How to Use a Pattern For Writing Essay

How to Use a Pattern For Writing EssayThe use of a pattern for writing essay is an excellent and simple tool that can help you in writing your assignment quickly. It is a guide that has many uses in the process of writing your assignment. However, you may not be aware of how useful it can be when it comes to writing your assignment. Using a pattern for writing essay can help you develop your ideas while you are doing it.It is one of the best tools that you can use to make the task of writing an essay less complicated. You do not have to worry about starting an essay from scratch and then continue writing it as you go. This is very useful especially if you have too much information to organize. You can simply copy what you see or read in other articles. You can simply insert your own ideas and give more emphasis to the content of the essay.One of the most important things to remember while you are doing this is that you have to concentrate on the content of the essay. Do not start typ ing the essay right away and continue to do it later. This is very important since when you are writing the essay, you should have a clear vision of what you want to write.So, if you start with a pattern for writing an essay, you can follow the article to further develop your ideas in the essay. Once you finished it, you can continue to change your idea based on your knowledge of the subject. If you start with a pattern for writing the essay, you will definitely finish it in a short time.Another important thing is that you should focus on the content of the essay. Once you finish writing your essay, you should always remember to keep the content intact. Do not add anything because this can spoil the whole purpose of writing. You should include your sources and must include only the facts or data that you can find.Other than that, you can also add some additional resources that will help you expand your knowledge. These additional resources include any books or websites that can supp ort you in your research. All these things can help you as you continue to develop your idea in your essay.If you want to complete a large assignment fast, this is the tool that you can use. You can just copy the pattern for writing essay from one of the topics and paste it in your essay. Do not worry about changing the order or format as long as the theme and content remain the same. Thus, using a pattern for writing essay can help you finish a big assignment in a short time.

The Idiots Handbook to Research Topic Outline

The Idiot's Handbook to Research Topic Outline Planning not only enters the research itself but into multiple phases of the draft. You have the ability to write only its principal sections or present a thorough plan with several subsections. You could also see report outline. You could also see program outline. You can also see presentation outline. Developing a good outline is vital in an additional composing of your research paper. A research paper outline, though, will additionally have a hypothesis or thesis as a portion of the introduction. By studying various outline samples, you're guaranteed to come up with the ideal research paper outline in almost no time. The research paper outline will help to clarify the topic of the research paper, guide the subject matter to remain on course, and helps to begin the writing of the true research paper. The outline of your customized research paper is likely to reflect upon your research so make certain that it offers a good idea about what your paper will discuss. The one difference is the true content presented in the paper. Nobody will argue that It's quite challenging to compose an academic paper if there's no structure for it. If you take a close look at research paper outline examples, you will observe there are several methods to present the major body. New Ideas Into Research Topic Outline Never Before Revealed You ought to be detached and objective in your writing. Explain briefly the big points you want to cover in your paper and why readers ought to be interested in your topic. A topic outline acts as a quick summary of the topics included in your paper. It is most effective once you need to objectively discuss about a specific topic without attempting to sound persuasive. You're not required to produce a new or unique method (though you can test out!) Employing an outline template can assist the student organize the paper and eliminate the ideas that aren't related to the intention of the essay. Your principal theme and the chosen literature ought to be adjacent. The MLA format stipulates the essential guidelines for effectively writing an essay in line with the MLA standards. An outline is going to be a reminder for you to include all the crucial subtleties in it. So, creation of an outline ought to be the next step after you've decided on your topic. There it is possible to learn to construct the structure and its elements. In case the structure of the chief body has many levels, it is preferable to use different numbering styles. Examples of such templates are excellent for education and company jobs since they may be immensely helpful when you're short in time and confused about the proper way to prepare a print outline. If you're a template that permits you to organize your ideas and pen down clean and precise sample research ideas, you should certainly elect for premium superior research outline template that it is possible to download free of charge. A template will allow you to identify the important components of your proposal, and that means you may know what goes where. A research outline template is readily gettable on the web. It is possible to also describe the reach of your research. Don't forget, you're not setting out to conduct research so as to prove a point. After reading the thesis, there ought to be no doubt precisely what the research will be about. If you are going to be conducting your own research, like through a survey or a scientific experiment, you will have to outline the pre cise process that you want to use. For instance, you may have I. A. 1. Conducting a research isn't any doubt an elaborate affair and with all these tasks to do, it isn't uncommon to shed consistency if there's absolutely no outline. Whether you do an easy research or a complicated one for a larger project, a research outline can help you receive the best outcomes.

Gender Discrimination And The Sport Industry - 786 Words

Since a young girl, my dream has been to occupy a career within the sport industry. However, as I have gotten older and more aware of the demographics of who occupy the title of executive and leader within the sport industry—mainly men, it has intrigued my interest in knowing why there is a skewed correlation between gender and leadership. In sports, â€Å" [†¦] simply being male permits all men to benefit from the marginalization of all women† (Anderson, p.128, 2010). Sadly, gender stereotypes and ideologies have restricted and withheld women within the professional sport domain from growing and moving up within the industry. However, due to women proclaiming their position and leadership within the sport industry, the number of women executives and leaders are beginning to rise. This rise of women leaders within sports is positive to finally see that women are starting to receive the recognition and position that they deserve. However, there are still great strid es that the sport industry needs to make with their hiring practices to eliminate gender-based leadership stereotypes to bring equality and equity for women in sports. Historically, on one hand, women have been deemed as leaders within the confines of homemakers, wives, and mothers. On the other, women have been deemed incompetent and too weak to have leadership positions also known as â€Å"rule congruity theory† (Grappendorf, 2015). Even though women are leaders of their home, this is and should not be the only capacityShow MoreRelatedGender Inequality And The Social Construction Of Gender1562 Words   |  7 Pagesof gender, race, class, and sexuality have led to discrimination and inequality of those classified under a variety of these categories. Through understanding the significance of these social constructs on society it becomes apparent the intersectionality they have when it comes to understanding why certain groups may face discrimination or inequality. This paper examines gender inequality and how the social construction of gender makes it difficult for the pursuit of equality amongst genders. GenderRead MoreThe Construction And Experience Of Gender Inequality1395 Words   |  6 Pagesconstruction and experience of gender inequality. Men and women are constantly analyzed, compared, and grouped together in society. The result of this yields discrepancies in how sexes are viewed by society. Throughout my examination and explanation of gender inequality, I concluded both men and women are victims to gender inequality. I examined different professional industries in The United States to get a familiar understanding of gender inequality around me. 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Even though it is against the law, many colleges and sports associations still give unfair benefits to men’s sports, such as more opportunities, better fields, higher salaries, etc, and are not getting punished forRead MoreThe Importance Of Equal Pay, Rights And Opportunity For Women Involved With Sports1629 Words   |  7 PagesThis podcast will distinguish the stiffening number of the lack of equal pay, rights and opportunity for women involved with sports. This topic was selected because this is evident based on the staggering numbers of women performing and displaying either equal or more in terms of success, achievement or work load and still are behind when comparing salaries between men and women. Hopefully, this podcast will shine some light on this subject and bring awareness. 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In the four given examples of casting calls, it would seem that disparate treatment discrimination was blatant in the both the wording and premise of the casting notices. Since it seems to be common practice for agencies to create casting notices that openly call for certain races or colors of people, it would seem that any person who wasn’t

Financial Management Chapter 8 K Free Essays

ey Chapter 8 Stocks and Their Valuation LEARNING OBJECTIVES After reading this chapter, students should be able to: †¢ Identify some of the more important rights that come with stock ownership and define the following terms: proxy, proxy fight, takeover, and preemptive right. †¢ Briefly explain why classified stock might be used by a corporation and what founders’ shares are. †¢ Differentiate between closely held and publicly owned corporations and list the three distinct types of stock market transactions. We will write a custom essay sample on Financial Management Chapter 8 K or any similar topic only for you Order Now Determine the value of a share of common stock when: (1) dividends are expected to grow at some constant rate, (2) dividends are expected to remain constant, and (3) dividends are expected to grow at some super-normal, or nonconstant, growth rate. †¢ Calculate the expected rate of return on a constant growth stock. †¢ Apply the total company (corporate value) model to value a firm in situations when the firm does not pay dividends or is privately held. †¢ Explain why a stock’s intrinsic value might differ between the total company model and the dividend growth model. Explain the following terms: equilibrium, marginal investor, and Efficient Markets Hypothesis (EMH); distinguish among the three levels of market efficiency; briefly explain the implications of the EMH on financial decisions; and discuss the results of empirical studies on market efficiency and the implication of behavioral finance on those results. †¢ Read and understand the stock market page given in the daily newspaper. †¢ Explain the reasons for investing in international stocks and identify the â€Å"bets† an investor is making when he does invest overseas. Define preferred stock, determine the value of a share of preferred stock, or given its value, calculate its expected return. 1. LECTURE SUGGESTIONS This chapter provides important and useful information on common and preferred stocks. Moreover, the valuation of stocks reinforces the concepts covered in both Chapters 6 and 7, so Chapter 8 extends and reinforces those chapters. We begin our lecture with a discussion of the characteristics of common stocks, after which we discuss how stocks are valued in the market and how stock prices are reported in the press. We conclude the lecture with a discussion of preferred stocks. The details of what we cover, and the way we cover it, can be seen by scanning Blueprints Chapter 8. For other suggestions about the lecture, please see the â€Å"Lecture Suggestions† in Chapter 2, where we describe how we conduct our classes. DAYS ON CHAPTER: 3 OF 58 DAYS (50-minute periods) ANSWERS TO END-OF-CHAPTER QUESTIONS 8-1True. The value of a share of stock is the PV of its expected future dividends. If the two investors expect the same future dividend stream, and they agree on the stock’s riskiness, then they should reach similar conclusions as to the stock’s value. -2A perpetual bond is similar to a no-growth stock and to a share of preferred stock in the following ways: 1. All three derive their values from a series of cash inflows–coupon payments from the perpetual bond, and dividends from both types of stock. 2. All three are assumed to have indefinite lives with no maturity value (M) for the perpetual bond and no capital gains yield for the stocks. 8-3Yes. If a company decides to increase its payout ratio, then the dividend yield component will rise, but the expected long-term capital gains yield will decline. 8-4No. The correct equation has D1 in the numerator and a minus sign in the denominator. -5a. The average investor in a listed firm is not really interested in maintaining his proportionate share of ownership and control. If he wanted to increase his ownership, he could simply buy more stock on the open market. Consequently, most investors are not concerned with whether new shares are sold directly (at about market prices) or through rights offerings. However, if a rights offering is being used to effect a stock split, or if it is being used to reduce the underwriting cost of an issue (by substantial underpricing), the preemptive right may well be beneficial to the firm and to its stockholders. . The preemptive right is clearly important to the stockholders of closely held firms whose owners are interested in mai ntaining their relative control positions. SOLUTIONS TO END-OF-CHAPTER PROBLEMS 8-1D0 = $1. 50; g1-3 = 5%; gn = 10%; D1 through D5 = ? D1 = D0(1 + g1) = $1. 50(1. 05) = $1. 5750. D2 = D0(1 + g1)(1 + g2) = $1. 50(1. 05)2 = $1. 6538. D3 = D0(1 + g1)(1 + g2)(1 + g3) = $1. 50(1. 05)3 = $1. 7364. D4 = D0(1 + g1)(1 + g2)(1 + g3)(1 + gn) = $1. 50(1. 05)3(1. 10) = $1. 9101. D5 = D0(1 + g1)(1 + g2)(1 + g3)(1 + gn)2 = $1. 50(1. 05)3(1. 10)2 = $2. 1011. 8-2D1 = $0. 50; g = 7%; ks = 15%; [pic] = ? [pic] -3P0 = $20; D0 = $1. 00; g = 10%; [pic] = ? ; ks = ? [pic] = P0(1 + g) = $20(1. 10) = $22. ks= [pic] + g = [pic] + 0. 10 = [pic] + 0. 10 = 15. 50%. ks = 15. 50%. 8-4Dp = $5. 00; Vp = $60; kp = ? kp = [pic] = [pic] = 8. 33%. 8-5a. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year 2. b. 0 1 2 3 | | | | 1. 25 1. 50 1. 80 1. 89 37. 80 = [pic] The horizon, or terminal, value is the value at the horizon date of all dividends expected there after. In this problem it is calculated as follows: pic] c. The firm’s intrinsic value is calculated as the sum of the present value of all dividends during the supernormal growth period plus the present value of the terminal value. Using your financial calculator, enter the following inputs: CF0 = 0, CF1 = 1. 50, CF2 = 1. 80 + 37. 80 = 39. 60, I = 10, and then solve for NPV = $34. 09. 6. The firm’s free cash flow is expected to grow at a constant rate, hence we can apply a constant growth formula to determine the total value of the firm. Firm Value = FCF1/(WACC – g) Firm Value = $150,000,000/(0. 10 – 0. 05) Firm Value = $3,000,000,000. To find the value of an equity claim upon the company (share of stock), we must subtract out the market value of debt and preferred stock. This firm happens to be entirely equity funded, and this step is unnecessary. Hence, to find the value of a share of stock, we divide equity value (or in this case, firm value) by the number of shares outstanding. Equity Value per share = Equity Value/Shares outstanding Equity Value per share = $3,000,000,000/50,000,000 Equity Value per share = $60. Each share of common stock is worth $60, according to the corporate valuation model. 8-7a. 0 1 2 3 4 | | | | 3,000,000 6,000,000 10,000,000 15,000,000 Using a financial calculator, enter the following inputs: CF0 = 0; CF1 = 3000000; CF2 = 6000000; CF3 = 10000000; CF4 = 15000000; I = 12; and then solve for NPV = $24,112,308. b. The firm’s terminal value is calculated as follows: [pic] c. The firm’s total value is calculated as follows: 0 1 2 3 4 5 | | | | | | 3,000,000 6,000,000 10,000,000 15,000,000 16,050,000 PV = ? 321,000,000 = [pic] Using your financial calculator, enter the following inputs: CF0 = 0; CF1 = 3000000; CF2 = 6000000; CF3 = 10000000; CF4 = 15000000 + 321000000 = 336000000; I = 12; and then solve for NPV = $228,113,612. d. To find Barrett’s stock price, you need to first find the value of its equity. The value of Barrett’s equity is equal to the value of the total firm less the market value of its debt and preferred stock. Total firm value$228,113,612 Market value, debt + preferred 60,000,000 (given in problem) Market value of equity$168,113,612 Barrett’s price per share is calculated as: [pic] 8-8FCF = EBIT(1 – T) + Depreciation – [pic] – ([pic] = $500,000,000 + $100,000,000 – $200,000,000 – $0 = $400,000,000. Firm value = [pic] = [pic] = [pic] = $10,000,000,000. This is the total firm value. Now find the market value of its equity. MVTotal= MVEquity + MVDebt $10,000,000,000= MVEquity + $3,000,000,000 MVEquity= $7,000,000,000. This is the market value of all the equity. Divide by the number of shares to find the price per share. $7,000,000,000/200,000,000 = $35. 00. 8-9a. Terminal value = [pic] = [pic]= $713. 33 million. . 0 1 2 3 4 | | | | | -20 30 40 42. 80 ($ 17. 70) 23. 49 522. 10 753. 33 $527. 89 Using a financial calculator, enter the following inputs: CF0 = 0; CF1 = -20; CF2 = 30; CF3 = 753. 33; I = 13; and then solve for NPV = $527. 89 million. c. Total valuet=0 = $527. 89 million. Value of common equity = $527. 89 – $100 = $427. 89 million. Price per share = [pic] = $42. 79. 8-10The problem asks you to determine the value of [pic], given the following facts: D1 = $2, b = 0. 9, kRF = 5. %, RPM = 6%, and P0 = $25. Proceed as follows: Step 1:Calculate the required rate of return: ks = kRF + (kM – kRF)b = 5. 6% + (6%)0. 9 = 11%. Step 2:Use the constant growth rate formula to calculate g: [pic] Step 3:Calculate [pic]: [pic] = P0(1 + g)3 = $25(1. 03)3 = $27. 3182 ( $27. 32. Alternatively, you could calculate D4 and then use the constant growth rate formula to solve for [pic]: D4 = D1(1 + g)3 = $2. 00(1. 03)3 = $2. 1855. [pic] = $2. 1855/(0. 11 – 0. 03) = $27. 3182 ( $27. 32. 8-11Vp = Dp/kp; therefore, kp = Dp/Vp. a. kp = $8/$60 = 13. 3%. b. kp = $8/$80 = 10. 0%. c. p = $8/$100 = 8. 0%. d. kp = $8/$140 = 5. 7%. 8-12[pic] 8-13a. ki = kRF + (kM – kRF)bi. kC = 9% + (13% – 9%)0. 4 = 10. 6%. kD = 9% + (13% – 9%)(-0. 5) = 7%. Note that kD is below the risk-free rate. But since this stock is like an insurance policy because it â€Å"pays off† when something bad happens (the market falls), the low return is not unreasonable. b. In this situation, the expected rate of return is as follows: [pic] = D1/P0 + g = $1. 50/$25 + 4% = 10%. However, the required rate of return is 10. 6 percent. Investors will seek to sell the stock, dropping its price to the following: pic] At this point, [pic], and the stock will be in equilibrium. 8-14Calculate the dividend cash flows and place them on a time line. Also, calculate the stock price at the end of the supernormal growth period, and include it, along with the dividend to be paid at t = 5, as CF5. Then, enter the cash flows as shown on the time line into the cash flow register, enter the required rate of return as I = 15, and then find the value of the stock using the NPV calculation. Be sure to enter CF0 = 0, or else your answer will be incorrect. D0 = 0; D1 = 0; D2 = 0; D3 = 1. 0; D4 = 1. 00(1. 5) = 1. 5; D5 = 1. 00(1. 5)2 = 2. 25; D6 = 1. 00(1. 5)2(1. 08) = $2. 43. [pic] = ? 0 1 2 3 4 5 6 | | | | | | | 1. 00 1. 50 2. 25 2. 43 0. 658 +34. 71 = 0. 858 18. 378 36. 96 $19. 894 = [pic] [pic] = D6/([pic] – g) = $2. 43/(0. 15 – 0. 08) = $34. 71. This is the stock price at the end of Year 5. CF0 = 0; CF1-2 = 0; CF3 = 1. 0; CF4 = 1. 5; CF5 = 36. 96; I = 15%. With these cash flows in the CFLO register, press NPV to get the value of the stock today: NPV = $19. 89. 8-15a. The preferred stock pays $8 annually in dividends. Therefore, its nominal rate of return would be: Nominal rate of return = $8/$80 = 10%. Or alternatively, you could determine the security’s periodic return and multiply by 4. Periodic rate of return = $2/$80 = 2. 5%. Nominal rate of return = 2. 5% ( 4 = 10%. b. EAR = (1 + NOM/4)4 – 1 EAR = (1 + 0. 10/4)4 – 1 EAR = 0. 103813 = 10. 3813%. -16The value of any asset is the present value of all future cash flows expected to be generated from the asset. Hence, if we can find the present value of the dividends during the period preceding long-run constant growth and subtract that total from the current stock price, the remaining value would be the present value of the cash flows to be received during the period of long-run constant growth. D1 = $2. 00 ( (1. 25)1 = $2. 50PV(D1) = $2. 50/(1. 12)1= $2. 2321 D2 = $2. 00 ( (1. 25)2 = $3. 125PV(D2) = $3. 125/(1. 12)2= $2. 4913 D3 = $2. 00 ( (1. 25)3 = $3. 90625PV(D3) = $3. 0625/(1. 12)3= $2. 7804 ( PV(D1 to D3)= $7. 5038 Therefore, the PV of the remaining dividends is: $58. 8800 – $7. 5038 = $51. 3762. Compounding this value forward to Year 3, we find that the value of all dividends received during constant growth is $72. 18. [$51. 3762(1. 12)3 = $72. 18. ] Applying the constant growth formula, we can solve for the constant growth rate: [pic]= D3(1 + g)/(ks – g) $72. 1807= $3. 90625(1 + g)/(0. 12 – g) $8. 6616 – $72. 18g= $3. 90625 + $3. 90625g $4. 7554= $76. 08625g 0. 0625= g 6. 25%= g. 8-17First, solve for the current price. P0 = D1/(ks – g) P0 = $0. 50/(0. 2 – 0. 07) P0 = $10. 00. If the stock is in a constant growth state, the constant dividend growth rate is also the capital gains yield for the stock and the stock price growth rat e. Hence, to find the price of the stock four years from today: [pic] = P0(1 + g)4 [pic] = $10. 00(1. 07)4 [pic] = $13. 10796 ? $13. 11. [pic] 8-18a. [pic] b. [pic] 8-19 0 1 2 3 4 | | | | | D0 = 2. 00 D1 D2 D3 D4 g = 5% [pic] a. D1 = $2(1. 05) = $2. 10; D2 = $2(1. 05)2 = $2. 21; D3 = $2(1. 5)3 = $2. 32. b. Financial Calculator Solution: Input 0, 2. 10, 2. 21, and 2. 32 into the cash flow register, input I = 12, PV = ? PV = $5. 29. c. Financial Calculator Solution: Input 0, 0, 0, and 34. 73 into the cash flow register, I = 12, PV = ? PV = $24. 72. d. $24. 72 + $5. 29 = $30. 01 = Maximum price you should pay for the stock. e. [pic] f. No. The value of the stock is not dependent upon the holding period. The value calculated in Parts a through d is the value for a 3-year holding period. It is equal to the value calculated in Part e except for a small rounding error. Any other holding period would produce the same value of [pic]; that is, [pic] = $30. 00. 8-20a. 1. [pic] 2. [pic] = $2/0. 15 = $13. 33. 3. [pic] 4. [pic] b. 1. [pic] = $2. 30/0 = Undefined. 2. [pic] = $2. 40/(-0. 05) = -$48, which is nonsense. These results show that the formula does not make sense if the required rate of return is equal to or less than the expected growth rate. c. No. 8-21The answer depends on when one works the problem. We used the February 3, 2003, issue of The Wall Street Journal: a. $16. 81 to $36. 72. b. Current dividend = $0. 75. Dividend yield = $0. 75/$19. 8 ( 3. 9%. You might want to use ($0. 75)(1 + g)/$19. 48, with g estimated somehow. c. The $19. 48 close was up $0. 98 from the previous day’s close. d. The return on the stock consists of a dividend yield of about 3. 9 percent plus some capital gains yield. We would expect the total rate of return on stock to be in the 10 to 12 percent range. 8-22a. End of Year: 02 03 04 05 06 07 08 | | | | | | | D0 = 1. 75 D1 D2 D3 D4 D5 D6 Dt= D0(1 + g)t D2003= $1. 75(1. 15)1 = $2. 01. D2004= $1. 5(1. 15)2 = $1. 75(1. 3225) = $2. 31. D2005= $1. 75(1. 15)3 = $1. 75(1. 5209) = $2. 66. D2006= $1. 75(1. 15)4 = $1. 75(1. 7490) = $3. 06. D2007= $1. 75(1. 15)5 = $1. 75(2. 0114) = $3. 52. b. Step 1: PV of dividends = [pic]. PV D2003 = $2. 01/(1. 12)= $1. 79 PV D2004 = $2. 31/(1. 12)2= $1. 84 PV D2005 = $2. 66/(1. 12)3= $1. 89 PV D2006 = $3. 06/(1. 12)4= $1. 94 PV D2007 = $3. 52/(1. 12)5= $2. 00 PV of dividends= $9. 46 Step 2: [pic] This is the price of the stock 5 years from now. The PV of this price, discounted back 5 years, is as follows: PV of [pic] = $52. 80/(1. 12)5 = $29. 6. Step 3: The price of the stock today is as follows: [pic]= PV dividends Years 2003-2007 + PV of [pic] = $9. 46 + $29. 96 = $39. 42. This problem could also be solved by substituting the proper values into the following equation: [pic]. Calculator solution: Input 0, 2. 01, 2. 31, 2. 66, 3. 06, 56. 32 (3. 52 + 52. 80) into the cash flow register, input I = 12, PV = ? PV = $39. 43. c. 2003 D1/P0 = $2. 01/$39. 43= 5. 10% Capital gains yield= 6. 90* Expected total return= 12. 00% 2008 D6/P5 = $3. 70/$52. 80= 7. 00% Capital gains yield= 5. 00 Expected total return= 12. 00% We know that ks is 12 percent, and the dividend yield is 5. 10 percent; therefore, the capital gains yield must be 6. 90 percent. The main points to note here are as follows: 1. The total yield is always 12 percent (except for rounding errors). 2. The capital gains yield starts relatively high, then declines as the supernormal growth period approaches its end. The dividend yield rises. 3. After 12/31/07, the stock will grow at a 5 percent rate. The dividend yield will equal 7 percent, the capital gains yield will equal 5 percent, and the total return will be 12 percent. d. People in high income tax brackets will be more inclined to purchase â€Å"growth† stocks to take the capital gains and thus delay the payment of taxes until a later date. The firm’s stock is â€Å"mature† at the end of 2007. e. Since the firm’s supernormal and normal growth rates are lower, the dividends and, hence, the present value of the stock price will be lower. The total return from the stock will still be 12 percent, but the dividend yield will be larger and the capital gains yield will be smaller than they were with the original growth rates. This result occurs because we assume the same last dividend but a much lower current stock price. . As the required return increases, the price of the stock goes down, but both the capital gains and dividend yields increase initially. Of course, the long-term capital gains yield is still 4 percent, so the long-term dividend yield is 10 percent. 8-23a. Part 1: Graphical representation of the problem: Supernorm al Normal growth growth 0 1 2 3 ( | | | | †¢Ã¢â‚¬ ¢Ã¢â‚¬ ¢ | D0 D1 (D2 + [pic]) D3 D( PVD1 PVD2 [pic] P0 D1 = D0(1 + gs) = $1. 6(1. 20) = $1. 92. D2 = D0(1 + gs)2 = $1. 60(1. 20)2 = $2. 304. [pic] [pic]= PV(D1) + PV(D2) + PV([pic]) = [pic] = $1. 92/1. 10 + $2. 304/(1. 10)2 + $61. 06/(1. 10)2 = $54. 11. Financial Calculator solution: Input 0, 1. 92, 63. 364(2. 304 + 61. 06) into the cash flow register, input I = 10, PV = ? PV = $54. 11. Part 2: Expected dividend yield: D1/P0 = $1. 92/$54. 11 = 3. 55%. Capital gains yield: First, find [pic], which equals the sum of the present values of D2 and [pic] discounted for one year. [pic] Financial Calculator solution: Input 0, 63. 364(2. 304 + 61. 6) into the cash flow register, input I = 10, PV = ? PV = $57. 60. Second, find the capital gains yield: [pic] Dividend yield = 3. 55% Capital gains yield = 6. 45 10. 00% = ks. b. Due to the longer period of supernormal growth, the value of the stock will be higher for each year. Although the total return will remain the same, ks = 10%, the distribution between dividend yield and capital g ains yield will differ: The dividend yield will start off lower and the capital gains yield will start off higher for the 5-year supernormal growth condition, relative to the 2-year supernormal growth state. The dividend yield will increase and the capital gains yield will decline over the 5-year period until dividend yield = 4% and capital gains yield = 6%. c. Throughout the supernormal growth period, the total yield will be 10 percent, but the dividend yield is relatively low during the early years of the supernormal growth period and the capital gains yield is relatively high. As we near the end of the supernormal growth period, the capital gains yield declines and the dividend yield rises. After the supernormal growth period has ended, the capital gains yield will equal gn = 6%. The total yield must equal ks = 10%, so the dividend yield must equal 10% – 6% = 4%. d. Some investors need cash dividends (retired people), while others would prefer growth. Also, investors must pay taxes each year on the dividends received during the year, while taxes on capital gains can be delayed until the gain is actually realized. 8-24a. ks = kRF + (kM – kRF)b = 11% + (14% – 11%)1. 5 = 15. 5%. [pic] = D1/(ks – g) = $2. 25/(0. 155 – 0. 05) = $21. 43. b. ks = 9% + (12% – 9%)1. 5 = 13. 5%. [pic] = $2. 25/(0. 135 – 0. 05) = $26. 47. c. ks = 9% + (11% – 9%)1. 5 = 12. 0%. [pic] = $2. 25/(0. 12 – 0. 5) = $32. 14. d. New data given: kRF = 9%; kM = 11%; g = 6%, b = 1. 3. ks = kRF + (kM – kRF)b = 9% + (11% – 9%)1. 3 = 11. 6%. [pic] = D1/(ks – g) = $2. 27/(0. 116 – 0. 06) = $40. 54. 8-25a. Old ks = kRF + (kM – kRF)b = 9% + (3%)1. 2 = 12. 6%. New ks = 9% + (3%)0. 9 = 11. 7%. Old price: [pic] New price: [pic] Since the new price is lower than the old price, the expansion in consumer products should be rejected. The decrease in risk is not sufficient to offset the decline in profitability and the reduced growth rate. b. POld = $38. 21. PNew = [pic]. Solving for ks we have the following: $38. 1= [pic] $2. 10= $38. 21(ks) – $1. 9105 $4. 0105= $38. 21(ks) ks= 0. 10496. Solving for b: 10. 496% = 9% + 3%(b) 1. 496% = 3%(b) b = 0. 49865. Check: ks = 9% + (3%)0. 49865 = 10. 496%. [pic] = [pic] = $38. 21. Therefore, only if management’s analysis concludes that risk can be lowered to b = 0. 49865, or approximately 0. 5, should the new policy be put into effect. SPREADSHEET PROBLEM 8-26The detailed solution for the spreadsheet problem is available both on the instructor’s resource CD-ROM and on the instructor’s side of South-Western’s web site, http://brigham. swlearning. com. INTEGRATED CASE Mutual of Chicago Insurance Company Stock Valuation 8-27ROBERT BALIK AND CAROL KIEFER ARE SENIOR VICE-PRESIDENTS OF THE MUTUAL OF CHICAGO INSURANCE COMPANY. THEY ARE CO-DIRECTORS OF THE COMPANY’S PENSION FUND MANAGEMENT DIVISION, WITH BALIK HAVING RESPONSIBILITY FOR FIXED INCOME SECURITIES (PRIMARILY BONDS) AND KIEFER BEING RESPONSIBLE FOR EQUITY INVESTMENTS. A MAJOR NEW CLIENT, THE CALIFORNIA LEAGUE OF CITIES, HAS REQUESTED THAT MUTUAL OF CHICAGO PRESENT AN INVESTMENT SEMINAR TO THE MAYORS OF THE REPRESENTED CITIES, AND BALIK AND KIEFER, WHO WILL MAKE THE ACTUAL PRESENTATION, HAVE ASKED YOU TO HELP THEM. TO ILLUSTRATE THE COMMON STOCK VALUATION PROCESS, BALIK AND KIEFER HAVE ASKED YOU TO ANALYZE THE BON TEMPS COMPANY, AN EMPLOYMENT AGENCY THAT SUPPLIES WORD PROCESSOR OPERATORS AND COMPUTER PROGRAMMERS TO BUSINESSES WITH TEMPORARILY HEAVY WORKLOADS. YOU ARE TO ANSWER THE FOLLOWING QUESTIONS. A. DESCRIBE BRIEFLY THE LEGAL RIGHTS AND PRIVILEGES OF COMMON STOCKHOLDERS. ANSWER:[SHOW S8-1 THROUGH S8-5 HERE. ] THE COMMON STOCKHOLDERS ARE THE OWNERS OF A CORPORATION, AND AS SUCH THEY HAVE CERTAIN RIGHTS AND PRIVILEGES AS DESCRIBED BELOW. 1. OWNERSHIP IMPLIES CONTROL. THUS, A FIRM’S COMMON STOCKHOLDERS HAVE THE RIGHT TO ELECT ITS FIRM’S DIRECTORS, WHO IN TURN ELECT THE OFFICERS WHO MANAGE THE BUSINESS. 2. COMMON STOCKHOLDERS OFTEN HAVE THE RIGHT, CALLED THE PREEMPTIVE RIGHT, TO PURCHASE ANY ADDITIONAL SHARES SOLD BY THE FIRM. IN SOME STATES, THE PREEMPTIVE RIGHT IS AUTOMATICALLY INCLUDED IN EVERY CORPORATE CHARTER; IN OTHERS, IT IS NECESSARY TO INSERT IT SPECIFICALLY INTO THE CHARTER. B. 1. WRITE OUT A FORMULA THAT CAN BE USED TO VALUE ANY STOCK, REGARDLESS OF ITS DIVIDEND PATTERN. ANSWER:[SHOW S8-6 HERE. ] THE VALUE OF ANY STOCK IS THE PRESENT VALUE OF ITS EXPECTED DIVIDEND STREAM: [pic] = [pic] HOWEVER, SOME STOCKS HAVE DIVIDEND GROWTH PATTERNS THAT ALLOW THEM TO BE VALUED USING SHORT-CUT FORMULAS. B. 2. WHAT IS A CONSTANT GROWTH STOCK? HOW ARE CONSTANT GROWTH STOCKS VALUED? ANSWER:[SHOW S8-7 AND S8-8 HERE. ] A CONSTANT GROWTH STOCK IS ONE WHOSE DIVIDENDS ARE EXPECTED TO GROW AT A CONSTANT RATE FOREVER. â€Å"CONSTANT GROWTH† MEANS THAT THE BEST ESTIMATE OF THE FUTURE GROWTH RATE IS SOME CONSTANT NUMBER, NOT THAT WE REALLY EXPECT GROWTH TO BE THE SAME EACH AND EVERY YEAR. MANY COMPANIES HAVE DIVIDENDS THAT ARE EXPECTED TO GROW STEADILY INTO THE FORESEEABLE FUTURE, AND SUCH COMPANIES ARE VALUED AS CONSTANT GROWTH STOCKS. FOR A CONSTANT GROWTH STOCK: D1 = D0(1 + g), D2 = D1(1 + g) = D0(1 + g)2, AND SO ON. WITH THIS REGULAR DIVIDEND PATTERN, THE GENERAL STOCK VALUATION MODEL CAN BE SIMPLIFIED TO THE FOLLOWING VERY IMPORTANT EQUATION: [pic] = [pic] = [pic]. THIS IS THE WELL-KNOWN â€Å"GORDON,† OR â€Å"CONSTANT-GROWTH† MODEL FOR VALUING STOCKS. HERE D1 IS THE NEXT EXPECTED DIVIDEND, WHICH IS ASSUMED TO BE PAID 1 YEAR FROM NOW, kS IS THE REQUIRED RATE OF RETURN ON THE STOCK, AND g IS THE CONSTANT GROWTH RATE. B. 3. WHAT HAPPENS IF A COMPANY HAS A CONSTANT g THAT EXCEEDS ITS ks? WILL MANY STOCKS HAVE EXPECTED g ks IN THE SHORT RUN (THAT IS, FOR THE NEXT FEW YEARS)? IN THE LONG RUN (THAT IS, FOREVER)? ANSWER:[SHOW S8-9 HERE. ] THE MODEL IS DERIVED MATHEMATICALLY, AND THE DERIVATION REQUIRES THAT ks g. IF g IS GREATER THAN ks, THE MODEL GIVES A NEGATIVE STOCK PRICE, WHICH IS NONSENSICAL. THE MODEL SIMPLY CANNOT BE USED UNLESS (1) ks g, (2) g IS EXPECTED TO BE CONSTANT, AND (3) g CAN REASONABLY BE EXPECTED TO CONTINUE INDEFINITELY. STOCKS MAY HAVE PERIODS OF SUPERNORMAL GROWTH, WHERE gS ks; HOWEVER, THIS GROWTH RATE CANNOT BE SUSTAINED INDEFINITELY. IN THE LONG-RUN, g ks. C. ASSUME THAT BON TEMPS HAS A BETA COEFFICIENT OF 1. , THAT THE RISK-FREE RATE (THE YIELD ON T-BONDS) IS 7 PERCENT, AND THAT THE REQUIRED RATE OF RETURN ON THE MARKET IS 12 PERCENT. WHAT IS THE REQUIRED RATE OF RETURN ON THE FIRM’S STOCK? ANSWER:[SHOW S8-10 HERE. ] HERE WE USE THE SML TO CALCULATE BON TEMPS’ REQUIRED RATE OF RETURN: ks= kRF + (kM – kRF)bBon Temps = 7% + (12% – 7%)(1. 2) = 7% + (5%)(1. 2) = 7% + 6% = 13%. D. ASSUME THAT BON TEMPS I S A CONSTANT GROWTH COMPANY WHOSE LAST DIVIDEND (D0, WHICH WAS PAID YESTERDAY) WAS $2. 00 AND WHOSE DIVIDEND IS EXPECTED TO GROW INDEFINITELY AT A 6 PERCENT RATE. 1. WHAT IS THE FIRM’S EXPECTED DIVIDEND STREAM OVER THE NEXT 3 YEARS? ANSWER:[SHOW S8-11 HERE. ] BON TEMPS IS A CONSTANT GROWTH STOCK, AND ITS DIVIDEND IS EXPECTED TO GROW AT A CONSTANT RATE OF 6 PERCENT PER YEAR. EXPRESSED AS A TIME LINE, WE HAVE THE FOLLOWING SETUP. JUST ENTER 2 IN YOUR CALCULATOR; THEN KEEP MULTIPLYING BY 1 + g = 1. 06 TO GET D1, D2, AND D3: 0 1 2 3 | | | | D0 = 2. 00 2. 12 2. 247 2. 382 1. 88 1. 76 1. 65 . . . D. 2. WHAT IS THE FIRM’S CURRENT STOCK PRICE? ANSWER:[SHOW S8-12 HERE. WE COULD EXTEND THE TIME LINE ON OUT FOREVER, FIND THE VALUE OF BON TEMPS’ DIVIDENDS FOR EVERY YEAR ON OUT INTO THE FUTURE, AND THEN THE PV OF EACH DIVIDEND DISCOUNTED AT k = 13%. FOR EXAMPLE, THE PV OF D1 IS $1. 8761; THE PV OF D2 IS $1. 7599; AND SO FORTH. NOTE THAT THE DIVIDEND PAYMENTS INCREASE WITH TIME, BUT AS LONG AS ks g, THE PRESENT VALUES DECREASE WITH TIME. IF WE EXTENDED THE GRAPH ON OUT FOREVER AND THEN SUMMED THE PVs OF THE DIVIDENDS, WE WOULD HAVE THE VA LUE OF THE STOCK. HOWEVER, SINCE THE STOCK IS GROWING AT A CONSTANT RATE, ITS VALUE CAN BE ESTIMATED USING THE CONSTANT GROWTH MODEL: pic] = [pic] = [pic] = [pic] = $30. 29. D. 3. WHAT IS THE STOCK’S EXPECTED VALUE ONE YEAR FROM NOW? ANSWER:[SHOW S8-13 HERE. ] AFTER ONE YEAR, D1 WILL HAVE BEEN PAID, SO THE EXPECTED DIVIDEND STREAM WILL THEN BE D2, D3, D4, AND SO ON. THUS, THE EXPECTED VALUE ONE YEAR FROM NOW IS $32. 10: [pic] = [pic] = [pic] = [pic] = $32. 10. D. 4. WHAT ARE THE EXPECTED DIVIDEND YIELD, THE CAPITAL GAINS YIELD, AND THE TOTAL RETURN DURING THE FIRST YEAR? ANSWER:[SHOW S8-14 HERE. ] THE EXPECTED DIVIDEND YIELD IN ANY YEAR n IS DIVIDEND YIELD = [pic], WHILE THE EXPECTED CAPITAL GAINS YIELD IS CAPITAL GAINS YIELD = [pic] = k – [pic]. THUS, THE DIVIDEND YIELD IN THE FIRST YEAR IS 7 PERCENT, WHILE THE CAPITAL GAINS YIELD IS 6 PERCENT: TOTAL RETURN = 13. 0% DIVIDEND YIELD = $2. 12/$30. 29 = 7. 0% CAPITAL GAINS YIELD = 6. 0% E. NOW ASSUME THAT THE STOCK IS CURRENTLY SELLING AT $30. 29. WHAT IS THE EXPECTED RATE OF RETURN ON THE STOCK? ANSWER:THE CONSTANT GROWTH MODEL CAN BE REARRANGED TO THIS FORM: [pic] = [pic]. HERE THE CURRENT PRICE OF THE STOCK IS KNOWN, AND WE SOLVE FOR THE EXPECTED RETURN. FOR BON TEMPS: pic] = $2. 12/$30. 29 + 0. 060 = 0. 070 + 0. 060 = 13%. F. WHAT WOULD THE STOCK PRICE BE IF ITS DIVIDENDS WERE EXPECTED TO HAVE ZERO GROWTH? ANSWER:[SHOW S8-15 HERE. ] IF BON TEMPS’ DIVIDENDS WERE NOT EXPECTED TO GROW AT ALL, THEN ITS DIVIDEND STREAM WOULD BE A PERPETUITY. PERPETUITIES ARE VALUED AS SHOWN BELOW: 0 1 2 3 | | | | 2. 00 2. 00 2. 00 1. 77 1. 57 1. 39 . . . P0 = 15. 38 P0 = D/kS = $2. 00/0. 13 = $15. 38. NOTE THAT IF A PREFERRED STOCK IS A PERPE TUITY, IT MAY BE VALUED WITH THIS FORMULA. G. NOW ASSUME THAT BON TEMPS IS EXPECTED TO EXPERIENCE SUPERNORMAL GROWTH OF 30 PERCENT FOR THE NEXT 3 YEARS, THEN TO RETURN TO ITS LONG-RUN CONSTANT GROWTH RATE OF 6 PERCENT. WHAT IS THE STOCK’S VALUE UNDER THESE CONDITIONS? WHAT IS ITS EXPECTED DIVIDEND YIELD AND CAPITAL GAINS YIELD IN YEAR 1? YEAR 4? ANSWER:[SHOW S8-16 THROUGH S8-18 HERE. ] BON TEMPS IS NO LONGER A CONSTANT GROWTH STOCK, SO THE CONSTANT GROWTH MODEL IS NOT APPLICABLE. NOTE, HOWEVER, THAT THE STOCK IS EXPECTED TO BECOME A CONSTANT GROWTH STOCK IN 3 YEARS. THUS, IT HAS A NONCONSTANT GROWTH PERIOD FOLLOWED BY CONSTANT GROWTH. THE EASIEST WAY TO VALUE SUCH NONCONSTANT GROWTH STOCKS IS TO SET THE SITUATION UP ON A TIME LINE AS SHOWN BELOW: 0 1 2 3 4 | | | | | 2. 600 3. 380 4. 394 4. 65764 2. 301 2. 647 3. 045 46. 114 54. 107 SIMPLY ENTER $2 AND MULTIPLY BY (1. 30) TO GET D1 = $2. 60; MULTIPLY THAT RESULT BY 1. 3 TO GET D2 = $3. 38, AND SO FORTH. THEN RECOGNIZE THAT AFTER YEAR 3, BON TEMPS BECOMES A CONSTANT GROWTH STOCK, AND AT THAT POINT [pic] CAN BE FOUND USING THE CONSTANT GROWTH MODEL. pic] IS THE PRESENT VALUE AS OF t = 3 OF THE DIVIDENDS IN YEAR 4 AND BEYOND AND IS ALSO CALLED THE TERMINAL VALUE. WITH THE CASH FLOWS FOR D1, D2, D3, AND [pic] SHOWN ON THE TIME LINE, WE DISCOUNT EACH VALUE BACK TO YEAR 0, AND THE SUM OF THESE FOUR PVs IS THE VALUE OF THE STOCK TODAY, P0 = $54. 107. THE DIVIDEND YIELD IN YEAR 1 IS 4. 80 PERCENT, AND THE CAPITAL GAINS YIELD IS 8. 2 PERCENT: DIVIDEND YIELD = [pic] = 0. 0480 = 4. 8%. CAPITAL GAINS YIELD = 13. 00% – 4. 8% = 8. 2%. DURING THE NONCONSTANT GROWTH PERIOD, THE DIVIDEND YIELDS AND CAPITAL GAINS YIELDS ARE NOT CONSTANT, AND THE CAPITAL GAINS YIELD DOES NOT EQUAL g. HOWEVER, AFTER YEAR 3, THE STOCK BECOMES A CONSTANT GROWTH STOCK, WITH g = CAPITAL GAINS YIELD = 6. 0% AND DIVIDEND YIELD = 13. 0% – 6. 0% = 7. 0%. H. SUPPOSE BON TEMPS IS EXPECTED TO EXPERIENCE ZERO GROWTH DURING THE FIRST 3 YEARS AND THEN TO RESUME ITS STEADY-STATE GROWTH OF 6 PERCENT IN THE FOURTH YEAR. WHAT IS THE STOCK’S VALUE NOW? WHAT IS ITS EXPECTED DIVIDEND YIELD AND ITS CAPITAL GAINS YIELD IN YEAR 1? YEAR 4? ANSWER:[SHOW S8-19 AND S8-20 HERE. ] NOW WE HAVE THIS SITUATION: 0 1 2 3 4 | | | | | 2. 00 2. 0 2. 00 2. 00 2. 12 1. 77 1. 57 1. 39 20. 99 25. 72 = [pic] DURING YEAR 1: DIVIDEND YIELD = [pic] = 0. 0778 = 7. 78%. CAPITAL GAINS YIELD = 13. 00% – 7. 78% = 5. 22%. AGAIN, IN YEAR 4 BON TEMPS BECOMES A CONSTANT GROWTH STOCK; HENCE g = CAPITAL GAINS YIELD = 6. 0% AND DIVIDEND YIELD = 7. 0%. I. FINALLY, ASSUME THAT BON TEMPS’ EARNINGS AND DIVIDENDS ARE EXPECTED TO DECLINE BY A CONSTANT 6 PERCENT PER YEAR, THAT IS, g = -6%. WHY WOULD ANYONE BE WILLING TO BUY SUCH A STOCK, AND AT WHAT PRICE SHOULD IT SELL? WHAT WOULD BE THE DIVIDEND YIELD AND CAPITAL GAINS YIELD IN EACH YEAR? ANSWER:[SHOW S8-21 AND S8-22 HERE. ] THE COMPANY IS EARNING SOMETHING AND PAYING SOME DIVIDENDS, SO IT CLEARLY HAS A VALUE GREATER THAN ZERO. THAT VALUE CAN BE FOUND WITH THE CONSTANT GROWTH FORMULA, BUT WHERE g IS NEGATIVE: [pic] = [pic] = [pic] = [pic] = [pic] = $9. 89. SINCE IT IS A CONSTANT GROWTH STOCK: g = CAPITAL GAINS YIELD = -6. 0%, HENCE: DIVIDEND YIELD = 13. 0% – (-6. 0%) = 19. 0%. AS A CHECK: DIVIDEND YIELD = [pic] = 0. 190 = 19. 0%. THE DIVIDEND AND CAPITAL GAINS YIELDS ARE CONSTANT OVER TIME, BUT A HIGH (19. 0 PERCENT) DIVIDEND YIELD IS NEEDED TO OFFSET THE NEGATIVE CAPITAL GAINS YIELD. J. BON TEMPS EMBARKS ON AN AGGRESSIVE EXPANSION THAT REQUIRES ADDITIONAL CAPITAL. MANAGEMENT DECIDES TO FINANCE THE EXPANSION BY BORROWING $40 MILLION AND BY HALTING DIVIDEND PAYMENTS TO INCREASE RETAINED EARNINGS. THE PROJECTED FREE CASH FLOWS FOR THE NEXT THREE YEARS ARE -$5 MILLION, $10 MILLION, AND $20 MILLION. AFTER THE THIRD YEAR, FREE CASH FLOW IS PROJECTED TO GROW AT A CONSTANT 6 PERCENT. THE OVERALL COST OF CAPITAL IS 10 PERCENT. WHAT IS BON TEMPS’ TOTAL VALUE? IF IT HAS 10 MILLION SHARES OF STOCK AND $40 MILLION TOTAL DEBT, WHAT IS THE PRICE PER SHARE? ANSWER:[SHOW S8-23 THROUGH S8-28 HERE. 0 1 2 3 4 | | | | | -5 10 20 21. 20 $ -4. 545 8. 264 15. 026 398. 197 $416. 942 = TOTAL VALUE VALUE OF EQUITY = TOTAL VALUE – DEBT = $416. 94 – $40 = $376. 94 MILLION. PRICE PER SHARE = $376. 94/10 = $37. 69. K. WHAT DOES MARKET EQUILIBRIUM MEAN? ANSWER:[SHOW S8-29 AND S8-30 HERE. ] EQUILIBRIUM MEANS STABLE, NO TENDENCY TO CHANGE. MARKET EQUILIBRIUM MEANS THAT PRICES ARE STABLE–AT ITS CURRENT PRICE, THERE IS NO GENERAL TENDENCY FOR PEOPLE TO WANT TO BUY OR TO SELL A SECURITY THAT IS IN EQUILIBRIUM. ALSO, WHEN EQUILIBRIUM EXISTS, THE EXPECTED RATE OF RETURN WILL BE EQUAL TO THE REQUIRED RATE OF RETURN: [pic] = D1/P0 + g = k = kRF + (kM – kRF)b. L. IF EQUILIBRIUM DOES NOT EXIST, HOW WILL IT BE ESTABLISHED? ANSWER:[SHOW S8-31 AND S8-32 HERE. ] SECURITIES WILL BE BOUGHT AND SOLD UNTIL THE EQUILIBRIUM PRICE IS ESTABLISHED. M. WHAT IS THE EFFICIENT MARKETS HYPOTHESIS, WHAT ARE ITS THREE FORMS, AND WHAT ARE ITS IMPLICATIONS? ANSWER:[SHOW S8-33 THROUGH S8-37 HERE. ] THE EMH IN GENERAL IS THE HYPOTHESIS THAT SECURITIES ARE NORMALLY IN EQUILIBRIUM AND ARE â€Å"PRICED FAIRLY,† MAKING IT IMPOSSIBLE TO â€Å"BEAT THE MARKET. WEAK-FORM EFFICIENCY SAYS THAT INVESTORS CANNOT PROFIT FROM LOOKING AT PAST MOVEMENTS IN STOCK PRICES–THE FACT THAT STOCKS WENT DOWN FOR THE LAST FEW DAYS IS NO REASON TO THINK THAT THEY WILL GO UP (OR DOWN) IN THE FUTURE. THIS FORM HAS BEEN PROVEN PRETTY WELL BY EMPIRICAL TESTS, EVEN THOUGH PEOPLE STILL EMPLOY â€Å"TECHNICAL ANALYSIS. † S EMISTRONG-FORM EFFICIENCY SAYS THAT ALL PUBLICLY AVAILABLE INFORMATION IS REFLECTED IN STOCK PRICES, HENCE THAT IT WON’T DO MUCH GOOD TO PORE OVER ANNUAL REPORTS TRYING TO FIND UNDERVALUED STOCKS. THIS ONE IS (WE THINK) LARGELY TRUE, BUT SUPERIOR ANALYSTS CAN STILL OBTAIN AND PROCESS NEW INFORMATION FAST ENOUGH TO GAIN A SMALL ADVANTAGE. STRONG-FORM EFFICIENCY SAYS THAT ALL INFORMATION, EVEN INSIDE INFORMATION, IS EMBEDDED IN STOCK PRICES. THIS FORM DOES NOT HOLD–INSIDERS KNOW MORE, AND COULD TAKE ADVANTAGE OF THAT INFORMATION TO MAKE ABNORMAL PROFITS IN THE MARKETS. TRADING ON THE BASIS OF INSIDER INFORMATION IS ILLEGAL. N. PHYFE COMPANY RECENTLY ISSUED PREFERRED STOCK. IT PAYS AN ANNUAL DIVIDEND OF $5, AND THE ISSUE PRICE WAS $50 PER SHARE. WHAT IS THE EXPECTED RETURN TO AN INVESTOR ON THIS PREFERRED STOCK? ANSWER:[SHOW S8-38 AND S8-39 HERE. ] [pic]= [pic] = [pic] = 10%. ———————– ks = 15% gn = 6% ( 1/(1. 15)3 ( 1/(1. 13)3 ( 1/(1. 13)2 ( 1/1. 13 gs = 50% gn = 8% [pic] ks = 12% gs = 15% gn = 5% WACC = 10% [pic] = 30. 29 = [pic] g = 0% g = 0% g = 0% gn = 6% ks = 13% [pic] = $66. 54 = [pic] gs = 30% gs = 30% gs = 30% gn = 6% ks = 13% g = 0% ks = 13% g = 6% ks = 13% ks = 10% gs = 20% gs = 20% gn = 5% WACC = 12% WACC = 12% gn = 7% [pic] WACC = 13% gn = 7% 530 = [pic] ( 1/(1. 15)4 ( 1/(1. 15)5 ks = 12% ( 1/1. 13 ( 1/(1. 13)2 ( 1/(1. 13)3 ( 1/(1. 13)2 ( 1/(1. 13)2 ( 1/1. 13 ( 1/(1. 13)2 ( 1/(1. 13)3 ( 1/(1. 13)3 ( 1/1. 13 ( 1/1. 13 (%89 How to cite Financial Management Chapter 8 K, Essay examples

Structure Of Eukaryotic Cells And Importance Of Membranes free essay sample

Describe the structure and function of each of the eukaryotic organelles. A eukaryotic cell is sectioned by internal membranes into different functioning categories called organelles. For example, the nucleus houses DNA, the genetic component that controls the cells activities. (Boundless. Introduction Boundless Biology). The Cytoplasm is the material between the cell membrane and the nucleus. It has a lot of responsibilities within the cell. It contains enzymes for breaking down waste and also gives the cell its shape. The Nucleus or the brain which it is sometimes called is covered by a double membrane.It helps to manage the activities like eating, reproduction and movement within the cell. The Ribosome is small fine organelles made up of RNA protein as well as produces protein which is needed for the cells functions like repairing damages. The Cytokines a gelatin material. Which helps the cell keep it shape. It also controls muscle contractions and causes cell and organelle movement. We will write a custom essay sample on Structure Of Eukaryotic Cells And Importance Of Membranes or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The Cell Wall a rigid layer outside the cell membrane. It provides protection against stress, infection and keeps it from breaking. It also prevents water loss. A Cell Membrane holds a cell together ND puts up a wall that protect the inside of the cell from the outside. It also handles the movement of materials that come into or that leaves out of the cell. The nucleolus a small non-membrane crowed area inside the nucleus. This is where protein is being put together. This is a major component in the nucleus and based on the entity it is found in the arrangement of the nucleolus changes. There are two types of ERE. Rough Endoplasmic Reticulum and the other is the Smooth Endoplasmic Reticulum. They are different in structure and functions.The Rough Endoplasmic Reticulum (ERE) is covered bosomed (resembling bumps) and flattened sacs (resembling stacks of folded papers) that help in the manufacturing and transport of proteins, globetrotting and hormones. The Smooth Endoplasmic Reticulum (SEER) doesnt have bumps (ribosome) but it makes lipids and steroids and contains enzymes that participate with breaking down toxins, and drugs. It also saves steroids and ions for the cell. The Googol Apparatus also known as the Googol body, is part of a cellular construction that takes part in the change and passing out of proteins along with macromolecules.The main function is to e in charge of handling the macromolecules that are needed for the cell to function properly. It makes and puts together macromolecules for secretion and use inside the cell. The Mitochondria is a two membrane cell. An inner membrane and an outer membrane. The outer membrane covers the whole organelle and the inner membrane is grouped in to many Cristal which stretches the membrane increasing the chances to make large amounts of A TIP. Its main function is to control the energy flow Of the cell. Chloroplast are double membrane enclosed organelles.It is the format in green plants where photosynthesis takes place. It is usually shaped like a lens and some are shaped like clubs with a colorless center. The most important job of the chloroplast is to make food by way of photosynthesis. The Centrists are round shaped organelles. Each is made up of nine sets of three threads and are arranged in a ring shaped style. They operate as a microcircuit formatting center which is an important act in a leading cellular growth. The Lissome the outside layer is made up of a single membrane which contain many enzymes.The functions of the Lissome is to get rid of material around the cell, to get rid of materials inside and outside the cell and fully break down ells that are dead. The Vacuole a membrane that encloses a large amounts of fluid. This fluid that hold waste as well as food. It also helps plants to save water. Its function is to remove unwanted waste. It also allows the cell to change it shape. It blocks anything that may be harmful to the cell. The Nuclear Envelope made of two nuclear membranes that surrounds the nucleus of a eukaryotic cell.It divides the inside of the nucleus from the cytoplasm and gives it the basic groundwork of the nucleus. Chromatin a fine grainy component made up of DNA joined to protein. The function of hormonal is to simply contain DNA into a small amount to fit inside the nucleus of a cell and also to guard the DNA format and arrangement. Chromosomes is 50% proteins and 50% DNA. Thread like housing that holds genetic information that is needed for the entity take form and grow. Cilia and Agleam extremities that stretch from the exterior of many eukaryotic cells.Both are made up of a barrel-shaped cluster of nine threads. An entire circular hollow shaped tube going into the tip of the strand (cilium). Part of the circular hollow shaped tube that does not go as far into the tip as well as set of single circular hollow tubes going up through the center of the stack. The functions of these two move fluid past the exterior of the cell. (Example: single cells such as sperm which help them to swim). Distinguish between those that are and are not membranous. Prokaryotic cells do not have membranes organelles.Eukaryotic cells have both membrane and non-membrane organelles. Membrane: Rough and Smooth Endoplasmic Reticulum, Googol Apparatus, Mitochondria, Plastics and Lissome are membrane organelles that are sometimes found in eukaryotic cells. Endoplasmic reticulum are made up of split membranes. Some are linked to the plasma membrane as well as the nuclear membrane. There are two types of Endoplasmic Reticulum. Smooth Endoplasmic Reticulum and Rough Endoplasmic Reticulum. Built upon the existence of bumps (ribosome) on the membrane of the small tubes this is called rough endoplasmic Reticulum.That membrane which does not have bumps (ribosome) on its exterior are called Smooth Endoplasmic Reticulum. Mitochondria can be found any. Verve in the cytoplasm and are in the form of round, oval and stick like shapes. This membrane organelle has two membranes: a velvety outer membrane as well as an inner membrane. It is called the Mitochondria. To form Cristal, the inner membrane is folded into the cytoplasm. Cristal enhances the exterior of the membrane. This double membrane organelle in which both membranes are smooth is the Chloroplast.A single membrane organelle is known as the Googol apparatus. Separated by a unit membrane are the vesicles from the cytoplasm. Both the Cilia and the Flagella are membranous structures with their structures being similar. The flagella are long and the cilia are short structures. Numerous amounts of cilia, one flagellum and 2 flagella normally inhabit one cell with ACH being enclosed in a unit membrane. Their make-up consist of 2 primary small tubes and 9 sets of secondary small tubes. This is known as the 9+2 system of small tubes.Prokaryotic cells have flagella but do not have the 9+2 system. Non-Membrane: Ribosome, Castellated Structures, Centrists, Cilia and Flagella organelles ordinarily do not have membranes. Found in both prokaryotic and eukaryotic cells are ribosome. Small fine grainy like formations that can be found in the cytoplasm. Ass and ass are forms of ribosome. Ass are in prokaryotic cells and ass in the eukaryotic cell. Installments and misconstrues (small allow tubes) are two types of Nan-membrane structures that can be found in the cytokines.Of the three none of them contain a unit membrane. Misconstrues are very fine subdivided formats that are hollow and round rod like components. Which are protein tubes made of Dublin protein. Installments are also subdivided formats that are solid rod like formats which are also protein tubes made up of acting protein. Another cell that is not enclosed in a membrane is the centrists. It is made up of a trio of small hollow tubes (misconstrues that are formed over a hole where there is no key misconstrues. This formation of misconstrues is called the 9+0 format of misconstrues.

Free Essays on The Jungle

The Jungle Upton Sinclair’s The Jungle is the story of a Lithuanian family that immigrates from their home city in Lithuania to the city of Chicago. The novel begins with the strong description of a wedding in which Ona Lukoszaite and Jurgis Rudkus are united in Holy Matrimony. The two of them then move to Chicago, to live their American dream. Soon after the wedding, Ona and Jurgis have many great debts to pay due to both the wedding, and a large debt that Ona’s father left them after he died. Due to Jurgis’s large size and strong will he found a job in Chicago within only a half an hour of waiting in the unemployment line. Back in the newlywed’s hometown of Lithuania, Ona and Jurgis’ family anticipated a move to America. America uses the image of the â€Å"American Dream† to lure immigrants to this land of opportunity. The family desperately desires higher wages and true freedom. For months and months, Jurgis works very hard to pay for the families travel to Ona and Jurgis’ new hometown, Chicago. When the family finally makes it to America, their funds are very low. They met with a well off man named Jokubas Szedvilas who placed the family in a run down youth hostel. Jokubas takes the family to the meatpacking factory. He makes jokes about the sanitation of the operation (due only to the lack of quality of the meat). The family finds an advertisement for a housing complex that is very cheap. They talk to a real estate agent and they go see the housing complex. The houses aren’t as big and luxurious as they are pictured in the advertisement, but the price is right. The real estate agent swindles them, and they are pulled into the contract. Sinclair emphasizes the corruption of upper class society during this era. Jurgis’s father, Dede Antanas, is promised a job by a grubby worker, but only if he pays that worker one third of his wages. He takes the job despite the disgusting working co... Free Essays on The Jungle Free Essays on The Jungle The Jungle Upton Sinclair’s The Jungle is the story of a Lithuanian family that immigrates from their home city in Lithuania to the city of Chicago. The novel begins with the strong description of a wedding in which Ona Lukoszaite and Jurgis Rudkus are united in Holy Matrimony. The two of them then move to Chicago, to live their American dream. Soon after the wedding, Ona and Jurgis have many great debts to pay due to both the wedding, and a large debt that Ona’s father left them after he died. Due to Jurgis’s large size and strong will he found a job in Chicago within only a half an hour of waiting in the unemployment line. Back in the newlywed’s hometown of Lithuania, Ona and Jurgis’ family anticipated a move to America. America uses the image of the â€Å"American Dream† to lure immigrants to this land of opportunity. The family desperately desires higher wages and true freedom. For months and months, Jurgis works very hard to pay for the families travel to Ona and Jurgis’ new hometown, Chicago. When the family finally makes it to America, their funds are very low. They met with a well off man named Jokubas Szedvilas who placed the family in a run down youth hostel. Jokubas takes the family to the meatpacking factory. He makes jokes about the sanitation of the operation (due only to the lack of quality of the meat). The family finds an advertisement for a housing complex that is very cheap. They talk to a real estate agent and they go see the housing complex. The houses aren’t as big and luxurious as they are pictured in the advertisement, but the price is right. The real estate agent swindles them, and they are pulled into the contract. Sinclair emphasizes the corruption of upper class society during this era. Jurgis’s father, Dede Antanas, is promised a job by a grubby worker, but only if he pays that worker one third of his wages. He takes the job despite the disgusting working co...

A Guide to Conjugating the French Amener (to Bring, Take)

A Guide to Conjugating the French Amener (to Bring, Take) When learning French, you will often need to use the verb  amener  which means to take or to bring. This is used in the context of take the dog to the park or something similar. This is a relatively easy French lesson to follow and good practice for conjugating a stem-changing verb. How to Conjugate the French Verb  Amener To conjugate a verb means to adapt it to match the subject pronoun you are speaking about. We do the same thing in English, though the conjugations are often simple such as using takes instead of take. Each verb form for  amener  is slightly different depending on subject. Pronouns like I, you, he, or we each have their own translation in French j, tu, il, nous, etc. Its also important to know that  amener  is a  stem-changing verb. This means that conjugating  the verb uses the same endings as regular -er verbs. That makes this a very easy conjugation. Study this chart to learn how to conjugate this verb in French. It tells you which form to use with each subject and in each tense.  For example, to say I bring, you will say jamà ¨ne. To say we will bring, you will say nous  amà ¨nerez. Subject Present Future Imperfect j' amà ¨ne amà ¨nerai amenais tu amà ¨nes amà ¨neras amenais il amà ¨ne amà ¨nera amenait nous amenons amà ¨nerons amenions vous amenez amà ¨nerez ameniez ils amà ¨nent amà ¨neront amenaient Amener and the Present Participle The  present participle  of  amener  is  amenant. The -ant ending is similar to the -ing we use in English, which makes the verb mean bringing or taking. This verb form is quite resourceful as it can also be an adjective, gerund, or even a noun in the right context. Amener  in the Past Tense Passà © composà ©Ã‚  is the most common form of past tense in the French language. When you want to say that you brought or took something, you will need to add the appropriate  auxiliary verb. In the case of amener, that is  avoir. Were not quite done, though, because you will also need the  past participle  of the verb to complete the phrase. For amener, that is simply  amenà ©. That is used no matter the subject pronoun. Now that we know all the pieces for the past tense, lets put it to use. To say I brought in French, you will say jai  amenà ©. In this case,  ai  is the conjugate for that helping or auxiliary verb,  avoir. More Conjugations of  Amener Those are the simple conjugations of  amener  and ones that you will use quite often. There are other forms of this verb that you may or may not need, but its good to be aware of them. The subjunctive refers to a verb mood expressing that something is uncertain. The conditional is another verb mood that is used when the action might happen under certain conditions. The passà ©Ã‚  simple and imperfect subjunctive forms are used in formal writing. Unless youre learning how to write properly in French, its not likely that you will use them. Subject Subjunctive Conditional Passà © Simple Imperfect Subjunctive j' amà ¨ne amà ¨nerais amenai amenasse tu amà ¨nes amà ¨nerais amenas amenasses il amà ¨ne amà ¨nerait amena amenà ¢t nous amenions amà ¨nerions amenà ¢mes amenassions vous ameniez amà ¨neriez amenà ¢tes amenassiez ils amà ¨nent amà ¨neraient amenà ¨rent amenassent Heres where things can get a bit confusing when conjugating French verbs. The imperative form is another verb mood used to request, give, or make a request. The primary difference here is that you will not use the subject pronoun. Instead, you simply use the imperative verb form. For example, instead of saying tu  amà ¨ne you can simply say amà ¨ne. Imperative (tu) amà ¨ne (nous) amenons (vous) amenez Other Verbs Meaning To Take In English, we use the word take in many contexts. There is no single to take word in French.  As with many languages, French uses a few verbs to indicate the different meanings of to take.   Where  amener  is more like to bring,  accepter  means to accept. The verb for actually taking something is  prendre. Its a good idea to study all of these at once so you know when to use each.