Commodity chain Essay Example | Topics and Well Written Essays - 500 words - 1

Commodity chain - Essay Example Among the alternatives to the traditional plastic grocery bags, the study of Environmental Agency UK Draft Report showed that that cotton bags has the lowest potential for global warming. Compared to the traditional plastic grocery bags that is made from high-density polyethylene (HDPE), cotton bags can only pose to be harmful to the environment after using it 131 times compared to HDPE bags usage of only 3 times (The Green Supply Chain Editorial Staff, 2011). Cotton, which is the basic material of reusable cotton bags are grown in 90 countries but the four main producing countries of cottons were China, India, USA and Pakistan accounting for three quarters of the world’s output of cotton (UNCTAD). Most cotton bags however came from India and China due to the ready availability of raw materials (cotton) and cheap labor. The process begins with the harvest of the soft fiber that grew around the seeds of the cotton in a cotton plantation in India (or China). The fiber is then spun into thread to make it into a yarn. It is then weave into a cotton cloth which can be later sewn into a cotton bag. The plantation, harvest, spinning, weaving and sewing is done India (and China) due to the cheap cost of growing the cotton (land) and also the cheaper cost of labor. Unlike other products where the several stages of production are separated, producing the cotton bag can be done in one country where a single or a few number of company can do the planting the raw materials to producing the final goods because it only use one raw materials (cotton) and the process of its production is uncomplicated. The process of producing it is however labor intensive which made it a competitive product of India and China because of its lower labor cost. When the final product is already manufactured, the reusable cotton bags then undergo a process

Majoring in Philosophy Essay Example for Free

Majoring in Philosophy Essay An event was organized in a school for students who were going to attend college soon. Their main aim was to emphasize Major in philosophy. Many experts explained importance of philosophy. There are numerous reasons for choosing this course. In philosophy major, students are taught about how to interpret, imagine, converse, and write well. Philosophy answers many human quires which grouped into three traditional categories. These are axiology: the theory of value, Epistemology: the theory of knowledge, Metaphysics: basic kinds of things exist. Students can successfully complete philosophy if they posses good level of reading comprehension, transparency of thought, and good communication skill. Principles of philosophy apply to everyday life therefore courses are designed to use thoughts and theories from the history of philosophy to concentrate on real world issues in area of education, business, law, public policy, and society. The purposes of course in philosophy Major in applied ethics are particularly pertinent for students who are interested in the role played by ethical values in a diversity of professional settings. Philosophy courses are important because philosophical concepts, ideology, and process of inquiry are related in several fields. Whatever students learn in philosophy can be applied in practically all aspects of life. This course allows candidates to know when to use a liberal sprinkling of words and when to use imagination power. Philosophy is good area of study that provides a high degree of personal accomplishment. Students will also have opportunities to critically test the potential and the influence of contemporary theoretical and philosophical schools of thought in normal life. In studying profoundly about great philosophers, students can gain knowledge to think thoroughly about every aspect of human life. Philosophy major allows students to observe relations between very different fields of thought such as science, religion, and ethics. This course widens skills in writing, in argumentation, and in the communication of complex ideas. Philosophy course equip students to develop inherent personal value. They can experience expansion of consciousness, self-discovery, self-renewal, and a more clear direction in life. In short, philosophy is learning for full life span. For doing philosophy major, candidate must be well versed in a broad education and have good credits which must be upper division. Philosophy majors have the maximum average score of any major on the verbal reasoning, analytic writing section and on the quantitative reasoning section. The most clear career path for students majoring in philosophy is to complete graduation in philosophy and involve in teaching in reputed college or university. Many philosophy graduates choose non-academic profession. Philosophy major courses prepare students for vocations requiring a liberal arts education, including law, government, communication, management, the ministry, teaching, or even business administration. To summarize, event attended in school encourages students to join Philosophy Major to enhance career and get steep success. It was communicated that philosophy is one of the most flexible majors in the humanities. It intersects with economics, politics, mathematics, psychology and history. Students studying philosophy will have a good understanding of about themselves and the world. In the event, professionals drew attention of students by stating important facts of philosophy. The reason of studying this course is that philosophy makes the mind healthy and develops numerous skills to sharpen human mind. If a person wants to develop a variety of skills that prepare him for a wide variety of intellectual challenges, he must be serious in joining a philosophy major.

Passion in Peter Shaffers Equus Essay -- Peter Shaffer, Equus

In Peter Shaffer's Equus, A psychiatrist, Martin Dysart, is conducting an investigation on Alan Strang. He is learning, through his investigation of Alan's horrific crime, about what it really means to make someone "normal" and what a psychiatrist really does. It is the job of Dysart to find the motive of Alan's actions, but he is not prepared for what he learns. After meeting Alan, Dysart has a dream. This dream is of a ritual sacrifice in Greece. Dysart's passion lies in Greece. He has always wanted to believe in something greater than himself. He wants to be connected to a greater power and meaning. As he tells Hester on page 82, "The finicky, critical husband looking through is art books on mythical Greece. What worship has he ever known? Real worship! Without worship you shrink, it's as simple as that I shrank my own life." He is criticizing himself on not trying to achieve that dream of passion he has always had. In this dream he plays the high chief in the ritual. He is the most important person in the ritual, signifying a psychiatrist. Slicing open children and ripping out their intestines. This signifies taking out what makes a person unique. This dream personifies what psychiatry is, its fitting everyone into one mold, taking out their originality and destroying their passion. The next day he starts his investigation of Alan. Trying to piece together his life to find out how he got to the breaking point. He learns of the religion that Alan created around Equus. His mother had brought him up to be very religious by reading to him from the bible and Alan drew a connection between horses the Jesus. That was the foundation for his religion. The picture of a horse had even replaced a picture of J... ...ther's stories. The Chinkle Chankle in the horses' mouth was a reaction to the memory of Trojan on the beach. All these things that Alan could comprehend made sense in Equus. Dysart admits this on page 81 "I only know that it's the core of his life. What else has he got? Many men have less vital with their wives" Equus is the core of Alan's life, and Dysart knows that. Equus is that heart of Alan's body. If the heart is removed the body cannot continue to live. Dysart was wrong to remove Equus from Alan. He was wrong to kill the passions that he envied so much. All this for what? Normalcy. Dysart did not heal Alan he ravaged him. In a world devoid of passion, it is the most important thing one can have. Every day people go about their ways passionless and now Alan joins them. Work Cited Shaffer, Peter. Equus. 1973. New York: Penguin Books, 1977.

Lease Versus Purchase Essay

When operating a successful business, it is important to consider operating costs and expenses related to producing or being able to provide a certain good or service. In some cases, it is more beneficial for a business to lease equipment needed for production or manufacturing and in other instances it is financially favorable to purchase equipment. This paper will compare the factors involved in deciding whether to purchase or lease equipment. Types of Leases The term â€Å"lease† is essentially the same as the term â€Å"rent†, as both have identical meanings. There are two different types of leases, an operating lease and a financial lease. Both types provide the use of an asset, but with some very different rules. An operating lease is typically used for equipment or vehicles and can be cancelled by the lessee with proper notice. The timeframe of the lease is usually less than the expected life of the item, and will sometimes include a maintenance contract built in. The lessor hopes to either sell the asset or release it at the end of the initial lease. A financial lease, aka a capital lease, cannot be terminated early. Financial leases also do not include maintenance contracts, and are usually set for the life expectancy of the item. The purpose for the lessor is to gain their initial investment plus a return on the asset, and is thus like debt financing. Lease vs. Purchase If a company wants to obtain the usage of an asset such as cash, plant or equipment, without the obligation of purchasing the item, then a lease is the best option. Leases can be classified as short term or long-term debt just depending on the amount of time contracted. The key considerations a  company must consider when trying to decided whether to purchase or lease an asset is the net present value of purchasing versus leasing. The factors that affect the value are depreciation, taxes, length of lease payments, life span of asset, and any residual or salvage value of the asset. Leases are accounted for on a company’s balance sheet as long as one of the following occurs; the lease transfers ownership at the expiration, the lessee may buy the asset below its value at the expiration, length of lease is more then 75 percent of the expected life span, or the present lease payments exceeds 90 percent of the fair market value of the property (Mayo, 2012). Financial leases though, must be capitalized where as operating leases may not have to be placed on the balance sheet, but should be noted in the footnotes. Even though financial leasing may sound similar to debt financing of an asset, keep in mind that the lessor will obtain any residual value of the asset, whereas if purchased, the salvage value would remain with the purchaser. Leasing offers higher tax deductions, but potentially understates a companies assets. Purchasing usually requires a higher initial cash outlay (Newman, 2006), but may offer higher assets and better return on investment in the long run. Determining which option of leasing or buying is better will ultimately depend on the time value of money (Mayo, 2012). Application of Time Value/Money Concepts in Evaluating Lease vs. Purchase Decisions When deciding on whether on whether to lease or purchase assets for your company, there are a few different factors to consider. One of those important factors is the time value of money. According to â€Å"Financial Dictionary† the time value of money can be defined as â€Å"the idea that a dollar today is worth more than a dollar in the future, because the dollar received today can earn interest up until the time the future dollar is received† (2015). To determine which option, leasing or purchasing, would be financially beneficial for the business, the present value of each should be calculated. The present value formula will give you the cash flows associated with leasing or purchasing the asset (Mayo, 2012). To calculate the present value of a single sum of money one would divide the Future Value (FV) by (1 + i)n where i is the interest rate per compounding period and n are the number of compounding periods (â€Å"Present Value Of A Single Sum Of Money†, 2013). Conclusion There are many factors and applications to consider when making the decision between leasing and purchasing. Factors such as the assets life expectancy, company’s tax bracket, and payment schedule are just a few to be considered when determining which option is best for a company. Understanding the time value of money, is just one of the few considerations a company must review so that its financial officers can make educated business decisions. References Financial Dictionary. (2015). Retrieved from http://financial-dictionary.thefreedictionary.com Mayo, H. B. (2012). Basic finance: An introduction to financial institutions, investments, and management (10th ed.). Mason, OH: South-Western. Newman, P. (2006). Leasing vs Buying: Which is Best for You?. Retrieved from http://www.entrepreneur.com/article/169332 Present Value of a Single Sum of Money. (2013). Retrieved from http://accountingexplained.com/misc/tvm/pv-single-sum

Case Study: Managerial Finance Chapter 14

BUS650: Managerial Finance Chapter 14 Closing Case Professor: Darrell Early October 8, 2011 1. If Stephenson wishes to maximize its total market value, would you recommend that it issue debt or equity to finance the land purchase? Explain. If Stephenson wishes to maximize the overall value of the firm, it should use debt to finance the $95 million purchase. Since interest payments are tax deductible, debt in the firm’s capital structure will decrease the firm’s taxable income, creating a tax shield that will increase the overall value of the firm. 2. Construct Stephenson’s market value balance sheet before it announces the purchase.Since Stephenson is an all-equity firm with 15 million shares of common stock outstanding, worth $34. 50 per share, the market value of the firm is: Market value of equity = $34. 50(15,000,000) Market value of equity = $517,500,000 So, the market value balance sheet before the land purchase is: Assets $517,500,000 Debt -Equity $517,500 ,000 Total assets $517,500,000 Debt &Equity $517,500,000 3. Suppose Stephenson decides to issue equity to finance the purchase. a. What is the net present value of the project? As a result of the purchase, the firm’s pre-tax earnings will increase by$23 million per year in perpetuity.These earnings are taxed at a rate of40 percent. Therefore, after taxes, the purchase increases the annual expected earnings of the firm by: Earnings increase = $23,000,000(1– . 40) Earnings increase = $13,800,000 Since Stephenson is an all-equity firm, the appropriate discount rate is the firm’s unlevered cost of equity, so the NPV of the purchase is: NPV= – $95,000,000 + ($13,800,000 / . 125)NPV = $15,400,000 b. Construct Stephenson’s market value balance sheet after it announces that the firm will finance the purchase using equity.What would be the new price per share of the firm’s stock? How many shares will Stephenson need to issue in order to finance the p urchase? After the announcement, the value of Stephenson will increase by $15. 4 million, the net present value of the purchase. Under the efficient-market hypothesis, the market value of the firm’s equity will immediately rise to reflect the NPV of the project. Therefore, the market value of Stephenson’s equity after the announcement will be: Equity Value = $517,500,000 + $15,400,000 Equity Value = $ 532,900,000 Market value balance sheetOld assets $517,500,000Debt NVP of project$15,400,000Equity $532,900,000 Total equity$532,900,000Debt & Equity$532,900,000 Since the market value of the firm’s equity is $532,900. 000 and the firm has 15 million shares of common stock outstanding. Stephenson’s stock price after the announcement will be: New share price: $532,900,000/ $15,000,000 New share price: $35. 53 Since Stephenson must raise $95 million to finance the purchase and the firm’s stock worth $35. 53 per share, Stephanie must issue: Shares to issu e = $95,000,000/$35. 53 Shares to issue = $2,673,797 c.Construct Stephenson’s market value balance sheet after the equity issue, but before the purchase has been made. How many shares of common stock does Stephenson have out- standing? What is the price per share of the firm’s stock? Stephenson will receive $95 million in cash as a result of the equity issue. This will increase the firm’s assets and equity by $95 million. So, the new market value balance sheet after the stock issue will be: Market value balance sheet Cash$95,000,000Debt Old assets$517,500,000Equity$627,900,000 NPV of project$15,400,000 Total Assets$627,900,000Debt & Equity$627,900,000The stock change will remain unchanged. To show this Stephenson will have to: Total shares outstanding = $15,000,000 + 2,673,797 Total shares outstanding = 17,673,797 So the share price is: Share price = $627,900,00/$17,673,797 Share price = $35. 53 d. Construct Stephenson’s market value balance sheet after t he purchase has been made. The market value balance sheet of the company: Old assets $517,500,000Debt Building $95,000,000Equity$627,900,000 NVP of project$15,400,000 Total assets $627,900,000Debt& Equity$627,900,000 4. Suppose Stephenson decides to issue debt in order to finance the purchase. . What will the market value of the Stephenson company be if the purchase is financed with debt? Modilgliani-Miller states that in a world with corporate taxes: Vl = Vu + cB As was shown in question 3, Stephenson will be worth $627. 9 million if it finances the purchase with equity. It is to finance the initial the outlay of the project with debt; the firm would have $95 million. So the value of the company if it financed with debt is: Vl = $627,900,000 + . 40 ($95,000,000) Vl = $665,900,000 b. Construct Stephenson’s market value balance sheet after both the debt issue and the land purchase.What is the price per share of the firm’s stock? After the announcement, the value of Step henson will immediately rise by the percent value of the project. Since the market value of the firms debt is $95 million and the value of the firm is $627. 9 million w can calculate the market value of Stephenson’s equity. Stephenson’s market value balance sheet after the debt issue will be: Value unlevered$627,900,000Debt$95,000,000 Tax sheet$38,000,000Equity$570,900,000 Total assets $665,900,000Debt& Equity$665,900,000 Since the market value of Stephenson’s equity is $570. million and the firm has 15 million shares of common stock outstanding. Stephenson’s stock price after the debt issue will be: Stock Price = $570,900,000/$15,000,000 Stock Price = $38. 06 5. Which method of financing maximizes the per-share stock price of Stephenson’s equity? If Stephenson uses equity in order to finance the project, the firm’s stock price will remain at 35. 53 per share. If the firm uses debt in order to finance the project, the firm’s stock pri ce will rise to $38. 06 per share. There fare, debt financing maximizes the per share stock price of a firm’s equity.