Running head Business ethics an Example of the Topic Business Essays by

Running head: Business ethics Abstract. With the rise and growth of capitalism as a mode of production, and the push for profit maximisation, businesses have surged forward into the corporate world with an aim of minimising expenses ( such as the cost of labour, and the operational costs ), while at the same time, maximising the profit. The above state of affairs has led to the massive cases of exploitation of citizens by the commercial world, leading also to the need to enforce business ethics. In particular, there have been cases of fraud which in turn resulted to massive collapse of renown firms such as Tyco International, Enron, WorldCom, Peregrine Systems and Adelphia. It is this state of affairs that led to the creation of the Sarbanes- Oaxley 2002 Act so as to bring in ameliorations into this tumultuous state of developments geared by human avarice. Need essay sample on "Running head: Business ethics" topic? We will write a custom essay sample specifically for you Proceed Students Very Often Tell EssayLab professionals:How much do I have to pay someone to make my assignment today?Specialists advise: Essaylab.Com Offers A Top-Quality Academic EssayBuy Essays Online Write My Essay For Me Grab My Essay Review University Essay Writing Service However, with the enforcement of the business ethics and the Sarbanes- Oaxley 2002 Act, critics have emerged, citing the side effects of carrying out these stipulations. It is against this backdrop that this research paper has been written, with the principal aim of demonstrating how the pitfalls pointed out by critics can be sealed off, so that the Sarbanes- Oaxley 2002 Act can become more effective. Introduction. The Sarbanes- Oaxley 2002 Act which is also known as the Public Accounting, Auditing and Investor Protection Act, the SOX or the Sarbox Acts was enacted in the Federal Law of the United States on 30th July 2002 as a response to the preponderance in the corporate and accounting scandals. Some of the firms that had been affected included Tyco International, Enron, Worldcom, Peregrine Systems and Adelphia. The scandals were so severe in effect, to an extent that billions of dollars of share prices were forfeited, leading to the collapse of these companies and the subsequent dissipation of the national confidence in security markets. The Act was named after its sponsors, Senator Paul Sarbanes and Representative Oxley G. Michael, after that the Act was approved by a 423- 3 vote in the House and 99- 0 in the Senate. This development was followed by George Bush signing the bill into law, and thereby ratifying the most comprehensive American business reforms ever since the times of president Franklin D. Roosevelt. The Act operates by establishing new and quasi- public agencies such as the Public Oversight Board for Accounting Companies (PCAOB) which is given the mandate of supervising, inspecting, regulating and disciplining all the accounting firms that assume the role of auditing the records of accounts for all public companies. The Act also bolsters concepts such as the independence of auditors, internal control assessment, corporate governance and at the same time, enhances the concept of financial disclosure to the public. Research problem statement. Critics such as Ron Paul (a Congressman), have countered that SOX Law was unnecessary due to the fact that it hands the US firms a disadvantage in competing with foreign firms. The critics maintain that the same state of affairs, brought about by the law has been responsible for the driving away of businesses out of the US. Paul in his April 14th 2004 speech in the US House of Representatives, was citing the report by the Wharton Business School's findings. The lucidity of these accusations are bolstered by the fact that research conducted by the Wharton Business School released findings that, ever since the Sarbanes- Oaxley bill was passed into law, American companies have been deregistering from the US Public Stock Exchange. At the same time, it was found that in New York for instance, the New York Stock Exchange had only ten new entrants into the stock market ever since 2004. Ethics statements. This research paper mostly employs the use of academic books that have dealt on the issue of business ethics. At the same time, thoughts that have been borrowed, have been acknowledged so as to both avoid cases of plagiarism (intellectual theft) and uphold the standards of intellectual ethics. All the above measures have been taken to account, in the bid to show clearly the fact that no proper business activities can thrive without the observation of the business ethics. Purpose statements. This research paper seeks mostly to show the need for the observation of business ethics in both the corporate sector and the public sector. This paper does this by analysing the setbacks that bedevil these sectors as a result of not observing business ethics. The research paper does this by analysing the Sarbanes- Oaxley Act under the context of the US. Thoughts on how to seal the loopholes so as to fully realize the benevolence of observing of business ethics are discussed also. Significance. This paper can be deemed as relevant due to the fact that it spells out the pros and cons of adopting business ethics (in this case, the Sarbanes- Oaxley Act) by delving into the American context. This is not an end to itself since this research paper does this, while espousing the dominant aim of encouraging the observation of Sarbanes- Oaxley Act as a form of business ethics. The fine tuning of the Sarbanes- Oaxley Act's modalities have also been dealt on, so as to avoid the inconsistencies and the misgivings that critics have towards the adoption of Sarbanes- Oaxley Act as a form of business ethics. CHAPTER 2 Literature review. Studies have been carried out by different authors who all have different opinions about the importance of adopting the Sarbanes- Oaxley Act as a form of business ethics. For instance, the Wharton Business School (Manz, 2003 pp. 75) in its findings from a research that it had conducted in 2006, maintains that the adoption of Sarbanes- Oaxley Act as a form of business ethics has only been instrumental in ushering in plummeted growth and development of the American Stock Market Exchange. The representatives of this school point at the fact that there has been a lot of cases of deregistration of traders in stock market. The Wharton Business School maintains that this trend has been persisting, following the signing into effect, the Sarbanes- Oaxley Act. The Korn- Ferry International in the same wavelength posits that the implementation of Sarbanes- Oaxley Act has only catalyzed the reluctance on the side of small scale businesses from entering the American Stock Market Exchange. Korn- Ferry International points out that this has been due to the fact that 500 companies have been reported to have lost an average of 5.1 million as compliance expense in 2004 alone (De Vay, 2006 pp. 121). In the same vein, Foley and Lardner law firms have as a rejoinder to the above arguments against the adoption of Sarbanes- Oaxley Act pointed out that the Act has only been very instrumental in increasing the expenses of publicly held or owned companies by 130% from the time the law was enacted. Foley and Lardner law firms continue that this state of affairs has also led to giving foreign businesses an edge over local ones, due to the fact that the Sarbanes- Oaxley Act hugely rests its burdens and injunctions on local business firms, compared to the foreign firms. Other economics pundits such as John C. Dvork (Hartman, 2004 pp. 84) also argue that the adoption of Sarbanes- Oaxley Act leads to the stifling of creativity in the field of computer and technology. Dvork continues that this is likely to cause a downturn in the Information Technology sector. Dvork, a technology and computing journalist explains that this was seen in 2005 when the oldest and the most independent user group of IBM announced its speculations of closing down, citing the fact that the policies of Sarbanes- Oaxley Act was constantly exposing it to wasteful dispensation of resources. CHAPTER 3 Approach. This research study activity has been conducted mainly by analysing the scholarly books that have been written on business ethics in relation to the Sarbanes- Oaxley Act, and its underpinnings. Hypothesis. This paper has been written to prove that the adoption of Sarbanes- Oaxley Act as a way of instilling the observation of business ethics is only going to benefit the US. This is to be actualized by showing clearly, both the pros and cons of adopting Sarbanes- Oaxley Act as a form of business ethics. Causative analysis. There are different reasons that stand in the way of effective realization of business ethics. Some of these reasons are: Additional expenses being imposed on the firms. High operational costs especially for the IT firms since subscribing to the injunctions of the Sarbanes- Oaxley Act requires that these firms upgrade their systems. At the same time, these firms are expected to upgrade their systems following the fact that different non IT firms depend on IT systems and controls to implement the stipulations of the Sarbanes- Oaxley Act. The high rate of incursion of foreign business firms at the expense of local businesses due to the fact that the Sarbanes- Oaxley Act stipulations are country specific, applying much pressure on the domestic firms. CHAPTER 3. Goals and expectations. It is expected that the majority of businesses in America are going to do well as a result of having subscribed to the laws of business ethics. This cannot be far from the truth, especially if the measures are taken to seal the loopholes of the Sarbanes- Oaxley Act. At the same time, the citizens are also likely to be well covered from exploitation, upon business ethics and Sarbanes- Oaxley Act being followed fully. Expected outcomes. It is expected that full enforcement of business ethics policies and the fine tuning of the Sarbanes- Oaxley Act will usher in the following accruals: Cases of fraud are likely to take a plunge in the business and corporate sectors in the US. The US business sector is likely to thrive as a result of the above gain. There is likely to be the restoration of public confidence in the American Stock Market Exchange. Growth of the American Stock Exchange Market is inevitable as a result of the restoration of public confidence. CHAPTER 4. Problem statement. There are many problems that are being realised as a result of failure to totally instill the dictates of business ethics upon the business sector and failure to revise the stipulations of the of the Sarbanes- Oaxley Act. Some of these setbacks that are going to be encountered are: the departure of the US borne businesses from the business scene; the unproportional infiltration of foreign businesses into the American scene; and the collapse of the US Stock market. Description of selected solutions and calender plans. There should be the revision of the Title 2 of the Sarbanes- Oaxley Act so that the independence of the auditors should be extended to the private and foreign firms. All private and foreign business entities are to be subjected to the Title 3 of Sarbanes- Oaxley Act of Corporate responsibility. There should be the enhancement of the Title 4 Sarbanes- Oaxley Act of Enhanced financial disclosure. The concept and practice of the Title 5 of Sarbanes- Oaxley Act of Analyst conflict of interest should be also extended so that it pervades the entire corporate world. The Corporate Tax Returns of Sarbanes- Oaxley Act as the Tenth (10th) Title should also be stretched so that all businesses be made subject to its stipulations. CHAPTER 5. Discussions on recommendations. Revision of the Title 2 of the Sarbanes- Oaxley Act. At the present, Title 2 of this Act authorises the independence of the auditors at the public sector alone. However, to ensure that the concept of egalitarianism is followed to the latter, the powers of the auditors must be extended to the private sector and the foreign companies so that these do not have an edge, at the expense of local firms and the public sector in a way that is not warranted or earned. Reviewing of the Sarbanes- Oaxley Act Title 3. This act should be reviewed so that the observation of corporate responsibility be observed by both local and foreign businesses. However, since it is expedient that foreign investors be attracted, it is necessary that foreign businesses be subject to lower or manageable levels of corporate responsibility. Expanding of Title 4 of the Sarbanes- Oaxley Act. Both the public sector and the private sector- including foreign corporations must be made to send their statements of accounts at the end of every financial year for taxation, and for investigative purposes. However, this is only possible if Title 4 of the Sarbanes- Oaxley Act is abrogated. Abrogation of _ Title 5 of the Sarbanes- Oaxley Act. Title 5 of the Sarbanes- Oaxley Act should also be abrogated so that it is not only the officer in a business that belongs to public sector who is barred from holding certain portfolios so as to ward off cases of conflicts of interests in decision making. Businessmen in the private sector and foreign investors should also be subjected to such stipulations since these are also hugely prone to succumbing to conflicts of interests. Reviewing of Title 10 of the Sarbanes- Oaxley Act. As stated in the third recommendation, Title 4 of the Sarbanes- Oaxley Act must be abrogated so that Title 10 of collective taxation of both the private and public, local and foreign investments can be realized. Conclusion. It is now clear that implementing business ethics and specifically, the Sarbanes- Oaxley 2002 Act presents both merits and demerits in the economic sector. For instance, one of the merits is that the American Stock Exchange Market is bound to grow due to the renewed public confidence in the stock market. On the other hand, if not properly checked, the implementation of the Sarbanes- Oaxley 2002 Act as it is presently, will continue to trigger the exit of the US businesses from the American scene. The above matter must be taken as a matter of grave concern by the government since it is likely to lead to the unfavourable preponderance of foreign investments over the local ones. However, since the above state of affairs have been shown to exist as a result of the loopholes in the Sarbanes- Oaxley 2002 Act, the US government must therefore be seen to make strident measures to ratify the above recommendations so as to avert this danger. References. De Vay, D. (2006). Effectiveness of the Sarbanes- Oaxley Act in combating fraud. New York: Prentice Hall. Manz, W. H. (2003). The legislative history of Title 4 of the Sarbanes- Oaxley Act: Corporate fraud _ responsibility. Michigan: Michigan University Press. Hartman, P. L. (2004). Business ethics: collective perspectives. New York: John Wiley and Sons

Discover Amazing Manta Ray Facts

Discover Amazing Manta Ray Facts Manta rays are the largest rays in the world. There are at least two species of mantas. Manta birostris is the giant oceanic manta and Manta alfredi is the reef manta. Their appearance is similar and the range of the two species overlaps, but the giant manta is more often found on the open ocean while the reef manta visits shallower, coastal waters. Fast Facts: Manta Ray Scientific Name: Manta sp.Other Names: Devil ray, Giant manta, Mobula sp.Distinguishing Features: Massive ray with a triangular shape, cavernous mouth, and paddle-shaped lobes in front of its mouthAverage Size: 7 meters (M. birostris); 5.5 m (M. alfredi)Diet: Carnivorous filter feederLifespan: Up to 50 yearsHabitat: Tropical and subtropical oceans worldwideConservation Status: Vulnerable (Population Decreasing)Kingdom: AnimaliaPhylum: ChordataClass: ChondrichthyesSubclass: ElasmobranchiiOrder: MyliobatiformesFamily: MobulidaeFun Fact: Mantas regularly visit reef cleaning stations to have external parasites removed. Description The name manta means mantle or cloak, which is an accurate description of the animals form. Manta rays have triangular pectoral fins, broad heads, and gill slits on their ventral surfaces. Their horn-shaped cephalic fins have earned them the nickname devil ray. Both species of ray have small, square teeth. The species differ in the structure of their dermal denticles, color patterns, and tooth patterns. Most mantas are black or dark-colored on top with marked shoulders and pale undersides. The ventral surface may have distinctive dark marks. All-black animals also occur. M. birostris has a spine near its dorsal fin, but it is incapable of stinging. M. birostris reaches 7 m (23 ft) in width, while M. alfredi reaches 5.5 m (18 ft) in width. A large manta can weight up to 1350 kg (2980 lb). Manta rays must move forward to pass oxygenated water over their gills. The fish swim basically by flapping their pectoral fins and flying underwater. Despite their large size, mantas frequently breach into air. The fish have one of the highest brain-to-body mass ratios and are believed to be highly intelligent. Manta rays must swim forward to breathe. Gregory Sweeney / Getty Images Distribution Manta rays live in the tropical and subtropical oceans around the world. They have been seen as far north as North Carolina in the United States (31Â °N)Â  and as far south as New Zealand (36Â °S), although they only venture into temperate seas when the water temperature is at least 20 Â °C (68 Â °F). Both species are pelagic, found mainly in the open ocean. They are common in coastal waters from spring to fall. They migrate as far as 1000 km (620 mi) and occur at depths ranging from sea level down to 1000 m (3300 ft). During the day, manta rays swim near the surface. At night, they venture deeper. Manta ray distribution. maplab Diet Manta rays are carnivorous filter feeders that prey upon zooplankton, including krill, shrimp, and crab larvae. Mantas hunt by sight and smell. A manta herds its prey by swimming around it so the current collects the plankton. Then, the ray speeds through the ball of food with a wide-open mouth. The cephalic fins channel particles into the mouth, while the gill arches collect them. Predators Killer whales and large sharks prey upon mantas. Cookie cutter sharks, which take round cookie-shaped bites from their prey, can inflict potentially fatal damage. Rays are susceptible to a variety of parasites. They routinely visit reef cleaning stations for wound cleaning and ectoparasite removal. The ability of each fish to revisit cleaning stations is considered evidence manta rays construct mental maps of their surroundings. Reproduction Mating occurs at different times of the year and depends on the mantas geographic location. Courtship appears to involve fish swimming in trains, often during the full moon. During mating, the male almost always grasps the females left pectoral fin. He then turns so the two are belly-to-belly and inserts a clasper into her cloaca. Gestation is believed to take 12 to 13 months. The egg cases hatch inside the female. Eventually, one to two pups emerge. Females usually give birth every two years. Males mature when they are younger and smaller than females. Females usually mature around 8 to 10 years of age. Mantas may live up to 50 years in the wild. Manta Rays and Humans Historically, manta rays were worshipped or feared. It wasnt until 1978 that divers demonstrated the animals were gentle and would interact with humans. Today, some of the best success protecting manta rays has come from ecotourism. Fishing a manta for its meat, skin, or for gill rakers for Chinese traditional medicine can earn hundred of dollars. However, each ray can bring in $1 million in tourism dollars over its lifetime. Scuba divers are most likely to encounter the great fish, but tourism in the Bahamas, Hawaii, Indonesia, Australia, Spain, and other countries makes it possible for anyone to view mantas. While the rays are not aggressive, care must be taken to avoid touching the fish because disrupting its mucous layer makes it susceptible to injury and infection. Mantas are not aggressive toward humans. James R.D. Scott / Getty Images Conservation Status The IUCN Red List classifies both M. alfredi and M. birostris as vulnerable with an elevated risk of extinction. While mantas are protected by many countries, their numbers are declining because of migration through unprotected waters, overfishing, bycatch, entanglement in fishing gear, ingestion of microplastics, water pollution, boat collisions, and climate change. Local populations face a severe threat because there is little interaction between subpopulations. Because of the fishs low reproductive rate, its unlikely mantas in unprotected areas can recover, particularly from overfishing. However, a few public aquariums are large enough to house manta rays. These include the Georgia Aquarium in Atlanta, the Atlantis Resort in the Bahamas, and the Okinawa Churaumi Aquarium in Japan. The aquarium in Okinawa has successfully birthed manta rays in captivity. Sources Ebert, David A. (2003). Sharks, Rays, and Chimaeras of California. University of California Press. ISBN 978-0-520-23484-0.Marshall, A. D.; Bennett, M. B. (2010). Reproductive ecology of the reef manta ray Manta alfredi in southern Mozambique. Journal of Fish Biology. 77 (1): 185–186. doi:10.1111/j.1095-8649.2010.02669.xParsons, Ray (2006). Sharks, Skates, and Rays of the Gulf of Mexico: A Field Guide. Univ. Press of Mississippi. ISBN 978-1-60473-766-0.White, W. T.; Giles, J.; Dharmadi; Potter, I. (2006). Data on the bycatch fishery and reproductive biology of mobulid rays (Myliobatiformes) in Indonesia. Fisheries Research. 82 (1–3): 65–73. doi:10.1016/j.fishres.2006.08.008

Request for Scholarship Essay Example | Topics and Well Written Essays - 250 words

Request for - Scholarship Essay Example Earning for the sake of well-being of my children is the dire necessity now for this divorced mother of four children. After marriage, I was a stay at home mother without the responsibility for earning. After the bitter experience of divorce, though it was a great blow in my personal life, I began to find jobs, was employed twice, and on both the occasions was laid off. I am placed at the precarious stage of my life and I am unable to take admission to any medical course without financial assistance. At the same time, I am determined to do the course to eventually get myself qualified as a Sonographer to start with and then do a course in MRI. I have been advised by my well-wishers that if I am able to do this course from a reputed medical institution like yours that will stand me in good stead for my future career opportunities. Taking into consideration my family condition, my earnest desire to enter the health field that provides immense challenges to serve humankind, and to fulfill my long-term career goals, I request you to grant me a scholarship that will cover up the entire tuition fees and other related expenses. I shall remain ever grateful for this magnanimous act by the management of Gurnick Academy of Medical Arts. I request you treat mine as a very special

Human Resources Staffing Plan with Three Year Forecast by Quarter Essay

Human Resources Staffing Plan with Three Year Forecast by Quarter - Essay Example It is evidently clear from the discussion that the management has discovered that restaurant profits are growing at a very low rate of about three percent annually and the trend is worrying. The first section of the plan shall deal with the essential matter of task identification. An effective human resources management team will be judged based on its competencies. The appropriate behaviors that employees ought to have to work are competencies. A competent framework entails a structure that defines and lays down the employee competency. The human resources must operate within a specified framework in order to view employees and restaurant s as being synonymous. The human resource team must develop a better working environment and terms for the employees to be effective at work. The aim of the company as Miss Cutter put it is business. However, people conduct the business. In other words, human resources must have what will make the employees do their work effectively. This begins wi th appreciating that employees are human and not just tools. The team should then proceed to put the right structures. Following these basics will determine the competence of the human resource framework. Most companies reduce the human resources department to handling payments and being involved in the recruitment exercise while at the same time handling salary omission complains that arise from the staff. The reason is that the human resource has limited its scope of operations by neglecting other roles. The most significant remains ensuring employees is in a perfect psychological state to increase efficiency at work. The human resources ought to carry out an evaluation of the staff based on their efficiency. By doing this, the human resources department will assume a new but rightful passion within restaurants.

Wrigley Jr. Company Essay Example for Free

Wrigley Jr. Company Essay 1.0 Introduction In June 2002 Blanka Dobrynin, a managing director of Aurora Borealis hedge fund, considers the possible gains from increasing the debt capitalization of The Wm. Wrigley Jr. Company. Blanka suggests Wrigley raise the amount of $3 billion in debt of the capitalization while Wrigley has been conservatively financed and remained no debt at the end of 2001. This report is aiming to analyze whether Wrigley should use $3 billion debt recapitalization to either pay dividends or to repurchase shares. 2.0 Current Capital Structure Generally, firms can choose among various capital structures in order to maximize overall market value of the company. It is proposed however, that Wrigley issues $3 billion in debt. According to the trade-off theory, the optimal capital structure does exist (Kraus and Litzenberger, 1973). The higher level of debt may increase both bankruptcy and financial cost that lead the firm to go or avoid bankruptcy. However, there are several advantages of raising debt capital. Firstly, tax-deductions which decrease the cost of debt. Secondly, stockholders do not have to share the profit when the firm has excess, as debt holders are limited to their fixed return. Finally, stockholders do have voting right but debt holders do not which means the stockholders are controlling the business. 3.0 The Impacts of Proposed Changes The decision to increase $3 billion debt capitalization of the Wm. Wrigley Jr. Company by Blanka Dobrynin is to optimize the total value of the company. Firms are often inclined to choose debt over equity in order to use the tax shield. As the increasing of $3 billion debt in Wrigley’s capital structure, its equity value will increase by $1.2 billion due to the tax shield. Also this proposal of recapitalization will help Wrigley’s equity decrease by only $1.8 billion when they payout $3 billion debt, due to the offset by the $1.2 billion tax shield. According to our calculations, through recapitalization Wrigley’s total asset will be $14,459,826, which consists of $3,157,127 debt and $11,302,699 equity. In general, firms prefer to keep a higher level of debt/equity ratio to obtain larger total capital to increase the firm’s total value. But it is obvious that more debt means more risk and more payout. By assessing the spreadsheet, it suggests several reasons for and against the acquisition of debt. If the Wrigley’s debt increases, its credit rating will drop from AAA to BB, which leads to more cost of future financing and value of stocks. However, as debt can increase firm value up to a degree, we recommend that Wrigley’s find an optimal capital structure through further analysis of whether $3 billion of debt provides the smallest possible Weighted Average Cost of Capital (WACC) for the firm. 3.1 Flexibility and Reserves According to Denis (2011), financial flexibility is the ability of a firm to make decisions and handle problems timely. Moreover, the firm should always maximize their firm value on any unexpected changes in investment opportunity and cash flows of the firm. In addition, the firm should prudently raise their capital in the good times to avoid stretching their capabilities too far, and in order to preserve their ability to choose to either borrow or issue equity in future times of need. Therefore, the lower level of firm’s debt, the more financial flexibility a firm has (Investopedia, 2014). Due to that $3 billion new debt existing, the financial flexibility of Wrigley will decline; this financial activity leads to lower ability to borrow money in the future if there are any profitable investment opportunities or any unexpected internal or external shocks. 3.2 The Book and Market Price per Share As is visible from the Appendix One, the decision of how to use the funds raised through debt is an important one as it will impact both the price per share and the book value per share. The price per share will decrease to $48.63 if the debt raised is used to pay out a dividend (decrease in the value of equity), whereas the price per share will increase to $61.53 if it is used to repurchase shares. However, the issuance of debt can have signalling effects for investors. Generally, when firms issue debt it signals to investors that the firm is in a good financial situation as the firm is able to undertake repayments of future interest. Furthermore, the clientele effect can impact the stock price because it assumes that the investors are attracted to the company for its policies and when these change the investors will react and adjust their stock accordingly (Moles Terry, 2005). In addition to this, the issuance of debt and repurchase of stock could signal to investors that managers believe the stock in undervalued. Despite this change in price, the Weighted Average Cost of Capital (WACC) will give a more accurate representation of what the change in capital structure implies for the firm, by taking account the costs of debt. 3.3 Weighted Average Cost of Capital Before recapitalisation Wrigley’s WACC was equal to it’s cost of equity (ke), which was calculated at 10.95%. After capitalisation it was found that Wrigley’s WACC decreased to 10.29%. This follows the general pattern of increasing debt resulting in a lower WACC. The cost of debt (kd) rate of 13% was used after we assessed the key industrial financial ratios and compared  them with that of Wrigley’s (See Appendix 2) to conclude that it was in the range between the BB rate of 12.753% and B 14.663% (see Appendices 3 4). Although WACC has decreased, which means that every $1 that Wrigley raises in capital from investors it must pay at least $10.30 in return, it’s Beta has increased from 0.75 to 0.87. This means that Wrigley’s investment is still less volatile than the market, but it has become more in line with the market after recapitalisation. However Beta will not incorporate the risk of financial distress that becomes present once Wrigley have taken out the debt. 4.0 Conclusions and Recommendations Therefore, from our analysis we know that an increase in debt can have adverse affects on flexibility and can have costs associated such as bankruptcy, agency and distress costs, however, due to the tax shield affects and the decrease in WACC we believe there should an increase in the level of debt. In addition, the share price change is not consistent with the change in WACC and it could be assumed that the distress costs associated with the increase in debt would mean the price would actually remain relatively steady to reflect the negligible change. We recommend that Wrigley issue $3 billion of debt in the form of share repurchase plan because this scenario has no defining impact upon WACC – slightly decreasing from 10.95% to 10.29%, and as a company’s main goal is to increase its’ shareholders value. Furthermore there are fewer risks in terms of clientele effect and signalling effect, while also allowing the Wrigley family to maintain their control with their high portion of shares. However, we recommend further analysis to determine what is the optimal level of debt by finding the lowest possible WACC, and therefore maximising the company’s value. 5.0 Reference List DeAngelo, H., DeAngelo, L., Whited T.M., (2011) Capital structure dynamics and transitory debt. Journal of Financial Economics, 99, 235–261. Denis, D J. (2011) Financial flexibility and corporate liquidity. Journal of Corporate Finance, 17(3), 667-674. Franco Modigliani; Merton H. Miller . (Jun., 1958) The American Economic Review, Vol. 48, No. 3. , pp. 261-297. Investopedia. (2014). Complete Guide To Corporate Finance. Retrieved from http://www.investopedia.com/walkthrough/corporate-finance/5/capital-structure/capital-structure.aspx Investopedia (2014). Optimal Capital Structure. [ONLINE] Available at: http://www.investopedia.com/terms/o/optimal-capital-structure.asp. [Last Accessed 19 Aug 2014]. Kraus, A. and R. Litzenberger (1973). A State-Preference model of optimal financial leverage. Journal of Finance, Vol. 28, pp. 911-922. Moles, P., Terry, N. (2005). Clientele effect. The Handbook of International Finance Terms. Retrieved from http://www.oxfordreference.com.ezp01.library.qut.edu.au/view/10.1093/acref/9780198294818.001.0001/acref-9780198294818-e-1351 Myers, S.C. (2001). Capital structure. Journal of Economic Perspective, Vol. 15, pp. 81-102. Tsuji, C. (2012) A discussion on the signalling hypothesis of dividend poilcy. The Open Business Journal, 5, 1-7. Retrieved from http://benthamopen.com/tobj/articles/V005/1TOBJ.pdf

Huck Finn :: essays research papers

Satire in Huck Finn   Ã‚  Ã‚  Ã‚  Ã‚  In the first few chapters of Huckleberry Finn, we can see traces of satirical elements begin to emerge from within the story. The very first satirical scene occurs after Tom plays a trick on Jim, Miss Watson’s slave. Huck goes on to describe how Jim reacts to finding his hat hung on a limb above his head. â€Å"Afterwards Jim said the witches bewitched him and put him in a trance, and rode him all over the State, and then set him under the trees again and hung his hat on a limb to show who done it.† This note that Huck makes may have served a humorous purpose during older times, when Blacks were stereotypically superstitious. This also shows Jim’s gullibility and is referred to later on in the story.   Ã‚  Ã‚  Ã‚  Ã‚  In the first eleven chapters of the story, the only evident character and element in the story being satirized is Jim and the simple stereotypes of an African American living in Finn’s and Clemens’ time. Jim is once again satirized in chapter ten, where he is bitten after Huck places a dead snake near his blanket. Jim, being superstitious, chides Huck after he touches a snakeskin earlier in the story. Huck ignores this and places a dead snake at the foot of Jim’s blanket one night and Jim gets bitten in the foot by the dead snake’s mate. This portion of the book once again satirizes Jim’s superstition and adds to the element of humor in the story by describing the treatment that Jim applies to his foot after he is bitten. â€Å"He was barefooted, and the snake bit him right on the heel. That all comes of my being such a fool as to not remember that whenever you leave a dead snake its mate always comes there and curls around it. Jim told me to chop off the snake’s head and throw it away, and then skin the body and roast a piece of it.

Hershey Essay

The Hershey’s company mission is â€Å"Bringing sweet moments of Hershey happiness to the world every day. † Hershey’s mission statement is short and sweet. They are able to address the majority of the nine components of the mission Statement with one sentence. Their customers are the world, their product is Hershey, their market is the world, their philosophy is to bring happiness, and their self-concept is that they perceive themselves as a company that can bring happy moments to individuals who use their products across the world everyday. There are nine component of mission statement ,whisch is Customers, Products/Services, Geographic Markets, Technology, Concern for Survival, Philosophy, Public Image and EmployeesDistinctive Competence. The mission statement needs to include some description of the function of the business. For example, â€Å"to promote industrial excellence,† tells customers and employees nothing. A more effective description would be â€Å"To provide management consulting services. † An effective mission statement sets out, in broad terms, the target market. A manufacturer that makes nuts and bolts might set its target market as retail hardware stores, machine manufacturers, or both. The business must determine what region it serves best and relay that information by way of the mission statement. A garage, for example, might limit its target region to the community while a magazine company might target an entire country. Mission statements typically include a statement of company values. Values such as customer service, efficiency and eco-consciousness often appear on lists of company values. At their best, company values should express principles the company explicitly tries to affirm in day-to-day operations. For businesses that rely heavily on technology, the mission statement should include a description of the essential technology the company does or plans to employ. If nothing else, this directs purchasing agents toward the appropriate vendors for goods and services. Every company has a policy regarding its relationship with employees. A mission statement provides an opportunity to describe that policy in brief so employees know the essentials of where they stand. Effective mission statements also include a brief description of the business’s strategic position within the market. For example, the company might excel at serving residential clients and seek to maximize that strategic advantage. For for-profit ventures, businesses require clear financial objectives. A start-up company might set one of its financial objectives as making an initial public offering of common stock within two years. This lets the employees and potential investors know the company intends to go public, with all of the legal and record keeping ramifications that entails. Like people, companies develop public images. Careful companies craft the public image they want to establish and lay out the major features of it in the mission statement. This helps managers direct employees that stray from the sanctioned public image. Hershey’s objectives * To promote the health benefits of Hershey Chocolate * Help the consumers change their mind-set that chocolates are unhealthy * To spread awareness and increase sales of product Critically analysis the strategic objective of Hersheys company. Answer : Hersheys as the popular chocolate company has provided a good list of objectives of their company. Firstly, Hersheys company try to give an effort on promoting the health benefits of their product to shared it with thier customer. For the example, Hersheys company win their customer by influence them to make a choice Hersheys chocolate as the best healthy chocolate. This parallel to the second objective of Hersheys company that to bring hope to help the consumers to change their mind-set about the unhealthy of taking chocolate. So that, by implement the first and second strategy Hersheys company can increase sales of product and spread awareness well. Based on Specific, Measurable, Attainable, Responsible person and Time specific (SMART) Hersheys Company not follow the technique wisely. For the Specific part, Hershey company fail to specific their goals. They must try to answer the questions of how much and what kind with each goal writen. On part Measurable, the company must set the goals that stated in quantifiable terms, or otherwise they’re only good intentions. Measurable goals facilitate management planning, implementation, and control. Hershey shown the implement to getting the customers that has mind-set of chocolate is a healthy junk food. Besides that, the third aspect of SMART technique is Attainable that talk about the goals must provide a stretch that inspires people to aim higher and make sure the goals must be achievable, or they’re a set-up for failure. For the Hershey company, they objective or goals that want to change customer mind-set about taking chocolate is a good habits that inspired their customers to increase their loyalty. Fourth aspect is the responsible person or group of department to take the responsibility to run the objectives. The goals must be assigned to a person or a department. But just because a person is assigned to a goal doesn’t mean that she’s solely responsible for its achievement. Hershey company did not state clearly who or what department must take the important part of implement the objective of the company. Lastly, aspect of time specific which is reference to time, the goals must include a timeline of when the goals should be accomplished. The Hershey did not state it in their objective. This is make the goals can become flexible to achieve that never based on time setting. Besides that, Hershey company also has their own strategy as an backup of their objective which is entering new market in Canada, United States, Mexico,Brazil and other international locations(India,The Philippines ,Japan and China), producing new products with new brand name, expanding its global presence via joint venture and merger, supporting environmental and social projects, increase sales using promotional materials and the last is roducing healthy chocolates.