Capital Structure Essay Example | Topics and Well Written Essays - 1500 words

Capital Structure - Essay Example 1963. 441-442). Many theorists didn't like their theorems but finally did find evidence in their applicability in many cases. Stiglitz (1969. pp784) however emphasized that the theorem was framed with some limitations in mind pertaining to existence & distribution of risk classes, competitiveness in the markets and clarity of effect of bankruptcy on the validity of the theorem. Stiglitz (1969. pp789) proved that under given risk classes the primary objective of firm management is to maximize firm value and hence they shall tend to choose the most appropriate capital structure that can achieve maximum value of the firm given certain implying factors that vary from firm to firm. But what could be such implying factors Let us focus on another empirical generalization established by Borch (1969. pp6-7) regarding conflict of interest in firm capital structure. If an organization has started with a capital and have achieved value addition over the capital, the shareholders will expect divi dend payments from the value addition. Payment of dividends to shareholders will conflict with the interest of creditors as the latter would like to continue with long term interest payments. Hence, the creditors will tend to establish certain terms of agreement that indirectly impacts the dividend policy of the management thus affecting the capital structure of the organization as non-payment of dividends may end up reducing shareholder interest and hence can reduce equity financing. Another factor that affects the Capital Structure is the rate regulation by regulatory commissions. Spiegal and Spulber (1994. pp424-425) proved that rate regulations generates an incentive for the regulated firms to increase their debt levels. Thus regulated firms tend to have high leverages than unregulated firms. Chaganti & Damanpour (1991. pp488-490) and Brav (2009. pp265) argued that the firm's ownership determines capital structure to a large extent. Institutional investors or managers tend to reduce debt to equity ratio whereas shareholders that are "sensitive" to changes in performance tend to increase debt to equity ratio. This may be described using agency theory that the owners willing to take higher risks to maximize shareholder value will tend to reduce leverage while the owners willing to take lesser risks to maximize shareholder value will tend to increase leverage. Balakrishnan and Fox (1993. pp7-8) related firm Capital structure with asset specificity in which the investments are made. They argued that the firm's leverage would be positively related to investments in tangible assets or redeployment of existing assets but would be negatively related to investments in intangible assets. For example, a firm investing heavily in R&D will be more inclined towards equity finance because the outcome of R&D is normally intangible assets that do not form promising collaterals for debt

Reconstruction and Race Relations Paper Research

Reconstruction and Race Relations - Research Paper Example Another law was also passed which is the Disenfranchisement Law that deprived Afro Americans of their right to vote. The passage of the segregation law and disenfranchisement law meant the white and the black cannot be together on public places and public transportation. These oppressive laws were then implemented in various states and municipality mandating the segregation of the blacks and the whites not only on public transportation but also in other aspects of public life that include, schools, hospitals, parks, movie houses, hotels and even restrooms. The Disfranchisement Law as the name implies, remove the right of the Negro to exercise his civil liberty to vote by despite the guarantee of the Fourteenth and Fifteenth Amendments. This was evident with the exclusion of the blacks from the list of those who can vote in 1870 and made it more difficult for blacks to vote (if they can) by passing the poll tax law. Ridiculous as it may sound but a literacy requirement was also enacte d in 1890 that if a black person is allowed to vote, he or she must satisfy the â€Å"understanding clause† that they understood the constitution before the state registrar. Naturally, the determination of the black person’s fitness to vote became arbitrary that deprived many of them of their right to vote. Voting restrictions were also imposed to make it difficult for black people by stating deadlines of poll tax payment and voter registration unannounced. All of these were designed to make it difficult, if not impossible for a black person to vote. The Reconstruction and beyond The end of the civil war marked the reconstruction period in the South. There are many accounts and interpretation why the Reconstruction became a splendid failure but it converged on the idea that it did not achieve what it intended to achieve. One its failure was failure was the attempt to provide some civil rights such as the right to vote for African Americans (Fitzgerald, 2008). This was evident in the Dred Scott decision which the Supreme Court ruled that blacks â€Å"had no rights which a white man was bound to respect; and that the Negro might justly and lawfully be reduced to slavery for his benefit† (Freerepublic.com). In 1876 however, a change in political tide was seen when the Republicans gained control in Congress. From the repressive regime of the Democrats, the Republicans passed the Fourteenth Amendment to the United States Constitution where several civil rights bills were introduced which will give every Americans equal protection before the law (Cornell University Law School, nd). One of the laws that were also passed was the granting of the right to vote among African Americans. In effect, this would have also given the African Americans some civil rights and the benefit of equal protection before the law except that it was blocked in every way of its application. One particular right, of the four civil rights that was passed in Congress that was circumvented in its application was the protection of right to vote as expressed in the Fourteenth Amendment. The Democrats device several political implements to block the application of the African American right to vote which included imposition of poll taxes, literacy tests, grandfather clauses and Gerrymandering. The imposition of

Learning and Assessment Basics Research Paper Example | Topics and Well Written Essays - 1500 words

Learning and Assessment Basics - Research Paper Example It is therefore imperative to have these factors in mind when designing an appropriate assessment technique. To be more precise, an assessment technique that best serves learning must be integrated with instruction and curriculum. Characteristics of learners Although the characteristics of students may have some similarity, in the long run, they are as unique as finger prints. It’s of great importance for educators to monitor and have knowledge of the characteristics of their students. In fact, educators or teachers should keep a well updated profile of their students. This is very important when it comes to structuring tailor-made techniques of teaching, instruction and assessment. As an educator, there are various characteristics I can identify with learners. Firstly, majority of learners poses the ability to evaluate. Students like to quickly form opinions and can evaluate basically everything and especially their tutors. They can easily detect lack of competence, sincerity or enthusiasm (Wood & Cantillon, 2011). Tutors therefore need to be dedicated to doing their best to avoid giving students the opportunity to make evaluations especially the adverse one. Fallibility is another trait associated with students. Just like anybody else, students make mistakes and tutors should not lose patience when students make mistakes. ... Some grasp concepts fast but forget fast while others take time to understand new concepts but once they understand, they rarely forget. Often, those students that understands concepts fast gets bored when tutors keep on repeating the same thing while on the other hand, the ‘slow learners’ are left behind when the tutors rush. Another characteristic of learners is that they like to be recognized. Recognition is one way of motivating students and tutors can use different approaches to recognize special performances. Recognition should be prompt and proportional to the degree of performance. Other characteristics of learners include that different students poses different psychological characteristics that dictate when and how they learn. This makes students to perceive different things differently. Some students learn best early in the morning while others perform best later in the day. This is rather psychological and varies from student to student. They also react diffe rently to immediate environment like effects of sound and the setting of the learning environment (Aspin et al., 2011). Explain how your understanding of cognition and learning will influence your design of instruction and assessment with this group in mind. The two skills actually work hand in hand because it is one thing to learn and another to understand things in the classroom environment that influence the nature of instruction and assessment methods. Learning actually gives more formal skill and approach towards development of instructional and assessment methods while on the other hand, cognition helps instructors often to invent, discover, or simply stumble upon a strategy that works. According to the question, the knowledge I have gained through thinking and learning will

Why did London attract such a large and diverse flow of immigrants Essay

Why did London attract such a large and diverse flow of immigrants - Essay Example Lasting four days, the fire destroyed 87 parish churches and 13,200 residential houses, killing several citizens and leaving 70,000 homeless. This essay will give a description of the rebuilding of London just after the Great Fire and what it meant for the city as well as the outlook of immigration at that time. It will further address significant events in the growth of the city relating to immigrant groups that arrived in different time periods upto the period after World War Two (WWII) and the early 1960s. Each group impacted differently on the city, contributing to different aspects of life ranging from clothing, cuisine, architecture and the industrial revolution. Most of the wooden structures and the springing slums were destroyed by the fire, resulting in devastating economic and social problems. To facilitate reconstruction, King Charles II initiated and encouraged resettlement to other areas amidst fears of rebellion from dispossessed refugees. This led to depopulation of th e city just after the fire. Disputes between landlords and tenants were settled by a specially convened fire court to decide who must rebuild, and most of the plan of the old city was used for rebuilding. However, new regulations were also included such that the plan, additionally, had improved fire safety and hygiene standards, stone and brick structures, wider streets, communication infrastructure and no obstructions to the access of river Thames. A monument was also built near Pudding Lane in commemoration of the fire, together with the famous St. Paul’s Cathedral and 50 other smaller churches. The rebuilding process was slow, and within one year, the new houses did not number more than 200. However, things soon picked up and 7,000 new buildings had been completed by 1671[8]. The emergent city was by the standards a modern one, attracting back the population and wealth that had shifted to London’s suburbs and the Town. New insurance companies were also set up to fig ht fires. Presently, the houses in Spitalfields along Folgate Street in eastern London, grand and terraced, reminds any visitor to London of the refugee silk weavers who designed and constructed them[1]. Although it existed before the Great Fire of London, silk weaving was one of the economic successes that attracted immigrants to London in the late 17th century and early 18th century. It was initially introduced by the French Protestants, known as the Huguenots, along with the manufacture of guns and clocks[2]. They arrived in London fleeing a wave of persecution in their home country and were welcomed by King Charles II, joining the Jewish settlers who had earlier been expelled but allowed back into London by Oliver Cromwell. At the end of the 17th century, there were an approximate 50,000 Huguenots and 20,000 Jews in London, most notably in the Spitalfields area, who were later joined by the Bangladeshis. Recently, estimates have shown that 25 percent of London’s contempor ary population has a Huguenot ancestor. However, mass transfer of silk weaving technology into London was via Netherlands from the Far East, Middle East and Italy, during which time, early signs of an interwoven thread of cultures and ethnicities, often contrasting, began to show. By 1713, silk workers migrated from most parts of Europe into London, and the city employed close to 300,000 immigrants skilled in the industry[4]. This influx of immigrants was fuelled by the royal family’s presence in London and the fact that the city was home to England’

Project Budgeting and Scheduling Essay Example | Topics and Well Written Essays - 1500 words

Project Budgeting and Scheduling - Essay Example PPP/PFI basically works like any other project whose construction costs are borne by another party, completed and handed over to the client, only on a very large scale. In case of failure in the design structure, non-compliance with the project particulars, etc. the risk is assumed by the financing party. This project risk transfer method is seen as an extension of outsourcing and privatization. However, it is different from privatization because the private entity hands over the project to the government after completion and the government runs it as state owned facility/site. PPP/PFI differs from conventional procurement because the total payment is not made by the government after the completion of the project. It is paid over the course of time and several years of operations. This facilitates both the public and the private sector, because eth public sector does not have to make the payment and thus the cost is spread over a number of years. The risk of project failure is transf erred to the private entity responsible for the project. ... This is because the element of risk transfer also adds to the government’s borrowing costs. At its completion if the project is successful, the private sector gets to enjoy super normal profits at the expense of the government and the mass public in general due to taxation levied to pay off the debt. Thus, in order for the success of a PFI funded project to be deemed successful, it is imperative that the benefits derived from the project can be valued to be more than the borrowing cost (Ismail, 2011). PPP/PFI in UK The government of UK introduced PFI in the year 1992 (Wilson and Game, 2002). Even though the practice had been already implemented by countries like Australia previously, the UK gave it a more solid framework by specifying policies that would govern such financing practices of the government. Implementing the PFI practice at large for capital investments allowed the UK to hone it into an ideal framework that could be taken as benchmarks by the other governments of the world. Not long after it had this system running, the National Audit Office in the UK demanded that even though there was no question of its effectiveness, this procurement transaction had to be shown in the governments’ financials and a much hyped controversy emerged regarding which accounting head it should be put under and the accounting that it was to imply. It was however decided that the future payments for the PFI during the concession period should be taken into account for budgeting for the years to come, leading to effective assessments that can be reflected in the budget. The terms PPP/PFI are used interchangeably all over the world but PFI gives a clearer picture to the concept. During the credit crisis of 2008, many private

Discuss the relationship between given gender roles and atypical Essay

Discuss the relationship between given gender roles and atypical gender roles - Essay Example They are often thought to be similar concepts. The word "sex" can be used when a person wants to refer to only the biological differences that exist between man and woman. Sexual differences between males and females are universal. On the other hand, the word "gender" is used when a person wants to express the social differences between man and woman. 2In our essay, we are focusing on the social differences between man and woman and how they are expected to behave, look, and feel like their own gender rather perform atypical gender roles. Gender is a much more complicated thing to understand and it is a behaviour which is learned and changed with time. It changes from culture to culture. Gender roles is composed of several elements, be it be ones dressing, his behaviour pattern, their choice of career or work life how they go about when it comes to personal relationships, and many other factors. Gender roles can be exhibited by as small a thing as the way a message is composed in an SMS (short message service). In the old ages, gender roles were very specific and there was a sharp line between what men will do, think and feel like and how women are supposed to do these things. But since then and now, a vast difference has come because times are changing and the mind set of the people is expanding to allow acceptance for flexibility of gender roles. Nowadays, the strictly defined gender roles of the past have been re defined to reflect some wider acceptable gender roles of males and females. 3 People have unique ways of expressing their gender roles. Moreover, the gender role terminology is highly dependent on what culture, country, society and era it belongs to. Gender roles might be given or typical depending on the context in which they are being studied.4 Given gender roles are ones which are expected out of men and women to exhibit and on which

Zara Essay Example | Topics and Well Written Essays - 1000 words

Zara - Essay Example nd name of Zara and maintaining quality in the business operation processes will help the organization to capitalize on more potential business opportunities. The organization should not consider focus strategy as it is important for the organization to focus on broad market segment. It will help the organization to gain more competitive advantages. Grand Strategy The organization should also try to adopt and implement grand strategy in the business operation process in order to enhance decision making and strategy development process to set effective long term plans from several available alternatives. This grand strategy can be classified into four major strategies, such as growth strategy, stability strategy, retrenchment strategy and combination strategy. The management of the organization should adopt and implement growth strategy as it is important for the organization to achieve further growth. It is true that emergence of new entrants and adoption of online business activitie s are creating real threat for Zara. In addition to this, high labour cost is affecting the profit maximization aspect of Zara. Adoption of growth strategy will enhance the decision making and strategy development process of the organization. It is highly important for the organization to integrate online business operation process to achieve sustainable growth rate in this competitive industry. In addition to this, consideration of growth strategy in the decision making process will help the organization to adopt effective differentiation process that can influence the management of the organization to enter different fast fashion and fashion accessories industry to secure more market share and gain more potential competitive advantages. Functional Strategy Function strategy can be... The paper describes differentiation strategy which helped to develop the great brand - Zara. Zara already implemented product differentiation strategy. The organization always tries to offer differentiated clothes to target customers. The organization does not target a narrow market segment. Differentiated products for the people of all ages and different cultural background are the major success mantra of Zara. The organization should differentiate its business operation in. Fashion and accessories market is highly demanding and achieving strong growth rate. The organization should not consider focus strategy as it is important for the organization to focus on broad market segment. In conclusion, the report says that slow inventory turnover and critical supply chain management process are the major weaknesses of Zara. Therefore, it is important for Zara to source or prepare limited inventories according to the market demand and requirement. Appropriate production and supply according to the current market demand will help the organization to increase the efficiency of its inventory turnover. In addition to this, the organization should maintain short production cycle to reduce overall supply chain cost. High labour cost is another weakness of Zara. Therefore, it is important for the management of the organization to integrate automation in the business operation processes that can help to reduce the stress and pressure of the employees. High automation can improve business performance and can reduce the human resource management associated costs.