Argument for Human Cloning Essay - 1886 Words

Introduction Cloning is the process of manipulating DNA and embryonic stem cells to create an identical living organism. The purpose of cloning is to find medical treatments and to reduce human suffering (Rosalyn). Is it wrong? Is it disrespectful toward nature itself? According to Sir John Gordon, cloning is not as playing God it is simply copying â€Å"what nature has already produced† (Gordon). This new development established a series of debates because if there are technologies that enable humans to artificially create mammal, sooner or later the same process will be performed on human. This points to the question, should human cloning be banned? (Cloning: An Overview). Even though there are numerous critics who believe human cloning†¦show more content†¦Overtime the fusions between cells occur and form an embryo. This could lead to the transfer of healthy cell in an unborn child who contains diseases due to genetics from the parents. Unfortunately the research w as banned. There are a lot of obstacles standing between the researches of human cloning that could possibly save many lives. Diseases such as Alzheimer and cardiovascular diseases can be cured by the process of cloning. Scientists have discovered a method of creating stem cells (an unspecialized cell that has the ability to become any various differentiated cell) from an embryo. Genetic copies of DNA from a living healthy person are inserted into an egg which divides in the process of cell division or meiosis, and grows into an embryo. If the process is successful, stem cells are then extracted, with the healthy gene placed in the DNA, the cells can divides and produce a healthful system. This whole procedure is for the purpose of improving treatment. However, this action puts fear into a lot of people’s minds of using stem cells for other purposes (Healy). Stem cells can be produced for the desire of new treatments has the potential to fight viruses in the human system and the prosperity will soon outweighed the terror of human cloning. Therapeutic cloning has the potential use stem cells to cure diseases. Although there are many benefits the process of obtaining stem cells depends upon the massacre of the embryo. Nonetheless the benefitsShow MoreRelatedHuman Cloning : An Argument Against Human Reproductive Cloning2226 Words   |  9 PagesExplain in full the ‘life in the shadow’ argument against human reproductive cloning. How might the argument be objected to? Do you regard the argument to be morally decisive, in the sense that it establishes that human cloning for purely reproductive purposes must never be permitted? Explain and defend your answer. Introduction: As the advancement of time, the concept of human cloning can become a reality as with the breakthrough of biotechnology. Human cloning can be defined in terms of formationRead MoreArguments Against Human Cloning1986 Words   |  8 Pages According to Judith A. Boss, author of Analyzing Moral Issues, cloning is an asexual reproduction process in which genetically identical individuals are produced (Boss 126). Two authors, specifically, Julian Savulescu and Leon Kass have very distinct and different points of view on cloning and genetic enhancement. Human cloning has become a significant argument that most people have a stance either for or against it. Cloning is allowed and occurs in our society today, but whether one finds it acceptableRead MoreEssay about Argument Against Human Cloning1902 Words   |  8 Pagesapplied to humans, this percentage may decrease and become lower and more unpredictable. With lives at stake, is it worth the risk of the embryos involved in the unstable pr ocess? Although cloning may allow for new medical procedures and research of diseases and cures, it takes away from the natural biological order of life, and allows humans to play God while creating a margin of error which could result in many defects. Many ethical and moral dilemmas arise when discussing human cloning, and oneRead MoreShould Cloning Be Allowed?1440 Words   |  6 Pagesstory, human cloning is becoming a feasible practice. Recently there has been a successful cloning of a sheep, so scientists start to speculate the different uses of cloning human embryos. The three forms of cloning that stand out are reproductive cloning, therapeutic cloning, and cloning for scientific research. Cloning should be permitted, but only reproductive cloning should be permitted with a limit on the number of babies a person or family can reproduce. The arguments that support cloning dependRead MoreArguments Against Genetic Engineering673 Words   |  3 Pagesconsider one of the strongest arguments against genetic engineering was the statement given by the European Parliament in Cass R. Sunstein’s argument, The Constitution and the Clone. The following is an excerpt from the text book given by the European Parliament â€Å"The cloning of human beings†¦ cannot under any circumstance be justified or tolerated by any society, because it is serious violation of fundamental human rights and is contrary to the principle of equality of human beings as it permits a eugenicRead MoreEthical Issues Related to the Cloning Debate1389 Words   |  6 PagesThe act of cloning a human being comes dangerously close to human beings acting as God. Do human beings have the right to tamper with nature in this way? This essay explores the various ethical issues related to the cloning debate, and seeks answers to this deep philosophical question at the heart of bioethics. As a student of genetic biology and future biologist, this question also has personal relevance. Our science is evolving at a rapid pace. As human cloning becomes increasingly possible, itRead MoreThe Ethics of Cloning Essay1504 Words   |  7 PagesAccording to Richard Dawkins â€Å"Cloning may be good and it may be bad. Probably its a bit of both. The question must not be greeted with reflex hysteria but decided quietly, soberly and on its own merits. We need less emotion and more thought† (Dawkins, 2011). Cloning is a general term used to describe the replication of biological material (Cloning Fact Sheet, 2009). Throughout this paper the reasoning behind why cloning is an acceptable and potentially life changing science will be examinedRead MoreThe Pros And Cons Of Cloning872 Words   |  4 PagesThere are many arguments against cloning. Leon R. Kass bases his argument on repugnance in his article The Wisdom of Repugnance. He is a well-known physician, educator and scientist. Kass perceives cloning as offensive, grotesque revolting, repulsive and wrong. To establish his argument he states, â€Å"Most people recoil from the prospect of mass production or human being, with large clones of look-alikes, compromised in their individuality.†1 His rationale is cloning is unnatural, because it is asexualRead MoreEvaluation Of A Good Argument1394 Words   |  6 Pagesviolated the sufficiency criterion of a good argument. The author has violates the sufficiency criteria by committing the fallacy of false analogy. In paragraph 4 the author states, â€Å"In the mid 1940s – before publicly funded healthcare – my grand parents sold their car to pay the hospital bill related to my father’s birth, so â€Å"purchasing† the birth of a child is nothing new.† This is a wrong analogy. Just because you pay for hospital bill and cloning, does not make them the same. In one situationRead MoreThe Ethical Implications Of Science And Technology1147 Words   |  5 Pagesmight come next: human cloning. As reported in the article, â€Å"Clinton Bars Federal Funds for Human Cloning Research† by CNN, in 1997, President Clinton stopped all federal funding for cloning. â€Å"Clinton also called on privately funded researchers to voluntarily implement a temporary moratorium on human cloning research ‘until our bioethics advisory committee and our entire nation has had time to... debate the ethical implications’† (CNN). With scientific discoveries such as cloning many people rely

What Makes A Great Leader - 1271 Words

Mahatma Gandhi, Mike Krzyzewski, Pope Francis, and Abraham Lincoln. All great leaders, all posses the same characteristics. When it comes to leadership many different names can be added to the long list. If you were to take a closer look on those people you will find what makes up a great leader. Being a leader is meant for only a certain breed of people. To be a great leader a person must consist of Confidence, Intelligence, and they must be versed. Great Leaders are all alike in someway. A Great leader is always a canny person. A person of great intelligence on the thing that they are trying to lead. Mike Krzyzewski is considered one of the best coaches of all time in the sports world. When younger, Coach Krzyzewski enrolled into the†¦show more content†¦A coach is a leader. Another great leader who shows that great leaders need to have intelligence is Pope Francis. Pope Francis is the head of the Christian Religion. He is of huge importance when it comes to maintaining wo rld peace. A task that requires a great amount of knowledge. Pope Francis attended Colegio Of San Josà ©. One of the top christian academies in the world. Pope Francis thrived at this school (Biography.com). This shows that Pope Francis knows a lot about the Christian religion and the world. He contains great intelligence, a characteristic that all great leaders need to posses. Knowing the answer is only the start, a great leader needs the confidence to present the answer. Confidence is key. A clichà © that everyone in the world has heard at one point in their lives. The only difference is that when it comes to being a notorious leader, confidence is actually key. Without confidence in what they are doing and why they are doing it, a leader would not be considered a leader. To help show this better, let us look back at one of the best leaders the world has ever seen. Mahatma Ghandi. Mahatma Gandhi was the leader of the indian independence movement. A movement to help the people o f India gain independence from Great Britain. During this movement Gandhi gained many followers and support by practicing peaceful protests. These protest were ways of hurting Great

Term Paper of Dbbl Free Essays

Introduction: To finance their investments firms use retained earnings, new borrowings or the issue of stock. The financing decision involves i) dividend and ii) the capital structure. Dividend policy involves the decision to pay out earnings versus retaining them for reinvestment in the firm, and dividend policy decisions can have either favorable or unfavorable effects on the price of a firm’s stock. We will write a custom essay sample on Term Paper of Dbbl or any similar topic only for you Order Now Cash distributions are made to stockholders form the firm’s earnings, whether those earnings were generated in the current period or in previous periods. Origin of the Report: During this semester of Summer 2010 in MBA program of East West University, we are required to submit a term paper in the course Corporate Finance: â€Å"An Appraisal of Dividend Policy and Capital Structure of An Organization†. We have chosen PRAN for our term project. Objectives of the Report: The general objective is to prepare and submit the term project within specified time by having an idea and over viewing the PRAN, their Dividend Policy and their Capital Structure. Scope of the Report: The scope is limited to over viewing PRAN their dividend policy and the Capital Structure they have adopted for their organization. Limitations of the Study: Secondary data were used in this study as result it may differ from actual data. As a group, we have also faced some difficulties in compiling and discussing it due to unavailability of all members at the same time. The absence of solid and verse knowledge about dividend policy is absent and we have taken it as an addition in our learning curve. Methodology: The report is originated from secondary data sources- 1. The Company’s Annual Report 2. DES website 3. Different Articles from Internet 4. Other related websites Company Profile PRAN: PRAN stands for Programme for Rural Advancement Nationally. â€Å"PRAN† is currently the most well known household name among the millions of people in Bangladesh and abroad also. Since its inception in 1980, PRAN Group has grown up in stature and became the largest fruit and vegetable processor in Bangladesh. It also has the distinction of achieving prestigious certificate like ISO 9001:2000, and being the largest exporter of processed agro products with compliance of HALAL HACCP to more than 70 countries from Bangladesh. PRAN is the pioneer in Bangladesh to be involved in contract farming and procures raw material directly from the farmers and processes through state of the art machinery at our several factories into hygienically packed food and drinks products. The brand â€Å"PRAN† has established itself in every category of food and beverage industry and can boost a product range from Juices, Carbonated Drinks, Confectionery, Snacks, and Spices to even Dairy products. Today, our consumers not only value â€Å"PRAN† for its authentic refreshing juice drinks products, but also for its mouth watering quality confectionery products with high visual appeal and exciting texture. We intend to expand our presence to every corner of the world and strive to make â€Å"PRAN† a truly international brand to be recognized globally. The authorized capital of PRAN is BDT 50,000,000 and paid up capital is BDT 8,000,000. The proportion is given below: |Share Percentage | |Director /Sponsor |Govt. Institute |Foreign |Public | |42. 75% |0% |1. 27% |0% |55. 98% | [pic] Dividends: Dividend is that part of the profits of a company which is distributed amongst its shareholders. According to ICAI, â€Å"Dividend is a distribution to shareholders out of profits or reserves available for this purpose. † In other words we can say that a corporation makes Dividend payments to its shareholder. It is the portion of corporate profits paid out to its stockhol ders. When a corporation earns a profit at the end of a financial year, that profit can be uses by two different ways: it can either be re-invested in the business or it can be paid to the shareholders as a dividend. Many corporations retain a portion of their earnings and pay the remainder as a dividend. Dividend Policy and Stock Value: There are various theories that try to explain the relationship of a firm’s dividend policy and common stock value. Dividend policy is the policy a company uses to decide how much it will pay out to shareholders in dividends. A firm has different options to deal with its earnings. It can give all their earnings as dividend or it can retain all its earnings as retained earnings. The firm can also declare a portion of its earnings as dividend and can retain other portion as retained earnings. Dividends may be in the form of cash or stock. Most secure and stable companies offer dividends to their stockholders. Their share prices might not move much, but the dividend attempts to make up for this. High-growth companies  rarely offer dividends because all of their profits are reinvested to help sustain  higher-than-average  growth. Dividend Relevance Theory: The value of a firm is affected by its dividend policy – the optimal dividend policy is the one that maximize the firm’s value. Optimal Dividend Policy: Proponents believe that there is a dividend policy that strikes a balance between current dividends and future growth that maximizes the firm’s stock price. Dividend Irrelevance Theory: The theory states that a firm’s dividend policy has no effect on either its value or its cost of capital. Bird-in-the-Hand Theory: It states that dividends are relevant. Remember that total return (k) is equal to dividend yield plus capital gains. Myron Gordon and John Linter took this equation and assumed that k would decrease as a company’s payout increased. As such, as a company increases its payout ratio, investors become concerned that the company’s future capital gains will dissipate since the retained earnings that the company reinvests into the business will be less. Gordon and Linter argued that investors value dividends more than capital gains when making decisions related to stocks. In this theory â€Å"the bird in the hand’ is referring to dividends and â€Å"the bush† is referring to capital gains. The traditional argument in favour of dividend is the idea that dividends reduce risk because they bring shareholders’ cash inflows forward. Although shareholders can create their own dividends by selling part of their holdings, this entails trading costs, which are saved when the firm pays dividends. The risk reduction or bird in the hand argument is associated with Graham and Dodd (1951) and with Gordon (1959) and it is often defended as follows. By paying dividends the firm brings forward cash inflows to shareholders, thereby reducing the uncertainty associated with future cash flows. In terms of the discounted dividend equation of firm value, the idea is that the required rate of return demanded by investors (the discount rate) increases with the plough-back ratio. Although the increased earnings retention brings about higher expected future dividend, this additional dividend stream is more than offset by the increase in the discount rate. This argument overlooks the fact that the risk of the firm is determined by its investment decisions and not by how these are financed. The required rate of return is influenced by the risk of the investments and should not change if these are financed from retained earnings rather than from the proceeds of new equity issues. As noted by Easterbrook (1984), in spite of paying dividends the firm does not withdraw from risky investments, thus the risk is merely transferred to new investors. Reasons for Paying Dividends: 1. Clientele Effect: The investors in your company like dividends. 2. The Signaling Story: Dividends can be signals to the market that you believe that you have good cash flow prospects in the future. 3. The Wealth Appropriation Story: Dividends are one way of transferring wealth from lenders to equity investors (this is good for equity investors but bad for lenders) Types of Dividend Policies: 1. Constant-Payout-Ratio: Constant-Payout-Ratio is a dividend policy based on the payment of a certain percentage of earnings to owners in each dividend period. The problem with this policy is that if the firm’s earnings drop or if a loss occur, the dividend may low or nonexistent. 2. Regular Dividend Policy: Regular Dividend Policy is a dividend policy based on the payment of fixed amount of dividend in each period. It provides the owners with positive information, thereby minimizing their uncertainty. 3. Low Regular and Extra Dividend Policy: Low regular and Extra Dividend Policy refers to a dividend policy based on paying low regular dividend, supplemented by additional dividend when earnings are higher than normal in a given period. Nature of Dividend Decision The dividend decision of the firm is crucial for the finance manager because it determines: 1. The amount of profit to be distributed among the shareholders, and 2. The amount of profit to be retained in the firm. There is a reciprocal relationship between cash dividends and retained earnings. While taking the dividend decision the management take into account the effect of the decision on the maximization of shareholders’ wealth. Maximizing the market value of shares is the objective. Dividend pay out or retention is guided by this objective. Factors Affecting Dividend Policy: A. External Factors B. Internal Factors A. External Factors Affecting Dividend Policy 1. General State of Economy: In case of uncertain economic and business conditions, the management may like to retain whole or large part of earnings to build up reserves to absorb future shocks. In the period of depression the management may also retain a large part of its earnings to preserve the firm’s liquidity position. In periods of prosperity the management may not be liberal in dividend payments because of availability of larger profitable investment opportunities. In periods of inflation, the management may retain large portion of earnings to finance replacement of obsolete machines. 2. State of Capital Market: Favorable Market: liberal dividend policy. Unfavorable market: Conservative dividend policy. 3. Legal Restrictions: Companies Act has laid down various restrictions regarding the declaration of dividend: Dividends can only be paid out of: Current or past profits of the company. A company cannot declare dividends unless: It has provided for present as well as all arrears of depreciation. Certain percentage of net profits has been transferred to the reserve of the company. Past-accumulated profits can be used for declaration of dividends only as per the rules framed by the Central Government 4. Contractual Restrictions: Lenders sometimes may put restrictions on the dividend payments to protect their interests (especially when the firm is experiencing liquidity problems) B. Internal Factors affecting dividend decisions 1. Desire of the Shareholders: Though the directors decide the rate of dividend, it is always at the interest of the shareholders. Shareholders expect two types of returns: [i] Capital Gains: i. e. , an increase in the market value of shares. [ii] Dividends: regular return on their investment. Cautious investors look for dividends because, [i] It reduces uncertainty (capital gains are uncertain). [ii] Indication of financial strength of the company. [iii] Need for income: Some invest in shares so as to get regular income to meet their living expenses. . Financial Needs of the Company: If the company has profitable projects and it is costly to raise funds, it may decide to retain the earnings. 3. Nature of earnings: A company, which has stable earnings, can afford to have a higher divided payout ratio 4. Desire to retain the control of management: Additional public issue of share will dilute the control of management. 5. Liquidity position : Payment of dividend results in cash outflow. A company may have adequate earning but it may not have sufficient funds to pay dividends. Apprising Dividend Policy of PRAN: Year |NI |EPS |Dividend Per |Dividend Payout Ratio | | |(in Millions) | |Share | | |2000 |33. 76 |42. 20% |20. 00% |47. 39% | |2001 |41. 99 |52. 49% |20. 00% |38. 10% | |2002 |43. 41 |54. 26% |25. 00% |46. 07% | |2003 |44. 39 |55. 49% |24. 00% |43. 25% | |2004 |40. 31 |50. 39% |24. 00% |47. 3% | |2005 |40. 77 |50. 96% |26. 00% |51. 02% | |2006 |28. 95 |36. 19% |26. 00% |71. 84% | |2007 |29. 33 |36. 66% |26. 00% |70. 92% | |2008 |35. 95 |44. 94% |28. 00% |62. 31% | |2009 |39. 97 |49. 96% |29. 00% |58. 05% | Table: 1 From the table 1 we see that in 2000 and 2001 PRAN have paid a cash dividend of BDT 20 per share in 2000 and 2001; in 2002 the dividend payment was BDT 25 per share. In 2003 to 2004 and 2005 to 2007 they have paid a cash dividend of BDT 24 and BDT 26 per share respectively. In the year 2008 and 2009 the cash dividend per share was BDT 28 and 29 respectively. Here we see that the dividend has increased in last two year, although the Net Income of the company decreased. However the EPS has also increased during the last two years and the same pattern can be seen in the Market Price of the share. [pic] Figure: 1 From figure 1 we can say that the dividend payment of the PRAN is certain and stable, regardless with earnings. As we see that despite of a drop in the earning in the year 2006 and 2007 the company maintained a constant cash dividend payment which is BDT 26 per Share and when the earnings increased in the year 2008 and 2009 the Dividend payment also increased. [pic] Figure: 2 The Dividend payout ratio indicates the percentage of each unit earned that a firm distributes to the owners in form of cash |Dividend Payout Ratio |= |Dividend Per Share | | | |Earnings Per Share | If we look at the figure 2 we see that to maintain a steady dividend payment per share each year they had to make a huge payment out of the Net Income. In 2006 and 2007 the dividend payout ratio was above 70% and in 2008 and 2009 it was above 58%. According to the Regular Dividend Policy the payment of the dividend is a fixed amount in each period. The Regular Dividend Policy also tries to establish to pay out a certain percentage of earnings, however it tries to stabilize the dividend by pay out a certain amount of dividend and it adjusts the dividend towards the target payout as proven earnings increases. In short we can say that PRAN is following the Regular Dividend Policy Constrains of Regular Dividend Policy: If we have a look at the figure 1 we see that the earnings of PRAN fluctuates year to year for this Regular dividend policy may sometimes prove dangerous. Once a company adopts the regular dividend policy, any adverse change in the dividend payment may result in serious damage regarding the financial standing of the company in the mind of the investors. The same problem is been experienced by PRAN despite of a drop in the earnings that they had to maintain the same amount of dividend. Appropriate type of Dividend Policy: A Stock market tends to be very efficient in the allocation of capital to its highest-value users. That market also helps increase savings and investment, which are essential for economic development. An equity market, by allowing diversification across a variety of assets, helps reduce the risk the investors must bear, thus reducing the cost of capital, which in turn spurs investment and economic growth. However, volatility and market efficiency are two important features which will ultimately determine the effectiveness of the stock market in economic development. In contrast to that the stock market of Bangladesh which is informationally inefficient, investors face difficulty in choosing the optimal investment as information on corporate performance is slow or less available. The resulting uncertainty induce investors either to withdraw from the market until this uncertainty is resolved or discourage them to invest funds for long term. Moreover, most of the time it is seen that investors are not rewarded for taking on higher risk by investing in the stock market, or excess volatility weakens investor’s confidence as a result they people avoid investing their savings in the stock market. Due to the imperfect market and the uncertainty of return the investors always aim for short term investment as a result they prefer dividend rather maximizing the firm’s wealth. The regular dividend policy, which ensures a fixed amount of dividend to be paid to the investor regardless to the company’s income during the period, helps to reduce the uncertainly for the investors. For this the Regular Dividend Policy is the appropriate for PRAN. Year |Net Asset Value Per |EPS |Dividend Per Share |Bonus Share |Market Price Per | | |Share | | | |Share | |2000 |258. 39 |42. 20% |20. 00% |- |416. 50 | |2001 |284. 60 |52. 49% |20. 00% |- |370. 00 | |2002 |312. 82 |54. 26% |25. 00% |- |366. 00 | |2003 |343. 9 |55. 49% |24. 00% |- |412. 00 | |2004 |362. 27 |50. 39% |24. 00% |- |523. 50 | |2005 |386. 55 |50. 96% |26. 00% |- |519. 25 | |2006 |396. 11 |36. 19% |26. 00% |- |386. 00 | |2007 |383. 91 |36. 66% |26. 00% |- |382. 63 | |2008 |428. 9 |44. 94% |28. 00% |- |1142. 00 | |2009 | 449. 96 |49. 96% |29. 00% |- |1363. 00 | Net Asset Per Share Vs. Market Value Per Share: Table: 2 From the table 2 we can say that PRAN has never issued any Bonus shares from 2000 to 2009. However they have maintained a steady dividend payment that shows a positive slope. The market price is very fluctuating in 2005 the MV was 519. 25 but in 2006 it went down to 386. 00, in 2007 it was 382. 63 but in 2008 the MV was 1142. 00. [pic] Figure: 2 From the figure 2 we see that till 2007 the Share Market Price and the Net Asset Value Per share is very close however from 2008 the difference between the Market Price and Net Asset value per Share increased despite of a drop in the Net Income. In the year 2008 and 2009 the corporation has paid a cash dividend of BDT 28 and 29 per share respectively and the EPS in 2008 was 44. 94% and in 2009 was 49. 96. From the above mentioned information we can say that there is a high possibility that the reason behind the increase in the market price of the share imperfect market condition in the Capital Market in Bangladesh. The imperfect market situation might be the result of Syndication or by spreading rumor in the market, which caused the Share Price of PRAN to go up. Capital Structure: In finance, capital structure refers to the way a corporation finances its assets through some combination of equity, debt, or hybrid securities. In other words we can say that Capital Structure is the mix of a company’s long-term debt, specific short-term debt, common equity and preferred equity. The capital structure is how a firm finances its overall operations and growth by using different sources of funds. Debt comes in the form of bond issues or long-term notes payable, while equity is classified as common stock, preferred stock or retained earnings. Short-term debt such as working capital requirements is also considered to be part of the capital structure. For example, a firm that sells BDT 20 billion in equity and BDT 80 billion in debt is said to be 20% equity-financed and 80% debt-financed. The firm’s ratio of debt to total financing, 80% in this example is referred to as the firm’s leverage. In reality, capital structure may be highly complex and include dozens of sources. Gearing Ratio is the proportion of the capital employed of the firm which come from outside of the business finance, e. g. by taking a short term loan etc. A company’s proportion of short and long-term debt is considered when analyzing capital structure. When people refer to capital structure they are most likely referring to a firm’s debt-to-equity ratio, which provides insight into how risky a company is. Usually a company more heavily financed by debt poses greater risk, as this firm is relatively highly levered. The Modigliani-Miller theorem, proposed by Franco Modigliani and Merton Miller, forms the basis for modern thinking on capital structure, though it is generally viewed as a purely theoretical result since it assumes away many important factors in the capital structure decision. The theorem states that, in a perfect market, how a firm is financed is irrelevant to its value. This result provides the base with which to examine real world reasons why capital structure is relevant, that is, a company’s value is affected by the capital structure it employs. Some other reasons include bankruptcy costs, agency costs, taxes, and information asymmetry. This analysis can then be extended to look at whether there is in fact an optimal capital structure: the one which maximizes the value of the firm. Capital structure in the real world if capital structure is irrelevant in a perfect market, then imperfections which exist in the real world must be the cause of its relevance. The theories below try to address some of these imperfections, by relaxing assumptions made in the M model. Capital Structure Theory: Trade-off theory of capital structure Trade-off theory allows the bankruptcy cost to exist. It states that there is an advantage to financing with debt (namely, the tax benefit of debts) and that there is a cost of financing with debt (the bankruptcy costs of debt). The marginal benefit of further increases in debt declines as debt increases, while the marginal cost increases, so that a firm that is optimizing its overall value will focus on this trade-off when choosing how much debt and equity to use for financing. Empirically, this theory may explain differences in D/E ratios between industries, but it doesn’t explain differences within the same industry. Pecking order theory Pecking Order theory tries to capture the costs of asymmetric information. It states that companies prioritize their sources of financing (from internal financing to equity) according to the law of least effort, or of least resistance, preferring to raise equity as a financing means â€Å"of last resort†. Hence: internal debt is used first; when that is depleted, then debt is issued; and when it is no longer sensible to issue any more debt, equity is issued. This theory maintains that businesses adhere to a hierarchy of financing sources and prefer internal financing when available, and debt is preferred over equity if external financing is required (equity would mean issuing shares which meant ‘bringing external ownership’ into the company. Thus, the form of debt a firm chooses can act as a signal of its need for external finance. The pecking order theory is popularized by Myers (1984)[1] when he argues that equity is a less preferred means to raise capital because when managers (who are assumed to know better about true condition of the firm than investors) issue new equity, investors believe that managers think that the firm is overvalued and managers are taking advantage of this over-valuation. As a result, investors will place a lower value to the new equity issuance.. Agency Costs: There are three types of agency costs which can help explain the relevance of capital structure. Asset substitution effect: As D/E increases, management has an increased incentive to undertake risky (even negative NPV) projects. This is because if the project is successful, share holders get all the upside, whereas if it is unsuccessful, debt holders get all the downside. If the projects are undertaken, there is a chance of firm value decreasing and a wealth transfer from debt holders to share holders. Underinvestment problem: If debt is risky (e. g. , in a growth company), the gain from the project will accrue to debt holders rather than shareholders. Thus, management has an incentive to reject positive NPV projects, even though they have the potential to increase firm value. Free cash flow: unless free cash flow is given back to investors, management has an incentive to destroy firm value through empire building and perks etc. Increasing leverage imposes financial discipline on management. Other The neutral mutation hypothesis—firms fall into various habits of financing, which do not impact on value. Market timing hypothesis—capital structure is the outcome of the historical cumulative timing of the market by managers. Accelerated investment effect—even in absence of agency costs, levered firms use to invest faster because of the existence of default risk. Primary Factors influencing the Capital Structure: 1. Business Risk: It is the risk associated with the unique circumstances of a particular company, as they might affect the price of that company’s securities. If the business risk is higher than the optimal debt amount will be lower. 2. Tax Position: It is the second key factor. The major reason for using debt is that the interest is tax deductable which helps to lower the effective cost of debt. However, if much of a firm’s income is already sheltered from taxes by accelerated depreciation or tax loss carried forward from previous years, its rate will be low, as a result debt will not be advantageous as it would be to a firm with higher effective tax rate. 3. Financial Flexibility: It indicates a firm’s ability raise capital on reasonable terms under adverse conditions. 4. Managerial Attitude: It is the firm’s attitude to borrowing fund. Some of the firms are more aggressive than others; hence, some firms are more inclined to use debt in an effort to boost profit. This factor does not affect the optimal capital structure or value-maximizing, however it does influence the firm’s target capital structure. Evaluating the Capital Structure of PRAN: The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders’ equity and debt used to finance a company’s assets. Closely related to leveraging, the ratio is also known as Risk, Gearing or Leverage. Year |Equity |Debt |Debt to Equity Ratio|NI |EPS | | | | | |(in Millions) | | |2005 |330. 04 |165. 94 |33. 46% |40. 77 |50. 96% | |2006 |337. 69 |152. 59 |31. 12% |28. 95 |36. 19% | |2007 |327. 93 |114. 00 |25. 80% |29. 33 |36. 66% | |2008 |342. 71 |92. 9 |21. 25% |35. 95 |44. 94% | |2009 |359. 97 |138. 99 |27. 86% |39. 97 |49. 96% | Table: 3 From the table: 3 we can say that that in 2005 when the D/E ratio was 50. 96% the company experienced the highest EPS. If we compare the D/E ratio and the EPS of 2008 and 2009 we see that in 2009 the debt ratio has increased by 6. 61% which had a positive effect on the EPS as a result the EPS increased by 5. 02%. It shows that when the D/E ration increases the EPS also increases. If we look at the graphical presentation it will be easier for us to understand which is given below. [pic] Figure: 4 If we take the average of the D/E ratio from 2005 to 2009 we see that on average PRAN is maintaining a D/E ratio of 27. 90%. In short we can say that 27. 90% of the total equity is financed by Debt. It means that the PRAN is moderately aggressive towards the debt financing. As a result they have a lower Financial Risk and higher Business risk. Conclusion: PRAN is one of the reputed companies in the Dhaka Stock Exchange and they fall under the Category â€Å"A†. From year 2000 to 2009 PRAN has always have paid cash dividend however they have never paid stock dividend. PRAN is maintaining a reserve capacity Dividends can be used to budge assets out of the company and consequently from the potential allege of creditors which can be injurious to creditor wealth, and creditors will beyond a shadow of a doubt take pricing or contractual actions to offset these latent uses of dividends. The contemplations of signaling, agency and the effects of market imperfections upon optimal dividends are imperative dimensions about which financial managers must be sentient. Recommendations: Cash and stock dividend, both should be paid without fail. Our stock market is not an efficient market. The available information most of the times do not lead to the desired reality. Many investors believe on the rumors and invest in the share market. Security Exchange Commission should take proper steps to minimize this condition. Disclosure of the overall market price in the annual report is desirable. The company can ideas from its investors to improve the situation and thereby engaging them in the part of the decision making process. Issuing of bonus shares can be a good option to attract the potential investors. How to cite Term Paper of Dbbl, Essays

Critical Thinking and Interpersonal Decision Making

Question: Discuss about the Critical Thinking and Interpersonal Decision Making. Answer: Introduction Decision making refers to the channels through which logical choices are sought and the best alternative reached. During this process all information to do with the available options has to be considered. Through critical thinking, all the known data and information surrounding the alternatives are expounded on and a more benefiting option sought. The negatives and positives of each alternative. Projecting a forecast is one way through which predictions in favor or against an option can be reached. The primary objective behind video dairy in decision making is study design and rapport development among the participants. It assures trust and excellence moderation through the process. The mix of activities and conversations ensures a deeper process coverage. Video dairies have a strong eminent way in giving details on how a process has developed. They detail on every personal view and opinion of the participants. The also deeply detail on the steps and processes taken to reach a decision. one is able to achieve an in depth understanding of a concept from video dairies. Through the use of video dairies in the decision making process opens a channel through which the ideas of every individual can be sought and be understood. The rich data sets derived from video blogs plays a major role in critical thinking and decision making purposes. Decision making and critical thinking The decision making processes should always be done on a step by step basis. In this manner, the decisions reached are always thoughtful and deliberate. The solution selected is essentially more specific to the eminent problem. Decision making and critical thinking need to follow a process as illustrated: Identifying subject matter The initial step is to get a deep understanding of the issue to be addressed. Knowing the details about it ensures a deeper development of a decision for it. Among the questions to ask at this level include: What the issue is. When it started. What causes it. What the solution need to address. The scope of cover. Information collection on the subject matter This process entails collection and documentation of all relevant information relating to the issue. The information should be sought both internally and externally. Essentially conducting a self-assessment reveals much of the data needed here. A research on the issue also provides additional insight to the scope of the issue to be decided on. Identifying alternatives and solutions after gaining in detail knowledge of the issue, one develops a better insight on the kind of solutions to be used to address the issue. All the possible alternatives need to be documented. The alternatives can be identified through imagination and by research. Assess the options Conducting a SWOT analysis for each option at this step ensures a deeper understanding of all the alternatives. The evaluation should be focused on addressing the questions raised in the first step. have a theoretical prediction on how each alternative shall be effective in addressing the issue. Once done, prioritize on the alternatives starting with the most effective option. Select and implement the best from the alternatives At this point a decision need to be made on the best alternative with all considerations in place. The alternative can then be implemented in to the process. Decision review After the implementation, there is need to continuously assess the effectiveness of the chosen alternative. The alternative need to exhaustively address all the issues raised in step 1. This ensures the issue is sufficiently addressed. Video diary in decision making and critical thinking Video diaries make a strong way through which users can make documentations and keep track on processes and decisions. The videos may as well be referred to as self-ethnography. The videos are recorded as a response to issues and concerns over time. The interactions in the activities result in a development of better understanding and relationship among the participants. From the video dairies one is usually able to ascertain the authenticity and actual attitude of the respondents and as such be aware of the attitude. The behavior comes natural as opposed to other channels through which this could have been recorded. They form a strong basis through which decisions can be made. When well detailed, the video dairies carry all the content that is discussed in a forum or process. Impact of video diaries in decision making and critical thinking. Develops a narrative journey to a decision or thinking Listening a well-documented video dairy will always take the audience through a deeply articulated steps and process through which a decision can be reached. They take the audience along in all the processes. The videos guide the audience, while providing every little details, through the channels used to reach a decision. From the tone and attitude, an audience is able to relate with the topic of discussion. To realize success, the videos need to be spontaneous. It ensures no detail in the decision making process is not left behind. Detailed in information dissemination Video dairies document every little detail through a process. There are minimal chances of information loss. When doing a critical thinking, all these details are needed to be included. Addressing them implies that the decision reached is all inclusive and considerate. They ensure a detailed narrative development Decision making and critical thinking have to be done in a particular manner. The development has to be in a definite direction. Concept development from a previous video is highly aided. It ensures the process is continuous. Challenges of loss of track in records are effectively addressed. The story line is definite ensuring minimal data loss and deeply sought process for a solution to be reached. Easier concept sharing While developing the video dairies, it is easy to incorporate details such as charts and previous results. Through this, keeping track of a process is ensured. An audience is able to instantly keep up to speed in all the elements within the subject matter. In a collaborative environment, the participants are able to gain knowledge on ongoing processes faster. Learning points From the course I have developed a stronger understanding on the proper channels through which a decision is made. I have strengthened my understanding on critical thinking and the need to keep track on all the steps and procedures passed through before a solution is reached. I have developed skills on proper and effective development of video dairies for managerial uses. I now have a strong intuition on powerful documentation of processes and steps necessary for sensitive steps. From this knowledge, I shall be in a better position to lead team members in making strong supported critical thinking and decision making in my career. I shall be able to make powerful insight on the modalities and channels for effective decision making. I shall also be able to ensure information flow and share among peers and management through video dairies to ensure efficient processes. Do data mining and manipulation for managerial decision making. Analyze managerial issues and ascertain inferences and theories surrounding them. I am also able to do evaluations on reasoning and judge self-opinion. Conclusion Decision making and critical thinking require strong interpersonal skills. They make critical managerial roles which need sensitivity while addressing. All the steps taken to reach a decision need to be sufficiently documented. Each participant need to exercise the art of listening and contributing. With effective video dairies, developing content for the decision making purposes get highly enhanced. Decisions are reached through a high developed content. The dairies are available for making revisions and revisits. The dairies are also available for a later stage revisit and recap. Sharing of ideas and concept among the decision making participants is also highly enhanced

Free Essays on A Comparison Of Selected British Charter Companies In India And North America

Great Britain’s first attempts at colonization around the globe started with Queen Elizabeth I, who granted charters to three major companies for the exclusive rights to extract the wealth from other regions of the world to stock the coffers of Britain. These three companies were the Plymouth, London (also known as Virginia) and East India Companies. In this paper we will look at the charter companies that started the colonization of North America. We will also focus on how each company ruled their territory and gained or lost power respectively. On April 10, 1606, George Popham and Sir Ferdinando Gorges were granted a charter from Queen Elizabeth I to start the Virginia Company of Plymouth. The Plymouth Company was one of two joint-stock companies who had charters in England to colonize in North America. The other company was the Virginia Company of London , which will be mentioned in more depth in the next section. The Plymouth Company was allotted the northern region of North America and was not to start a settlement less than a hundred miles away from any London Company settlement. The first band of colonists set out from England and was captured by the Spanish, undiscouraged the second ship with colonists aboard left England in 1607 and settled on the west bank of the Kennebec River in Maine.# That winter Popham died and a harsh winter set in that forced the would be colonists to return to England in 1608. Thus the company founded no permanent settlements until 1620. That year the Company was reorganized into what would be called the Council for New England, with a major shareholder being Sir Edwin Sandys.# The Plymouth Company had been having a hard time finding people to move to the forsaken New England colonies, then in 1620 a group of separatists who had illegally left Britain and moved to Holland, but were having troubles with the culture there as well, expressed an interest in the New England colony. Sandys... Free Essays on A Comparison Of Selected British Charter Companies In India And North America Free Essays on A Comparison Of Selected British Charter Companies In India And North America Great Britain’s first attempts at colonization around the globe started with Queen Elizabeth I, who granted charters to three major companies for the exclusive rights to extract the wealth from other regions of the world to stock the coffers of Britain. These three companies were the Plymouth, London (also known as Virginia) and East India Companies. In this paper we will look at the charter companies that started the colonization of North America. We will also focus on how each company ruled their territory and gained or lost power respectively. On April 10, 1606, George Popham and Sir Ferdinando Gorges were granted a charter from Queen Elizabeth I to start the Virginia Company of Plymouth. The Plymouth Company was one of two joint-stock companies who had charters in England to colonize in North America. The other company was the Virginia Company of London , which will be mentioned in more depth in the next section. The Plymouth Company was allotted the northern region of North America and was not to start a settlement less than a hundred miles away from any London Company settlement. The first band of colonists set out from England and was captured by the Spanish, undiscouraged the second ship with colonists aboard left England in 1607 and settled on the west bank of the Kennebec River in Maine.# That winter Popham died and a harsh winter set in that forced the would be colonists to return to England in 1608. Thus the company founded no permanent settlements until 1620. That year the Company was reorganized into what would be called the Council for New England, with a major shareholder being Sir Edwin Sandys.# The Plymouth Company had been having a hard time finding people to move to the forsaken New England colonies, then in 1620 a group of separatists who had illegally left Britain and moved to Holland, but were having troubles with the culture there as well, expressed an interest in the New England colony. Sandys...

Depuis vs Il y a

Depuis vs Il y a The French temporal expressions depuis and il y a have distinctly different meanings and uses, yet they often present difficulties for French students. Here is a detailed explanation and comparison of depuis and il y a to help you clearly understand the difference once and for all. Depuis Depuis, meaning for or since, can be used in the present or past in order to express an action that began in the past and continued to the temporal reference point used in the sentence: either the present or some point in the past. Depuis is thus used for actions that were incomplete at the referenced time, and can refer to two different kinds of time: 1) When followed by a period of time, depuis indicates the duration of an action and is equivalent to have been -ing (perfect progressive) for*   Ã‚  Ã‚  Nous attendons depuis une heure.  Ã‚  Ã‚  Weve been waiting for an hour.  Ã‚  Ã‚  Il parle depuis 5 minutes.  Ã‚  Ã‚  Hes been speaking for 5 minutes.  Ã‚  Ã‚  Il travaillait depuis 10 jours quand je lai vu.  Ã‚  Ã‚  Hed been working for 10 days when I saw him.2) When followed by an event or point in time, depuis indicates the start time of an action and is translated in English by have -en/-ed (perfect tense) since/for  Ã‚  Ã‚  Je suis malade depuis mon arrivà ©e.  Ã‚  Ã‚  Ive been sick since I got here.  Ã‚  Ã‚  Il à ©tait fà ¢chà © depuis lannonce, mais maintenant...  Ã‚  Ã‚  He had been angry since the announcement, but now...  Ã‚  Ã‚  Depuis hier, je suis dà ©primà ©e.  Ã‚  Ã‚  Ive been depressed since yesterday.  Ã‚  Ã‚  Il ne fume pas depuis un an.  Ã‚  Ã‚  He hasnt smoked for a year. Il y a Il y a means ago and can only be used for things that are already completed. The verb in the sentence must be in the past and il y a must be followed by some reference to time.**  Ã‚  Ã‚  Je suis arrivà ©e il y a une heure.  Ã‚  Ã‚  I arrived an hour ago.  Ã‚  Ã‚  Il a parlà © il y a 5 minutes.  Ã‚  Ã‚  He spoke 5 minutes ago.  Ã‚  Ã‚  Il a travaillà © il y a 10 jours.  Ã‚  Ã‚  He worked 10 days ago.  Ã‚  Ã‚  Jà ©tais malade il y a une semaine.  Ã‚  Ã‚  I was sick a week ago.  Ã‚  Ã‚  Il y a deux jours, jai vu un chat noir.  Ã‚  Ã‚  Two days ago, I saw a black cat.  Ã‚  Ã‚  Jai dà ©mà ©nagà © ici il y a longtemps.  Ã‚  Ã‚  I moved here a long time ago.*Il y a ... que, à §a fait ... que , and voil ... que are informal equivalents for the first use of depuis  - they mean have been doing for a certain amount of time.  Ã‚  Ã‚  Il y a cinq ans que jhabite ici.  Ã‚  Ã‚  Ive been living here for five years.  Ã‚  Ã‚  Ãƒâ€¡a fait deux heures que nous a ttendons.  Ã‚  Ã‚  Weve been waiting for two hours.  Ã‚  Ã‚  Voil six mois que je travaille avec Marc.  Ã‚  Ã‚  Ive been working with Marc for six months.**Voil can also replace il y a, informally.   Ã‚  Ã‚  Il est parti voil deux heures.  Ã‚  Ã‚  He left two hours ago. Summary Ago Have -ed for/since Have been -ing for Depuis vs. Il y a il y a depuis depuis Informal synonyms voil il y a que, a fait que, voil que French verb tense past present or past present Reference to time period of time point in time period of time Type of action completed continuing continuing

Research project Essay Example | Topics and Well Written Essays - 1250 words - 1

Research project - Essay Example The methodology used in the study has included the designs, the participants, and the instruments. This study is therefore aimed at determining the drinks’ possible effects. It is also important to highlight that this paper has specified coherently the procedures and the results of the study. The study has been summarized with a clear conclusion (Miller 2011). Introduction Adolescence describes the teenage years between 13 and 19 years. Energy drinks are soft drinks that contain small percentage of alcoholic content (Miller 2011). . Hypothesis Adolescents that take much energy drinks have slower rate of growth if compared with the ones who do not take the energy drinks. Research question What is the effect of energy drinks on the rate of growth of the adolescents? Importance of the study It is fundamental to highlight there are various gaps that exist in this study. For instance, most researchers have always neglected researching on the adolescents and the youth plights. This is because that category of people does not always have an organized set up that can facilitate a study, they always want to be at the top and no piece of advice can be accorded to them due to heir arrogance and ignorance (Miller 2011). . Literature Review This research field of research has been explored by other researchers as well. There is a good number of literatures that has been done by researchers on the effect of the energy drinks on the health of adolescents. Dr Yifrah Kaminer, a professor of psychiatry and pediatrics did a study and wrote in one of his articles, childpsych.theclinics.com/article on the potential negative effects of these drinks on the growth rate of adolescents. Dr. Kwabena Blankson, a U.S. Air Force major and an adolescent medicine specialist at the Naval Medical Center in Portsmouth, Virginia, on his regard to the drinks said they possess a lot of caffeine and some additives we are oblivious of. One of his most contemporary article, pediatrics journal o utline the health hazard nature of the energy drinks on adolescents and gave the effects as; increased blood pressure, anxiety, problems in the digestive track, insomnia, and dehydration. This is because of the amount of caffeine that is not regulated by the companies that manufacture the products. The Medical Journal of Australia that was published in 2009 shows the health effects and the diseases related to consumption of caffeine (Miller 2011). . The Objectives The main objectives of this study are as follows. To determine the emotional and psychological impacts of additives in the energy drinks in the life of adolescents. To determine the solution for stunted growth in adolescents. To ascertain factors that result in stunted growth in the life adolescents. RESEARCH METHODOLOGY This study will use different types of methodology to get the results. The following methodology will be used during this study. Research approach Deductive Approach Deductive approach to reasoning enables the researcher to analyze the facts and the test hypotheses from the more general level to more the specific level. This approach is normally known as top-down approach. What top-down approach means is that the researcher