Saving Private Ryan & a Fortunate Life Speech

Would you ever sacrifice your own life in order to save a stranger? Could you imagine watching fellow soldiers being shot and blown up all around you? Could you survive months on end in a war zone? Is one man’s life worth the lives of 8? Both Saving Private Ryan and A Fortunate Life depict war as being a major sacrifice for those involved. Both texts show the mental and physical hardship associated with war and the bonds and mateship shared between soldiers.Saving Private Ryan tells the story of 8 young soldiers who risk their own lives in order to save the life of one man. The first 20 minutes of the film is the most effective in illustrating the horrific conditions and images troops are subjected to. The opening scene being hailed as the most realistic interpretation of war is only enhanced by the use of a hand held camera that provides the audience with a view of war through a soldier’s eye, as well as adding to the chaos and confusion surrounding them.With the const ant sound effects of machine guns, shells and screams for help played throughout the movie and the use of silence when Captain Miller is defended by a shell, allows the audience to get an idea of the mental and physical hardship troops are exposed to and the difficulty they would encounter to overcome these problems. A strong message displayed in the film is that of loyalty, sacrifice and mateship. 8 men sacrifice their lives to save a man that they had never even heard of. Sharing a bond that only other troops would understand, they make their way across the country to find Private Ryan.Once found, Private Ryan refuses to leave as he believes his life is no greater than the soldiers he has been fighting with. He is not willing to leave until his mission is complete. This shows enormous sacrifice, not only by the men who found Ryan, but Ryan himself for not wanting to leave his fellow soldiers in their time of need. These messages are also made clear by Albert Facey in A Fortunate L ife. The descriptive language used through the book demonstrates the horrific events during war. This can be seen at the end of chapter 52 when Facey is describing the D-Day invasion onto the beaches of Gallipoli.He describes it as being â€Å"terribly frightening† and â€Å"shocking†, as well as this being descriptive language it is also a huge understatement, that Facey tends to use a great deal through the book. Both the understatements and descriptive language allow the reader to see the extent of the physical and mental damage on the troops. It emphasises the reality of the horrors they face from day to day. The use of dates, places, factual information and maps help in allowing the reader to receive a greater understanding of Facey’s journey and the obstacles overcome.Although the book is written in very simple language the message of sacrifice is made clear. An example of this is shown when Facey is injured and is offered a way out of the war, being prese nted with the opportunity to leave for the hospital ship, but declines as his battalion is already shorthanded and cannot afford to lose any more troops. This also shows the bonds troops share with one another, Facey is willing to suffer the ongoing pain in order to help out his fellow comrades. Both texts show the immensity of sacrifice each soldier is willing to give.Weather its saving a stranger’s life or fighting in the war, each and every soldier is doing there bit in ensuring that we all live in a free society. The attitude of loyalty they show towards one another is a testament to how we all should live by our own friends. The obstacles they encounter and the processes they embark on to overcome the physical and mental suffering, demonstrates that the majority of our own problems are nothing compared to the day to day torment soldiers are going through.

Martin Luther King Essay

Speeches in which this is observed include â€Å"I Have A Dream† by Martin Luther King and â€Å"The Gettysburg Address† by Abraham Lincoln which have been valued and remembered throughout time as being historically influential and valued, as such, as they use the values of their time and audience to inspire, persuade and unite the public with their message. Martin Luther King electrified America with his pivotal speech, dramatically delivered from the steps of the Lincoln Memorial in Washington DC in 1963, sharing his dream of a new future for black and white people before more than 200,000 people.King, part of an extensive black movement, challenged the white Americans to extend genuine freedom to his people and drew on all his powers to inspire black Americans to believe in such freedom for themselves. The key message from the speech was, and is, that all people are created equal and, although not the case in America at the time, King felt it must be the case in the future which is why this text is valued still, even today. Abraham Lincoln, the American president at the time delivered his speech at the Gettysburg Cemetery during the heart of the civil war in 1863.This was to honour and dedicate the new cemetery to the soldiers who had died in the recent Battle of Gettysburg which was pivotal in the American Civil War. The quality of patriotism is seen in Lincoln's allusion to the Declaration of Independence and constant references to democratic ideals. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Martin Luther Kings’ â€Å"I have a dream†¦. † speech is one of the most memorable speech’s of all time but why? In thi s essay we’ll have a look at why it’s such an effective speech. In the speech, King especially likes to use repetition and metaphors to convey his ideas.These devices are the foundation of King’s unique and effective style. Anaphora and repetition are commonly used in Martin Luther King’s â€Å"I have a dream†¦. † speech because repeating the words and phrases helps to emphasise the pattern and increase the rhetorical effect. â€Å"I have a dream†¦ † is repeated in eight successive sentences, and is one of the most often cited examples of anaphora in modern speeches. Repetition is a good device to use to strengthen an important idea. He uses and repeats the words dream, because it is such a personal and deep commodity.The phrases he adds to the end of this representation are also very personal. This is so effectual because the target audience of this speech can see these visualizations become reality. Even now, over 30 years after his death, reading through the speech gives the reader a sense that things are not complete, and that King still has a dream. If you count the frequency of words used in King’s â€Å"I Have a Dream†, very interesting patterns emerge. The most commonly used noun is freedom, which is used twenty times in the spee ch. This makes sense, since freedom is one of the primary themes of the speech.A metaphor is a very effective way to illustrate an idea. King uses many metaphors, both large and small, to describe many different ideas. â€Å"In a sense we have come to our nation's capital to cash a check. When the architects of our republic wrote the magnificent words of the Constitution and the declaration of Independence, they were signing a promissory note to which every American was to fall heir. This note was a promise that all men would be guaranteed the inalienable rights of life, liberty, and the pursuit of happiness. It is obvious†¦

The role of two selected topics in Operation Managment Research Paper

The role of two selected topics in Operation Managment - Research Paper Example In order to promote the competitiveness of organizations, promote cost efficient and accurate methods unrestricted flow of information is necessary. Hence, the key role of supply chain in operations is to ensure that all processes are in place in order to get accurate results. In order to ensure that the supply chain is cost effective and efficient, companies use a process known as supply chain management. A series of steps are followed by firm in order to ensure that the company transforms its raw materials into finished products. These series of steps may comprise of five stages namely, planning, developing, creating, delivering and returning defective products. With the changing markets globally, many companies and firms are forced to review their operations policy. Companies have changed from centralized operations to decentralized operations to be close to their markets and take advantage of available resources (Gunasekaran & Ngai, 2005). a) Procurement – One of the major roles of supply chain in operations management is that of procurement. All companies need to order goods and services in order to conduct business. A good supply chain manager is one who ensures that best quality goods are obtained at the least price. In manufacturing, the key responsibility and role of a procurement specialist is to search for vendors to procure materials which match the budget constraint and quality requirement. Hence a key requirement of purchasing professionals is to develop relationships with their suppliers and even look out for partnership options wherever feasible. A firm having an efficient supply chain management process seeks to provide purchasers multiple benefits which also include increased and improved coordination with suppliers. If the coordination between purchasers and suppliers is better, then this leads to increased commitment and a long term relationship between the suppliers and purchasers; thereby leading to a cost effective option to the pu rchasing organization (Giunipero & Brand, 1996). Smaller organizations need to order stationaries and hence they need to maintain a regular list of vendors who provide them the best quality products at the lowest price. Hence, an efficient procurement specialist should be a good negotiator in order to get the best deals from the suppliers. b) Transportation – One of the major roles of supply chain in operations is to efficiently handle transportation. Transportation in an essential part of the production process right from manufacturing of the product till the time of delivery to the final consumer and returns. The key prerequisite for this process to be successful is to ensure excellent coordination between each component in order to attain optimum benefits (Tseng & Yue, 2005). This requires in first determining the best suited and cost effective method of transportation applicable to the organization. Managers responsible for this first try to assess the tradeoffs in terms of price and speed. Most companies may have two or more modes of transportation depending on the urgency of the requirement. Shipping goods and equipment through a truck may be cost effective than by a flight. However, the time taken to send the consignment may be more in comparison to the time taken to send the goods by flight. Also some transport services may be highly

You are starting a new business in British Columbia and you have 20 Research Paper

You are starting a new business in British Columbia and you have 20 employees and 15 different positions to run the opreation - Research Paper Example The metropolis has a business enabling environment and is often frequented by visitors all year round thus, a good business destination. Since this nature of business is more of a luxury, Princeton was ideal since most of its inhabitants are affluent according to a research conducted by Forbes in 2011. That notwithstanding, the town is a major tourist destination along the Canadian coastline hence likely to be frequented by foreigners who may be likely to be interested with the services that we offer (Sims, 2007). The competitive edge of Rozalo health spa and salon is centred among the following; team of dedicated staff, services that we offer, our strategic location and finally our client centred business strategy. The twenty highly qualified men and women who form the workforce for Rozalo health spa have the pre-requisite skills and expertise to perform their duties effectively to guarantee high degree of customer satisfaction, thus branding our firm as a premier outlet in giving quality and distinguished services in Princeton. The services that we offer are also another element in our competitive edge, after conducting a dull feasibility study in Princeton and its environs we realized all the existing health spas in the area literally offered similar services with minimal specialization. Having identified that market niche our firm decided to venture into a few specialized services which would be customer made to fit individual client needs and preferences. Thus, any customer visiting our premises will leave clients satisfied that all their expectations have been accomplished. That notwithstanding our business premise is strategical with proximity to beach hotels hence providing easy access to clients on vacation to pop in for specialized services while they are relaxing. Finally, the business strategy of Rozalo health spa as a firm is client centred. This means all the

Organisational behaviour individual case study assignment

Organisational behaviour individual case study - Assignment Example The purchase of Costwise by Orton therefore presents possibilities for synergy in that Costwise stores presently existing, and the strong turnover figures it has been registering, would provide an added capacity for Orton and shall extend its reach to markets it does not currently serve. While the two companies cater to the retail merchandising industry, they have markedly different strategic thrusts. Orton caters to a homogeneous market, Costwise caters to varied markets in different locations. The management styles were also different, a matter which is to be expected because of the different markets they cater to. Orton’s management style is centralized and more-or-less autocratic, because all decisions and plans emanate from the center, including matters involving pricing, product offerings, salaries, new hires, promotions, and so forth. On the other hand, Costwise, when it was operating as an independent concern, devolved many managerial decision-making functions to the s tores. The stores were therefore able to establish store practices and devise market strategies that were particularly effective in the localities they operated in. This accounted for the loyal patronage and strong turnovers generated by this store from the local communities the individual stores operated in. While Costwise employees had a running quarrel with management about the When the acquisition pulled through, Orton, as the dominant entity, imposed its own methods, processes and policies on Costwise. Aside from the organizational structure and culture, management style, and market strategy, the employees were aware of a general sense of being ignored and disregarded by management, and therefore no longer performed at the same level they used to, which was reflected in the noticeable drop in revenues. This, coupled with higher costs related to the merger activities and the change in image of the emergent firm, has resulted in a drop in profit or even potential losses if the tr end continues. II. The likely motivational state of Costwise employees When speaking of motivation, it is best to view the Orton case through the framework of Herzberg’s Motivation-Hygiene Theory. According to this theory, there are two factors that influence the attitude and behaviour of individuals towards their work – the hygiene or maintenance factors, and the motivators (Mukherjee, 2009, p. 152). The two types of factors both work to influence the behaviour and attitudes of workers, but in different ways. 1. The hygiene factors The maintenance or hygiene factors are those factors which, if absent, cause dissatisfaction, but even if present, do not necessarily create a positive attitude towards work. Thus, hygiene factors must be present to prevent dissatisfaction. They are mostly related to the environmental or extrinsic factors, rather than the context of the job (Davies & Hertig, 2007, p. 81). In the David Orton case, one might say that the hygiene factors that were determinative of the attitudes of the Costwise employees are their pay, the need to be informed about matters that bear upon their working conditions, and security at their jobs. In this case, the employees had been expecting a ‘levelling up’ of their salaries, a natural expectation in light of the higher salaries enjoyed by their counterparts

Morpholins anti-cancer drugs Dissertation Example | Topics and Well Written Essays - 3250 words

Morpholins anti-cancer drugs - Dissertation Example They produced morpoline derivatives which included both esters and N-alkyl derivatives. The target compounds were characterised using H1, C13NMR, IR and were studied as inhibitors of ÃŽ ²-D-galactosidase extracted from Bovine kidney. The activity of this enzyme is associated with a variety of diseases therefore the produced morpholine derivatives have potential medical applications. p-nitrophenyl-ÃŽ ²Ã¢â‚¬â€œD-galactopyranoside was chosen as a substrate for the enzymatic cleavage of the carbon-oxygen bond which is catalysed by ÃŽ ²-D-galactosidase. During the process p-nitrophenol was released in the environment, the compound had the ability to absorb light in the visible region of the electromagnetic spectrum, therefore, it was possible to estimate its quantity using the Beer–Lambert–Bouguer law. By measuring the quantity of the produced p-nitrophenol at set time intervals conclusions were drawn regarding the reaction speed and, consequently, about inhibition propertie s of the studied morpoline derivative. The reaction was followed by Michaelis-Menten kinetics, therefore reaction speed was calculated using the most linear fragment in the dependence between absorption and time. Because the enzyme was denatured, its inhibitory properties were not tested and are a subject for future work. Cell’s surface is composed of lipids, carbohydrates and proteins. Compared to other surface molecules glycolipids and glycoproteins are the longest. For this reason they are often take part in interactions with substrates or other cells, consequently carbohydrates are of paramount importance in cellular interactions and disease processes such as cancer, infections or inflammations. ... The compound can covalently attach to serine or threonine. The process leads to formation of clusters in which one monosaccharide is linked to one amino acid. The produced clusters are often the ideal targets for antitumor antibodies. Such antibodies can be generated by glycopeptides linked to clustered sialyted epitopes. The effectiveness of which is usually higher then single sialyted epitopes (Butters, et al., 2003). Glycosidases classification is based on the similarities in the sequence of their amino acids (Table 1) (Henrissat and Bairoch, 1993; Henrissat, 1991). Enzymes within the same group share the same structural features and perform their functions using the same mechanism (Rye and Withers, 2000) Usually, there are two mechanisms employed by enzymes to cleave glycosidic bonds. As a result, a free hydroxyl group is formed with retention or inversion of configuration (Scheme 1)(Sinnott, 1990; Zechel and Withers, 2000; Vasella, et al., 2002). In the mechanism (a) glycosidase s cleave the required bonds using asparagine and glutamine 6A apart from each other. One carboxylic group is deprotonated an acts as a base by abstracting a proton from water during the formation of the intermediate (Withers and Umezawa, 2001; Davies, et al., 2005; Hoj, et al., 1992). Table 1. Type of carbohydrate-active enzyme and its function Carbohydrate-active enzyme Abbreviation Function Carbohydrate Esterases CE Carbohydrate esters hydrolysis Polysaccharide Lyases PL Non-hydrolytic cleavage of glycoside bonds GlycosylTransferases GT Glycosidic bonds formation Glycoside Hydrolases GH Glycosidic bonds rearrangement or hydrolysis The remaining carboxylic group protonates the oxygen atom from the anomeric centre and assists in its removal. Both bond formation and

Operations Management Forecasting MAD Essay Example | Topics and Well Written Essays - 1000 words

Operations Management Forecasting MAD - Essay Example Seasonal forecast takes into account the seasonal variations that occur during a specific time period. Seasonal variations are the regular ups and downs in a time series that relate to repetitive events such as holidays and weathers. Seasonal forecasting is very useful as it can be applied to hourly, daily, weekly, quarterly and yearly events. Seasonal forecasting can also be useful for the management of the organizations in order to plan the capacity so that the organization can handle peak loads. Analyzing the data in the form of quarterly or monthly values makes it easy to detect seasonal patterns by the organizations’ management. By using this forecasting technique, the Great Northwest Outdoor Company can easily estimate the demand for its orders in the all the seasons as demand for its item is seasonal. Exponential smoothing is defined as a weighted moving-average forecasting method in which data points are weighted by an exponential function. The concept of exponential smoothing is not a complex. In mathematical terms, exponential smoothing can be defined as the latest estimate of demand is equal to our old estimate adjusted by a fraction of the difference between the last period’s actual demand and the old estimate. Seasonal exponential smoothing takes into account the demand across four seasons in a year for this company. As this technique is easy to use and does not require a lot of past data, it is used in almost every type of business. This type of forecasting cannot take into account the seasonal variations that occur in each year for the demand of the company’s items. If the company uses Seasonal Forecasting method, it can take into account the seasonal variations and produce a more accurate forecast for the four seasons of 2005. Following is the forecast for year 2005. If the MAD (Mean Absolute Deviation) is considered to recommend the most accurate forecasting method then it would be the Seasonal Forecasting. The MAD

Amy Winehouse Essay Example | Topics and Well Written Essays - 2000 words

Amy Winehouse - Essay Example She was later expelled for piercing her nose and not applying herself. She ventured into the music career at the age of sixteen after her classmate, Tyler James a pop singer, passed her demo tape to A&R recording label. After signing her first recording deal as a jazz vocalist; her music developed into an eclectic mixture of pop, jazz, R&B and soul. After her 2003 album, Frank, hit double platinum status Amy Winehouse began showing up to club and TV performances while too drunk to perform for the whole set and ruined her reputation. She also got into on and off relationship with Blake Fielder, Music video assistant, who introduced her to hard drugs. The couple often fought in public, and their private life involved doing drugs, alcohol and causing self-harm. Her 2006 album Back to Black won her five Grammy awards and earned commendation for her songs including Rehab, Back to Black and Valerie. She passed away at the age of twenty-seven after an accidental poisoning from alcohol. In 2006, she dumped her management company, after the company suggested that she should enter rehab for alcohol abuse. She turned the experience into the song Rehab in her second album, Back to Black. She expressed her refusal to accept treatment for substance abuse. The song remained in top ten list in United Kingdom for some time and earned her an Ivor Novello award for the best contemporary song. The album also won her two BRIT awards for the best female solo artist and the best British album in 2007. The album also hit platinum levels in America in less than a month after winning the BRIT award. In April 2007, she got engaged to Blake Fielder and married in May 2007. She returned to her old habits of substance abuse and on Agust8, 2007 she went into a coma after an overdose of several drugs. Her health began to deteriorate despite her success in music and at a concert in London in June 2008, she punched

Structure and Agency in Revolutionary Theory Essay

Structure and Agency in Revolutionary Theory - Essay Example The school of culture and agency is based on the premise that repeated conditioning of individuals through their culture patterns human behaviour. Agency forwards the notion that human behaviour is determined by free will that charts the way for independent action and free will in making choices. Revolutions are occurrences in governance that result to a change in leadership, which is achieved through various means. Numerous schools of thought have been forwarded in an attempt to explain and the understanding of the making and the instigators of revolutions. This paper seeks to highlight the debate between structural theorists and the culture and agency school to the 1906 constitutional revolution in Iran. The 1906 constitutional revolution in Iran was instigated by the Shah’s extravagance, which led to the exploitation and destruction of the nation’s economy (Poulson 104). Teheran was the seat of Persian power and majority of the population was composed of merchants, noble classes, religious authorities and the educated elite who felt and understood the consequences of the Shah’s extravagance (Poulson 106). They were the main instigators of the revolution that called for the removal of the chancellor who was to blame for the dire economic situation. After the removal of the chancellor the Shah did not change his extravagant ways and the same group campaigned and advocated for the establishment of an institution would rule by law instead of royal and foreign influence. In the context of this discussion, the 1906 revolution in Iran can be viewed from both perspectives that are presented by structural theorists and the culture and agency school of thought. This is b ecause according to Skocpol, there are always structural forces that underlie the uprising of a revolution. Persia was facing an economic meltdown under the leadership of the Shah, which means the societal structure was under threat (Geels 32). This is in the

The Godfather Reflective Summary Essay Example for Free

The Godfather Reflective Summary Essay Shawn Carelli Business Ethics: Week 4 The Godfather Reflective Summary The Godfather is a great movie the many consider essential to any great business. This movie shows the realization of the American Dream. A family empire built from little to nothing. Though the business that took place in this movie was certainly illegitimate, the practices and rules they lived by are a key asset to modern day business. Break the laws they might, but family values are one of the most scared attributes to being part of these families. The Godfather truly shows it’s important to play by the rules, or you’ll be â€Å"sleeping with the fishes†. There are plenty of great lines in this movie in which hold great value in business. â€Å"Never dishonor those who help you†. Taking care of those who take care of you, great businesses today understand the importance of this. They take care of employees that contribute well to the company and partnerships that generate business. â€Å"Don’t discuss business at the dinner table†. This is a great line for people in business to understand. This means there is a proper time and place for business talk. And in my opinion, one of the most well-known lines, â€Å"It’s not personal, it’s business†. It’s very important in business to understand that your business life and personal life are separate, and that the main goal of a business is to make money. Competitors will get beat and will not be happy about it, but it’s not personal, it’s business. Business is not all about making people happy but is more so about making the business money. That being said, many of the other values of business both in The Godfather and in the business world are kept in check with the values that are set. Defying those values can prove to be very costly as illustrated in the movie. The Godfather shows how doing business properly is vital to the old world values that are set. To be respectful and understand your priorities, as stated, â€Å"A man who doesn’t spend time with his family can never be a real man†. The movie shows that in business it is vitally important how we conduct ourselves, how we interact with others, and how we stand behind the team, or family, that we are a part of and not deceive them. â€Å"Show, don’t tell†. This has means that there is more credibility in what you do, not just what you say. You can’t say that you conduct yourself following the values that are set by your peers; your actions have to speak for themselves. Though in The Godfather, much of the business conducted had plenty of corruption, violence, and vengeance, there was still a very strong set of values on how the different families conducted themselves in their business dealings. This goes to show how ethics is something that can be interpreted differently. Something that might be considered unethical and wrong to one person might be considered perfectly fine and ethically sound to another. It’s interesting how the strong family values were of the utmost importance, even though they were involved in illegitimate business. This movie really illustrates the importance to take pride in your work and to play by the rules. Loyalty is, in my opinion, one of the biggest lessons The Godfather shows. Being loyal you your family or business is essential to them doing just that for you, but defy them and you will have a mark against you by them and others who know that you are not a loyal member. Being loyal is so important in business. It’s taught to us at a young age, â€Å"treat others the way you would want to be treated†. The movie emphasizes this greatly, as family is the most important thing, and since the family is in business together, business loyalty is even more important. To conclude, I feel The Godfather was a great movie to watch. I think there are great lessons to be learned from the famous quotes on how to conduct oneself in business. From family values, to why it’s not right to deceive people.

Effect of Parents with PTSD on Children

Effect of Parents with PTSD on Children Dushica Djurovic Does Transmission of Trauma Influence Children of Parents with PTSD? War veterans may experience traumatic events that may influence their lives after the military; moreover, such traumatic experiences may affect lives of the veterans’ family members. One of these people who experience a trauma during military service is my uncle who went to the army when he was very young. There is not anything that can be the same again for my uncle. Although he was a smiling and pretty talkative person before he went to the army, six months after he became reticent and aloof. Family members who have known him since he was born were worried about his mood and behavior, and they wondered what happened to him. When his parents and a sister heard that his best friend, Mark, was shot right in front of my uncle while Mark and he were running into a bunker, they have realized the cause of his depressive behavior. The bloody picture of his friend shot in the back of head has been flowing in my uncle’s mind for a long time, and that picture became both his dai ly struggle and a night mere. He was diagnosed with Post-Traumatic Stress Disorder which is caused by the traumatic event he has experienced during the military combat. There are many ex-combatants who have experienced traumas during wars like my uncle, and such traumas may affect veterans’ family relationships (Bathory, page 71). Post-Traumatic Stress Disorder may affect both a relationship with combat veterans’ children and relationships with their partners. According to Medscape Medical News that published the article about the high rate of PTSD in returning Iraq war veterans, the estimate rate of posttraumatic stress disorder (PTSD) among veterans returning from Iraq embraces the range from 12% to 20% (Roehr). Individuals with PTSD tend to have a high level of anxiety and arousal, which manifests itself as difficult sleeping, impaired concentration, and the fear of being easily startled (Price). My uncle had difficulties such as sleeplessness and anxiety. Even though he had psychotherapy treatment for a few years after he returned home from the military service, his recovery was slow because of specific PTSD symptoms such as apathy and insomnia. As a result, his five-year-old son was not able to understand why his father was often pensive when he asked him for something. PTSD symptoms may be frightening for both parents and their kids. Children may also worry that their parent cannot properly care for them (Price). That is why children may be afraid of having a close relationship with their parents who are depressed or anxious, dealing with PTSD symptoms. Furthermore, such children may even become unhappy or reluctant to trust others, including their parents, because they do not feel loved and cared for their family members. Combat veterans may struggle trying to maintain relationships with their partners because people with PTSD may feel anxious talking with their wives and husbands about their traumatic experience. According to the American National Center for PTSD, the partners of the Vietnam Veterans with PTSD reported some effects of the veterans’ mental health problems such as lower levels of happiness, less satisfaction in their lives, and more demoralization that is manifested as the lack of hope, courage, and confidence (Stevens). If people who experience traumatic events do not use psychotherapy treatments, their intense emotions of guilt, grief, or fear may escalate. That may happen because they may not be able to handle their burden of war. As a result, war veterans may become physically and verbally aggressive to their partners, which may lead to divorce. The rates of divorce for Veterans with PTSD were about twice as great as for Veterans without PTSD (Kulka). Suffering from the effe cts of PTSD such as aggression, irritability, or anger, people may deal with certain relationship problems. Both parts, Maus I and Maus II emphasize two stories in which PTSD was transmitted from parents to their child. While one story is focused on Vladek Spiegelman’s survival of the Holocaust, another is focused on the relationship between Vladek and his son Artie. There is a strong bond that connects both stories. The clue lies in the different kinds of guilt that both of them feel, and such kind of guilty triggered PTSD in them. While Vladek, as a Holocaust victim, struggles when he realizes his luck by surviving from Nazi terror during the war, Artie struggles because he was lucky to be born after the war and avoid the suffering in Auschwitz that his family experienced. Furthermore, both of them have an open wound in their hearts: Vladek lost his wife and Artie his mother when she had a breakdown after the many hardships she endured through. Not only Holocaust survivors, but also their children suffer from their families experience. The main question that echoes in Vladek’s head is, â€Å"Why did he survive the Holocaust and not somebody else.† He feels guilty because he was lucky to survive the war which was responsible for millions of deaths. Vladek thinks that instead of him, somebody more worthy deserves to be alive. In order to avoid that feeling, he wants to turn his back on the painful past. He always avoids talking about it with Artie who becomes angry every time he tries to get information about his family. During my reading, I figured out that Vladek even pretends that he does not realize his son’s frustration and gets angry when Artie insists on getting the information. Instead of that, he behaves like everything between them is fine, ignoring any tension. Vladek’s experience at Auschwitz is a burden that flows in his mind, however, he desperately wants to live in the present and so he avoids talking about it. On the other hand, Artie constantly insists on hearing more info rmation about what his family experienced during the war. While he is irritated and often angry with Vladek’s behavior and cannot even imagine living with him under the same roof, his father wants to fix their relationship by spending time together. Vladek misses his wife, Anja, who had cared for him and for this reason he needs his son even more. For instance, he calls his son early in the morning to tell him that he needs his help fixing the drainpipe. Vladek tells him that he needs help by emphasizing the fact that he is an old, vulnerable man but actually it is about more than a drainpipe. He desperately needs his son’s love and attention. While he wants to enjoy spending time with his son and talking about the present, Artie wants to hear everything about the past. The more Vladek struggles with PTSD symptoms and wants to turn his back on the past, the more Artie insists on talking about it in order to get more information. That is why their relationship is broken and full of tension and misunderstanding. Every time Vladek talks about such a brutal experience that his family had, he digs deep into his heart, and becomes upset and more depressed. Not only people who experienced the Holocaust are its victims, but also their children who are born after the war as Artie was. Although he was born after the war, Artie also suffers from his parents painful memories. That memories caused PTSD and both parents as well as his son suffered from the same traumatic disorders. As the only member of his family who does not have a traumatic past, Artie struggles because he feels less worthy as somebody who did not suffer at Auschwitz. Moreover, he feels a burden because he did not do anything to deserve the comfortable life that he has. On the contrary, his family had to survive terrible suffering during the war to be still alive. Unfortunately, the majority of their relatives were not as a lucky as Vladek and Anja. Artie’s brother Richie did not survive the war. When the Germans started to take children from Srodula, Anja and Vladek, were living in the ghetto and in order to save their son’s life they sent Richie to Zawiercie with his aunt Tosha and her children, Bibi and Lonia. Unexpectedly, the Germans came a few months later to evacuate Zawiercie a nd send the rest of the Jewish population to Auschwitz. In order to avoid being sent with the children to Nazi gas chambers, Tosha decided to kill not just herself but also her children and Richie with poison. She chose the lesser of two evils. That tragedy left a deep scar on Anja and Vladek’s hearts. That scar even intensified their PTSDs. Richie was still their beautiful and intelligent baby. Even though they had Artie after the war, they are desperately trying to see their first baby in Artie’s eyes. This causes Artie to feel neglected. He would have never been able to be replaced with his brother, and that is why he feels less worthy than Richie. He feels guilty because of his inability to replace his brother for their parents, and the parents’ sorrow was transmitted to their sun making him a new PTSD sufferer. As we see from this story, Artie becomes a new Holocaust victim even though the event itself was in the past, before he was born. Another thread that connects both stories, Vladek’s escape from the Holocaust and the relationship between his son and him, is Anja’s death. Vladek, as her husband, blames himself for not having been able to save her. Artie blames his father because he destroyed Anja’s diaries which were his only reminder of his mother. After the war, Vladek did not pay enough attention to her and was not as kind as he had been before they were forced to go to the concentration camp, for this reason she became even more depressed and committed suicide. After her death, he wanted to destroy everything which reminded him of her. Furthermore, he became very depressed and cried when he read the comic called â€Å"The prisoner on the hell planet† that Artie published about his mother years ago. This is the only time readers of †Maus† are faced with Anja’s personality as a Holocaust victim. She felt alone and became more depressed after her son answered by say ing just â€Å"sure† and did not even looked at her when she asked him if he still loved her. From Artie’s comic strip about his mother, I realized that Artie’s cold reaction was not just one more thing for an already very depressed woman, a small step which pushed her over the edge. She already felt unloved and Vladek did not support and care about her. Artie called his father a murder when Vladek told him that he had destroyed her diaries. In my opinion, Vladek destroyed them in order to hide not just from his conscience but also from Artie the fact that he, as her husband, was guilty for the suicide his wife committed. Once again, the past influences Artie’s life and he is suffering because of the PTSD consequences his father and mother experienced after being in Auschwitz. Both stories, Vladek’s survival of the Holocaust and the broken relationship between Artie and him, are interlinked with the guilt they feel. Vladek feels survivor’s guilt, and although his son insists on it, he avoids talking about the past. Although he was not a victim of Auschwitz, Artie indirectly suffers from his parents PTSD and feels inadequate for having an easy life, while his parent’s had been put under so much thread. Moreover, Anja’s death forever left a deep scar on their souls, which intensified painful memories in Vladek and triggered PTSD in Artie. For this reason both, the father and son would have never been able to step completely into the present. Part of both of them would have always been in the past. This book teaches us that the more people tend to ignore their past, the more it holds onto them and their past experience, good and bad, can be passed from one generation to the next, and that is how PTSD transmission becomes intergener ational illness. Analyzing the literature, researchers found that in most studies, the children whose father were diagnosed with PTSD participating in combat, were more likely to suffer from distress than those children whose fathers did not participate in combat but experienced PTSD. However, there were a few clinical cases in which the number of fathers with PTSD but who did not participated in military was larger than the number of those fathers with PTSD but who experienced their traumas in military. Additionally, there is not clear definition of traumatic status that is still an ambiguous and inconsistent term (Kallerman, 2007). Davidson, Smith, and Kundler analyzed 108 outpatient veterans with PTSD, including 24 major depressives and 15 alcoholics, and reported the higher rate of psychiatric treatment among children of PTSD sufferers (Davidson, Smith, Kundler, 1989). Furthermore, PTSD were found in 6 families of PTSD, but none in the control group. Similarly, Parsons, Kehle, and Owen observed cases that were consisted 45 children of veterans, and 47 children of nonveterans, when they found that PTSD sufferers perceived children as having more dysfunctional social and emotional behavior, and difficulties in establishing and maintaining friendships. In these cases the types of behaviors were function of child’s gender and age (Persons, Kehle, Owen, 1990). In both of described studies, the fathers had status of those who were diagnosed with PTSD but the second study also included those fathers who were without PTSD. The target groups in both studies were consisted of Americans who participated in the Vietnam War or the World War II. Furthermore, Jordan et al. reported that veterans with PTSD showed markedly elevated levels of severe and diffuse problems in marital and family adjustment, parenting skills, and violent behavior. In his research the author was focused on 1,200 Vietnam veterans and 376 spouses or coresident partners of the veterans. Ruscio, Weathers, and King found that emotional numbing was the only aspects of PTSD uniquely associated with veterans’ perceived relationships with their children. The group included 66 male Vietnam veterans, and all of them had one or more children (Ruscio, Weathers, King, 2002). There is another research, done by Westerink and Giarratano, and such study consisted 22 children of veterans over the age of 15 years, and their fathers had the status of veterans with PTSD. The findings show that children of veterans reported higher levels of conflict in their families; there were no significant differences on measures of psychological distress and self-esteem from control groups (Westerink, Giarratano, 1999). In the case of my uncle who was diagnosed with Post-Traumatic Stress Disorder which is caused by the traumatic event he has experienced during the military combat, I realized that his son is more likely to become a new PTSD sufferer. That is because of the bloody picture of my uncle’s friend who was shot in the back of head, and such a bloody picture has been flowing in my uncle’s mind for a long time affecting even the behavior of his son. According to Maus, the book about the lives of Holocaust survivors after the Auschwitz, I realized that they transmitted their PTSDs to their son Artie. That caused many struggles in their relationships. I got sense that the clue lies in the different kinds of guilt that both of them feel. While Vladek, as a Holocaust victim and PTSD sufferer, struggles when he realizes his luck by surviving from Nazi terror during the war. On the other hand, Artie struggles because he was lucky to be born after the war and avoid the suffering in Aus chwitz that his family experienced. However, their parents’ PTSDs made him a new PTSD sufferer. According to studies I was reading, the results about transmission of PTSD from father to child show a various range of different findings. While some researchers reported that the children of fathers with PTSDs that were caused by military traumas, are more likely to suffer from the same, numerous others think that military traumas of ex-combatants cannot directly affect their children. To conclude, there are many researchers who are trying to narrow the scope of findings about PTSD transmission from father to child, however, a large range of multiple different results show that this area is much deeper and ambiguous than scholars expected. Works Cited Dekel, Rachel, and Hadass Goldblatt. Is There Intergenerational Transmission Of Trauma? The Case Of Combat Veterans Children. N.p., 2015. Web. 7 May 2015. Kellerman, N. (2007). Ha’avara shel traumat hasho’ah [Transmission of the Holocaust trauma]. In Z. Solomon J. Chaitin (Eds.), Yaldut betzel hasho’ah: Yeladim nitzolim ve’dor sheni [Childhood in the shadow of the Holocaust–survived children and second generation] (pp. 286 –303). Davidson, J., Smith, R., Kudler, H. (1989). Familial psychiatric illness in chronic posttraumatic stress disorder. Comprehensive Psychiatry, 30, 339 –345. Parsons, J., Kehle, T. J., Owen, S. V. (1990). Incidence of behavior problems among children of Vietnam veterans. School Psychology International, 11, 253–259. Ruscio, A. M., Weathers, F. W., King, L. A., King, D. W. (2002). Male war-zone veterans’ perceived relationships with their children: The importance of emotional numbing. Journal of Traumatic Stress, 15, 351–357. Westerink, J., Giarratano, L. (1999). The impact of posttraumatic stress disorder on partners and children of Australian Vietnam veterans. Australian and New Zealand Journal of Psychiatry, 33, 841– 847. Spiegelman, Art. Maus. New York: Pantheon Books, 1986 Kulka, Richard A. Partners Of Veterans With PTSD: Research Findings PTSD: National Center For PTSD. Ptsd.va.gov. N.p., 2015. Web. 25 Feb. 2015. Bathory, Dalia. History Of Communism In Europe: Vol. 4 / 2013. Google Books. N.p., 2015. Web. 16 Mar. 2015. Roehr, Bob. High Rate Of PTSD In Returning Iraq War Veterans. Medscape.com. N.p., 2015. Web. 17 Mar. 2015. Price, Jennifer L. Children Of Veterans And Adults With PTSD. Aaets.org. N.p., 2015. Web. 25 Feb. 2015. Stevens, Susan P. Partners Of Veterans With PTSD: Common Problems PTSD: National Center For PTSD. Ptsd.va.gov. N.p., 2015. Web. 25 Feb. 2015.

Comparing Welfare Provision in Germany and England Essay -- Compare Co

Comparing Welfare Provision in Germany and England "Our state reduces more and more its responsibility to provide welfare among the people". This is a statement that you can hear very often saying Germans about their welfare state in comparison with other welfare systems, as for instance the English system. This essay examines the similarities and differences between the German and the English welfare provision focusing on the extent to which this provision is provided. To understand the appropriacy and to discuss the extent of the provision it is helpful, firstly, to start with a brief definition of how these countries define a welfare state, and proceed with the different models that we encounter in Germany and in the UK. We continue with comparing and contrasting the extent of welfare provision in both countries. Since this is a wide area to discuss we concentrate on special provisions for instance the unemployment benefits and health care, since they are considered most relevant to the societies. Related to this analysis, we then highlight the appropriacy of the provision in the twenty first century. Finally, we come to the conclusion that the extent of the provision in both countries is similarly extensive but differs in the amount to which benefits and services are delivered. Furthermore, the argumentation will show that the appropriacy of welfare provision is needed, more than ever with regard to globalization and poverty. In general a welfare state is concerned with the welfare that the citizens are provided by their governments. Countries implement social and welfare policies to provide more social security and oppo... ... http://www.bbc.co.uk/scotland/education/bitesize/higher/modern/uksociety/income_wealth1_rev.shtml * Claudia Braczko. (20/09/2004). Arbeitsmarktreformen in England und Deutschland. Retrieved December 28, 2004, from http://idw-online.de/pages/de/news85895 * IWB online. (23/09/1996). Kohl government axes German welfare state. Retrieved December 26, 2004, from http://www.wsws.org/public_html/prioriss/iwb9-23/kohl.htm * Pieter van Houten. (10/11/ 2004). The welfare state in crisis?. Retrieved December 27, 2004, from http://www.chu.cam.ac.uk/~pjv24/pol4-handout-I9.htm * The Robert Gordon University. An introduction to social policy. Retrieved December 27, 2004, from http://www2.rgu.ac.uk/publicpolicy/ 1 21/11/04 (http://www.statistics.gov.uk/) 2 21/11/04 (http://www.destatis.de/indicators/d/arb210ad.htm)

Analysis of An American Tragedy and What Makes it a Classic :: An American Tragedy Theodore Dreiser Essays

Analysis of An American Tragedy and What Makes it a Classic An American Tragedy is an intriguing, frighteningly realistic journey into the mind of a murderer. It is a biography of its era. And, it is also historical fiction. But what makes this novel a classic? While society has changed dramatically since 1925, Dreiser's novel, which shows the futility of "The American Dream" and the tragedies that trying to live it can cause, accurately summarizes social mores of this and any time period. Before Theodore Dreiser was born, his father, a devout German immigrant, lost everything when his large wool mill burned down (kirjasto.sci.fi 1). After a beam hit his head, Dreiser's father was subject to dramatic mood swings; this brain damage caused him to became an evangelist (Survey of American Literature 571). Theodore Dreiser, the twelfth of 13 children, was born in Terre Haute, Indiana, in 1871. By this time, his parents were poor, nomadic preachers. Their nomadic lifestyle meant that Dreiser did not have any companions outside his family. While travelling, his mother taught him to avoid degrading and destructive experiences (Hart 236). Certain that his parents were failures because of their strong morals and their constant preaching, he rebelled. Dreiser had no friends, money, social status, or sex life, which he craved. For most Americans, these were collectively "The American Dream." For Dreiser and his most famous character, Clyde Griffiths, living the American Dream -- t he evasive pinnacle of success -- became an obsession. That obsession led 13-year old Dreiser to Indiana University, which he flunked out of. Instead of preaching, he instantly abandoned his unsuccessful family for the promise of riches and women in industrial Chicago. After living in abject poverty for years (Parker 203), he worked as a journalist for both Chicago Globe and St. Louis's Globe-Democrat, which gave him a glimpse of high society. There, he married Sara White. Within months, the two separated permanently, and Dreiser became a nomad. While wandering, he studied the writings of Balzac, Darwin, Freud, Hawthorne, Huxley (wwnorton.com 1), Poe, and Spenser, from which he created two philosophical theories: social Darwinism governs society (Parker 203), and man's greatest appetite is sexual (kirjasto.sci.fi 1). Dreiser followed his philosophy; he typically had several affairs at once. In New York, Dreiser started Sister Carrie, a brilliant naturalistic piece. The book was sold only 500 copies; it was so "scandalous" that its owned publishers censored its printing in 1900 (Bucco 5).

Thorn Queen Chapter Twelve

Kiyo took off as soon as we got back to Tucson, saying he had to go to work. He also added that I shouldn't expect him later that night since he'd promised Maiwenn he'd come visit. Normally, that would have set my mood plummeting-and I won't lie, I wasn't thrilled as it was-but after last night, I felt superior and confident in my position with him at the moment. Somehow, I doubted he'd be looking at Maiwenn with the same awe he kept regarding me after I'd ridden him to exhaustion last night. If the crossroads in Yellow River-which we'd visited before heading out of town-had only yielded some answers this morning, I would have considered the trip a resounding success. â€Å"Nice of you to spend some time around here,† Tim told me when I emerged from the shower. As usual, he appeared to be cooking something. â€Å"What's that?† I asked, watching him roll out dough. â€Å"Cinnamon rolls,† he replied. â€Å"The second batch I've had to make, thanks to someone raiding the kitchen while they cooled.† He shot a glare over in the direction of one of the dogs-Yang, I thought-lying under the table. Yang looked extremely pleased with himself. â€Å"Sorry,† I said, even though it wasn't exactly my fault. Tim finished rolling out the dough and sprinkled the surface with a mixture of cinnamon and brown sugar. â€Å"And don't think you're going to change the subject about never being around.† I found a Coke in the refrigerator and sat down, a little irritated over the scolding. â€Å"Well, sorry you miss my company, but I don't really see how it matters. Our deal is you live here rent-free in exchange for cooking and cleaning. Me not being here means you have less work. Besides, I've had things to do.† He scowled. â€Å"Yeah, I suppose. But do your ‘things' actually involve your job-the one that gets the mortgage paid? Your secretary called last night and said you missed an appointment. And you know, dealing with her isn't part of my rental agreement.† Despite having never met, Tim and my receptionist, Lara, had an antagonistic relationship over the phone. I had no time to give to their drama today, though. The other news was too startling. â€Å"I did what?† I took out my phone, which also doubled as my planner. In addition to two missed calls from Lara, I discovered I had indeed missed an appointment for a banishing last night. I'd been so fixated on my quest in Yellow River that I'd totally forgotten I had it. â€Å"Shit,† I muttered, dialing Lara's number. As keen as I was on these missing girls, Tim had a point-my human jobs paid the bills. Not the gentry ones. â€Å"What happened?† demanded Lara as soon as she answered. No hello. â€Å"I got distracted by something else,† I said. â€Å"I'm really sorry. You think we can reschedule? Give them a discount or something?† â€Å"Probably,† she conceded. â€Å"I mean, it's not like they've got many other options to get rid of a ghost. In the meantime, though, I've got some other pending clients.† I hesitated. Normally, I wouldn't think twice about accepting as many jobs as I could. It was good for my bank account and a good deed for the world. With as much as the Otherworld was preoccupying me, however, I couldn't afford losing the time right now-or possibly missing another appointment. â€Å"Reschedule the one I missed and book only one of the others. Tell the rest we have to wait-list them.† Lara was silent for several seconds. â€Å"Are you serious?† â€Å"Afraid so.† She sighed. â€Å"Okay. You can still pay my salary, though, right?† â€Å"Yes,† I laughed. â€Å"I haven't gone bankrupt yet.† â€Å"Okay then.† She sounded only moderately pacified. â€Å"But for the record? Your roommate needs to learn some manners. He was a total asshole when I called last night.† Before we disconnected, Lara made sure to remind me about two jobs I had later that day. She wouldn't get off the phone until I repeated the times and places back to her. I was just as eager to take care of them as she was, as sort of a mental retribution for the missed one from last night. I'd never forgotten a job before. My career might be an unusual one, but I still considered myself a professional and didn't want to start falling into bad habits as a result of all this Thorn Queen business. And yet†¦as soon as I finished those jobs, I had to send myself back to the Otherworld. I only intended it to be a quick visit, though. I simply needed to check Shaya's progress and find out if the runaway girl had been located. Questioning her would make this whole search and rescue a lot easier and let me get on with my human life. The news wasn't good, however. â€Å"No sign,† said Rurik, once I hunted him down in the castle. I'd found him in a compromising position with one of the cooks. â€Å"We've got people scouring the area but haven't had any luck. We did, however, find where those bandits have relocated. Do you want us to go after them?† I hesitated. I did want to round them up, both to take the pressure off the villages and see if they knew anything about the girls that my prisoners hadn't. In the end, I shook my head. If they still had that fire demon summoner, I didn't want to go after them until we had an overwhelming show of strength. â€Å"No. Not yet. Just keep looking for the runaway.† I gave a sidelong glance toward the kitchen, into which the woman whose skirt he'd just had his hand up had disappeared. â€Å"You know, if it's not too much of an inconvenience.† At least the news from Shaya was good. The supplies Dorian had sent me home with had been shipped out, and apparently Leith had contacted her to say that after going through the irrigation book, he had some ideas for us. Naturally, he wanted to meet with me again. I suspected an ulterior motive, but it was something I'd happily endure to keep the food coming. I at least felt like Leith's intentions were easier to understand than Dorian's-and that I was a lot less likely to yield to temptation along the way. I sent the young prince a message back, saying I'd love to meet with him. On impulse, I also asked if he had anyone who might be capable of summoning water demons. Once that chore was done, I made motions to go back to Tucson. â€Å"Well? Are we going to get this done with or not?† I turned around, surprised to see Ysabel standing there in the hallway, hands on her hips. I'd been heading out toward the courtyard to do a little communion with the land before returning home. The heat was sweltering, as usual, and most of the women around here had taken to wearing light, gauzy gowns, often with short or no sleeves-not unlike the dress I'd worn to Maiwenn's party. Ysabel had made no such concessions and stood clothed in a green velvet gown, complete with long bell sleeves. The color looked stunning with her hair, but I knew she had to be miserable. â€Å"Get what done with?† She threw up her hands in exasperation. â€Å"This†¦tutorial. Or whatever it is my lord sent me here to do.† Oh, right. I hadn't forgotten Ysabel, exactly. I'd just kind of tried to pretend she didn't exist, in a feeble (and futile) hope that she might just disappear. No such luck. â€Å"Sorry,† I said, returning her hard look. â€Å"I don't really have time.† â€Å"You promised Dorian,† warned Ysabel. â€Å"And until you do this, I can't leave this godsforsaken place. I want to go home.† I shrugged and turned away. â€Å"We can't always get what we want. Kind of like that song. God knows I haven't.† I'd barely taken one step when a huge gust of wind shot toward my back, whipping my hair in front of me and rustling the tapestries on the wall. I immediately came to a halt and looked back at her. Her expression was both smug and hostile. â€Å"What's the matter? Afraid you can't keep up with me?† Charming. The old baiting tactic. She was hoping to get her way by playing on my pride. It was like the lamest trick in the book†¦except, well, it was kind of working. Okay, it was more than just my pride here. I was succumbing to temptation. With hardly any effort, Ysabel had just nearly knocked me over. It was more than I could do-much more-and her power nowhere near matched mine. If I had that kind of mastery, I could create hurricanes and blow apart buildings. Being in full possession of my magic would make me a god. That shouldn't have mattered. I shouldn't have wanted that†¦but some secret part of me did. Well, not the god part. But certainly the rest. Power like that could help my people, I tried to convince myself. â€Å"Okay. Let's get this over with then.† I acted like getting rid of her was my only concern-not that that wasn't a huge motivating factor. This castle, I was finding, was filled with rooms-most of which didn't seem to have much use. Most of the servants and guards had their own quarters, still leaving a ton of rooms unoccupied and gathering dust. I really only had need of my meeting room and parlor when I was there, and the rest had thus far stayed unused. The parlor was apparently being cleaned, so on impulse, I led Ysabel to one of the abandoned rooms. It had a river-rock fireplace that wasn't going to see use anytime soon, but the striped brocade furniture hadn't accrued too much dust. I flounced down onto a chair, arms crossed and posture defensive. â€Å"Okay. Make this fast.† Ysabel examined her sofa carefully before easing down and spreading her voluminous skirts around her. She crossed her hands on her lap, and if not for the expression on her face that said she wanted to rip me apart, I would have said she looked dainty and ladylike. â€Å"Dorian says I'm to teach you to improve your power with air.† â€Å"Something like that.† She eyed me critically. â€Å"Before we begin, I want it made abundantly clear that I am not doing this by choice.† â€Å"Really? I hadn't noticed.† Her lips curled into a sneer at my sarcasm. â€Å"I don't know what Dorian sees in you. You think you're so clever and witty when really, you're just a plain, uncouth human.† â€Å"Half-human,† I corrected. â€Å"And plain or not, your boyfriend-and, like, every other guy around here-would give up his right arm to get me into bed.† I really shouldn't have provoked her like that. Not only was it mean, it was also going to make this whole magic lesson probably even more unbearable. â€Å"Believe me, it's through no charm of your own. It's only the prophecy and your alleged breeding ability, and once that's run its course, well†¦Ã¢â‚¬  She demurely smoothed the wrinkles out of her skirt, not that there really were any. â€Å"It's only your child anyone will have interest in, not you.† â€Å"Sorry to disappoint you, but there isn't going to be a child.† Not as long as my doctor kept prescribing me birth control pills. Ysabel looked up, face filled with skepticism. â€Å"Oh? Then why are you with the†¦kitsune?† She said kitsune like it was a dirty word. Dorian often did too, though he did it mostly to irritate me. I think Ysabel legitimately looked down on Kiyo. â€Å"If you really are a queen†¦Ã¢â‚¬  She looked skeptical over this as well. â€Å"†¦then why lower yourself by taking him as a consort? The only reason you would have is in the hopes of him fathering a child on you, just as he did Maiwenn. Clearly, he's proven his virility†¦which might be of particular concern to you. You claim you're trying not to conceive, but perhaps that's a lie to hide the fact that you can't.† â€Å"What? That's insane!† â€Å"Whereas I†¦Ã¢â‚¬  She ran her hands proudly along the sides of her hips. â€Å"†¦have already bore two children.† Whoa. That was startling-and a point of pride for her, no doubt, considering the gentry fertility issue. â€Å"To whom?† For some reason, the thought that it might be Dorian bothered me. â€Å"My husband. He was killed years ago in battle.† She frowned slightly, the first sign of soft emotion I'd seen on her. In a flash, her normal bitchy expression returned. â€Å"They live with my parents right now and are healthy and strong. My lord Dorian knows I can undoubtedly have more. That's why he cast you aside for me, forcing you to turn to the kitsune for your fleeting chances of offspring.† â€Å"That's not what Dorian and I-never mind. Look, for the last time, I'm not with Kiyo to get pregnant, okay? I'm with him because I love him.† She sniffed. â€Å"I find that unlikely. If you just wanted a lover for pleasure, you would pine for my lord. No other man can match his skills in the bedroom. When he binds my hands in ropes or paints my flesh, I find no greater ecstasy than-â€Å" â€Å"Whoa, just stop,† I said, holding up both hands. This entire conversation was grating on my last nerve. â€Å"I do not want to hear any details about your sex life with Dorian, okay? That is not part of this deal. No part at all. I don't want to-wait. Did you say something about painting?† A sly smile lit her features. â€Å"My lord has a great appreciation for art. Often, before we make love, I'll lie naked before him and let him use my body as a canvas. He will spend hours adorning my flesh with color and design, often using the paintbrush as a means to pleasure me and-â€Å" â€Å"Okay, okay. I'm sorry I asked.† As the words left my lips, though, it shocked me that I could envision what she was describing perfectly. Dorian's magic lessons had often involved tying me up-the necessity of which I was never 100 percent certain of-and he would spend a large amount of that time weaving the silken cords that bound me. He'd arrange them in interesting patterns and color formations, consumed by the process itself. Somehow, I imagined him being the same with paint. I could see his face lost in thought as he painted flowers or suns or whatever, his clever, sensual hands taking their time as they lightly touched my body†¦. No, not my body. Ysabel's. I had no part of this. â€Å"Let's get this done with,† I said gruffly, hoping she wouldn't guess my thoughts. â€Å"Then we can both go home.† â€Å"Very well then. So, you need my help because you're weak.† â€Å"That's not entirely true.† Jesus Christ. It was all going to be like this, wasn't it? â€Å"I have a lot of power. I know how to control and use water magic-though I guess I could be better. Everyone assumes I must have inherited wind magic too, but so far†¦well, I've only been able to use it once.† â€Å"You may simply be deficient,† she said lightly. Her eyes flicked to my chest. â€Å"Like in so many other ways. But we shall see.† It kind of went on like that for a while. Every other sentence of hers was a barb. Yet, a lot of what she explained to me sounded similar to what Dorian had said, which at least gave me some confidence that she wasn't bullshitting me. In particular, she kept trying to describe how I could reach out and feel different types of air-just as Dorian used to encourage me to do with water. Unfortunately, it had taken a very long time to do that with water, and I felt a little pessimistic about history repeating itself. â€Å"There are different types,† she kept saying. â€Å"Don't try to sense them all. Focus small.† â€Å"What do you mean different types of air?† About an hour had gone by at that point, and I was growing weary and longing for Tucson. â€Å"Air is air,† I argued. â€Å"Spoken like a savage,† she remarked. â€Å"Perhaps we should just end this and tell my lord we fulfilled our promise to try.† I gritted my teeth. â€Å"Just explain it one more time.† She shrugged. â€Å"There are different types of air.† When she offered no more, I began to agree with her. It might be best to abandon this after all. A few moments later, though, she elaborated. â€Å"There is different air around plants. Different air after we exhale. Different air when the land is foggy. Not that you'd understand that in this wretched place.† My eyes widened. â€Å"Gas. Molecules. That's what you mean.† Now she was the one wearing the confused expression. â€Å"The different types of air,† I continued, excited in spite of myself. â€Å"You're saying the magic depends on feeling each kind†¦oxygen, hydrogen, carbon dioxide†¦.† I was speaking a foreign language. Ysabel seemed as confused as ever, but by this point, I was running away without her. It made sense. Dorian's entire teaching method had been built on baby steps. It had started with me sensing a bucket of water and culminated in me using the water in Aeson's body to blow him apart. Starting at the molecular level with air seemed daunting, but the human in me clung to the science. And as I sat there, I began to expand my mind out, much as I did when preparing to use water magic. Air had always remained blank and untouchable, yet as I began to simply focus on a tiny part of it, it became more manageable. I thought about Ysabel's breathing-oxygen in, carbon dioxide out. The world slowed down to a heartbeat, one breath at a time†¦. I'm not sure how long I sat like that. I lost track of where I was or even if she said anything else to me. Only her breathing mattered. At last, I could sense the differences, the changes in the air coming in and coming out. As she exhaled, my mind scooped up the air-the carbon dioxide-leaving her lips and flung it as I would a ball. My control was imprecise; I had no real target. The air brushed past her shoulder, ruffling her hair. â€Å"You†¦you touched it,† she said grudgingly, clearly surprised. I was alive and burning with energy now, too consumed by what I was doing to answer her. Using magic always set my senses ablaze, made the world seem more vibrant and real. I wanted to do the trick again but decided to see if I could work it the opposite way and exert control over a different type of air-oxygen. I waited again to get a feel for her breathing, letting my mind actually sense the different particles in the air. When I felt certain I could grasp the oxygen, I did-just as she was about to inhale. Ysabel began to cough, her hands going to her throat as she tried to draw breath. Sucking the oxygen away meant, well, that she couldn't inhale it. I froze in my surprise at the obvious yet not entirely unreasonable consequences-so much so that I couldn't stop what I did. I was just†¦stunned. I was controlling air. The magic burned through me, and her oxygen just kept flowing away and away. It obeyed my commands, and I didn't have the coherent reasoning to cut it off. After several seconds that felt like years, the realization of what I was doing suddenly penetrated my higher reasoning. I finally cut off the magic, letting go of my hold on her oxygen. By then, Ysabel had fallen to her knees in a desperate attempt to get air-and probably because she was starting to lose consciousness too. At last, free of the magic, she drew a large, shaking breath, face pale and terrified. A few moments later, when she'd recovered herself, she looked at me accusingly. â€Å"You-you tried to suffocate me!† â€Å"No!† I exclaimed, aghast. â€Å"I†¦I didn't. I'm sorry. I wasn't thinking. I was just trying to control the air†¦.† She stood up, and where once her face had been pale, it was now flushed with anger. She was shaking. â€Å"You deceived Dorian. You already know how to use this kind of magic. This is all part of some elaborate plot.† â€Å"No, no,† I said, standing as well. â€Å"I've never used it before-except once and only for a few seconds.† â€Å"I don't believe you. What you just did†¦you couldn't have done that if you were as inexperienced as you pretended to be!† What I'd done-aside from the fact it could have killed her-didn't seem like it was that big a deal. I'd sensed air and moved it. It was hardly a hurricane, and it had taken a lot of concentration-so much so that I didn't think I could repeat it anytime soon. I hardly had the effortless control she exerted over the wind. â€Å"I'm sorry†¦I really am. I didn't mean to hurt you. It was an accident.† Ysabel's only answer was a scowl, just before she stormed out of the room. As she passed me, I thought I saw both fear and tears in her eyes. Despite her bravado, I realized that what had seemed more like anger in her was actually terror. She was in the home of someone she saw as a rival, someone with a reputation as a warrior and a tyrant-and someone who had just tried to kill her. She was trapped here by Dorian's orders. â€Å"A terrifying feat, your majesty,† a voice near the doorway said. I took a few steps forward and saw Shaya standing just outside in the hall, her pretty face grim. â€Å"It was an accident,† I said, surprised at the trembling in my voice. â€Å"I don't like her, but I don't want to hurt her.† â€Å"I know.† Shaya's expression turned both gentle and sad. â€Å"But her fear isn't unfounded. You learned that too quickly and too well.† â€Å"It was easy! It's the same as moving water around or any other type of air.† â€Å"From what I understand, stealing someone's breath-denying them air-is harder than simply creating breezes. You're fighting against life itself. Those who suffocate others in this way usually require great strength and stamina. For you to be able to do it already†¦well, it's a testament to your power-and that's nearly as frightening as the act itself.† The full impact hit me. â€Å"Wait†¦there are people who do that on purpose? Steal someone's air so they can't breathe?† She shrugged. â€Å"Well, to those with the skill, suffocation's an effective weapon.† â€Å"It's sick†¦it's an inhumane way to die.† â€Å"I agree. And most people don't have that kind of strength, so it's not an issue. Among those who do have the strength, most would never consider doing it to another person, enemy or no.† I groaned. â€Å"Well, if that's true, then she has to understand that I wouldn't purposely do it to her either. She has to believe that it was an accident.† â€Å"I don't think you're going to have a lot of luck with that.† â€Å"Why not?† â€Å"Because while most consider such torture unusually cruel, there was one person who enjoyed denying someone their breath-and who frequently used it as a form of execution and entertainment.† Shaya's look was meaningful. â€Å"Tirigan Storm King.†

Honey Pots and Network Security Essay

Abstract Honey pots are specially designed to attract hackers for gathering data and hence alert the observers, and offer them an insight about what the intruder is attempting. Honey pots decoy attackers to apparently exposed but well observed computer system to learn about the strategy and tools used by the hackers and to improve the system security accordingly. However, the system built-up with the good intentions may sometimes be used in foul applications. The paper discusses about the honey pots in detail. The paper provides information what are honey pots, different types of honey pots, advantage and disadvantage of using honey pot. The paper also discusses about the security implications of honey pots. The later part of the paper provides information about how to create a honey pot, implementation of different honey pot tools and finally explains how honey pots secures a system from hackers. Honey Pots and Network Security Introduction ‘Honey pots’ are not new concept introduced for network deception. The concept has been deployed since long back from the introduction of internet. Challenges faced by the technology are higher than the advantages reaped. As the technology grows, the need for protection from the negative impacts has increased tremendously. Security personnel’s are more considered in protecting the crucial data from the attackers. Researchers and security specialist have been using various types of Honey pots, since the inception of the internet. Like real Honey pots, that attracts insects, the technical Honey pots acts as an attractive target to internet hackers. Though honey pots are not the real solution for the protection of the networked system from the illegal sources, they probably help in detecting the invader and alert the net administrator for future protection. What are honey pots? Honey pots are a bait source, which act as a genuine target inventing ambush from the invader. They are a tricky system, which tries to lure an invader away from critical systems. Honey pots acts a watching dog and manages to captures data from the hackers. The system is usually stored with superficially valuable information, which is actually fallacious and would not be eschewed by an honest user. Thus, any access to the Honey pots is considered as hacker. The predominant purpose of honey pot is to divert the attackers, to prevent the actual system, and to gather information about the invader for future research and development. In addition, it is also useful in providing information about the modus operandi and the tools of attack. Honey pot is an information system resource and any kind of system can be placed within the honey pot. Standard production system can be placed under honey pot to provide hackers a feeling of real system. In general, Honey pots act as an effectual method in preventing the illegal measures carried out in accessing the significant information on the system. The noteworthy features of the honey pots are first, they are user friendly and extremely flexible, secondly, honey pots discover the invaders whereabouts and activities and finally they invite the most recent vulnerabilities to the system, which helps the examiner to keep him more updated and help in to build a strong network protection. Types of honey pots Research Honey Pots Research organizations, educational institutes, or non-profit organizations run Research Honey Pots to collect information about the tactics and motives of the hackers. These organization attempts to spread awareness of the threat and vulnerabilities created by the hackers in the real network. These are considered high interaction honey pots, which involve high monitoring process and gather numerous information about the intruder’s activity, the method and technology used by the invader in breaking the system and further monitor their activity for future research. Production honey pots Production honey pots are used in the organizations within the production network linked with the production servers to improve the security measures. These â€Å"low-interaction honey pots are easier to deploy and provide little information about the attackers unlike research honey pots.† (Andress, A.2003). Production honey pots are similar to the conservative methods of invasion detection method. They discover the malicious activity performed by hackers and alerts the system administrator by capturing minimum data from the intruder. Advantages in using honey pots Honey pots are successful in capturing invaders prying the system. Hackers can be easily distracted to system targets, which they cannot damage. This provides researchers enough time to probe into hackers details and to respond them. Finally, â€Å"this system allows the researchers to examine the hacker’s action and help them to improve the system protection.† (Wible, B, 2003). Honey pots would be able to accumulate considerable amount of data about the invader during invasion. They gather all the information about the illegal activities performed by the invader. Honey pots though able to collect only small amount of data’s from the invaders the data collected by them are of higher value. Hence, honey pots serves as an easier and a cheaper tool in collecting all the malicious activity be the intruder. Honey pot is very simple and easy to implement. It dose not involves any complicated measures like intricate algorithms, tables or signatures. It is cheaper and provides enough time to the administrators to research on the information gathered. Honey pots also avert hackers from entering the system, as hackers may be confused with the real system and honeyed system and thus stop entering the network to avoid wastage of time. Disadvantages of Honey Pots Honey pots are not highly successful in its application. There are no proper legal standards devised for using Honey pots. The operating system using honey pots are prone to severe attacks when the attackers are triggered by denial of service. E.g., a disturbed denial of service attack against cnn.com that came from US. A high level of expertise is needed to the researchers and scrutinisers to use the system. Moreover, Sophos, 2004 says â€Å"hackers can use honey pots itself to attack our own system.† Honey Pots and Network Security Honey pots gather only limited information, as they will be able to track only the attackers who invade the system and cannot capture any other information against other network. A Typical Model of Honey pot with firewall Honey pots are premeditated to imitate like the real system in which the hacker would possibly invade in to capture information, but actually Honey Pots and Network Security Types of malicious attacks prevented by honey pots Honey pots help in preventing the following malicious attacks †¢ Spammers in e-mail address †¢ Spammers in proxy server †¢ Spammers in SMTP †¢ Worms Security implications of honey pots Application of Honey pots in the system has numerous advantages. The most significant implication of Honey pots is that it reposes confidence on the hackers offering a false impression on the existing security system and prevents the likelihood of the attack or probe to the real machine. Often attackers scrutinize a large block of computers looking for fatalities. Even attackers focusing a particular company will scrutinize the openly accessible information owned by the company searching for a mechanism as a starting point. Honey pots reduce this possibility of an attacker selecting crucial information as a target, detect, and records the initial scan as well as any subsequent attack. Like other invasion detection measures, there are no bogus positive with Honeypots. For example, IDS products such as Padded cells take a different approach. It waits for traditional IDS to detect an attacker. The attracters usually create a fake positive to a considerable amount before attacking any system. This is because there is likelihood that valid traffic will match the characteristics the IDS used to detect attacks. In Honey pots, all communications are suspected simply because the device is used only for attacking hackers. Thus, Honeypots can detect more hackers than any other invasive device. Observers and event trackers on the honey pot detect these unauthorized accesses and collect information about the attracter’s activities. The purpose of the honey pot is to distract an attacker from accessing significant information and to collect information about the attracter’s activity, and hearten the attacker to reside on the system for a long time for administration to take action. This helps in identifying the active and passive vulnaberitalies, which attack the operating system by recording the attacker’s details. The details recorded are stored for a month’s time allowing the researcher enough time to probe on hackers details. Requirements to create honey pot â€Å"Honey pots, an instruction detection tool used as a target for hackers is usually deployed in a system, which can be either a Cisco router or Ethernet Switch or HP Jet direct card†, says Roger A. Grimes. To implement an Early Warning system honey pot needs to create an attractive information source on the port so that it would be more flexible to trap invaders. According to Roger A. Grimes, â€Å"to implement honey pot in windows TCP ports 135, 137-139 and 445 and to implement in UNIX / LINUX host and RCP ports 22,111 are required.† How to create honey pot? There are numerous ways to deploy honey pot in a system. Lance Spitzner says, â€Å"an old system such as Windows XP without service pack or Red Hat 9.0 or Sussex 9.0 can be made use for this purpose were a copy of default OS can be installed.† The invaders can be easily trapped to such a setup, as it would like real and not like a honeyed system. Though some people deploy honey pots in virtual machines, as it is quicker in gathering information, the hackers would possibly identify it. However, the best tool for tracking invaders is open source honeyed system. This is highly complicated but more effective method of intrusion detection. However, for an effective monitoring sebek can be installed. How to implement different honey pot tools? Low interaction honey pots can be deployed in the system with windows 98 or 2000 in shorter period. They act like a machine working for back office of the company and offer bogus services like sending e-mails in http format and in ftp, imap or telnet. An example of back office alert from hacker, â€Å"BO>host 11.11.11.1 New host: 11.11.11.1.41256 BO: 11.11.11.1>dir ———Packet received from 11.11.11.1 port 41256—— Error 65: The network path was not found opening file c:* ———End of Data———- Honey Pots and Network Security BO: 11.11.11.1>reboot ———-Packet received from 11.11.11.1 port 41256——– Naughty, naughty. Bad hacker! No donut! ———End of Data———- BO: 11.11.11.1>quit† (Source- Marcus J. Ranum, 2002) In addition, spam honey pots can also be used for trapping invaders. The operating system rather than implementing automatic mailing system can alter the delivery method to manual mode. Thus, all mails from the different sources arrive and the suspicious one drops in the spam mode. Hence, mails are only received and not replied. â€Å"Another honey pot tool called as ‘Netcat’, which is used for gathering information from the port. â€Å"E.g. nc – 1- p 80 > capture. Txt† â€Å"This honey pot tool arrest all the invasion to the port and send them to the output file and easily strap up into a .BAT file.† (Marcus J. Ranum, 2002). How dose honey pots secure a system? Honey pots by its implementation tend to track the I.P address of the invader and gradually prevent the network from the invasion of the hacker from that I.P address. This is done by using lots of deception method like making the invader wait for a long time in the system, making the windows size to zero etc. This is mainly done to baffle the hacker and to squander his time and resource. However, during this process the network administrator would be in position to identify the hacker’s movement and will have time to stop the hacker or to respond to the hacker. â€Å"Unlike other intrusion detection method honey pots do not spawn huge amount of data’s but provide little data with high value and trap all new and strange attacks such as polymorphic shell code, work in encrypted and IPv6 environments†, says Roger A. Grimes. Honey pots also acts as an exceptional event-reporting tool since they can be easily disconnected form online and taken for detailed study without affecting the ongoing business activity. Conclusions A successful deployment of honeypot would act as an impediment to the attacker from reaching the actual information meanwhile provides information to the network administrator to defend the attack and protect the system from damage. In addition, successful baiting would endow with information about the invaders activity to the defender thus augmenting the security procedures, which includes firewall and Intrusion Detection System. Honey pots have tremendous potential for the computer security community. Like any new technology, they have some challenges to overcome. Most likely, none of these problems will ever be completely solved or eliminated. â€Å"However, one can witness a lot of development on the subject within next 12 to 18 months as many new developments that help to address these and other issues are forthcoming†. (Piazza, P. 2001) Bibliography Lance Spitzner, 2002, â€Å"Honeypots-Tracking Hackers.† Roger A. Grimes. 2005. â€Å"Honey pots for Windows†. Piazza, P. (2003, December). A System for Bettor Security. Security Management, 47, 24+. Sophos Reveals Latest ‘Dirty Dozen’ Spam Producing Countries. (2004, September 4). Manila Bulletin, p. NA. Wible, B. (2003). A Site Where Hackers Are Welcome: Using Hack-In Contests to Shape Preferences and Deter Computer Crime. Yale Law Journal, 112(6), 1577+.

Comparison of Two Short Stories by Tobias Wolff Essay

From the weekend fishing trips to complete hatred and denial, father-son relationships can be characterized by many good and bad experiences. After reading the two short stories â€Å"Powder† by Tobias Wolff and â€Å"If the River was Whiskey† by T. C. Boyle, which both feature father-son relationships that are placed under a large amount of stress. There are many similarities and differences between these two relationships that are not apparent upon just a cursory glance. A father can be completely inconsiderate of his sons needs or try his best to meet them and still create turmoil within the relationship. After reading Wolff’s short story â€Å"Powder,† one can conclude that the father tries quite hard to make his son happy. In this story the father takes the son to places the mother would not approve of in order to try and win his affection. Wolff states, â€Å"He’d had to fight for the privilege of my company, because my mother was still angry with him for sneaking me into a nightclub during his last visit, to see Thelonious Monk† (33). Taking his son to these places is his way of forming a father-son connection. Not only does he take his son skiing, he fights his wife for the privilege, and when she disagrees he does it without her knowledge. While this strengthens the father-son relation, the husband-wife relation is weakened. In this case the father is trying more to be the best friend instead of a role model, and in doing so creates conflicts with his wife. This directly affects the son’s well being because what child would be happy to see his parents fighting. In Wolff’s story the father is displayed as being a risk-taker and borderline reckless. This is where the father and son seem to clash in their relationship. Wolff writes, â€Å"I always thought ahead. I was a boy who kept his clothes on numbered hangers to insure proper rotation. I bothered my teachers for homework assignments far ahead of their due dates so I could draw up schedules† (36). Obviously, his father did not plan or think ahead, or he would have planned on leaving the ski lodge early in case they ran into trouble. When they got down the road, the trooper tells them that the road is blocked and the son became annoyed and frustrated with his father’s carelessness. He says to his father â€Å"we should have left before† (35) This comment made his father feel inadequate, and he did not respond to it. His father’s recklessness directly affects their relationship. The boy is more like a man, and the father is more like a boy, showing the â€Å"adult† in a relationship is not always who it seems, but that people can learn about themselves by their relationships with others. The son was very uneasy and nervous when his father started driving down the snow covered road once the trooper left his post. Wolff shows this when he writes â€Å"to keep my hands from shaking I clamped them between my knees† (35). The connection was restored between them when the child decided to stop moping and began to enjoy himself. The child says, â€Å"My father in his forty-eighth year, rumpled, kind, bankrupt of honor, flushed with certainty. He was a great driver. All persuasion, no coercion, such subtlety at the wheel, such tactful pedalwork. I actually trusted him† (37). This was a big turning point in their relationship because the child now sees greatness in his father that he had never seen before. In Boyle’s short story, â€Å"If the River was Whiskey† the same rocky father-son relationship that slowly takes a turn for the better is displayed. The father in Boyle’s story is much worse than the one in Wolff’s story in that he is an alcoholic that did not spend much time with his son. While in Wolff’s story spending time with his son made the father feel good, all the father in Boyle’s story needed was alcohol to feel good, giving no attention to his son. The wife attacks the father by saying, â€Å"We’ve been here two weeks and you haven’t done one damn thing with him, nothing, zero. You haven’t even been down to the lake. What kind of father are you? † (231). Seeing his parents in such an argument affects the son by making him disconnected and hateful toward his father. When the son came home from school he would find his father â€Å"sitting in the dark, hair in his face, bent low over the guitar. There was an open bottle of liquor on the coffee table and a clutter of beer bottles† (231). Coming back to this dreary home life after school and seeing one’s father in this condition would be very traumatic. It shows him that his father doesn’t care about his job and would rather be at home drinking while reminiscing about his past. The relationship between them finally took a turn for the better when his father put down the bottle and decides to go fishing with Tiller and spend some quality time with him. Boyle explains Tiller’s excitement by saying â€Å"It was too much for him all at once–the sun, the breeze that was so sweet, the novelty of his father rowing, pale arms and a cigarette clenched between his teeth, the boat rocking, and the birds whispering–he closed his eyes a minute, just to keep from going dizzy with the joy of it† (233). At this point, one can see that Tiller’s feelings of hate toward his father are diminishing. His father’s attitude also seems to have changed because he is making a conscious effort to not drink and have a good time on the water. When his father finally hooked a fish on his line, it was perhaps the climax of their relationship. Boyle writes, â€Å"Tiller saw something in his eyes he hardly recognized anymore, a connection, a charge, as if the fish were sending a current up the line, through the pole, and into his hands and body and brain† (234). That passage shows that Tiller actually felt him and his father finally connect. He describes it as hardly recognized because they had never really connected in this way before now. After his father pulled the fish up into the boat and Tiller realized it wasn’t a pike, â€Å"already the thing in his eyes was gone, already it was over† (234). This is where Tiller gets the feeling that his father had let him down as he always had before. The connection was once again lost. In both T. C. Boyle’s and Tobias Wolff’s stories the father’s actions create a direct reflection on their son. In T. C. Boyle’s story the father does things that damage his other relationships to try and improve the one with his son, and this is shown to have an equally bad result for the son as the one in Tobias Wolff’s story. In both stories there is a critical element that seems to connect the father and son. In both Wolff and Boyle’s story the sight of ones father performing a certain action creates an exhilarating short lived connection. A father can be completely inconsiderate of his sons needs or try his best to meet them and still create turmoil within the relationship that is occasionally interrupted by a one of kind father-son connection.

Financial Management Chapter 8 K

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. 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 he ld. †¢ 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 reinforc es 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-grow th 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 ri ghts 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 maintaining 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 thereafter. 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) F irm 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 16,050,000PV = ? 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$168,113,612Barrett’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 $10,000,0 00,000= 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, [p ic], 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 g et 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 rate. 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. 1079 6 ? $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. Th ese 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 ret urn 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: Supernormal Normal growth growth 0 1 2 3 ( | | | | †¢Ã¢â‚¬ ¢Ã¢â‚¬ ¢ | D0 D1 (D2 + [pic]) D3 D( PVD1PVD2 [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, in put 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 gains 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 divid end 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% â€⠀œ 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 CASEMutual 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 ACTUA L 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 NEC ESSARY 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. WI TH 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 GR OWTH, 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 IS 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 VALUE 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? ANS WER:[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 ISCAPITAL 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 PERPETUITY, 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 STO CK 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: DI VIDEND 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 EMB ARKS 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 STABLEâ₠¬â€œAT 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. † SEMISTRONG-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