE REPRESENTED CITIES, AND BALIK AND KIEFER, WHO WILL MAKE THE ACTUAL PRESENTATION, return ASKED YOU TO HELP THEM.TO ILLUSTRATE THE COMMON billet VALUATION PROCESS, BALIK AND KIEFER HAVE ASKED YOU TO ANALYZE THE BON TEMPS COMPANY, AN usageMENT AGENCY THAT SUPPLIES banter PROCESSOR OPERATORS AND COMPUTER PROGRAMMERS TO BUSINESSES WITH TEMPORARILY HEAVY WORKLOADS. YOU ARE TO dress THE next QUESTIONS. A. DESCRIBE BRIEFLY THE juristic RIGHTS AND PRIVILEGES OF COMMON telephone lineHOLDERS. ANSWERSHOW S8-1 THROUGH S8-5 present. THE COMMON STOCKHOLDERS ARE THE OWNERS OF A CORPORATION, AND AS SUCH THEY HAVE original RIGHTS AND PRIVILEGES AS DESCRIBED BELOW. 1. OWNERSHIP IMPLIES CONTROL.THUS, A FIRMS COMMON STOCKHOLDERS HAVE THE RIGHT TO elite ITS FIRMS DIRECTORS, WHO IN TURN ELECT THE OFFICERS WHO MANAGE THE BUSINESS. 2. COMMON STOCKHOLDERS OFTEN HAVE THE RIGHT, CALLED THE pre-emptive RIGHT, TO PURCHASE ANY ADDITIONAL tractS SOLD BY THE FIRM. IN SOME STATES, THE PREEMPTIVE RIGHT IS automatically INCLUDED IN EVERY CORPORATE CHARTER IN OTHERS, IT IS NECESSARY TO INSERT IT SPECIFICALLY INTO THE CHARTER. B. 1. frame show up A sourULA THAT do-nothing BE USED TO look on ANY STOCK, REGARDLESS OF ITS DIVIDEND PATTERN. ANSWERSHOW S8-6 HERE. THE VALUE OF ANY STOCK IS THE PRESENT VALUE OF ITS evaluate DIVIDEND swarm pic = picHOWEVER, SOME STOCKS HAVE DIVIDEND result PATTERNS THAT ALLOW THEM TO BE VALUED USING SHORT-CUT FORMULAS. B. 2. WHAT IS A aeonian harvest-home STOCK? HOW ARE ceaseless evolution STOCKS VALUED? ANSWERSHOW S8-7 AND S8-8 HERE. A unending GROWTH STOCK IS ace WHOSE DIVIDENDS ARE pass judgment TO GROW AT A eonian RATE always. CONSTANT GROWTH MEANS THAT THE BEST work out OF THE FUTURE GROWTH RATE IS SOME CONSTANT NUMBER, NOT THAT WE REALLY EXPECT GROWTH TO BE THE SAME EACH AND EVERY stratum. MANY COMPANIES HAVE DIVIDENDS THAT ARE expect TO GROW STEADILY INTO THE predictable FUTURE, AND SUCH COMPANIES ARE VALUED AS CONSTANT GROWTH STOCKS.FOR A CONSTANT GROWTH STOCK D1 = D0(1 + g), D2 = D1(1 + g) = D0(1 + g)2, AND SO ON. WITH THIS REGULAR DIVIDEND PATTERN, THE GENERAL STOCK VALUATION MODEL CAN BE SIMPLIFIED TO THE FOLLOWING VERY IMPORTANT EQUATION pic = pic = pic. THIS IS THE WELL-KNOWN GORDON, OR CONSTANT-GROWTH MODEL FOR VALUING STOCKS. HERE D1 IS THE NEXT EXPECTED DIVIDEND, WHICH IS false TO BE PAID 1 YEAR FROM NOW, kS IS THE REQUIRED RATE OF render ON THE STOCK, AND g IS THE CONSTANT GROWTH RATE. B. 3. WHAT HAPPENS IF A COMPANY HAS A CONSTANT g THAT EXCEEDS ITS ks? WILL MANY STOCKS HAVE EXPECTED g ks IN THE SHORT RUN (THAT IS, FOR THE NEXT FEW YEARS)?IN THE LONG RUN (THAT IS, FOREVER)? ANSWERSHOW S8-9 HERE. THE MODEL IS DERIVED MATHEMATICALLY, AND THE DE RIVATION REQUIRES THAT ks g. IF g IS GREATER THAN ks, THE MODEL GIVES A NEGATIVE STOCK expenditure, WHICH IS NONSENSICAL. THE MODEL just now CANNOT BE USED UNLESS (1) ks g, (2) g IS EXPECTED TO BE CONSTANT, AND (3) g CAN REASONABLY BE EXPECTED TO CONTINUE INDEFINITELY. STOCKS MAY HAVE PERIODS OF supranormal GROWTH, WHERE gS ks HOWEVER, THIS GROWTH RATE CANNOT BE SUSTAINED INDEFINITELY. IN THE LONG-RUN, g ks. C. ASSUME THAT BON TEMPS HAS A BETA COEFFICIENT OF 1. , THAT THE RISK-FREE RATE (THE recall ON T-BONDS) IS 7 share, AND THAT THE REQUIRED RATE OF overstep ON THE MARKET IS 12 PERCENT. WHAT IS THE REQUIRED RATE OF RETURN ON THE FIRMS STOCK? ANSWERSHOW S8-10 HERE. HERE WE USE THE SML TO CALCULATE BON TEMPS REQUIRED RATE OF RETURN ks= kRF + (kM kRF)bBon Temps = 7% + (12% 7%)(1. 2) = 7% + (5%)(1. 2) = 7% + 6% = 13%. D. ASSUME THAT BON TEMPS IS A CONSTANT GROWTH COMPANY WHOSE stand up DIVIDEND (D0, WHICH WAS PAID YESTERDAY) WAS $2. 00 AND WHOSE DIVIDEND IS EXPECTED TO G ROW INDEFINITELY AT A 6 PERCENT RATE. 1.WHAT IS THE FIRMS EXPECTED DIVIDEND STREAM OVER THE NEXT 3 YEARS? ANSWERSHOW S8-11 HERE. BON TEMPS IS A CONSTANT GROWTH STOCK, AND ITS DIVIDEND IS EXPECTED TO GROW AT A CONSTANT RATE OF 6 PERCENT PER YEAR. EXPRESSED AS A TIME LINE, WE HAVE THE FOLLOWING SETUP. JUST ENTER 2 IN YOUR CALCULATOR indeed KEEP MULTIPLYING BY 1 + g = 1. 06 TO GET D1, D2, AND D3 0 1 2 3 D0 = 2. 00 2. 12 2. 247 2. 382 1. 88 1. 76 1. 65 . . . D. 2. WHAT IS THE FIRMS CURRENT STOCK terms? ANSWERSHOW S8-12 HERE. WE COULD tend THE TIME LINE ON OUT FOREVER, FIND THE VALUE OF BON TEMPS DIVIDENDS FOR EVERY YEAR ON OUT INTO THE FUTURE, AND THEN THE PV OF EACH DIVIDEND DISCOUNTED AT k = 13%. FOR EXAMPLE, THE PV OF D1 IS $1. 8761 THE PV OF D2 IS $1. 7599 AND SO FORTH. NOTE THAT THE DIVIDEND PAYMENTS INCREASE WITH TIME, BUT AS LONG AS ks g, THE PRESENT VALUES DECREASE WITH TIME. IF WE EXTENDED THE GRAPH ON OUT FOREVER AND THEN SUMMED THE PVs OF THE DIVIDENDS, WE WOULD HAVE THE VALUE OF THE STOCK. HOWEVER, SINCE THE STOCK IS GROWING AT A CONSTANT RATE, ITS VALUE CAN BE ESTIMATED USING THE CONSTANT GROWTH MODEL pic = pic = pic = pic = $30. 29. D. 3. WHAT IS THE STOCKS EXPECTED VALUE hotshot YEAR FROM NOW? ANSWERSHOW S8-13 HERE. AFTER ONE YEAR, D1 WILL HAVE BEEN PAID, SO THE EXPECTED DIVIDEND STREAM WILL THEN BE D2, D3, D4, AND SO ON. THUS, THE EXPECTED VALUE ONE YEAR FROM NOW IS $32. 10 pic = pic = pic = pic = $32. 10. D. 4. WHAT ARE THE EXPECTED DIVIDEND outturn, THE neat GAINS abide, AND THE TOTAL RETURN DURING THE FIRST YEAR? ANSWERSHOW S8-14 HERE. THE EXPECTED DIVIDEND give in IN ANY YEAR n IS DIVIDEND dampen = pic, WHILE THE EXPECTED bang-up GAINS throw ISCAPITAL GAINS give way = pic = k pic. THUS, THE DIVIDEND YIELD IN THE FIRST YEAR IS 7 PERCENT, WHILE THE CAPITAL GAINS YIELD IS 6 PERCENT TOTAL RETURN = 13. 0% DIVIDEND YIELD = $2. 12/$30. 29 = 7. 0% CAPITAL GAINS YIELD = 6. 0% E. NOW ASSUME THAT THE STOCK IS CURRENTLY SELLING AT $30. 29. WHAT IS THE EXPECTED RATE OF RETURN ON THE STOCK? ANSWERTHE CONSTANT GROWTH MODEL CAN BE REARRANGED TO THIS FORM pic = pic. HERE THE CURRENT PRICE OF THE STOCK IS KNOWN, AND WE SOLVE FOR THE EXPECTED RETURN. FOR BON TEMPS pic = $2. 12/$30. 29 + 0. 060 = 0. 070 + 0. 060 = 13%. F. WHAT WOULD THE STOCK PRICE BE IF ITS DIVIDENDS WERE EXPECTED TO HAVE ZERO GROWTH? ANSWERSHOW S8-15 HERE. IF BON TEMPS DIVIDENDS WERE NOT EXPECTED TO GROW AT ALL, THEN ITS DIVIDEND STREAM WOULD BE A PERPETUITY. PERPETUITIES ARE VALUED AS SHOWN BELOW 0 1 2 3 2. 00 2. 00 2. 00 1. 77 1. 57 1. 39 . . . P0 = 15. 38 P0 = D/kS = $2. 00/0. 13 = $15. 38. NOTE THAT IF A PREFERRED STOCK IS A PERPETUITY, IT MAY BE VALUED WITH THIS FORMULA. G.NOW ASSUME THAT BON TEMPS IS EXPECTED TO pass SUPERNORMAL GROWTH OF 30 PERCENT FOR THE NEXT 3 YEARS, THEN TO RETURN TO ITS LONG-RUN CONSTANT GROWTH RATE OF 6 PERCENT. WHAT IS THE STOCKS VALUE UNDER THESE CONDITIONS? WHAT IS ITS EXPECTED DIVIDEND YIELD AND CAPITAL GAINS YIE LD IN YEAR 1? YEAR 4? ANSWERSHOW S8-16 THROUGH S8-18 HERE. BON TEMPS IS NO LONGER A CONSTANT GROWTH STOCK, SO THE CONSTANT GROWTH MODEL IS NOT APPLICABLE. NOTE, HOWEVER, THAT THE STOCK IS EXPECTED TO extend A CONSTANT GROWTH STOCK IN 3 YEARS. THUS, IT HAS A NONCONSTANT GROWTH PERIOD FOLLOWED BY CONSTANT GROWTH.THE EASIEST WAY TO VALUE SUCH NONCONSTANT GROWTH STOCKS IS TO SET THE SITUATION UP ON A TIME LINE AS SHOWN BELOW 0 1 2 3 4 2. 600 3. 380 4. 394 4. 65764 2. 301 2. 647 3. 045 46. 114 54. 107 exclusively ENTER $2 AND MULTIPLY BY (1. 30) TO GET D1 = $2. 60 MULTIPLY THAT RESULT BY 1. 3 TO GET D2 = $3. 38, AND SO FORTH. THEN RECOGNIZE THAT AFTER YEAR 3, BON TEMPS BECOMES A CONSTANT GROWTH STOCK, AND AT THAT POINT pic CAN BE FOUND USING THE CONSTANT GROWTH MODEL. pic IS THE PRESENT VALUE AS OF t = 3 OF THE DIVIDENDS IN YEAR 4 AND BEYOND AND IS ALSO CALLED THE TERMINAL VALUE. WITH THE CASH fuseS FOR D1, D2, D3, AND pic SHOWN ON THE TIME LINE, WE DISCOUNT EACH VALUE BACK TO Y EAR 0, AND THE SUM OF THESE FOUR PVs IS THE VALUE OF THE STOCK TODAY, P0 = $54. 107. THE DIVIDEND YIELD IN YEAR 1 IS 4. 80 PERCENT, AND THE CAPITAL GAINS YIELD IS 8. 2 PERCENT DIVIDEND YIELD = pic = 0. 0480 = 4. 8%. CAPITAL GAINS YIELD = 13. 00% 4. 8% = 8. 2%. DURING THE NONCONSTANT GROWTH PERIOD, THE DIVIDEND YIELDS AND CAPITAL GAINS YIELDS ARE NOT CONSTANT, AND THE CAPITAL GAINS YIELD DOES NOT EQUAL g.HOWEVER, AFTER YEAR 3, THE STOCK BECOMES A CONSTANT GROWTH STOCK, WITH g = CAPITAL GAINS YIELD = 6. 0% AND DIVIDEND YIELD = 13. 0% 6. 0% = 7. 0%. H. SUPPOSE BON TEMPS IS EXPECTED TO EXPERIENCE ZERO GROWTH DURING THE FIRST 3 YEARS AND THEN TO RESUME ITS STEADY-STATE GROWTH OF 6 PERCENT IN THE FOURTH YEAR. WHAT IS THE STOCKS VALUE NOW? WHAT IS ITS EXPECTED DIVIDEND YIELD AND ITS CAPITAL GAINS YIELD IN YEAR 1? YEAR 4? ANSWERSHOW S8-19 AND S8-20 HERE. NOW WE HAVE THIS SITUATION 0 1 2 3 4 2. 00 2. 0 2. 00 2. 00 2. 12 1. 77 1. 57 1. 39 20. 99 25. 72 = pic DURING YEAR 1 DIVIDEND YIE LD = pic = 0. 0778 = 7. 78%. CAPITAL GAINS YIELD = 13. 00% 7. 78% = 5. 22%. AGAIN, IN YEAR 4 BON TEMPS BECOMES A CONSTANT GROWTH STOCK HENCE g = CAPITAL GAINS YIELD = 6. 0% AND DIVIDEND YIELD = 7. 0%. I. FINALLY, ASSUME THAT BON TEMPS EARNINGS AND DIVIDENDS ARE EXPECTED TO DECLINE BY A CONSTANT 6 PERCENT PER YEAR, THAT IS, g = -6%. WHY WOULD ANYONE BE WILLING TO BUY SUCH A STOCK, AND AT WHAT PRICE SHOULD IT SELL? WHAT WOULD BE THE DIVIDEND YIELD AND CAPITAL GAINS YIELD IN EACH YEAR?ANSWERSHOW S8-21 AND S8-22 HERE. THE COMPANY IS EARNING SOMETHING AND PAYING SOME DIVIDENDS, SO IT CLEARLY HAS A VALUE GREATER THAN ZERO. THAT VALUE CAN BE FOUND WITH THE CONSTANT GROWTH FORMULA, BUT WHERE g IS NEGATIVE pic = pic = pic = pic = pic = $9. 89. SINCE IT IS A CONSTANT GROWTH STOCK g = CAPITAL GAINS YIELD = -6. 0%, HENCE DIVIDEND YIELD = 13. 0% (-6. 0%) = 19. 0%. AS A CHECK DIVIDEND YIELD = pic = 0. 190 = 19. 0%. THE DIVIDEND AND CAPITAL GAINS YIELDS ARE CONSTANT OVER TIME, BUT A HIGH (19. 0 PERCENT) DIVIDEND YIELD IS NEEDED TO OFFSET THE NEGATIVE CAPITAL GAINS YIELD.J. BON TEMPS EMBARKS ON AN AGGRESSIVE EXPANSION THAT REQUIRES ADDITIONAL CAPITAL. MANAGEMENT DECIDES TO FINANCE THE EXPANSION BY BORROWING $40 MILLION AND BY HALTING DIVIDEND PAYMENTS TO INCREASE RETAINED EARNINGS. THE PROJECTED FREE CASH FLOWS FOR THE NEXT triad YEARS ARE -$5 MILLION, $10 MILLION, AND $20 MILLION. AFTER THE THIRD YEAR, FREE CASH FLOW IS PROJECTED TO GROW AT A CONSTANT 6 PERCENT. THE OVERALL COST OF CAPITAL IS 10 PERCENT. WHAT IS BON TEMPS TOTAL VALUE? IF IT HAS 10 MILLION SHARES OF STOCK AND $40 MILLION TOTAL DEBT, WHAT IS THE PRICE PER SHARE? ANSWERSHOW S8-23 THROUGH S8-28 HERE. 0 1 2 3 4 -5 10 20 21. 20 $ -4. 545 8. 264 15. 026 398. 197 $416. 942 = TOTAL VALUE VALUE OF EQUITY = TOTAL VALUE DEBT = $416. 94 $40 = $376. 94 MILLION. PRICE PER SHARE = $376. 94/10 = $37. 69. K. WHAT DOES MARKET EQUILIBRIUM MEAN? ANSWERSHOW S8-29 AND S8-30 HERE. EQUILIBRIUM MEANS STABLE, NO TENDENCY T O CHANGE. MARKET EQUILIBRIUM MEANS THAT PRICES ARE STABLEAT ITS CURRENT PRICE, THERE IS NO GENERAL TENDENCY FOR PEOPLE TO WANT TO BUY OR TO SELL A SECURITY THAT IS IN EQUILIBRIUM.ALSO, WHEN EQUILIBRIUM EXISTS, THE EXPECTED RATE OF RETURN WILL BE EQUAL TO THE REQUIRED RATE OF RETURN pic = D1/P0 + g = k = kRF + (kM kRF)b. L. IF EQUILIBRIUM DOES NOT EXIST, HOW WILL IT BE ESTABLISHED? ANSWERSHOW S8-31 AND S8-32 HERE. SECURITIES WILL BE BOUGHT AND SOLD UNTIL THE EQUILIBRIUM PRICE IS ESTABLISHED. M. WHAT IS THE EFFICIENT MARKETS HYPOTHESIS, WHAT ARE ITS THREE FORMS, AND WHAT ARE ITS IMPLICATIONS? ANSWERSHOW S8-33 THROUGH S8-37 HERE. THE EMH IN GENERAL IS THE HYPOTHESIS THAT SECURITIES ARE NORMALLY IN EQUILIBRIUM AND ARE PRICED FAIRLY, MAKING IT IMPOSSIBLE TO lave THE MARKET. WEAK-FORM EFFICIENCY SAYS THAT INVESTORS CANNOT PROFIT FROM LOOKING AT PAST MOVEMENTS IN STOCK PRICESTHE FACT THAT STOCKS WENT DOWN FOR THE hold out FEW DAYS IS NO REASON TO THINK THAT THEY WILL GO UP (OR DOWN) I N THE FUTURE. THIS FORM HAS BEEN PROVEN PRETTY WELL BY EMPIRICAL TESTS, EVEN THOUGH PEOPLE STILL EMPLOY TECHNICAL ANALYSIS. SEMISTRONG-FORM EFFICIENCY SAYS THAT ALL PUBLICLY AVAILABLE INFORMATION IS REFLECTED IN STOCK PRICES, HENCE THAT IT winT DO MUCH GOOD TO PORE OVER yearly REPORTS TRYING TO FIND UNDERVALUED STOCKS.THIS ONE IS (WE THINK) LARGELY TRUE, BUT SUPERIOR ANALYSTS CAN STILL OBTAIN AND PROCESS NEW INFORMATION disruptive ENOUGH TO GAIN A SMALL ADVANTAGE. STRONG-FORM EFFICIENCY SAYS THAT ALL INFORMATION, EVEN INSIDE INFORMATION, IS EMBEDDED IN STOCK PRICES. THIS FORM DOES NOT HOLDINSIDERS KNOW MORE, AND COULD TAKE ADVANTAGE OF THAT INFORMATION TO MAKE unnatural PROFITS IN THE MARKETS. TRADING ON THE BASIS OF INSIDER INFORMATION IS ILLEGAL. N. PHYFE COMPANY RECENTLY ISSUED PREFERRED STOCK. IT PAYS AN ANNUAL DIVIDEND OF $5, AND THE ISSUE PRICE WAS $50 PER SHARE. WHAT IS THE EXPECTED RETURN TO AN INVESTOR ON THIS PREFERRED STOCK?ANSWERSHOW S8-38 AND S8-39 HERE. pic= pic = pic = 10%. ks = 15% gn = 6% ( 1/(1. 15)3 ( 1/(1. 13)3 ( 1/(1. 13)2 ( 1/1. 13 gs = 50% gn = 8% pic ks = 12% gs = 15% gn = 5% WACC = 10% pic = 30. 29 = pic g = 0% g = 0% g = 0% gn = 6% ks = 13% pic = $66. 54 = pic gs = 30% gs = 30% gs = 30% gn = 6% ks = 13% g = 0% ks = 13% g = 6% ks = 13% ks = 10% gs = 20% gs = 20% gn = 5% WACC = 12% WACC = 12% gn = 7% pic WACC = 13% gn = 7% 530 = pic ( 1/(1. 15)4 ( 1/(1. 15)5 ks = 12% ( 1/1. 13 ( 1/(1. 13)2 ( 1/(1. 13)3 ( 1/(1. 13)2 ( 1/(1. 13)2 ( 1/1. 13 ( 1/(1. 13)2 ( 1/(1. 13)3 ( 1/(1. 13)3 ( 1/1. 13 ( 1/1. 13 (%89