Technical Developments Essay Example for Free

Specialized Developments Essay With the expansion in the accomplishment of record deals came the need to acquaint strategies with reduce producing costs so as to build net revenues. No place was this need more predominant than with the free record organizations in the business for they had the most to pick up not to mention endure. After the downfall of Germany, German innovation advanced over the Atlantic to America. One of these specialized advancement was the capacity to store sound data on attractive tape. Attractive tape was where Iron Oxide implanted on plastic tape could be polarized by enhanced electrical driving forces to record and playing back sound data. It offered altering of exhibitions, compactness, and better sound quality and was significally less expensive than the current advancements. In the USA an organization that made Scotch tape called 3M improved the capacities of attractive tape, permitting recording paces of 30 ips to be brought down to 15 ips and 71/2 ips with minimal quality misfortune however essentially longer account times. In 1948 Bell labs acquainted the Transistor with America. Transistor innovation could do everything the Vacuum tube at a decreased expense. It required less force, was littler in size and progressively strong. Before long the chronicle studio got convenient and could undoubtedly be torn down and set-up if the need emerged. In particular, the AM radio was made and could be found in the private limits of a young people room. It may be difficult to accept, yet guardians would caution their children about the indecencies of tuning in to new music without anyone else. This new approach in specialized forward leaps started enthusiasm with the significant players in the business like CBS and RCA. Over at CBS the research facilities imagined High Fidelity, another technique for improving the record. The Long-Playing record was created that expanded the quantity of depressions for the playing speed was brought from 78 rpm down to 33 rpm. Since the speed was brought down and the scores now littler, the littler precious stone pointer supplanted the bigger sapphire pointer. The new pointer expected to utilize lesser weight permitting the LPs to last much more. Over at RCA, engineers were creating comparable innovation. They created a littler estimated record that rotated at 45 rpm. The size of the 45 and the way that they just played one melody worked very well for the jukebox proprietors. The 33-rpm LP functioned admirably for playing records that offered more than one tune and could sell for more cash. With the new specialized advances, records rose as a generally cheap medium contrasted with the general creation expenses of Radio, film and Television, With this new pattern, littler free record organizations could contend with the bigger organizations and normally they developed in height and force. Records before long turned into the backbone of radio and by 1952 record deals outperformed sheet music deals as a wellspring of income in the music business. Never again was the jukebox the principle asset for record advancement, radio with its new characters would ensure that. The fundamental telecom group was AM plentifulness tweak, despite the fact that FM recurrence adjustment had been around for some time. FM was in struggle with the presentation of TV for it existed in the VHF data transmission that TV additionally shared, and needed to take a rearward sitting arrangement to AM despite the fact that its telecom quality was better. It was evident to the telecom organizations that the future lied in TV and radio would consistently be optional. A trade off was made with Fm supporters and TV when TV permitted FM to work on channel 1 on the TV station dial. It was later moved to a data transfer capacity between 88-108 megacycles (between channels 6 and 7 where in now lives today. This end up being obliterating for FM telecasters for not very numerous individuals were keen on purchasing a FM radio. In 1946 there were right around 7 million AM radios and under 75,000 FM radios, and it would be quite a while until TV was altogether settled in that FM would begin to develop as a telecaster for traditional radio. With the improvement of TV came the lethal hit to organize radio, for the huge publicists were significantly more keen on supporting TV programming than radio. Yet, radio figured out how to endure by means of the Independent telecasters that could depend on neighborhood publicists for incomes, what we call today Retail sections the Corporate promoting of the significant supporters. It is stunning to recognize the endeavors and the karma of the independents in their quest for good music.

Enterprise Resource Planning- Business Process Reengineering Essay

Endeavor Resource Planning-Business Process Reengineering - Essay Example Hierarchical objectives and the capacity to meet them are essential and can be made conceivable just when the aggregate power of the workers are adjusted to the objectives of the association. Organizations have discovered that the way to effectively finishing and achieving ventures is frequently through the improvement of groups. No worker capacities without anyone else. Groups are a basic piece of an association and consequently cooperation on part of the workforce gets basic. Cooperation has become a fundamental component for the achievement and endurance of a business. The group administrator is regularly endowed with the obligation of conveying results for the benefit of the group and it is in this way nothing unexpected that association search for collaboration as a significant aptitude when enrolling MBA's. A beneficial group has players that share shared objectives, a typical vision and have some degree of relationship that requires both verbal and physical association. They may meet up for various reasons, to accomplish a business focus, to define a promoting effort or conceptualize thoughts for another item and so on. Their objectives are joined by the single reason for accomplishing the ideal execution and experience achievement. The goal may shift, however the methods by which one arrives is the equivalent - cooperation. Cooperation makes each individual responsible for the outcome. ... yles meet up, their perspective of a specific issue is changed, making it all the more intriguing and incorporating and gives a more extensive and more profound point of view to the current issue. It involves better dynamic among the gathering. While collaboration elevates the capacity to regard someone else's sentiment, it additionally fabricates the ability to counter it helpfully when it may not be actually perfect with the remainder of the group. Genuine joint effort, be that as it may, is progressively hard to accomplish. This is on the grounds that in spite of the fact that the group performs exceedingly well, there will consistently be sure individuals from the group who depict themselves as significant supporters of get a more noteworthy portion of the credit. Every individual is influenced by the way that, all things considered, uniqueness is remunerated more regularly than group support. All evaluations and raises are custom fitted more towards singular exhibitions as opposed to groups. Henceforth, this sets up a serious streak in the representatives. It must be acknowledged that some opposition among representatives is useful on the grounds that it keeps laborers intrigued by their occupations. It likewise rouses them to work somewhat harder than their colleagues, and instigates their exhibition towards exceeding expectations. It isn't without inconveniences when it arrives at seriously raised levels. It is regularly difficult to kick back and watch another person assume the praise. At the point when an occupation or advancement is in question, rivalry may arrive at inadmissible levels in the working environment. With the exceptionally serious culture being predominant in the present day situation, representatives are regularly moved into the contending mode normally. Seriousness among representatives to a great extent is advanced by the association culture. Administrators may pitch representatives against one another and challenge their colleagues just to understand that additional work out of them. Demonstrating representative

Case Study Report in Psychology

Case Study Report in Psychology Need Help In Writing a Case Study in Child Psychology? A case study is one of the research methods which is widely used in different branches of psychology. A case study in psychology involves in-depth investigation of a single person, group or a community. Students are often assigned to write a case study paper in psychology that may be a difficult task for many beginners and if you are one of them, you should read our easy guide on how to write a case study report in psychology. Typically, the data for a case study are collected from different sources and by using a variety of methods, for example, observations, structured questionnaires, test scores, and interviews. The research may last for an extended period of time which makes possible to study processes and developments just as they happen. The case study research method was first applied in clinical medicine and now it is widely used in different branches of psychology such as child psychology, developmental psychology, social psychology, and more. A case study for psychology is not a research method in itself â€" the researchers have to choose some specific methods of collecting and analyzing data that will help to generate material suitable for case studies. The main sources of data for psychology case studies are • observations of a person’s daily routine • unstructured interviews with a person or the people who know her/him • personal diaries, • personal notes (photos, letters, notes) • official documents (clinical notes, case notes, appraisal reports, etc.) Of course, most of this information is qualitative (verbal descriptions), but psychologists might also do a qualitative research and gather numerical data. In psychology case studies are often devoted to studying a personality of a particular individual. When writing a personality psychology case study, you should perform a detailed investigation and give a description of an individual’s history and his current status. Your case study report should include information about the person’s family history, his/her educational background, a history of emotional problems, employment record, and a medical history. Advantages of a case study in psychology: • It gives detailed (qualitative) information • It reveals insight for further research • It allows to investigate some unethical situations • It can be used as an important way of illustrating theories But case studies have a number of limitations: • The results of case studies can’t be generalized to a wider population • Researchers’ own subjective opinions can influence the interpretation of results (researcher bias) • They are difficult to replicate. • Psychology case studies are time-consuming. How to Do Case Study Research in Psychology When doing your case study, you should follow certain steps of case study method in psychology. But keep in mind that any case study that you have to carry out for your psychology lab assignment cannot be so detailed, in-depth, and extensive as any formal research study. Data collection First, you should gather relevant information about the participant of your case study from all available sources. You can interview your participant and his/her family and friends. You can also do your own observation and include the participant’s self-report of his/her experience and the available results of psychological testing on the participant. Data analysis Summarize the results of your observations and interviews and write a description of the participant for the Results section of your psychology case study report. It would be about 2-4 pages. Your summary should be focused on the topic question, but you should also include subsection presenting some general information, for example, participant history and his/her family origin and current functioning (education, occupation, family status). Besides, you should provide a description of the presenting problem. Make sure to take necessary steps to protect the participant’s confidentiality and avoid very specific details which may damage your participant’s anonymity. Presentation of the results in your research report Your case study report should be formatted in APA style and generally include the following sections: Introduction You have to review the previous research and different theories on your research topic Methods You should present a general description of your participant Materials Provide description of all material that you may have used, for example, online personality test Procedures Describe your methods of collecting data (observation, interviews, etc.) Results Present the summary of your case study in 2-4 pages. Don’t use any citation here because here you should describe your results. Discussion Provide interpretation of your participant’s case from the perspective of the contemporary theory and current research. You should include the theory and research that were discussed in your introduction and some other research or theory that can help analyze your case study and interpret the results. This section should also include a note on the limitations of your study. As you see, writing a psychology case study is not easy and requires strong analytical and critical thinking skills. If you are not confident in your ability to do this tricky assignment on your own, you can easily get professional writing help if you hire an expert writer on our paper writing service. We can help you in writing a case study of developmental psychology, psychotherapy or any other branch of psychology. Our experienced writer can provide you with a perfectly written model case study that can serve you as a great template.

Career Plan For A Professional Development Plan - 1109 Words

Professional Development Plan The purpose of this professional development plan is to introduce my counselor identity, my plans for professional development, my clinical and academic training schedule and finally my plans for credentialing in the State of Maryland. I am currently seeking an MS in Clinical Mental Health Counseling with an anticipated graduation date of May, 2020. This professional development plan was written on September 27, 2017. Counselor Identity Statement I accept those around me for who they are and the goals they are trying to obtain. I am committed to helping those seeking new patterns in their way of thinking. I will seek understanding and knowledge of the world around me and use my voice to help those†¦show more content†¦Leadership opportunities in my local area would include organizing volunteer opportunities at the local shelter, VA center or in the school system. The economic climate of my community is poor, and any free benefits that can be provided are welcomed. In this semester, I have begun to study the ACA Code of Ethics; this will be an on-going process with an estimated accomplishment date before starting my first counseling practicum in Quarter 9 (Walden University, 2017). Associations/Continuing Education Classes/Potential Struggles Associations I plan to join would be the American Counseling Association, Licensed Clinical Professional Counseling of Maryland, and the American Mental Health Counselors Association. I plan to join these organizations after I complete Residency Number One. Continuing education opportunities I intend to engage in after graduation would include anything available in my tri-state area. I think any knowledge that I can obtain is beneficial to my counselor identity and worldview. A potential struggle that I will encounter over the course of my education and start of my career will be time management issues. My kids come first and foremost, and I do not want to miss any of their events. I believe with my educational demands and the possibility of working later evenings after starting my career could impact my availability to my children. This issue could affect my academic career by not beingShow MoreRelatedProfessional Development Plan For Career Goals1693 Words   |  7 PagesIn troduction Professional development plans are important tools that serve various purposes. It serves as a reflective tool that the APN uses in assessing and evaluating the path they are taking and the goals they want to achieve. Professional development plans are important tools used by advanced practice nurses to highlight the skills and knowledge attained through personal and professional growth. Whether an APN is looking to apply for a new job or advance in a particular position, a professional developmentRead MoreProfessional Development Pl Career Plan2028 Words   |  9 PagesPAGE 1 Professional Development Plan LaKeshia Chaney Walden University Professional Development Plan Professional Development Plan (PDP) is a process of improving education and training opportunities in the community. This planning document will outline goals, steps to accomplish goals, social media, personal strengths and weakness, and timelines. The Strength, Weakness, Opportunity, Threat (SWOT), Personal Learning Network (PLN) and New Drivers of Leadership Assessment Type will be tools toRead MoreProfessional Development Pl Career Plan1889 Words   |  8 Pages10 Professional Development Plan LaKeshia Chaney Walden University Professional Development Plan Professional Development Plan (PDP) is a process of improving education and training opportunities in the community. This planning document will outline goals, steps to accomplish the goals, social media preference, personal strengths and weakness, and timelines. The Strength, Weakness, Opportunity, Threat (SWOT), Personal Learning Network (PLN) and New Drivers of Leadership Assessment will be toolsRead MoreCareer Pl Professional Development Plan1638 Words   |  7 Pages Week 5 Assignment 2: Professional Development Plan Name: Jennifer Jacobsen Date: 2/15/17 Overview: Professional Development Plan This course aims to help you utilize quality improvement processes and management tools to improve client care outcomes, partly by improving the nurse’s working environment as you make and implement good decisions. Now you will apply those processes and tools to yourself by creating a professional development plan. 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The career development plan will aid in enhancing my personal growth and heighten my career development. Goals or plans give you the push to move forward in life and to seek better skills that lead to top jobs and positions. This plan includes sections for the following process: 1. Assess my current state. Identify goals and objectivesRead MoreProfessional Development Plan1604 Words   |  6 PagesProfessional Development Plan The world is going through an era of rapid professional change and development. This has led to increased uncertainty for all professionals in the world of work. To ensure sustained growth in success and longevity of ones professional career, it is important to develop a strategic plan that focuses on training and developing a professional. Such a plan aims to put one in a position of advantage for employment in the long term in this rapidly changing professional worldRead MoreMy Nursing Philosophy : My Philosophy Of Nursing Practice1074 Words   |  5 Pagespractice should always adhere to professional standards, guidelines and professional codes of conduct. I have a commitment to quality of care through lifelong learning to advance my competence, as well as through engaging in research to generate new knowledge which sustains nursing as a profession. Learning plan Career development is recognised as the realisation of personal goals and interests in one’s career (Kuijpers, Schyns Scheerens 2006). Thus, planning for my career direction, setting goals andRead MoreDevelopment Plan For The Professional And The Academic Field1521 Words   |  7 PagesDevelopment Needs Analysis Introduction Why a development planning is important to a learner who wants to succeed in the professional and the academic field? A development plan is defined as a structured and supported process commenced by learners to consider their own learning, performance and achievement and to plan for their personal, educational and career development. In another words, a development plan is an inclusive process, which is opened to all learners, in all higher education provisionRead MoreProfessional Roles And Development Plan1206 Words   |  5 PagesProfessional Roles and Development Plan The nursing workforce plays an essential role in our health care system and the role of nursing is evolving due to shortage of nurses, new emerging technology within the healthcare system and the needs to provide quality of care in the most cost effective ways. The focus of this paper is to analyze the roles and the required skills of the baccalaureate prepared nurse in the 21st century healthcare system. In addition, I will also describe my career development

The, Segregation, And The Segregation Of The...

Separate but not Equal Through the duration of time, segregation has played a consequential role in history. The color of a person’s skin has been a deciding factor on the amount of respect they receive, the level of their education, where they participate in certain activities, and the quality of their job. This has not only been evident in earlier times, but in current times as well. The struggle to achieve equality was made even more difficult by the legislation of racism in the Plessy v. Ferguson case. In the 1950s, after the dispersion of the Reconstruction era, the Jim Crow laws were created. A Jim Crow law was any law that enforced racial segregation in the South. Part of the development of the Jim Crow laws was†¦show more content†¦The aftermath of the Plessy v Ferguson trial and how racism continued to be exceedingly relevant is a predominant idea demonstrated throughout To Kill a Mockingbird by Harper Lee. Atticus Finch states, â€Å"There’s something in our world that makes men lose their heads--they couldn’t be fair if they tried. In our courts, when it’s a white man’s word against a black man’s, the white man always wins. They’re ugly, but those are the facts of life† (Lee This justifies that Plessy v. Ferguson made the races separate, but it did not make them equal. In 2012, there was a murder case that also shows how inequality between the races is still present today. On February 26, African-American teen, Trayvon Martin, was on his way home from a convenience store when he fatally shot on by 28-year-old neighborhood watch volunteer, George Zimmerman. Zimmerman claimed that the teen looked suspicious and that the gunfire was an act of self-defense. After the police further questioned Zimmerman, they decided not to arrest him, which later raised some concern with Martin’s parents. â€Å"Protest rallies were held in cities nationwide, including New York City, where on March 21 hundreds of people gathered for the Million Hoodie March and demanded justice for Martin, who many believed Zimmerman had profiled as suspicious and threatening simply because the teen was black.† This verifies that the public understood thatShow MoreRelated C. Vann Woodwards The Strange Career of Jim Crow Essay1719 Words   |  7 PagesC. Vann Woodwards The Strange Career of Jim Crow In the field of history, it is rare that an author actually comes to shape the events discussed in their writing. However, this was the case for C. Vann Woodward and his book, The Strange Career of Jim Crow. First published in 1955, it discusses this history of race relations in America, more specifically the Jim Crow laws he equates with the segregation of races. Woodward argues that segregation itself was a fairly new development withinRead MoreReconstruction’s Failure to Bring Social and Economic Equality625 Words   |  3 PagesThe Reconstruction Era lasted up to 1877 from the time just after the Civil War. The Reconstruction failed to bring about social and economic equality to the former slaves due to the southern whites’ resentful and bitter outlook on the matter, the Ku Klux Klan, and the Jim Crow laws. After the Civil War, the southern whites were extremely resentful and bitter. In 1865 the southern states began issuing â€Å"black codes,† which were laws made subsequent to the Civil War that had the effect of limitingRead MoreJim Crow Laws Essay1613 Words   |  7 PagesComedy performer Thomas â€Å"Jim Crow† Rice coined the term â€Å"Jim Crow† through his derogatory minstrel shows in which danced and sang in an offensive way towards African Americans while covered in black shoe polish. Even though Rice was only trying to entertain his audience, his performances suggested that all African Americans were ignorant useless buffoons Rice’s performances were so derogatory towards African Americans that they removed signs of humanity from them and caused people to become lessRead MoreEssay on The Strange Career of Jim Crow1336 Words   |  6 PagesThe Strange Career of Jim Crow C. Vann Woodward’s book, The Strange Career of Jim Crow, has been hailed as a book which shaped our views of the history of the Civil Rights Movement and of the American South. Martin Luther King, Jr. described the book as â€Å"the historical Bible of the civil rights movement.† The argument presented in The Strange Career of Jim Crow is that the Jim Crow laws were relatively new introductions to the South that occurred towards the turn of the century rather thanRead MoreJIM CORW LAWS Essay1524 Words   |  7 Pages were now free with an expectation that they would enjoy all civil liberties. The post-Civil War period of Reconstruction provided freedmen with various rights, but in little over a decade, the promise of emancipation and equal rights was gone, replaced by rigid system of laws designed to keep blacks from experiencing any of their newly achieved rights, which is known as the era of Jim Crow, the American form of racial Apartheid that separated Americans into two groups: whites, the so-called superiorsRead MoreThe Strange Career Of Jim Crow862 Words   |  4 PagesJim crow laws In the 18th century the civil war had brought in end to slavery ,when the union beat the confederacy.Many people believe that slavery ended right there, and that anything else that happened to African Americans after that was due to racism of the people of that time.When in reality that change had caused ripples, that would shape history and the way people think all the way till today.Using historical ideas ,journals ,and such C.Vann Woodward in The Strange Career Of JIM CROW Read MoreAdvantages Of The Jim Crow Era1154 Words   |  5 PagesAmerica’s Reconstruction Era was the beginning of what was thought to be an African American’s breath of fresh air into an equal and just society. Instead, what resulted after the era was the rise of the Jim Crow laws that enabled racial separation, rather than uniting all of the races together. In the Plessy v. Ferguson case of 1896, the Supreme Court reached a consensus that enabled facilities to have â€Å"separate but equalâ⠂¬  spaces. The Jim Crow laws were a disgrace to America’s past law system sinceRead MoreBooker T. Washington And His Critics : The Idea Of Racial Compromise1270 Words   |  6 PagesThe era of Jim Crow began after the end of Reconstruction in 1877, in which through the rebuilding of the South, whites established laws and customs that forced freed slaves to stay marginalized and targeted by Southern whites. The purpose of these Jim Crow ideas was to keep blacks and white separated, and to also keep blacks from progressing in society. For instance, Southern whites forced blacks to take literacy tests before they could be considered able to vote. From the start of this Jim CrowRead MoreSlavery And United States Rights1133 Words   |  5 Pageshad to deal with strict laws that limited their conduct and behavior. Children who lived in northern states were able to receive their education, convicts could serve their sentences, and people could have been buried in cemeteries but on major thing is that they all had to be segregated. African Americans that lived in the southern states lived their life in feared of violence and racism. Many endured mobs lynching, whipped and branded with hot iron. When the Reconstruction period started many AmericansRead MoreJim Crow And Racial Segregation1205 Words   |  5 PagesJim Crow era was a time of struggle for all African Americans. White supremacy and discrimination was established by Jim Crow laws that lasted from the end of Reconstruction until the 1960’s. The laws caused African Americans to be at a disadvantage politically and economically. Jim Crow is defined as a minstrel show character whose name became synonymous with racial segregation (Foner). A man of the name Thomas Rice created the character Jim Crow. He was a white entertainer who would imitate

Fin 331 Study Guide Free Essays

Finance Final Study Guide FIN 331 – Moser – Study Guide for Exam 1 – Spring 2011 Important Concepts * Forms of Business Organization * Proprietorship- an unincorporated business owned by one individual * Partnership- legal arrangement between two or more people who decide to do business together * Advantages * Ease of formation * Subject to few regulations * No corporate income taxes * Disadvantages * Limited life * Unlimited liability * Difficult to raise capital * Corporation- legal entity created by a state, and it is separate and distinct from its owner and managers. Advantages * Unlimited life * Easy transfer of ownership * Limited liability * Ease of raising capital * Disadvantages * Double taxation * Cost of set-up and report filing * Conflicts between Managers and Stockholders * Managers are naturally inclined to act in their own best interests (which are not always the same as the interest of stockholders). * But the following factors affect managerial b ehavior: * Managerial compensation packages * Direct intervention by shareholders * The threat of firing * The threat of takeover * Shareholder Value The price at which the stock would sell if all investors had all knowable information about a stock. We will write a custom essay sample on Fin 331 Study Guide or any similar topic only for you Order Now * The primary financial goal of management is shareholder wealth maximization, which translates to maximizing stock price. * Value of any asset is present value of cash flow stream to owners. * Most significant decisions are evaluated in terms of their financial consequences. * Stock prices change over time as conditions change and as investors obtain new information about a company’s prospects. * Intrinsic value * In equilibrium, a stock’s price should equal its â€Å"true† or intrinsic value. Intrinsic value is a long-run concept. * To the extent that investor perceptions are incorrect, a stock’s price in the short run may deviate from its intrinsic value. * Ideally, managers should avoid actions that reduce intrinsic value, even if those decisions increase the stock price in the short run. * Capital allocation process * In a well-functioning economy, capital flows efficiently from those who supply capital to those who demand it. * Suppliers of capital – individuals and institutions with â€Å"excess funds. † These groups are saving money and looking for a rate of return on their investment. Demanders or users of capital – individuals and institutions who need to raise funds to finance their investment opportunities. These groups are willing to pay a rate of return on the capital they borrow. * Direct transfers * Investment banking house * Financial intermediaries * Types of financial markets * Physical asset markets versus financial asset markets * Physical asset markets are for products such as wheat, autos, real estate, computers, and machinery. * Financial asset markets, on the other hand, deal with stocks, bonds, notes, and mortgages. Spot markets versus future markets * Spot markets are markets in which assets are bought or sold for â€Å"on-the-spot† delivery. * Future markets are markets in which participants agree today to buy or sell an asset at some future date * Money markets versus capital markets * Money markets are the markets for short-term, highly liquid debt securities. The New York, London, and Tokyo money markets are among the world’s largest. * Capital Markets are the markets for intermediate- or long-term debt and corporate stocks. The NYSE * Primary markets versus secondary markets Primary markets are the markets in which corporations raise new capital. If a company were to sell a new issue of common stock to raise capital. * Secondary markets are markets in which existing, already outstanding securities are traded among investors. * Private markets versus public markets * Private markets, where transactions are negotiated directly between two parties, are differentiated from†¦public markets. Ex. Common stock and corporate bonds * Public markets, where standardized contracts are traded on organized exchanges. Ex. Bank loans and private debt payments to an insurance company. * Importance of financial markets * Well-functioning financial markets facilitate the flow of capital from investors to the users of capital. * Markets provide savers with returns on their money saved/invested, which provides them money in the future. * Markets provide users of capital with the necessary funds to finance their investment projects. * Well-functioning markets promote economic growth. * Economies with well-developed markets perform better than economies with poorly-functioning markets. * Derivatives A derivative security’s value is â€Å"derived† from the price of another security (e. g. , options and futures). * Can be used to â€Å"hedge† or reduce risk. For example, an importer, whose profit falls when the dollar loses value, could purchase currency futures that do well when the dollar weakens. * Also, speculators can use derivatives to bet on the direction of future stock prices, inte rest rates, exchange rates, and commodity prices. In many cases, these transactions produce high returns if you guess right, but large losses if you guess wrong. Here, derivatives can increase risk. * Financial institutions Commercial banks * Bank of America, Citibank, Wells Fargo * Investment banks * Help companies raise capital * Financial services corporations * Conglomerates that combine many different financial institutions within a single corporation. * Credit unions * Employees, members or organization * Pension funds * Life insurance companies * Mutual funds * Hedge funds * Largely unregulated * Large minimum investment * Exchange traded funds (ETF’s) * Private equity companies * Like hedge funds * IPO * An initial public offering (IPO) is where a company issues stock in the public market for the first time. â€Å"Going public† enables a company’s owners to raise capital from a wide variety of outside investors. Once issued, the stock trades in the secon dary market. * Public companies are subject to additional regulations and reporting requirements. * Efficient market hypothesis – implications * Securities are normally in equilibrium and are â€Å"fairly priced. † * Investors cannot â€Å"beat the market† except through good luck or better information. * Efficiency continuum * When markets are efficient, investors can buy and sell stocks and be confident that they are getting good prices. When markets are inefficient, investors may be afraid to iinvest and may put their money â€Å"under the pillow,† which will lead to a poor allocation of capital and economic stagnation. * Balance sheet * Provides a â€Å"snapshot† of a firm’s position at a specific point in time. The left side shows the assets that the company owns, while the right side shows the firm’s liabilities and stockholders’ equity, which are claims against the firm’s assets. * Assets * Current assets: * Cash and equivalents * A/R * Inventories * Total Current Assets * Net fixed assets: Net plan and equipment(cost minus depreciation) * Other assets expected to last more than a year * Total Assets * Liabilities and Equity * Current liabilities: * A/P * Accruals * Notes Payable * Total current liabilities * Long-term bonds * Total debt * Common equity: * Common stock * Retained earning * Total common equity * Total liabilities and equity * Income statement * Summarizes a firm’s revenues and expenses over a given period of time. * Sales * (COGS) * (Other Expenses) * (Depreciation) * EBIT * (Interest Expense) * EBT * (Taxes) * Net Income Statement of cash flows * Reports the impact of a firm’s activities on cash flows over a given period of time. Shows how much cash the firm is generating. * Cash @ end 2007 * O/A * I/A * F/A * Cash @ end 2008 * Working capital * Anything that is cash or can be converted to cash within a year. A/R and Inventory * Net working capital (NWC) * Current assets (A/R, Inventory, Cash) – (Payables + Accruals) * Free cash flow (FCF) * Everything left over for investors. Amount of cash that can be withdrawn to investors without harming the ability of the company to operate and produce. FCF = EBIT(1-T) + Depreciation – (Capital expenditures + Increase in NWC) (Income Statement) ( in gross FA/current) Balance Sheet * Corporate and personal taxes * Both have a progressive structure (the higher the inc ome, the higher the marginal tax rate). * Corporations * Rates begin at 15% and rise to 35% for corporations with income over $10 million, although corporations with income between $15 million and $18. 33 million pay a marginal tax rate of 38%. * Also subject to state tax (around 5%). * Individuals * Rates begin at 10% and rise to 35% for individuals with income over $349,700. May be subject to state tax. * Tax treatment of interest and dividends * Interest paid – tax deductible for corporations (paid out of pre-tax income), but usually not for individuals (interest on home loans being the exception). * Interest earned – usually fully taxable (an exception being interest from a â€Å"muni†). * Dividends paid – paid out of after-tax income. * Dividends received – Most investors pay 15% taxes. * Investors in the 10% or 15% tax bracket pay 0% on dividends in 2008-2010. * Dividends are paid out of net income which has already been taxed at the corporat e level, this is a form of â€Å"double taxation†. A portion of dividends received by corporations is tax excludable, in order to avoid â€Å"triple taxation†. * Taxes – carrybacks and carryforwards * Tax Loss Carry-Back and Carry-Forward – since corporate incomes can fluctuate widely, the Tax Code allows firms to carry losses back to offset profits in previous years or forward to offset profits in the future. * Taxes – capital gains * Defined as the profits from the sale of assets not normally transacted in the normal course of business, capital gains for individuals are generally taxed as ordinary income if held for less than a year, and at the capital gains rate if held for more than a year. Corporations face somewhat different rules. * Importance of ratios * Ratios standardize numbers and facilitate comparisons. * Ratios are used to highlight weaknesses and strengths. * Ratio comparisons should be made through time and with competitors. * Trend analysis. * Peer (or industry) analysis. * 5 categories of ratios * Liquidity: Can we make required payments? * Current = current assets/current liabilities * Quick = Current assets-inventories/current liabilities * Asset management: right amount of assets vs. sales? * Inventory T/O Ratio = Sales/Inventories * Days sales outstanding(DSO) = AR/(Sales/365) Fixed Asset T/O Ratio = Sales/Net Fixed AssetsNet FA=Balance Sheet * T/A Turnover = Sales/Total AssetsTA=Balance Sheet * How many times the PM is earned each year * Below avg. T/A T/O means that it has more assets than it needs * Debt management: Right mix of debt and equity? * Debt Ratio = Total Debt/Total AssetsBalance Sheet * Times-Interest-Earned(TIE) = EBIT/Interest ExpenseI ncome Statement * Profitability: Do sales prices exceed unit costs, and are sales high enough as reflected in PM, ROE, and ROA? * Operating Margin = EBIT/Sales * Profit Margin = Net income/Sales PM is how much a firm earns on its sales * Below avg. PM means that the firm’s costs are not being controlled as well as they should be, therefore they cannot charge premium prices * Basic Earning Power(BEP) = EBIT/Total Assets * ROA = Net Income/Total Assets * ROE = Net Income/total common equityBalance Sheet * ROE and shareholder wealth are correlated, but problems can arise when ROE is the sole measure of performance. * ROE does not consider risk. * ROE does not consider the amount of capital invested. * Might encourage managers to make investment decisions that do not benefit shareholders. ROE focuses only on return and a better measure would consider risk and return. * Market value: Do investors like what they see as reflected in P/E and M/B ratios? * Price/Earnings (P/E) ratio = Price per share/Earnings per share * Earnings per share * Market/Book Ratio (M/B)= Market price per share/Book value per share * Book Value per share = Common equity/Shares outstandingBalance Sheet * P/E: How much investors are willing to pay for $1 of earnings. * M/B: How much investors are willing to pay for $1 of book value equity. For each ratio, the higher the number, the better. * P/E and M/B are high if ROE is high and risk is low. * DuPont system * ROE = Profit Margin(PM) X Total Asset Turnover X Equity Multiplier(EM) NI/Sales Sales/TA TA/Total common equity I______ _______I I ROA * ROA Focuses on expense control (PM), asset utilization (TA TO), and debt utilization (equity multiplier). * Uses of freed up cash * Old A/R * (New A/R) * Cash freed up * Uses: * Repurchase stock * Expand business * Reduce debt * All these actions would likely improve the stock price. * Limitations of ratio analysis Comparison with industry averages is difficult for a conglomerate firm that opera tes in many different divisions. * â€Å"Average† performance is not necessarily good, perhaps the firm should aim higher. * Seasonal factors can distort ratios. * â€Å"Window dressing† techniques can make statements and ratios look better. * Different operating and accounting practices can distort comparisons. * Sometimes it is hard to tell if a ratio is â€Å"good† or â€Å"bad. † * Difficult to tell whether a company is, on balance, in strong or weak position. * Sales forecast * Use historical sales data (approx. 5 years) Collect input from product development, marketing, and operations * Sales growth has a cost * Bad forecasts have a cost * Forecasting sales is the most important input in predicting future financial performance * Additional Financing Needed (AFN) * AFN = (A*/S0)? S – (L*/S0) ? S – M(S1)(RR) * = Projected asset increase – Spontaneous liabilities increase – Increase in retained earnings (How many assets to b uy)L*(liab. Bs) M(S1)=future profits * A* = assets * L* = spontaneous liabilities * S = sales * M = profit margin * RR = retention ratio * FIN 331 – Moser – Study Guide for Midterm II – Spring 2011 Important Concepts * Time Value of Money * The  idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This  core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received. * Future Value (FV) * The amount to which a cash flow or series of cash flows will grow over a given period of time when compounded at a given interest rate. * Finding the FV of a cash flow or series of cash flows is called compounding * What is the FV of an initial $100 after 3 years, if I/YR = 10%? N=3I/YR=10PV=100PMT=0FV=CPT * Future Value = 133. 10 * Present Value (PV) * The value today of a future cash flow or series of cash flows * What is the PV of $100 due in 3 years, if I/YR= 10%? * N=3I/YR=10PV=CPTPMT=0FV= 100 * PV=-75. 13 * Solving for Interest Rate * Solving for I: What interest rate would cause $100 to grow to 125. 97 in 3 years? * N=3I=CPTPV=100 PMT=0 FV=125. 97 * Interest Rate = 8% * Solving for # of Time Periods * N = Number of periods involved in the analysis. * If sales grow at 20% per year, how long before sales double? * N=? I/YR=20PV=-1PMT=0 FV=2 * N=3. 8 * Ordinary Annuity vs. Annuity Due Ordinary Annuity * Payments occur at the end of each year(deferred annuity) * Set calculator to END * FV * 3-year ordinary annuity of $100 at 10%? * N=3 I/YR=10 PV=0 PMT=100 FV=CPT * FV=331 * PV * N=3 I/YR=10 PV=CPT PMT=100 FV=0 * PV=-248. 69 * Annuity Due * Set calculator to BEGIN * The payments are made at the beginning of each year * FV * 3-year annuity due of $100 at 10%? * N=3 I/YR=10 PV=0 PMT=100 FV=CPT * FV=364. 10 * PV * N=3 I/YR=10 PV=CPT PMT=100 FV=0 * PV=273. 55 * Perpetuity * An annuity with an extended life. * N=infinity * PV of a perpetuity = PMT/I * PV=PMT/I=$100/0. 1 = $1,000 Compound Interest * A 20-year-old student wants to save $3 a day for her retirement. Every day she places $3 in a drawer. At the end of the year, sh e invests the accumulated savings ($1,095) in a brokerage account with an expected annual return of 12%. * How much money will she have when she is 65 years old? * N=45 I/YR= 12 PV=0 PMT= 1095 FV=CPT * FV = 1,487,262 * Solving for annual payment * PV of uneven cash flows * * Effect of compounding more often * Compounding more often results in building interest upon interest * Nominal vs. Periodic vs. Effective Interest Rate * Written into contracts, quoted by banks and brokers. Not used in calculations or shown on time lines. * Nominal rate (INOM) – also called the quoted or stated rate. An annual rate that ignores compounding effects. * INOM is stated in contracts. Periods must also be given, e. g. 8% quarterly or 8% daily interest. * Periodic rate (IPER) – amount of interest charged each period, e. g. monthly or quarterly. * * IPER = INOM/M, where M is the number of compounding periods per year. M = 4 for quarterly and M = 12 for monthly compounding. * Effective (or equivalent) annual rate (EAR = EFF%) – the annual rate of interest actually being earned, accounting for compounding. Used to compare returns on investments with different payments per year. Used in calculations when annuity payments don’t match compounding periods. * EFF% for 10% semiannual investment * EFF%= ( 1 + INOM/M )M – 1 * = ( 1 + 0. 10/2 )2 – 1 = 10. 25% * Should be indifferent between receiving 10. 25% annual interest and receiving 10% inter est, compounded semiannually. * Semiannual/quarterly/monthly compounding * Annually * N=3 I/YR=10. 25 PV=0 PMT=100 FV=CPT * FV=331. 80 * 100(1. 025)^3=331. 80 * Semiannual * N=6 I/YR=5. 125 PV=0 PMT = 100 FV=CPT * FV=682. 33 * 100(. 5125)^6 * Quarterly * N=12 I=2. 6 PV=0 PMT=100 FV=CPT * * Loan Amortization * Amortization tables are widely used for home mortgages, auto loans, business loans, retirement plans, etc. * Financial calculators and spreadsheets are great for setting up amortization tables. * A loan that is to be repaid in equal amounts on a monthly, quarterly, or annual basis * Bonds * A long-term debt instrument in which a borrower agrees to make payments of principal and interest, on specific dates, to the holders of the bond. * Treasury * Government bonds * No default risk * Municipal * Bonds issued by state and local governments * Some default risk Advantage: Munis are exempt from Federal Taxes and from state taxes if the holder is resident of issuing state. * Corporat e * Issued by business firms * Exposed to default risk * Higher the risk, the higher interest rate is demanded * Foreign * Issued by a foreign government * Currency exchange issues * Par value * face amount of the bond, which is paid at maturity (assume $1,000). * Coupon interest rate * Stated interest rate (generally fixed) paid by the issuer. Multiply by par value to get dollar payment of interest. * Maturity date * Years until the bond must be repaid. * Yield to maturity Rate of return earned on a bond held until maturity (also called the â€Å"promised yield†). * Call Provision * Allows issuer to refund the bond issue if rates decline (helps the issuer, but hurts the investor). * Borrowers are willing to pay more, and lenders require more, for callable bonds. * Most bonds have a deferred call and a declining call premium. * Sinking Fund * Provision to pay off a loan over its life rather than all at maturity. * Similar to amortization on a term loan. * Reduces risk to inve stor, shortens average maturity. * But not good for investors if rates decline after issuance. * Convertible Bond May be exchanged for common stock of the firm, at the holder’s option. * Warrant * Long-term option to buy a stated number of shares of common stock at a specified price. * Puttable bond * Allows holder to sell the bond back to the company prior to maturity. * Indexed bond * Interest rate paid is based upon the rate of inflation. * Valuing a bond * Problem * Discount bond vs. Premium bond and how you can tell by comparing the coupon and the YTM * Bond Values over time * Solving for YTM * Expected Total return= YTM = (Expected Current Yield) + (Expected Capital Gains Yield) * CY=Annual coupon payment/Current Price . 09(1000)/887 * CGY= Change in price/Beginning price * Or CGY = Current yield + Capital gains yield * Interest rate risk * The concern that rising interest rates will cause the value of a bond to fall. * 10year bond has more risk than just a 1 year bond * Reinvestment rate risk * Reinvestment rate risk is the concern that rd will fall, and future CFs will have to be reinvested at lower rates, hence reducing income. * EXAMPLE: Suppose you just won $500,000 playing the lottery. You intend to invest the money and live off the interest. * You may invest in either a 10-year bond or a series of ten 1-year bonds. Both 10-year and 1-year bonds currently yield 10%. * If you choose the 1-year bond strategy: * After Year 1, you receive $50,000 in income and have $500,000 to reinvest. But, if 1-year rates fall to 3%, your annual income would fall to $15,000. * If you choose the 10-year bond strategy: * You can lock in a 10% interest rate, and $50,000 annual income for 10 years, assuming the bond is not callable. * Semiannual bonds * Multiply years by 2: Number of periods = 2N * Divide nominal rate by 2: Periodic rate (I/YR) = rd/2 * Divide annual coupon by 2: PMT = Annual coupon/2 * Yield to Call * Problem * Default risk If an issuer defaults, investors receive less than the promised return. Therefore, the expected return on corporate and municipal bonds is less than the promised return. * Influenced by the issuer’s financial strength and the terms of the bond contract. * Mortgage bond vs. debenture * Mortgage bond- backed up by collateral e. g. house,car,jewelry * Debenture- Not backed up * Investment-grade vs. junk bond * Investment grade-GE bond, lower risk and thus lower return * Junk bond- Speculative bonds that have high risk, but sometimes higher return * Significant risk of going default * 2 chapters of bankruptcy Two main chapters of the Federal Bankruptcy Act: * Chapter 11, Reorganization * If company can’t meet its obligations †¦ * It files under Chapter 11 to stop creditors from foreclosing, taking assets, and closing the business and it has 120 days to file a reorganization plan. * Court appoints a â€Å"trustee† to supervise reorganization. * Management usually stays in control. * Company must demonstrate in its reorganization plan that it is â€Å"worth more alive than dead†. * If not, judge will order liquidation under Chapter 7. * Chapter 7, Liquidation * Typically, a company wants Chapter 11, while creditors may prefer Chapter 7. Priority of Claims in Liquidation * Secured creditors from sales of secured assets. * Trusteeâ⠂¬â„¢s costs * Wages, subject to limits * Taxes * Unfunded pension liabilities * Unsecured creditors * Preferred stock * Common stock * Reorganization * In a liquidation, unsecured creditors generally get zero. This makes them more willing to participate in reorganization even though their claims are greatly scaled back. * Various groups of creditors vote on the reorganization plan. If both the majority of the creditors and the judge approve, company â€Å"emerges† from bankruptcy with lower debts, reduced interest charges, and a chance for success. Formulas that will be provided * Chapters 5 and 7 from Appendix C * Instructions on switching your calculator from END to BGN mode Chapter 8 * Investment Risk * Investment risk is related to the probability of earning a low or negative actual return. * The greater the chance of lower than expected or negative returns, the riskier the investment. * stand-alone risk * The asset is considered by itself * The risk an investor would face if he or she held only this one asset. * Portfolio risk * Asset is held as one of a number of assets in a portfolio * Average returns (stocks vs. bonds) Bonds offer relatively low returns, but with relatively little risk * Stocks offer the chance of higher returns, but stocks are generally riskier than bonds * Expected return r^ * The rate of return expected to be realized from an investment; the weighted average of the probability distribution of possible results * Standard deviation (sigma) * A statistical measure of the variability of a set of observat ions * The tighter the probability distribution, the lower the risk * Measure of how far the actual return is likely to deviate from the expected return * Coefficient of variation (CV) The standardized measure of the risk per unit of return; calculated as the standard deviation divided by the expected return * CV= ? /r^ * Risk aversion * Assumes investors dislike risk and require higher rates of return to encourage them to hold riskier securities. * Risk premium * The difference between the return on a risky asset and a riskless asset, which serves as compensation for investors to hold riskier securities. * Portfolio expected return r^p The weighted average of the expected returns on the assets held in the portfolio * The weights being the percentage of the total portfolio invested in each asset * Diversification effects on a portfolio * ? p decreases as stocks added, because they would not be perfectly correlated with the existing portfolio. * Expected return of the portfolio would remain relatively constant. * Eventually the diversification benefits of adding more stocks dissipates (after about 10 stocks), and for large stock portfolios, ? p tends to converge to 20%. * Market risk vs. diversifiable risk Stand-alone risk = Market risk + Diversifiable risk * Market risk – portion of a security’s stand-alone risk that cannot be eliminated through diversification. Measured by beta. * Diversifiable risk – portion of a security’s stand-alone risk that can be eliminated through proper diversification. * Failure to diversify * If an investor chooses to hold a one-stock portfolio (doesn’t diversify), would the investor be compensated for the extra risk they bear? * NO! * Stand-alone risk is not important to a well-diversified investor. * Rational, risk-averse investors are concerned with ? , which is based upon market risk. * There can be only one price (the market return) for a given security. * No compensation should be earned for holding unnecessary, diversifiable risk. * Capital Asset Pricing Model (CAPM) * Model linking risk and required returns. CAPM suggests that there is a Security Market Line (SML) that states that a stock’s required return equals the risk-free return plus a risk premium that reflects the stock’s risk after diversification. * ri = rRF + (rM – rRF)bi * Primary conclusion: The relevant riskiness of a stock is its contribution to the riskiness of a well-diversified portfolio. Beta * Measures a stock’s market risk, and shows a stock’s volatility relative to the market. * Indicates how risky a stock is if the stock is held in a well-diversified portfolio. * Can the beta of a security be negative? * Yes, if the correlation between Stock i and the market is negative (i. e. , ? i,m 0). * If the correlation is negative, the regression line would slope downward, and the beta would be negative. * However, a negative beta is highly unlikely. * The Security Mark et Line (SML) (calculating required rates of return) * SML: ri = rRF + (rM – rRF)bi * ri = rRF + (RPM)bi Assume the yield curve is flat and that rRF = 5. 5% and RPM = 5. 0%. * Market risk premium * Additional return over the risk-free rate needed to compensate investors for assuming an average amount of risk. * Its size depends on the perceived risk of the stock market and investors’ degree of risk aversion. * Varies from year to year, but most estimates suggest that it ranges between 4% and 8% per year. * Portfolio beta * The beta of a portfolio is the weighted average of each of the stock’s betas. * bP = wHTbHT + wCollbColl * bP = 0. 5(1. 32) + 0. 5(-0. 87) * bP = 0. 225 * Portfolio required returns The required return of a portfolio is the weighted average of each of the stock’s required returns. * Or, using the portfolio’s beta, CAPM can be used to solve for expected return. * rRF + (rpm)(stocks beta) * Discounted dividend model * Value of a st ock is the present value of the future dividends expected to be generated by the stock. * * Valuing stock with constant growth * A stock whose dividends are expected to grow forever at a constant rate, g. * D1 = D0(1 + g)1 * D2 = D0(1 + g)2 * Dt = D0(1 + g)t * If g is constant, the discounted dividend formula converges to: * * Dividend yield vs. capital gains yield Dividend yield * = D1/P0 = $2. 12/$30. 29 = 7. 0% * Capital gains yield * = (P1 – P0)/P0 * = ($32. 10 – $30. 29)/$30. 29 = 6. 0% * Valuing stock with nonconstant growth * During nonconstant growth, dividend yield and capital gains yield are not constant, and capital gains yield ? g. * Corporate Valuation model * Also called the free cash flow method. Suggests the value of the entire firm equals the present value of the firm’s free cash flows. * Remember, free cash flow is the firm’s after-tax operating income less the net capital investment. * FCF = EBIT(1 – T) – Net capital inves tment * Terminal value Often preferred to the discounted dividend model, especially when considering number of firms that don’t pay dividends or when dividends are hard to forecast. * Similar to discounted dividend model, assumes at some point free cash flow will grow at a constant rate. * Terminal value (TVN) represents value of firm at the point that growth becomes constant. * Firm Multiple method * Analysts often use the following multiples to value stocks. * P/E * P/CF * P/Sales * EXAMPLE: Based on comparable firms, estimate the appropriate P/E. Multiply this by expected earnings to back out an estimate of the stock price. Preferred stock * Hybrid security. * Like bonds, preferred stockholders receive a fixed dividend that must be paid before dividends are paid to common stockholders. * However, companies can omit preferred dividend payments without fear of pushing the firm into bankruptcy. Chapter 10 * Sources of capital * Long-term capital * Long-term debt * Preferred S tock * Common Stock * Retained earnings * New common stock * Weighted average cost of capital (WACC) * WACC=Wdrd(1-T) + Wp rp + Wc rs * W’s refer to the firms capital structure weights * r’s refer to the cost of each component Before-tax vs. after-tax capital costs * Stockholders focus on A-T CFs. Therefore, we should focus on A-T capital costs, i. e. use A-T costs of capital in WACC. Only rd needs adjustment, because interest is tax deductible. * Historical costs vs. Marginal costs * The cost of capital is used primarily to make decisions that involve raising new capital. So, focus on today’s marginal costs (for WACC). * How weights are determined * Use accounting numbers or market value (book vs. market weights)? * Use actual numbers or target capital structure? * Cost of debt * WACC = wdrd(1 – T) + wprp + wcrs rd is the marginal cost of debt capital. * The yield to maturity on outstanding L-T debt is often used as a measure of rd. * Why tax-adjust; i. e. , why rd(1 – T)? * Cost of preferred stock * rp is the marginal cost of preferred stock, which is the return investors require on a firm’s preferred stock. * Preferred dividends are not tax-deductible, so no tax adjustments necessary. Just use nominal rp. * Our calculation ignores possible flotation costs. * The cost of preferred stock can be solved by using this formula: * rp= Dp/Pp * = $10/$111. 10 * = 9% * Cost of equity * Is there a cost of retained earnings? Earnings can be reinvested or paid out as dividends. * Investors could buy other securities, earn a return. * If earnings are retained, there is an opportunity cost (the return that stockholders could earn on alternative investments of equal risk). * Investors could buy similar stocks and earn rs. * Firm could repurchase its own stock and earn rs. * CAPM * CAPM: rs = rRF + (rM – rRF)b * DCF * DCF:rs = (D1/P0) + g * Bond-yield-plus-risk-premium * rs = rd + RP * Flotation costs * Flotation costs depend on the firm’s risk and the type of capital being raised. * Flotation costs are highest for common equity. However, since most firms issue equity infrequently, the per-project cost is fairly small. * We will frequently ignore flotation costs when calculating the WACC. * What affects WACC * Market conditions. * The firm’s capital structure and dividend policy. * The firm’s investment policy. Firms with riskier projects generally have a higher WACC. * The composite WACC reflects the risk of an average project undertaken by the firm. Therefore, the WACC only represents the â€Å"hurdle rate† for a typical project with average risk. * Different projects have different risks. The project’s WACC should be adjusted to reflect the project’s risk. How to cite Fin 331 Study Guide, Essay examples

The Main Distinctions of Popular Culture and Its Growth

Introduction Such a phenomenon as popular culture is regarded by many scholars as a mass-marketed phenomenon that is essentially a product of capitalist development (Rhodes Westwood 2008, p. 7). Moreover, this concept often has negative connotations and it is often used as a reference to something rather primitive and populist. This paper will discuss the main distinctions of popular culture and its growth.Advertising We will write a custom essay sample on The Main Distinctions of Popular Culture and Its Growth specifically for you for only $16.05 $11/page Learn More This discussion will show various sides of popular culture and explain why it can be criticized and praised. Overall, it is possible to argue that popular culture can indeed be viewed as a mass-marketed phenomenon that appeals to the general public. Nevertheless, it should not be always associated with something superficial or commercial as many people do. In other words, this concept does not always have negative meanings. Moreover, this essay will show that sometimes it is rather difficult to draw a distinct line between popular and elite culture. This is the main idea that should be illustrated. Culture and popular culture To get a better understanding of this issue, one should first look at the definitions of culture and popular culture. These notions have frequently attracted the attention of many sociologists, anthropologists, and psychologists. Overall, the term culture can be defined as a system of beliefs, attitudes, values, norms and material objects that are shared or recognized by a certain group of people (Samovar, Porter McDaniel, 2008, p. 10). This definition may not be conclusive, but it shows that this term includes a large number of components. Moreover, it implies that different elements of culture have to be recognizable by members of a certain group. In turn, the definition of popular culture can be even more complex because while explaining it, one has to be free from prejudice against this phenomenon. As a rule, scholars regard it as a form of entertainment that is mass produced and appeals to a great number of people (Rhodes Westwood 2008, p. 7). Moreover, this term also encompasses attitudes, ideas, and perspectives that are recognizable and popular within in a certain group. These are the most typical characteristics that are normally attributed to popular culture. However, people often believe that this term has much more negative meanings. In particular, it denotes something unsophisticated and dumbed down.Advertising Looking for essay on cultural studies? Let's see if we can help you! Get your first paper with 15% OFF Learn More For instance, this term is often used when people speak about films, TV shows, books, and other works of art that are believed to be consumerist, superficial, or sensationalist. Admittedly, there are some works of art that deserve such criticism, for instance, soap operas or p ulp fiction. In the majority of cases, they are intended for people who do not want to take intellectual effort. One can hardly deny that they are oriented toward quick commercial success. However, these features are not typical of the entire popular culture. There are many cultural phenomena that belonged to the elite part of society for a long time. For instance, before the twentieth century only very well-to-do people could purchase or at least see the reproductions of paintings by Leonardo da Vinci or Raphael. Yet, nowadays, they have become a part of popular culture because practically every person can at least look at them with the help of Internet. To some degree, this example suggests that the boundaries between popular and elite culture are not always clear. These distinctions are often determined by technological and social development. On the basis of this discussion, it is possible to distinguish several characteristics of popular culture such as increased availability, mass production, recognizability, and appeal to a large number of people. It is possible to agree with an argument that popular culture may act as a commodity that is marketed to people throughout the world. However, it does not mean that this commodity always has negative qualities that are often attributed to it. For instance, one can mention works of famous writers or poets such as Shakespeare or Mark Twain. It is quite possible to say that their books are recognizable and even mass produced, but they are by no means consumerist or superficial. These examples show that from qualitative point of view, popular culture is very diverse, and people should not judge it by stereotypes. The main paradox of popular culture is that many of its critics may actually enjoy artistic works that are a part of it. Furthermore, one should not forget that the same phenomenon may be viewed as something very superficial or dumbed down by contemporaries, but with time passing, it can be incorporated i nto elite culture. For instance, jazz was frequently opposed to classical music by critics who believed that this musical genre was more appropriate for uneducated people of lower classes (Lopes, 2003, p. 11).Advertising We will write a custom essay sample on The Main Distinctions of Popular Culture and Its Growth specifically for you for only $16.05 $11/page Learn More Yet, nowadays, it is recognized and appreciated by critics throughout the world. This case illustrates an idea that it is rather difficult to establish the boundaries of popular and high culture. Peoples’ attitudes toward works art are dynamic, and the division of art in popular or elite culture is rather conventional. It does not reflect the changes in public opinion and critical evaluation of art. This is one of its major limitations. The establishment and development of popular culture To elaborate this idea, one should look at the establishment and growth of popular culture. T hese questions give rise to different historical interpretations. Some researchers explain the rise of popular culture by the Industrial Revolution, and particularly the development of cinematography, radio, or sound recording (Edgar Sedgwikc 2002, p. 285). In other words, the establishment of popular culture was marked by the arrival of material objects such as musical recordings that can be reproduced on a massive scale. Thus, the origins of this phenomenon can be traced to the late nineteenth and early twentieth centuries. Additionally, sociologists agree that television and Internet contributed to the growth of popular culture. The thing is that that these inventions made books, paintings, music compositions, or films much more accessible to people. By applying this logic, one can even trace the origins of popular culture to the fifteenth century when printing was introduced in Europe. Overall, this approach to the establishment and rise of popular culture emphasizes mostly tec hnological development of society. Yet, one cannot argue that popular culture was always distinct from elite culture. The main difference lies in their availability, rather than quality. However, it is possible to provide a different explanation for the establishment of popular culture. In particular, one can speak about social differences between people and their opportunity to receive education. According to this hypothesis, at some point, some parts of society became separated from its elite, and the culture of elites became inaccessible to them because they lacked money or education (Edgar Sedgwikc 2002, p. 285). For instance, one can mention that during the Middle Ages, the majority of books were written in Latin which was not spoken by spoken by many people. Hence, they had to invent their own vernacular culture that was based on the own language. Such an approach may seem plausible, but it does not suggest that popular culture is always unintellectual or primitive.Advertisin g Looking for essay on cultural studies? Let's see if we can help you! Get your first paper with 15% OFF Learn More The thing is that nowadays people have access to a variety of cultural forms, but they do not always prefer only elite or high culture. Overall, this argument confirms the thesis that the main characteristics of popular culture are its recognizability and availability to the public. Yet, it is not appropriate to speak about qualitative dimensions of this phenomenon because it includes a large number of elements. Conclusion Thus, this discussion shows that popular culture can indeed be regarded as a mass-marketed phenomenon and a product of capitalism. However, it does not mean that this concept should be associated with something primitive. It simply denotes material objects or ideas that are available and recognizable by a large number of people. Its establishment and development can be explained by technological progress. Finally, one can say that the distinctions between popular and elite culture become blurred. This paper provided examples showing that elite culture can eventual ly transform in popular culture. Moreover, those things that are often labeled are as popular culture, can later appeal to the elite. Thus, people should very careful when they distinguish popular and high culture. Such distinctions are not always justified. Reference List Edgar, A. Sedgwikc P. (2002). Cultural Theory: The Key Concepts. London: Routledge. Lopes, P. (2003). The 1950’s Cultural Revolution: Race, Music and the American Popular. Conference Papers — American Sociological Association, 1-20. Rhodes, C. Westwood, R. (2008). Critical Representations of Work and  Organization in Popular Culture. New York: Routledge. Samovar, L., Porter, R. McDaniel. (2008) Intercultural Communication: A Reader. New York: Cengage Learning. Storey, J. (2006). Cultural Theory and Popular Culture: An Introduction. Berkeley: Pearson Education. This essay on The Main Distinctions of Popular Culture and Its Growth was written and submitted by user Alaya Bruce to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.