Kodak and Fujifilm Essay

Growing up in a family that loves taking pictures and capturing moments. Kodak and Fujifilm played a huge role and are known companies to me and to many other households around the world. When it comes to the history and the competition few people know. The difference in management strategies plays a key role in the way the two companies’ embraced innovation. Complacency and slow adaptation dominated in Kodak Company while Fujifilm embraced innovation spirit and diversified in all aspects to ensure market relevance. Each of the company’s approach to ethics and social responsibility clearly reflects in both company’s profitability. With an aim to give back to the community and exercise ethical practices, production standards were maintained that satisfied consumers on both ends. A possible change of decision-making process that could embrace flexibility would be the best way to ensure diversity and innovation in any organization History George Eastman who was the founder of Kodak built a foundation of business on four basic principles: mass production at low cost international distribution, extensive advertising and focus on the customer at the age of fourteen he had to quit school and work to support his mother and two sisters. He took a job as an insurance messenger boy and was paying $3.00 a week. In 1874 at the age of 20 he became a junior clerk at the Rochester Saving Bank were there his salary tripled to $15.00 a week. In 1878 when Eastman took a trip to Santo Domingo in the Dominican Republic one of his  colleague that he record the trip. Eastman had fascination about the complicated with the compelling activity of photography. In 1879 Eastman invented an effective dry – plate formula and the machine that coat the plates in large numbers. By April 1880 he leased a small office in a building on State Street in Rochester, NY and began to manufacture dry plates. Henry A. Strong a local businessman investor and in 1881 Eastman resigned from the bank and Strong and him founded Eastman Dry Plate Company. The company did have a mishap that almost shut down the company when the dry plates that they sold went bad. Eastman came up with a quick solution to recall all of the bad plates and to replace them with good ones. In 1888 the Kodak came debuted the slogan stated â€Å"You press the button, we do the rest†. Kodak made the process of taking pictures and developing easy and accessible for everyone. In 1889 celluloid replaced paper film in the camera, and then by 1891 a factory was open in factory in Harrow in north London. The Brownie camera was introduced in 1900 which was named after the famous cartoon. In1925 Eastman retires at the age of 78 in 1932 he committed suicide . In 1930 Eastman Kodak Company launched on Dow Jones Industrial Average Index where in remain for the next 74 years. Throughout history Kodak has been used to capture historic moments such as Apollo 11 in 1969. Kodak was the first company in 1975 to build an actual working digital camera. By 2004 Kodak stop selling camera with film to increase popular digital alternatives. When CEO Antonio Perez took over in 2005 Kodak was the largest seller of digital camera in the U.S. revenue .By 2007 they fallen to fourth place and by 2010 was seventh place. By2011 Kodak’s shares fell more than 80% and has struggled to maintain market share and they were hit a huge pension costs for workers. With the changes in new technology Kodak was not prepare well. The company decided in 2012 to file bankruptcy protection. The company has worked out a credit plan with Citigrioup for 950 million to keep it afloat. History Fujifilm, formerly registered as Fujifilm Photo Film Co., Ltd. was started in 1934. They became established in the U.S. in 1965. Its core business much or less reflected the businesses that made Kodak prosper in the US:  photography and imaging. The company monopolized the Japanese market, ranked second placed in photography film usage after the US. Its ambitious management ventured overseas in the mid-90s without a fear of the already established Kodak. Despite its slow growth in the overseas markets, Fujifilm developed production bases outside its hub. A joint venture with Rank Xerox, a U.K based Limited company, strengthened Fujifilm’s position in the global market. A breakthrough was imminent in 1984’s Olympics held in Los Angeles which is Kodak’s home turf. Gradually, Fujifilm started eating into Kodak’s shares in the US due to near-equal products that were cheaper and actively marketed Fujifilm’s core businesses diversified faster with realization of looming transition by the management. Its imaging domain not only focused on personal, family and media moments but also diversified in the health sector. Its main businesses include film, photographic color paper, photographic equipment, medical equipment that included X-rays, and chemicals. More recently, Fujifilm’s early preparation to satisfy the fast-changing needs in the digital world ensured it widened its business scope to digital cameras, panel displays, printers, photocopiers and a variety of optical devices Management Approaches Kodak’s management approach on pursuing innovation by representing the latest innovation in the company’s consumer inkjet portfolio, marrying effortless connectivity with Kodak’s unique combination of high quality output and affordable ink. Kodak is committed to providing customers great value and lowest total ink replacement cost and exceptional cost per page. Fujifilm’s management approach on pursuing innovation by increasing a range of fields from imaging to medical systems. Fujifilm also became a much diversified company than Kodak by having a longer term vision in store and by investing a lot. Kodak’s Ethics and Social Responsibility Approaches Eastman Kodak Company is committed to operating in an environmental, ethical, and socially responsible manner. This commitment includes maintaining safe facilities and operations and providing goods which are safe and minimize environmental burdens throughout their business life cycle. Kodak’s Supplier  Standard sets an expectation for supplier health, safety, environmental, labor and ethical performances, and formalizes expectations in which they have always asked suppliers to commit to. In 2004 Kodak were praised in the â€Å"Business Ethics† magazine for anti-discrimination policies for gay, bisexual, and transgender employees. Kodak also believed in fair treatment of minorities and women and overall their employees. For years, Kodak has played a key role of social responsibility in Rochester, New York, where the headquarter is located. Charitable donations were for years made to the symphony hall and the orchestra club hosted at the same venue. This act paid off as the company maintained its customer and got even more customer for the way it gave back to the community. Further, tax abatements were considered for the company in its role of contributing huge sums to a community project. Kodak had given the drive of the donations where it is in favor of the shareholders’ interests. Acting otherwise rather than in the best interest of the company’s shareholders to increase their wealth and create good faith with the population would be deemed unethical by all measures. Quality products produced by the company were a result of an honest recruitment process. The company ensured it only recruited the best talent to ensure maintenance of quality assurance. The process involved was undeniably ethical and in a big part contributed to the profitability of the company. Kodak’s single-use recycling program ensured that over 70 million pounds of waste was avoided. This promoted Kodak’s image as an environmental friendly company, as well as ensured that it saved resources from having to acquire new raw material for manufacturing. Fujifilm’s Ethics and Social Responsibility Approaches Fujifilm holds in high esteem the ethical and social responsibilities it is obligated to provide. In 2004, the company formed action standards of ethical and social responsibility values the company had to comply. This was inclusive of all affiliates of the company, especially the double venture of Fuji Xerox. The guidelines have since been observed by every employee, uplifting the work standards and thus providing efficiency that translates  to profitability. . The company has formed an Ethics and Compliance hierarchy that is aimed at promoting ethical and corporate social responsibilities. Fujifilm believes compliance includes acting correctly in the light sense of common sense and ethics. Fujifilm compliance statements are in all aspects of their corporate activities they emphasize compliance and endeavor to create new value. If compliance requirements conflict with business profits or the demands of third parties, they give priority to compliance. An open, fair and clear corporate culture is the basis for all their activities Kodak and Fujifilm Adapting to Changing Market Conditions Kodak management failed to a new marketplace and new consumer attitudes, they focused on selling new product thinking that its new digital technology would cannibalize its film business. Instead of marketing the new technology the company held back from fear of hurting their film business. Most of Kodak’s strength was its brand and marketing, they began to fail when they underestimated the threat of the digital. Fujifilm management were prepared more to adapting to the changing in market, they realized that there was a need for them to develop an in-house expertise within new businesses. Fujifilm also focused on applying its technologies to new areas for instance today, Fujifilm has a medical imaging equipment business in which is growing quickly. Openness: A company with a management open to the democratic perspectives of other employees and customers is one of the best ways to adapt flexibility in the decision-making process. Openness will allow free flow and exchange of ideas, information, tasks and new perceptions of various processes (Sharfman & Dean, 1997). Recursiveness: This is a term used to define the repetitive process of formulation and implementation. Feedback is a significant part of this model as the decision-making team will always rely on the feedback, negative or positive to refine their decisions. This method goes against the perfect decision making hierarchy of problem definition, followed by search, analysis and eventually choice and implementation (Sharfman & Dean, 1997). Globalizing R&D: This is a model that would delocalize the centrality of r esearch and development. This would eventually increase the scope of decision makers’   perception. Limiting research to an area reduces the chance to get global feedback especially if a brand aims at conquering global markets. Companies today should build flexibility to back up its decision-making process in order to adapt to changing market conditions by these three recommendations: 1. Have an enterprise mindset that will be open to change. 2. Be able to adapt the company’s design to changing conditions. 3. Make decisions interactively using a variety of method.

Fall Of Rome CCOT Essay

Rome fell due to a plethora Of reasons such as economic instability and succession issues. However, a major factor that contributed to the fall of Rome was the invasion of the Germanic tribes. The Germanic tribes were outside invaders who attacked the borders of the Roman Empire and created political disruption which inevitably lead to the fall of Rome. In 200 CE, Rome was at its height. But after the fall of Rome, Europe turned to feudalism. After the fall of Rome in 476 CE, Europe socially stayed the same. In 200 CE, Rome was socially stratified, meaning that it was hierarchical with people in different classes.At the top were the king and his patricians. Then, there were the nobles. Subsequently, there was the merchant class. And finally, at the bottom of the social hierarchy, there were the common people who included freed men and women, and slaves. Rome was also patriarchal, meaning that the father or man in a family or clan was supreme. In other words, men were superior to wome n. Thus, women were oppressed in Rome during this period. After the fall of Rome in 476 CE, when Europe turned to feudalism, Rupee's social structure virtually stayed intact.However, women's lives did slightly get better probably because their roles increased as economic conditions worsened. They were most likely needed more often to keep up the barter economy and care for the children and household. Thus, they would have higher roles. Rome flourished politically in 200 CE. The Roman Empire was large and in it was a very strong powerful bureaucracy. Under this empire and bureaucracy, power was centralized and the empire was stable. The Roman law code assured a safe and civilized environment.Also, the empire contained a vast, strong military to protect the region from outside invaders. After the fall of Rome, this region experienced major changes. There was no longer a Roman Empire. Instead, this area turned into feudal Europe as the political system. There was no longer a king, bure aucracy, or someone at the top Of the hierarchy, and so, power was decentralized. The church rose to fill in this gap of leadership and stabilize this Mediterranean area. Politically, very little dated the same because there was no longer a Roman Empire but rather a feudal Europe.Europe probably turned to feudalism because it had no other option now that the political system collapsed. This area desperately needed to regain stability or otherwise turn to anarchy. As a result, Europe would have established a feudal system to prevent that from happening. Economically, agriculture and trade were the basis of Roman economy in 200 CE. They traded with surrounding regions which increased revenue for the Empire. They were also involved in long distance trade with China through he Silk Road.This allowed them to enjoy more luxuries such as silk that they could not create themselves. Overall, they had fair flung trade. After the fall of Rome, this area saw many economic continuities and chang es as it struggled to cope with worsened conditions. A major continuity was that farming and agriculture remained crucial. Trade shrank and became a barter economy which was one of the changes that took place. Some other changes include a more localized economy since cities shrank. Trade also shrank because there was no more long distance trade with the Chinese.Manorial rose and guilds Were developed. Economically, this Mediterranean region experienced changes and continuities alike as a result of the fall of Rome. Agriculture probably remained the basis of economy because it is unlikely that people would abandon their traditional farming techniques which began sedentary life in Europe first of all. Trade would have shrunk because chaos within the country made it very unlikely that they would be connected to foreign countries through trade. They had to get themselves in order before they could do business with other places.Finally, cities shrunk as a direct result of the fall of Rom e and could only be reinstated after stability in Europe was restored. Moreover, the political transformation of the fall of Rome in 476 CE contributed to social, political, and economic continuities and changes in the cultures of the Mediterranean region during the period be;en 200 CE and 1000 CE. Socially, there were still distinct social classes and a patriarchal society but women enjoyed more freedom after the fall of Rome than they did before because their roles would have increased in order to keep up with he barter community.

Essay The Thought Process of Shakespeares Hamlet

The Thought Process of Shakespeares Hamlet If Hamlet from himself be taen away, And when hes not himself does wrong Laertes, Then Hamlet does it not, Hamlet denies it. Who does it then? His madness. Ift be so, Hamlet is of the faction that is wrongd; His madness is poor Hamlets enemy. (V.ii.230-235) Hamlets self-description in his apology to Laertes, delivered in the appropriately distanced and divided third-person, explicitly fingers the greatest antagonist of the play†¹consciousness. The obligatory cultural baggage that comes along with Hamlet heeds little attention to the incestuous Claudius while focusing entirely on the gloomy Danes legendary melancholia and his resulting revenge delays. As Laurence†¦show more content†¦The chief definition of thought revolves around the basic concept of the mental process: The action or process of thinking; mental action or activity in general, esp. that of the intellect; exercise of the mental faculty; formation and arrangement of ideas in the mind (OED, 1a). A further subset of definitions can be catalogued into a Manichean vision of positives and negatives and which equally apply to Hamlets central consideration of consciousness as a blessing or a curse. There is a stress on thoughts potentiality which fits with Hamle ts obsession with the infinitude of man: Conception, imagination, fancy (OED, 4c). But following this comes the negative view of thought as quasi-action, a direct link to Hamlets stall tactics: The entertaining of some project in the mind; the idea or notion of doing something, as contemplated or entertained in the mind; hence, intention, purpose, design; esp. an imperfect or half-formed intention; with negative expressed or implied = not the least intention or notion of doing something (OED, 4d). Similarly, the past neutral sense of Remembrance, Å’mind (OED, 5e) is countered by the negative anticipatory connotation of: Anxiety or distress of mind; solicitude; grief, sorrow, trouble, care, vexation (OED, 5a). This current of duality is important to keep in mind as we explore itsShow MoreRelatedLove Thy Mother Most Peculiar Essay1235 Words   |  5 PagesAbstract: Does Hamlet, a character in Shakespeare’s historical play, have the Oedipus complex? Do we truly understand the semantics of the Oedipus complex? Many critics have had different opinions. According to Webster’s online dictionary, the Oedipus complex is a â€Å"complex of males; desire to possess the mother sexually and to exclude the father; said to be a source of personality disorders if unresolved† (Websters Online Dictionary, 2011). Another source defines the Oedipus complex as â€Å"theRead MoreLiterary Features In Shakespeares Hamlet916 Words   |  4 PagesRevenge, a Dish Best Served Quickly: Literary Features in Shakespeare’s Hamlet William Shakespeare’s play, Hamlet, is about one man’s internal struggle over his job to avenge his father’s wrongful death. Prince Hamlet is tasked with this mission after receiving a message from a ghost of his father stating that Hamlet’s uncle, Claudius, wrongfully killed the old King in order to steal his throne and his wife. In this soliloquy, Hamlet is debating with himself on whether or not he should kill hisRead MoreHamlet, By William Shakespeare Essay1453 Words   |  6 PagesHamlet by William Shakespeare explores many aspects of mankind--death, betrayal, love, and mourning. Out of these, the most prominent theme in this play is death in the form of suicide. The main character, Hamlet, finds himself questioning the quality of life and the uncertainty of the afterlife once he discovers news of his father s death and the corruption in the kingdom that follows. Ophelia, Hamlet’s lover, is found dead later in the plot and is presumed to have committed suicide. In Hamlet’sRead MoreTheme Of Death In Hamlet969 Words   |  4 PagesWilliam Shakespeares’ â€Å"Hamlet† tells the story of a great tragedy in which death is the permeating idea and connective thread. Through the experiences of Hamlet, Shakespeare is able to explore the complexities of life and death. Following the murder of his father, Hamlet seeks to avenge his death in the process of defining the meaning of his own life within himself. In the process of reaching complete madness, Hamlet both contemplates his own death, experiences the death of those closest to himRead MoreHamlets Grief940 Words   |  4 Pagescloak, good mother, / nor customary suits of solemn black / [ . . . ] but I have that within which passeth show; / these but the trappings and the suits of woe† (Shakespeare 1.2.76-73, 85-86) says Hamlet when confronted about his way of grieving over his father’s recent death. Shakespeare’s play Hamlet is a re markable tale that is centered on the idea of death and grief. While death is a universal occurrence, meaning every person will deal with it, how we grieve after a loss is completely individualRead MoreSpeech on Hamlet869 Words   |  4 PagesCraftsmanship and ideas both equally share the process of taking an established work in a place and having it continue over time as the same piece of literature. †¢ However, it is the ideas that change over time and place, as new ideas are raised and consided †¢ These new ideas of literature are discovered by the audience’s interpretation of the characters through the influences of the composer’s perspectives and language of the play. †¢ William Shakespeare’s Hamlet is an example of how ideas are raisedRead MoreRevenge in Hamlet1070 Words   |  5 PagesAmongst the most tragic story lines of Shakespeare’s plays, Hamlet is definitely one of them. In William Shakespeare’s play Hamlet, Fortinbras, Hamlet and Laertes each demonstrate the ways revenge leads to tragedy when they are unable to cope with the loss of a loved one. Young Fortinbras has intentions of honoring his father’s loss by gaining the territory that was rightfully theirs. The lengths he is willing to go compare to Hamlet’s determination to seek revenge upon his uncle, and father’s murdererRead MoreExamples Of Revenge Tragedy In Hamlet1033 Words   |  5 PagesA lot of Shakespeare’s plays allude to revenge and revenge tragedy. Revenge tragedy is seeking revenge for wrongdoings done against someone in a literary work. Usually, the person seeking this revenge is the protagonist and the plot is usual ly developed throughout their journey to get their rightful revenge. Revenge tragedy is also the central conflict within a literary work. In the play, Hamlet,Young Fortinbras, and Laertes are all examples of revenge tragedy. 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Shakespeare’s texts have been re-visited, re-interpreted and re-invented to suit the context and preferences of an evolving audience, and it through this constant recreation it is evident that Hamlet â€Å"does not define or exhaust its possibilities†. Through the creation of a character who emulates a variety

The Custom Term Papers Reviews Diaries

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Angela Davis An Advocate For Feminism, Prison Reform,...

Biography Angela Davis is recognized as an advocate for feminism, prison reform, and communism. She is best known as a radical African American educator and activist for civil rights. She established her own group called the Critical Resistance, an organization working to abolish the prison-industrial complex.While a high school student, she performed well, earning her a scholarship to Brandeis University where she graduated Magna Cum Laude in French literature. After that, she continued to earn numerous degrees which include studies at University of Paris, 1963–64; graduate study at University of Frankfurt (Germany), 1965–67; University of California, San Diego, M.A., 1968, doctoral study, 1968–69. (Horsley, 2017) Inspiration Born in†¦show more content†¦In 1969 she was fired from her teaching post at the University of Los Angeles because of her affiliation with the Communist Party of the U.S.A. (Gale,2005). Then California Governor Ronald Reagan and President Richard Nixon barred Davis because of speculation of radical behaviour, despite the fact that she was evaluated as being unbiased in her teachings and adored by faculty and students. Angela Davis fought back to be reinstated with the help of strong protests and then On October 20th, Judge Jerry Pacht ruled in favour of Davis by saying they could not fire her because of her affiliation with the communist party (Saxon, 1997). Before present times, the United States had created a system where people of colour—specifically black people, were purposely deprived of the opportunity to live a quality lifestyle. Examples such as improper support of fine schooling, condemning all social interaction between white and black people and seizing th e right to vote(Pilgrim, 2012), promoted negative paths for people of colour. The disenfranchisement of black people is still used today as a step stool for white people to gain high power at their expense. In regards to Angela Davis’ case, Judge Perry Pacht used the constitution to make the decision. He concluded that Governor Reagan and President Nixon would have breached her constitutional right of being a member of a group. On the Constitution of theShow MoreRelatedBlack Feminism : A Profound Effect On Society s History3616 Words   |  15 PagesIntroduction Black Feminism has proven to have a profound effect on society’s history, and is now beginning to impact even more this day and age. Black feminism is broader than what comes to mind. It is an essential component of black struggle against oppression and authority. Generally Black feminism is used to empower and liberate black women. Throughout the years many liberals have tried to exclude and silence black feminist. Black feminist have demanded for social, economic and political equalityRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 PagesSandweiss, St. Louis: The Evolution of an American Urban Landscape Sam Wineburg, Historical Thinking and Other Unnatural Acts: Charting the Future of Teaching the Past Sharon Hartman Strom, Political Woman: Florence Luscomb and the Legacy of Radical Reform Michael Adas, ed., Agricultural and Pastoral Societies in Ancient and Classical History Jack Metzgar, Striking Steel: Solidarity Remembered Janis Appier, Policing Women: The Sexual Politics of Law Enforcement and the LAPD Allen Hunter, ed.,

Implication of Business Market Alpha ltd Plans

Question: 1 . (a) Alpha Ltd plans to issue 1 000 bonds that have a face value of $100 and 8 years to maturity. The bonds pay a coupon rate of 8%, paid every six months and offer the same yield as that of similar-risk companies, i.e. 2% higher than the government bond rate of 5.5%. The potential investors are offered the option to convert each bond held into Alpha s ordinary shares that are expected to pay a dividend of $1.50 per share in the next year. These dividends are expected to grow at 7.5% every year. Assume you are a potential investor and shares in companies with similar risks to Alpha Ltd are currently trading at a nominal discount rate of 10% per annum. Calculate the value of the bond and the share. Discuss whether you should accept the option to convert Alphas bonds into its ordinary shares. (12 marks) b) Discuss the implication of term structure of interest rates on investors preference for a short-term bond over a long-term bond. Assuming both bonds have the same face value and pay the same coupon rate. (13 marks) 2 . a) Cantona Ltd plans to expand its production capacity by purchasing an additional machine that costs $3 600. The company will incur $750 shipping and $450 installation costs. The machine is expected to have a useful life of five years with an annual depreciation of $400. At the end of the 5th year, the machine will have a book value of $1 600 and can be sold at the market value of $1 200. Cantona forecasts $2 800 additional revenues per annum generated, and $200 additional costs per annum incurred by the machine. The companys tax rate is 30% and its cost of capital is 10%. Determine the net present value of the cash flows associated with the machine. b) The net present value (NPV) rule often provides the most correct investment decision. Discuss whether you agree with the above statement. 3. Distinguish between debt financing and equity financing. Your response should include a discussion on when to use debt financing or equity financing. Answer: 1. Valuation of share It is known that shares with similar risk profile have an expected return on equity of 10% pa. The Alpha ordinary share would pay a dividend of $ 1.5 next year and it would increase perpetually at the rate of 7.5% per year. As per Gordon dividend discount model (Damodaran, 2008). Price of share = Next Year Dividend/(Required return Dividend growth rate) Hence, price of ordinary share of company = 1.5/(0.1-0.075) = $ 60 Valuation of bond Face value of bond = $ 100 Coupon rate = 8% paid semi annually Hence, coupon payment after every six months = 0.08*100/2 = $ 4 Time to maturity = 8 years Prevalent market interest rate which would act as discount rate = 5.5 + 2 = 7.5% pa Hence, the value of the bonds can be estimated from the following table (Petty et. al., 2015). Half year Total cash inflow Present value factor PV of cash inflow ($) 1 4 0.9639 3.86 2 4 0.9290 3.72 3 4 0.8954 3.58 4 4 0.8631 3.45 5 4 0.8319 3.33 6 4 0.8018 3.21 7 4 0.7728 3.09 8 4 0.7449 2.98 9 4 0.7180 2.87 10 4 0.6920 2.77 11 4 0.6670 2.67 12 4 0.6429 2.57 13 4 0.6197 2.48 14 4 0.5973 2.39 15 4 0.5757 2.30 16 104 0.5549 57.71 Total 102.97 Thus, the current value of one bond of the company is $ 102.97 Decision to convert or not Since the intrinsic value of the ordinary share of the company is $ 60 which is significantly lower than the amount recovered from the bond in terms of repayment, thus, it is beneficial for the investor not to go for the conversion of the bond into one equity share of the company (Brealey, Myers Allen, 2008). The term structure of interest rate also referred to as yield curve and may take various shapes. However, normally the interest rates or yield tends to increase as the maturity increases as the underlying risk increases, thus resulting in addition of maturity premium. There are three main theories that tend to impact the structure of interest rate which in turn drives the preference of investors (Parrino Kidwell, 2011). Pure expectation theory This tends to state that the yield curve is driven by the expected interest rates in the short run. For instance, if the investors expect that in the long run that the interest rates would fall, the same would be built up in the yield curve and represented. However, this theory ignores the importance of maturity premium. Liquidity preference theory The investors tend to demand compensation for the higher interest rate risk in the long run. Also, they tend to prefer bonds with lower maturity as the underlying interest rate risk is lesser and can be predicted with more accuracy. Market segmentation theory This deals with the underlying demand and supply of bonds of a particular maturity and in the event the investor should invest in a maturity period which is not preferred by him/her, then suitable compensation should be given to the investor. Assuming that the face value and coupon rate is same, the investors would prefer short term bonds compared to long term bonds due to the following reasons (Brigham Ehrhardt, 2013). The expected interest rate in the short term can be predicted with more accuracy. In case of higher maturity period, the underlying interest rate risk may increase. As a result of higher interest rate fluctuations, the price of the bond may fluctuate and hence limit the liquidity associated with a bond. For instance, if the market interest rates rise, the bond prices would fall and hence the investor may have to hold the bond till maturity which would enhance liquidity risk. Considering the volatile financial markets, a low maturity period offers flexibility to the investors in terms of switching amongst asset classes based on performance. In case of low liquidity for certain bonds, the liquidity premium may also be applicable for longer maturity bonds. However, since the coupon is same, hence the investor would like to minimise the liquidity risk by choosing a lower maturity period. 2. Total cost of the machine = 3600 + 750 + 450 = $ 4,800 The NPV calculation based on the incremental cash flows arising from the project are shown below (Brealey, Myers Allen, 2008). Year 0 1 2 3 4 5 Incremental revenue ($) 2,800 2,800 2,800 2,800 2,800 (-)Incremental cost ($) 200 200 200 200 200 (-)Annual Depreciation ($) 400 400 400 400 400 (-) Cost of machine (including shipping and installation) 4800 (+) Salvage value of machine 1200 Pre-tax cash inflow/(outflow) -4800 2200 2200 2200 2200 3400 (-)Tax (@ 30%) 660 660 660 660 1020 Post tax cash inflow/(outflow) -4800 1540 1540 1540 1540 2380 (+) Depreciation (since non-cash charge) 400 400 400 400 400 Net cash inflow/(outflow) -4800 1940 1940 1940 1940 2780 (*)PV Factor (@ 10% discount rate) 1 0.909 0.826 0.751 0.683 0.621 PV of cash inflow/(outflow) ($) -4800 1763.64 1603.31 1457.55 1325.05 1726.16 NPV ($) 3075.70 As is apparent from the above calculation, the NPV associated with the machine is $ 3,075.7. I would agree with the statement that NPV often gives the most correct investment decision. This is primarily because the other techniques deployed for capital budgeting have shortcomings that are listed below (Damodaran, 2008). Payback period does not take into consideration the time value of money and also does not consider the cash flows after the payback period. Discounted payback period does not consider the cash flows arising from the project after the discounted payback period. IRR or Internal rate of return may not give accurate result in cases where cash outflow in involved during the project. This usually gives rise to multiple IRR values. NPV does not suffer from any of the above issues identified with commonly used techniques. However, it is quite sensitive to the discount rate but that is also true for the other techniques which take into consideration the time value of money. Thus, NPV is undoubtedly a correct technique and can also be used for choosing between mutually exclusive projects (Parrino Kidwell, 2011). 3. Debt financing refers to the financing arrangement where the money is raised in the form of debt and not equity. On the other hand, equity financing refers to the financing arrangement where the money is raised in the form of equity and not debt. Advantages of debt financing Since the equity is not diluted, hence ownership and control is maintained. Due to the interest charges, tax liability is reduced. The company has flexibility to borrow based upon underlying use. Disadvantages of debt financing There is significant bankruptcy risk since the borrowed sum needs to be repaid back with interest. It tends to reduce the flexibility available to business due to debt covenants imposed by lenders. The profitability may take a hit due to continuous interest payments especially in times of weak business environment. Advantages of equity financing The money raised does not need to be repaid back. No strict covenants associated and higher overall flexibility in business. No bankruptcy risk as no interest or principal repayment. Disadvantages of equity financing Since equity is diluted, hence ownership and control reduces which may make it difficult for the promoter to run the business as consultations from shareholders would be required before critical decisions are made. Investors typically demand a higher rate of return on equity as compared to debt. Raising equity especially through capital markets may be time consuming and tedious affair. Equity financing or Debt financing It is apparent from the above discussion that both debt financing and equity financing have their relative merits and demerits. As a result, it is imperative that companies should use a judicious mix of these two modes of financing so as to derive an optimum capital structure. The exact mix of the two financing would depend on a plethora of factors such as size of the company, nature of the business, amount of money required, amounts of profit generated, robustness of business model and underlying economic climate (Brealey, Myers Allen, 2008). For instance, when the company is small and in its nascent stages, then equity financing is comparatively more preferred since such companies do not have assets to keep as collateral for availing debt financing. Further, in sectors such as infrastructure where capital requirements are huge, debt financing is more preferred compared to equity financing. Besides, in businesses and projects that are highly risky, more equity financing is preferred as the banks and financial institutions are unwilling to lend (Petty et.al., 2015). Thus, from the above discussion it may be concluded that the preference of debt or equity financing is driven by a plethora of factors and usually a mix of both modes is used with varying degrees as demonstrated using examples above. References Brealey, R, Myers, S Allen, F 2008, Principles of Corporate Finance, 9th eds., McGraw Hill Publications, New YorkBrigham, EF Ehrhardt, MC 2013. Financial Management: Theory Practice, 14th eds., South-Western College Publications, New YorkDamodaran, A 2008, Corporate Finance, 2nd eds., Wiley Publications, London Parrino, R Kidwell, D 2011, Fundamentals of Corporate Finance, 3rd eds., Wiley Publications, London Petty, JW, Titman, S, Keown, AJ, Martin, P, Martin JD Burrow, M 2015, Financial Management: Principles and Applications,6th eds., Pearson Australia, Sydney

Western Philosophy free essay sample

Eastern and Western philosophy are similar but different in many ways. Eastern philosophy includes the various philosophies  of ancient China and India, but can also include Islamic, Jewish, and Persian philosophies. Western philosophy refers to the philosophies developed by the ancient Greeks and Indians. There are many differences between Eastern and Western philosophy. One is the east uses concepts by intuition while the west uses concepts by postulations. Another is the west wants logical concrete proof while according to the east reality is known by intuition. The eastern philosophers are primarily practical while the western philosophers are primarily theoretical. The west is concerned basically with the modern world while the east is concerned with the ancient and past world. Lastly eastern philosophy relationship with religion is integration while western philosophy relationship with religion is opposition. There are many similarities between eastern and western philosophy. The first one is both deal with god in relationships. We will write a custom essay sample on Western Philosophy or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page They also deal with beliefs. Lastly the both talk about religion. A real life situation where eastern philosophy has influenced western philosophy is yoga. Yoga is a systematic approach to spiritual realization. A more accurate understanding that we have today of eastern philosophy is yoga. The eastern philosophy influenced the western philosophy through yoga because in eastern philosophy one of their traditions is to do yoga and it passed on to the western philosophy today because many do yoga to keep calm and find peace, which also why the eastern philosophies did yoga. In this essay I have discussed the differences and similarities between eastern and western philosophy.  I have also discussed a real life situation of eastern philosophy and how it influenced western philosophy. I also did a matrix explain eastern philosophy.