American Home Product Essay

1. How much business risk does American Home Product face? How much financial risk would American Home Product face at each of the proposed levels of debt shown in case Exhibit 3? (Hint: Calculate impact on net income of 10% reduction in EBIT). How much potential value, if any, can AHP create for its shareholders at each of the proposed levels of debt? 2.Construct a simple EBIT-EPS Analysis chart for AHP for each of the proposed levels of debt shown in case Exhibit 3. Give your analysis based upon this chart. 3.What capital structure would you recommend as appropriate for AHP? What are the advantages of leveraging this company? The Disadvantages? How would leveraging up affect the company taxes? How would the capital markets react to a decision by the company to increase the use of debt in its capital structure? 4.How might AHP implement a more aggressive capital structure policy? What are the alternative methods for leveraging up? (Short answer will be OK, no calculation). 5.In view of AHP’s unique corporate culture, what arguments would you advance to persuade Mr. Laporte or his successor to adopt your recommendation? Note: Make sure that you do understand how to find the numbers on Exhibit 3 and Exhibit 4, number 8. Answer: 1.Business risk: Stable annual growth (10~15%) and profit margin (11~12%). Overall low-risk investments; ‘proven’ formulas instead of R&D. AAA Bond Rating. (EBIT 1981 / EBIT 1980) / % increase in sales (EBIT 1981 / (Net Income 1980 / (1 – Tax Rate))) / % increase in sales (EBIT 1981 / (Net Income 1980 / (1 – 48%))) / % increase in sales (954,8 / (445,9 / 52%)) / (4.131,2 / 3.798,5) = 1,02. (954,8 / 857,5) / 108,8% = 1,02. Financial risk: DFL = % change EPS / % change EBIT = (1 + ((3,18 – 2,84) / 2,84)) / (1 + ((954,8 – 857,5) / 857,5)) = 1,120 / 1,113 = 1,006. Higher DFL means higher EPS variability. 0%   1,006 30% 1,090 50%   1,116 70%   1,143 Debt to Capital = total debt / net worth. Higher DtC ratio means higher risk. 0% ïÆ'  0,009 30% 0,429 50% 1,000 70% 2,333 Potential value: EPS goes up as % of debt goes up ($3.18 – $3.49). 0% $3.18 30% $3.33 50% $3.41 70% $3.49 Dividends rise. 0% $1.90 30% $2.00 50% $2.04 70% $2.10 2.EBIT-EPS Analysis Chart Although leveraging decrease the company’s EBIT, it gives more value per share to its shareholders. 3.Recommended capital structure: Most appropriate capital structure for American Home Products is 30% debt to total capital. Several reasons will explain the reason why this structure gives advantage to AHP. The first, as using 30% debt ratio, the company  would be able to be recapitalized; hence, common shares outstanding of 19.8 million can be repurchased. The second, AHP would have advantage to save taxes of 37.8 million dollars and its shareholders benefit by getting more values. Exhibit 2 shows that Warner Lambert company’s debt ratio is approximately 32% and its bond rating is AAA or AA. It means that if AHP uses 30% debt and 70% equity, its bond rating will be same as Warner Lambert; consequently, bond interest to pay will not increase much due to bond rating. Addition to these reasons, AHP would face less risk to compare heavier capital structures. The advantages of leveraging this company: a.Higher value for shareholders. b.Reduction in tax through interest. c.Access to additional capital. The disadvantages of leveraging this company: a.Higher risk to shareholders. b.Lower net income. Leveraging effect: As debt increases, tax decreases. Market reaction: Market will expect higher return and stock price will rise. 4.AHP should use heavier capital structure which means increasing to use more debt instead of relying wholly on shareholders’ capital, which has its limitation as far as the shareholders’ wealth. So, by using debt to finance AHP’s growth (leveraging up), AHP’s capital structure might be more effective and aggressive. Leveraging up may enable AHP in innovating new products, using better technology, and motivating labor. While during Mr. Laporte’s era, the company can only conduct the â€Å"me too† strategy, relying heavily on its marketing prowess. 5.Mr. Laporte stated that his company works in order to increase  shareholders’ wealth. However, using 30% debt to capital would give possibility to save 37.8 million dollars from taxes; thus, its shareholders would benefit from getting higher dividends per share. Also, if the company uses more debt to its operations, it will be possible to repurchase common stocks of 19.8 millions of shares from market, increasing its EPS, thus affecting in rise in stock price.

The Al Qaeda Organization essays

The Al Qaeda Organization essays The label of terrorist organization that Al Qaeda received form the international community is not denied by its leader. Furthermore, the Al Qaeda Manual incorporates the jihad message to its supporters through the incorporation of the religious factor implying the desire of Allah1 to impose Muslim order. It also contains several directives instigating people to fight against the Western world considering it responsible for the death of their people. In such fight they cannot engage using traditional measures such as diplomacy, but military confrontation. Because Al Qaeda is not a state actor, it does not occupy a clear geographical area (it has many affiliates in different countries, different groups that followed its model, some of them are sponsored by them), it does not imply an open fight, but it strikes using various bombings and suicide bombers, whenever they find the way of doing so taking advantage by the flaws in the security systems, the international community finds itse lf in the difficulty of striking back. Osama bin Laden is without a doubt the head of al-Qaeda and the most wanted terrorist in the world. His father, Mohammed bin Laden, was a Yemeni immigrant to Saudi Arabia who started his own construction business coming to the attention of Abdul Aziz, the first monarch of Saudi Arabia. Thus he received a very important project, the renovation of holy Mecca. In 1957, his forth wife, a Syrian woman gave birth to Osama in Saudi Arabia. At the age of 11, bin Laden lost his father in a helicopter accident. Due to his family wealth and their relation with the royal family, he studies economics and management at the kings Abdul Aziz University. One of his teachers, Azzam exercised a great influence on Osama, shaping his religious beliefs. Bin Ladens rise to power was possible due to his wealth that he inherited from his family business. His first actions that draw the international attention represent...

Written Communication Critical Analysis Marion Enterprise

Written Communication Critical Analysis Marion Enterprise Problem Statement Data is important to manufacturing companies like Marion Enterprise. It is necessary in critical areas of the business such as human resource, production and the organization’s inventory. Data is useless without consistent updates.Advertising We will write a custom proposal sample on Written Communication Critical Analysis Marion Enterprise specifically for you for only $16.05 $11/page Learn More The research problem is to investigate office ergonomics of the data entry center in this organization. The other issues that will be examined are the establishment of an anthropometric database and possible hazards employees overlook in the data entry center. The study will however major on the first issue. Justification Ergonomics is the science that examines how capable people are taking into account their physical and mental limits in relation to the tools, machines and equipment used in the course of their work. Office ergonomic is a s pecialty that focuses on the environment of the office worker. There has been an increase in interest by people towards the specialty because of an upsurge in the use of computers and disorders associated with them (Wisha Services Division (WSD), 2002). The specialty is critical since some of the signs associated with poor ergonomics such as fatigue and pain reduces the productivity of workers (CBS, n.d). Treatment of disorders occasioned by poor ergonomics in an office environment is costly in terms of finance and time lost whenever an employee takes leave (Health and Safety Executive (HSE), 2013). The worst part is a reduction in the normal pace of work in a department where an employee is based. For this organization, the entry of data will be slowed which may affect the ability of the organization to get real-time data. Topics for investigation The workstation Data entry operators spend many hours during the working days in their workstation. The workstation will be the first ar ea to be investigated for any ergonomic flaws. It consists of the office furniture such as the chairs, tables and computers that the data entry operators use directly as they carry out their work. All these aspects will be examined (Workers Compensation Board (WCB), (2007). The computers used by the data entry operators Computers are the key equipment used by data entry operators (Occupational Health Clinics for Ontario Workers Inc, 2008). They will be investigated to ascertain how ergonomic they are to their users. In the investigation, computer parts such as mouse, keyboard and the monitor will be assessed on ergonomic adjustability.Advertising Looking for proposal on business communication? Let's see if we can help you! Get your first paper with 15% OFF Learn More Anthropometric data The research will also determine the feasibility of establishing a database for anthropometric data. The data will be useful for management when purchasing equipment for the d ata entry operators after recruitment. Problems related to ergonomics in computer equipment will reduce significantly in the data entry center that will be expanded (National Occupational Health and Safety Commission, 1991). Hazards with sharp edges All the furniture in the data entry center will be examined to establish whether they have any sharp edges that the employees often lean. This action by the data entry operators only appears harmless initially but leads to certain disorders such as slow blood circulation and damaged nerves (Texas Department of Insurance, n.d). Repetitive motions The operational nature of data entry operators will be looked at to assess the possible effect they have on the workers developing disorders. All repetitive motions will be noted so that a possible intervention can be formulated. The intervention will be a scientific one, and its impact in improving the office ergonomics of the data center has to be monitored after periods specified to ensure eff ectiveness Health and Safety Authority (HSE), n.d). Working space The available working space in the data entry center as compared to the staff who works there will be examined. The examination will seek to reveal the sufficiency of the available space. Appropriate recommendations will then be made (Environmental Health and Safety (EHS), n.d). Preliminary methodology and potential resources The research will gather data about all the areas mentioned earlier using the following methods. Interviews will be conducted to the data entry operators on specific areas on different areas of their workstations. Structured written questionnaires will follow the interviews as a way of verifying most of what has been given orally in the interviews conducted. Observations will be made on the workstations and computers and information obtained compared to recommended office ergonomics (University of Wisconsin Eau Claire, n.d).Advertising We will write a custom proposal sample on Written Com munication Critical Analysis Marion Enterprise specifically for you for only $16.05 $11/page Learn More The anthropometric data will be sought for reputable databases available online. The results of a feasibility study for setting a company anthropometric database will be determined by the diversity of the staff in the organization. Work schedule The research will be conducted for a period of two weeks. During the first week, data will be collected from the data entry center. The collection through interviews will be done in the first hour of each office day in order for a period of three days to minimize disruptions to normal work. The remaining two days of the week will be used by the research team to gather data with written structured questionnaires. The second week the first working day, the team will observe the workstations of the data entry operators. The other two days will be for analyzing the data, and the last two will be utilized in preparing the rep ort. References CBS. (n.d). The advantages of ergonomics. Retrieved from cbs.state.or.us/osha/pdf/ergo/ergoadvantages.pdf Enviromental Health and Safety (EHS). (n.d) Ergonomic workstations guidelines. Retrieved from ncsu.edu/ehs/www99/right/handsMan/office/ergonomic.html Health And Safety Authority (HAS). (n.d). Ergonomics in the Workplace. Retrieved from hsa.ie/eng/Publications_and_Forms/Publications/Occupational_Health/Ergonomics.pdf Health and Safety Executive (HSE). (2013). Ergonomics and human factors at work. Retrieved from hse.gov.uk/pubns/indg90.pdfAdvertising Looking for proposal on business communication? Let's see if we can help you! Get your first paper with 15% OFF Learn More National Occupational Health and Safety Commission. (1991). Ergonomic principles and checklists for the selection of office furniture and equipment. Retrieved from safeworkaustralia.gov.au/sites/SWA/about/Publications/Documents/31/ErgonomicPrinciplesChecklistsForOfficeFurniture_1991_PDF.pdf Occupational Health Clinics for Ontanrio Workers Inc. (2008). Office ergonomics handbook. Retrieved from ohcow.on.ca/uploads/Resource/Workbooks/ergonomics.pdf Texas Department of Insurance. (n.d). Office Ergonomics. Retrieved from tdi.texas.gov/pubs/videoresource/wpofficeergo.pdf University of Wisconsin Eau Claire. (n.d) Data Collection Methods. Retrieved from http://people.uwec.edu/piercech/researchmethods/data%20collection%20methods/data%20collection%20methods.htm Wisha Services Division (WSD). (2002). Office ergonomics. Practical solutions for a safer workplace. Retrieved from lni.wa.gov/IPUB/417-133-000.pdf Workers Compensation Board (WCB). (2007). Office Ergonomics: think detection:think pre vention: think activity. Retrieved from wcb.ab.ca/pdfs/public/office_ergo.pdf

Parable - Definition and Examples of Parables

Parable s of Parables A story, usually short and simple, that illustrates a lesson. The parable is related to the exemplum in classical rhetoric. Parables And The New Testament Some of the best known parables are those in the New Testament. Certain longer works of modern literaturesuch as Heart of Darkness by Joseph Conrad and the fiction of Franz Kafkaare sometimes regarded as secular parables. Biblical Parables The legs of the lame are not equal: so is a parable in the mouth of fools.(Proverbs 26:7, The Bible) Secular Parables The Blind Men and the Elephant by John Godfrey Saxe There were six men of Hindustan,to learning much inclined,Who went to see an elephant,though all of them were blind,That each by observationmight satisfy his mind.The first approached the elephant,and happening to fallAgainst his broad and sturdy side,at once began to bawl,This mystery of an elephantis very like a wall.The second, feeling of the tusk,cried, Ho, what have we here,So very round and smooth and sharp?To me ’tis mighty clear,This wonder of an elephantis very like a spear.The third approached the elephant,and happening to takeThe squirming trunk within his hands,thus boldly up and spake,I see, quoth he,the elephant is very like a snake.The fourth reached out an eager hand,and felt above the knee,What this most wondrous beastis like is very plain, said he.Tis clear enough the elephantis very like a tree.The fifth who chanced to touch the earsaid, E’en the blindest manCan tell what this resembles most;deny the fact who can;This marvel of an elephantis very like a fan.The sixth no sooner had begunabout the beast to grope,Than seizing on the swinging tailthat fell within his scope;I see, said he, the elephantis very like a rope.So six blind men of Hindustandisputed loud and long,Each in his own opinionexceeding stiff and strong;Though each was partly in the right,they all were in the wrong! MORAL:So oft in theologic wars,The disputants, I ween,Rail on in utter ignoranceOf what each other mean,And prate about an ElephantNot one of them has seen! The Invention of Letters SOCRATES: I heard, then, that at Naucratis, in Egypt, was one of the ancient gods of that country, the one whose sacred bird is called the ibis, and the name of the god himself was Theuth. He it was who invented numbers and arithmetic and geometry and astronomy, also draughts and dice, and, most important of all, letters. Now the king of all Egypt at that time was the god Thamus, who lived in the great city of the upper region, which the Greeks call the Egyptian Thebes, and they call the god himself Ammon. To him came Theuth to show his inventions, saying that they ought to be imparted to the other Egyptians. But Thamus asked what use there was in each, and as Theuth enumerated their uses, expressed praise or blame, according as he approved or disapproved. The story goes that Thamus said many things to Theuth in praise or blame of the various arts, which it would take too long to repeat; but when they came to the letters, This invention, O king, said Theuth, will make the Egyptians w iser and will improve their memories; for it is an elixir of memory and wisdom that I have discovered. But Thamus replied, Most ingenious Theuth, one man has the ability to beget arts, but the ability to judge of their usefulness or harmfulness to their users belongs to another; and now you, who are the father of letters, have been led by your affection to ascribe to them a power the opposite of that which they really possess. For this invention will produce forgetfulness in the minds of those who learn to use it, because they will not practice their memory. Their trust in writing, produced by external characters which are no part of themselves, will discourage the use of their own memory within them. You have invented an elixir not of memory, but of reminding; and you offer your pupils the appearance of wisdom, not true wisdom, for they will read many things without instruction and will therefore seem to know many things, when they are for the most part ignorant and hard to get along with, since they are not wise, but only appear wise. PHAEDRUS: Socrates, you easily make up stories o f Egypt or any country you please. (Plato, Phaedrus, translated by H. N. Fowler) Parable of the Scorpion Theres a story I heard as a child, a parable, and I never forgot it. A scorpion was walking along the bank of a river, wondering how to get to the other side. Suddenly he saw a fox. He asked the fox to take him on his back across the river.The fox said, No. If I do that, youll sting me, and Ill drown.The scorpion assured him, If I did that, wed both drown.The fox thought about it, finally agreed. So the scorpion climbed up on his back, and the fox began to swim. But halfway across the river, the scorpion stung him.As the poison filled his veins, the fox turned to the scorpion and said, Why did you do that? Now youll drown, too. I couldnt help it, said the scorpion. Its my nature.(Robert Beltran as Commander Chakotay in Scorpion. Star Trek: Voyager, 1997) David Foster Wallaces Fish Story There are these two young fish swimming along, and they happen to meet an older fish swimming the other way, who nods at them and says, Morning, boys, hows the water? And the two young fish swim on for a bit, and then eventually one of them looks over at the other and goes, What the hell is water? . . .None of this is about morality, or religion, or dogma, or big fancy questions of life after death. The capital-T Truth is about life before death. It is about making it to 30, or maybe 50, without wanting to shoot yourself in the head. It is about simple awarenessawareness of what is so real and essential, so hidden in plain sight all around us, that we have to keep reminding ourselves, over and over: This is water, this is water.(David Foster Wallace, commencement speech at Kenyon College, Ohio. The Best American Nonrequired Reading 2006, ed. by Dave Eggers. Mariner Books, 2006) Parables in Politics Right now, as [Elizabeth] Warren and [Scott] Brown meet voters, they are telling their stories as political parables, loaded with ideas about opportunity versus just deserts, social investment versus making your own way, fairness versus the free market. The ordinary Massachusetts voterthe kind who doesn’t tune in until the last minutewill have to choose between two story lines. They will talk about it this way: he’s a small-town Wrentham boy who solves problems based on facts, while she’s a leftist ideologue from Harvard. Or they will talk about it this way: he’s a lightweight with a pretty face and a truck; she’s a real person who will fight off the banks and others trying to ruin the middle class. They will assess which one is more likable and sincere. They will (or won’t) be pulled to the polls by more politically motivated neighbors. In such haphazard ways, Massachusetts independents will decide one of the most closely watched and possibl y most expensive races of the 2012 campaign, outside the presidency.(E.J. Graff, Elizabeth Warren: Yes She Can? The Nation, April 23, 2012) Etymology From the Greek, to compare Also see: AllegoryAnecdoteExemplumFableHomileticsThe Little Girl in Lavender Spats by Don MarquisNarration  and  NarrativeVignetteThe Whistle by Benjamin Franklin   Pronunciation: PAR-uh-bul Also Known As: exemplum, fable

Civil Rights and Taxes Research Paper Example | Topics and Well Written Essays - 1250 words

Civil Rights and Taxes - Research Paper Example This is where Civil Rights bridge the Constitution to make certain that those who were previously excluded from the Human Rights that existed, to guarantee they would not be overlooked any longer. The fight for those Civil Rights was a long and difficult road that still to this day remains a struggle because there are always new issues to replace the old. Civil Rights continue to deal with issues of race and religion, as well as, sexual preference and marriage and age discrimination. Overall the arena of Civil Rights is one of social concern it is rarely related directly to economical issues. So it may sound a bit unusual to discuss taxes in relation to the Civil Rights issues, but there is a certain amount of overlay. Taxes were designed as monies taken legally by the government from the citizens to participate in the funding of this country that we live in and enjoy. However, what happen when the taking of those taxes contradict the personal Civil Rights of individuals forcing citizens to financially participate in government endeavors that subverts their Civil Rights? It can happen and may continue to do so. That being said, it is entirely possible for taxes to violate the Civil Rights of the citizens of the United States. When this country was founded it was operated by wealthy, white male citizens. The rights they granted, primarily, benefited them, socially, politically, and economically. They were, by no means, malicious in their construct, but they were self-servingly inclusive. They excluded women. They excluded African Americans who were held in captivity and property for generations, as well as alienating other minority groups throughout time. P.B. Levy in his book â€Å"The Civil Rights Movement† gave a chronological list of all the incredible work done to gain Civil Rights for all the people who live in this country. From the Emancipation Proclamation in 1863 to the ratifying of the

Contemporary Trends in the Global Business Environment Coursework

Contemporary Trends in the Global Business Environment - Coursework Example The researcher states that Qantas Company seeks to analyze its environment for a sustainable future in the highly competitive market. Indeed, various trends have characterized the market and it is important for a clear analysis to be made so that the business can evaluate its continued viability. To this end, the company seeks to introduce new flights to Tehran, Iran, which it hopes that the idea will put the company in a better position to beat its competitors like the Fly Emirates that have strongholds in the Middle East. This report assesses the business in terms of the goals it will aim at achieving in the future. Businesses analyze their environments and plan in many ways. Indeed, most of these trends have evolved from the 1950’s to their present form. From a background where planning was considered in the rubric of budget concerns, modern organizations largely embrace scenario-based planning which takes into account the future of the company. Qantas in this perspective u ses a variety of strategies in its environmental analysis. Recent studies into the external environment of the business reveal that it contains three components, including the market, industry and the expansive macro environment. As an important aspect of the external environment, the market defines the clients of the business who make it possible for it to conduct its operations. The market for any business is different from others and specific to the industry. The industry, on the other hand, incorporates all the businesses that are involved in the airline venture. Industries have trends such as the legal requirements for safety, purchases of new planes in the market as well as the increasing need to expand the number of destinations that the company operates. The macro environment, on the other hand, focuses on certain aspects such as political, social or technological issues that affect the business’s operations.

Troubled asset relief program Term Paper Example | Topics and Well Written Essays - 1500 words

Troubled asset relief program - Term Paper Example espread opposition from the public and was quickly billed as ‘the Wall Street bailout.’ There was greater possibility that the implementation of the policy was largely influenced by the US financial sector. Beginning 2005, the housing prices in the US peaked and began to decline. The same trend happened in the value of mortgage-backed securities (MBS). This trend is known as ‘collateralized debt obligation (CDO). The CDO compromised a greater portion of many financial institutions’ asset portfolios. The situation worsened and this lead to the collapse of Lehman Brothers on September 2008. The proximal event led to the introduction of TARP. The Treasury injected approximately $250 billion in TARP program (Cornett, Li and Tehranian 731). The Treasury injected these funds directly into the US banking system through purchasing senior preferred stock and warrants in qualifying financial institutions. In the end, the total available funds were estimated to have amounted to $700 billion. This amount makes TARP the largest program ever promoted by the government of the United States (Garrica, Puddu and Walchli 7). The situation worsened such that on September 2008; Dow Jones Industrial lost 4.4 percent or 504 points. The crisis escalated resulting in more bankruptcies including AIG’s. Hank Paulson, who was the then Treasury Secretary, proposed that TARP be implemented. The objective of the implementation of TARP was to recapitalize the financial institutions with liquidity problems using federal funds. In general, the US Treasury intention was to use TARP in helping banks to improve their balance sheets and increase the robustness of the financial system (Garrica, Puddu and Walchli 1). Paulson introduced legislation to the Congress known as EESA. This legislation was an authorization of $700 billion for the purchase of troubled assets including MBSs from banks through TARP. The announcement of TARP by Paulson on September 19 resulted in many large financial