Applying What You Have Learned free essay sample

The origin of progressivism was the Greenback Labor Party of the 1870’s and the Populist Pary of the 1890’s. Progressive reformers included militarists such as Theodore Roosevelt, who thrilled to the stenuous life, as well as pacifists such as Jane Addams, whose loftiest goals included the abolition of war. The two chief goals of progressivism are to use the state to curb monopoly power and to improve the common person’s conditions of life and labor. Overall, the goals of progressives were continuing social advancement, improvement, and reform. 2. Progressivism started in cities and tried to fix the inefficiency and corruption in the city government. In urban areas reform was trying to be made to the slums and the improvement of the cities. Gradually the progressivism moved to the state level where it made reforms. All of this reform ultimately led to the greater national progressivism. 3. Women were sopposed to stay in their sphere, the home. We will write a custom essay sample on Applying What You Have Learned or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page But, with progressivism they got out more and fought for reform. They tried to reform many things such as child labor and making sure food that got to the table was safe. Female reformers joined many groups and gave themselves a national stage for social investigation and advocracy. Women fought for factory reform and for temperance. Women were successful in factory reform in many ways. 4. Roosevelt brought the time of controlling the big businesses and not letting them be to powerful and continue the problems(like bribing officials) that they had in the past. Roosevelt created the Bureau of Corporations, which probed businesses engaged in interstate commerce. Roosevelt had used force against a mining company to give workers a higher pay and lower working hours. The Elkins Act (1903) was created against the railroad companies. The Hepburn Act (1906) said that free passes, with the hint of bribery, were severely restricted and the Interstate Commerce Commission was expanded. Also, Roosevelt sought to stop bad trusts, such as J. P. Morgan and empire builder James Hill who were going to create a monopoly on the railroads of the Northwest. Roosevelt caused the Meat Inspection Act (1906) and the Pure Food and Drug Act (1906) to get passed to improve the quality of food especially meat (nasty slaughter houses). Roosevelt was big on conserving the natural resources of the US. He made federal reserves of about 125 million acres. He stopped the lumberman from destroying the forests. He was on both the nature people’s side and the people who wanted the natural resources. Lastly, he did many other things like built dams. 5. Many of Taft’s policies offended progressives, and mainly Roosevelt. Roosevelt was infuriated when Taft pressed an antitrust suit against the U. S. Steel Corporation because Roosevelt was personally involved in one of the mergers that prompted the suit. Taft also passed an upward tariff revision called Payne-Aldrich Bill. The Ballinger-Pinchot quarrel, where Taft dismissed Gifford Pinchot (chief of the Agricultural Departments Division of Forestry) because he criticized the opening of public lands in Whyoming, Montana, and Alaska. He was a Rooseveltian so Taft was criticized. 6. The Republican party split in the spring of 1910 and Roosevelt came back in the summer of 1910 and stirred up a tempest. He said a speech about urging the national government to increase its power to remedy economic and social abuses (popularly known as â€Å"New Nationalism. †

Company Valuation Report Goodman Fielder

Company Valuation Report Goodman Fielder Introduction In this report, we have tried to present a comprehensive evaluation of Goodman Fielder Company. By considering the market and financial environment in which Goodman fielder operates, we have employed the use of several helpful tools to evaluate Goodman Fielder. Here, historical data on share returns, market returns and financial statements will be used to approximate the value of Goodman Fielder shares.Advertising We will write a custom report sample on Company Valuation Report: Goodman Fielder specifically for you for only $16.05 $11/page Learn More The calculated values will then be compared with the actual values of shares at the market. The period of our interest runs from 1st January 2006 to 2nd February 2012. The Du Pont approach has been used to compute for equity returns. Later on, we used the CAPM model to estimate for the required rate of return. We then considered the DDM model, the cash flow model, the earnings ratio model and the pr ice book ratio (Tobin 1969). These approaches have been helpful in understanding various facets (including price value and competitiveness) of the share pricing for Goodman Fielder (a major indicator of a company’s performance) (Viney 2009). Often, we found it necessary to identify a number of actions that can be undertaken by the management of Goodman Fielder to better the prospects of their company. Background Information Goodman Fielder is a food processing and retail company with base operations in Australia (Kenneth 1982). Among the products that are produced and marketed by the Goodman Fielder Company include bread, mayonnaise, milk, pizzas, cooking oils and pies (Kenneth 1982). The company ranks top among the main producers and distributors of food within Australia and the rest of the pacific Islands (Keown 2002). In New Zealand, it (Goodman Fielder) is the largest supplier of flour ands commercial fat to manufacturing industries (Oliver 2009). Thus, apart from being a major producer and distributor of grocery commodities, Goodman Fielder is also a supplier of edible fat and flour to commercial food companies (Ross Sergio 2005). Many Australians love Goodman Fielder products; thus, the company has a good market segment here (Keown 2002). Goodman Fielder company employs more than seven thousand people within Australia and the larger pacific Islands region (New Zealand, Papua Guinea, New Caledonia and Fiji) (Oliver 2009).Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Market Segment As we have seen, Goodman Fielder has a large and wide market segment. Geographically, Goodman Fielder’s market segment cuts across Australia and the pacific Islands region (Collins Kothari 1989). Goodman Fielder produces a variety of products that target various segments in the consumer market (Kopcke 1982). Among the most important segments here include ba king, dairy market, fats and oils, and flour (Collins Kothari 1989). All of the mentioned segments fall within two major categories (Cuthbertson Nitzsche 2008). The first category can be described as one that consists of processed items that are ready for consumption such as packaged milk, bread and pies (Oliver 2009). On the other hand, the second category consists of items that need further processing before they can be supplied to local markets (Kopcke 1982). Such items, which are usually supplied to commercial food companies, include bulk flour and edible oils. Goodman fielder has always been among the two major large scale suppliers of food products in Australia (Cuthbertson Nitzsche 2008). Likewise, the company is the main supplier of edible oil and flour to commercial companies in New Zealand (Oliver 2009). Financial History Although the financial performance of Goodman Fielder has averagely been good for a long time (Rayburn 1986) (where the company has been giving good r eturns on its equity), the same cannot be said about its performance in the past five years (where our analysis of the company will focus) (Ali et al. 1995). The past five years have not been good for Goodman Fielder Company (Cuthbertson Nitzsche 2008). During this period, its (Goodman Fielder) profits have been decreasing steadily (Collins Kothari 1989). The share prices of Goodman Fielder have likewise been on a downward spiral (Cuthbertson Nitzsche 2008). Below is a chart showing the performance of Goodman Fielder’s shares over the past six years (Reilly Brown 2012). As it can be seen above, the shares of Goodman Fielder have decreased by more than a half in within the past six years (Ali et al 1995). Some stock market analysts are even expecting Goodman Fielder shares to even fall further in the coming months. While Goodman Fielder products remain popular within its consumer market, the company has been performing dismally (Ali et al. 1995).Advertising We wil l write a custom report sample on Company Valuation Report: Goodman Fielder specifically for you for only $16.05 $11/page Learn More An evaluation of Goodman Fielder financial statements over the past six years reveals a steady decline in revenues (Ali et al. 1995). A number of factors have helped to contribute towards the dismal performance of Goodman Fielder (Easton 1989). First, the recent years of the global economic crisis created a difficult environment for Goodman Fielder Company (Jorgenson 1968). The sales of Goodman Fielder products decreased as the market adjusted to the economic crisis to seek for cheaper food products from other producers (Atrill et al. 2006). Besides, many micro-scale competitors have emerged; thus, eating into the market segment of Goodman Fielder (Jorgenson 1968). The exports of Goodman Fielder have also been affected by the relative strengthening of the Australian dollar in relation to export markets (Kenneth 1982). Moreover, new in vestments in bakery by the company (Goodman Fielder) have failed to improve on returns (Atrill et al. 2006). The ever increasing fuel prices on the global market have coupled with other factors (such as increases in wage bills) to contribute in increasing production and operation costs for Goodman Fielder (Atrill et al. 2006). Such a direction has eaten into Goodman Fielder revenues; thus, contributing to its dismal performance (Easton 1989). More importantly however, the management of Goodman Fielder have been slow in reacting to the ever dynamic business environment of their company; thus, leading to the poor fortunes of their company (Edwards Bell 1961). While a large number of customers in Australia and the greater pacific Island region love Goodman Fielder products, the company has failed to solidify its market segment here (Atrill et al 2006). The poor performance of Goodman Fielder shares in the stock market is an indication that share investors are losing their confidence i n the ability in its managers (Kenneth 1982). Unlike a number of her counterparts that have successfully emerged from the recent economic crisis (After shrinking during the global economic crisis, the Australian economy has been recording some growths from 2008) to expand their profits, Goodman Fielder is even performing worse at the moment than during the economic crisis period (Ross Sergio 2005).Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More A number of objectives that have often been designed by Goodman fielder management to tackle the economic difficulties facing their company have so far failed to be fruitful (Atrill et al. 2006). The 2011 half year results indicate one of the poorest performing periods for Goodman Fielder in the past six years (The general performance of Goodman Fielder has generally been on a steady decline over the past five years) (Kenneth 1982). In the recent past, Goodman Fielder has at times been unable to pay dividends as a result of its decreasing cash inflows (Miller Modigliani). Obviously, there is an urgent need for Goodman Fielder to restructure and adapt to the current economic environment in its market (Koller et al. 2005). Such a direction can only be achieved by a creative, innovative, and a new management at Goodman Fielder (Edwards Bell 1961). As it will become clear in our analysis, the general performance of Goodman fielder has been way below her peer companies (Baker Powell 1 999). Even with the current progressive growth of the Australian economy (after a difficult economic crisis period), the performance of Goodman Fielder has failed to mirror the expanding Australian GDP (Expected to grow by about 0.8 percent this year) (Edwards Bell 1961). However, the outlook of Goodman and fielder cannot be concluded to be grim (Kopcke 1982). Let us not forget that there are millions of customers that love Goodman Fielder products (Fama French 2001). Much of Goodman Fielder’s future will however depend on the ability of its senior management to return the company where it was in the past decade (Miller Modigliani). With the expanding Australian economy, the possibilities of Goodman Fielder to expand its market share here are real (Baker Powell 1999). Moreover, the economies of pacific Island economies such as New Zealand, where Goodman Fielder has vast interest, have also continued to show a progressive growth; thus, presenting new opportunities for Good man Fielder to expand its markets in these areas too (Fama French 2001). However, as we had seen earlier, the onset of positive fortunes for Goodman Fielder is dependent on the ability of its management to deal with current difficulties and exploit existing opportunities in the market (Baker Powell 1999). Return on Equity Return on Equity is among the most important approaches that are usually utilised by investors to analyze a company’s profitability. Here, we will utilise the most recent returns (Half year returns for the period ending December 2011) data from Goodman Fielder Company to analyse its return on equity. Generally, a company that is able to produce high returns from its equities without accumulating large debts boasts of large cash flows (Baker Powell 1999). Thus, such companies can grow without new capital expenditures. Such an arrangement is useful for investors since they can withdraw funds from such a company and invest their withdrawals in other interest s (Fama French 2001). So as to understand important components on equity returns, we will employ the use of the Du Pont Model in analysing the equity returns of Goodman Fielder Company (for the period mentioned) (Beneda 2003). So as to give investors information on specific areas of interest, the Du Pont model has divided equity returns into three multiples: Net profit Margin, asset turnover, and Gearing Ratio (Kopcke 1982). Thus: Return on Equity = Net Profit margin*Asset Turnover* Gearing Table 1 below summarizes ROE’s for the past six years. Table 1: ROE YEAR Gearing ROE 2011 2.58 3.6 2010 2.78 2.8 2009 3.01 3.4 2008 2.9 4.3 2007 2.6 4.7 2006 2.2 5.6 An equity return of 3.6% is quite low (Fazzari et al. 1988). Such a rate is way below the acceptable average of about 12%. With such rates, investors will thus shy away from buying Goodman Fielder shares at the stock exchange; thus, a low demand for the company shares at the stock market (Beneda 2003). Such a direction explains why the stock prices of Goodman Fielder have been falling steadily at the stock market (Fazzari et al. 1988). In 2011, Goodman Fielder had a profit margin of 1.67 percent. Again, such a profit margin is quite low (Kopcke 1982). It therefore means that the company is making little profits from its revenues (Miller Modigliani). Besides, such a low profit margin is also an indication that there is currently a low possibility that the company’s (Goodman Fielder) management will affect profits to down spiral further (Beneda 2003). Since the profit margin is approaching one percentage point, a further decrease in profit margins is unlikely to result from the mismanagement of Goodman Fielder (Fazzari et al. 1988). It is therefore safer to invest in Goodman Fielder shares with a disregard of how the company’s management could lead to future decreases in profits (Lehn Makhija 1996). However, such a consideration cannot be used in isolation when identifyin g the potential of Goodman Fielder shares (Beneda 2003). During the half year period ending 31st December 2011, Goodman Fielder recorded an asset turnover of 83.5%. The asset turnover ratio is helpful in determining the capacity of a company in converting its assets to incomes (Black 1972). An efficiency of 83.5 % in converting assets to profits is quite acceptable (Fazzari et al. 1988). What however is of concern to investors is the low return on equity despite a leverage of 2.58 (Ohslen 1995). Such an arrangement means that Goodman fielder is relying on debts to generate its low return on equity at 3.6% (Fruhan 1981). Without debts, Goodman fielder would generate a return on equity of only 1.4%. Such an arrangement means that there is a low cash flow within Goodman Fielder; hence, explaining why the company has been facing difficulties in performance (Black 1972). Macro-Economic Factors The global economy is expected to expand slightly in the next few years after experiencing the recent economic crisis (Viney 2009). Here, developing economies like China will experience most growth. On the other hand, developed economies like Australia will experience a slight growth (the Australian economy is expected to grow by 2%). There is usually a strong relationship between economic growth and company growth. The growth prospects of Goodman Fielder Company in 2012 are thus positive. With a market in Indonesia and other Asia-Pacific economies (whose economies are expected to expand marginally), Goodman Fielder can expand her market further. At 2 to 3 percent, the expected rate of inflation in 2012 is within acceptable limits (Green et al. 1996). Australian customers will therefore have enough money to spend on Goodman Fielder products. With a leverage of 2.58, the financial performance of Goodman Fielder will heavily rely on interest rates. If interest rates increase, Goodman Fielder will spend more resources in financing her debt. On the other hand, a decrease in inter est rates will help to finance the expansion plans of Goodman Fielder. Indications at the moment predict a fall in interest rates to levels below 3%. Here, the prospects of companies with large borrowing, such as Goodman Fielder, will remain bright. Estimation of Goodman Fielder Shares CAPM Model The CAPM (Capital Pricing Model) model has for many years been a useful tool in calculating expected returns from shares (Lehn Makhija 1996). Although several economists have criticised the effectiveness of the CAPM model in analysing share returns, no alternative model has been developed to date (Black 1972). Generally, the CAPM model can be represented in the equation below: C= A+ ÃŽ ² (B-A) Where A is the risk free rate, B is the market return rate, ÃŽ ² is the coefficient of the premium rate, and C is the expected rate of return (Ohslen 1995). Our important responsibility lies in calculating beta for the capital pricing model (Black 1972). By observing the above equation, one can be ab le to see that it is an equation of a straight line; with a constant gradient and an intercept (Ohslen 1995). One can therefore be able to determine beta through the use of an appropriate graph that plots C against (B-A) (Fruhan 1981). Having obtained the historical share return indexes from dates 1st January 2006 to 2nd February, 2012, we calculated the monthly share return rates in an excel worksheet (Gozzi et al. 2006). Such rates were obtained by calculating percentage changes in the share returns of adjacent months, and then multiplying the result by 12 to obtain the annual rates of returns (Lehn Makhija 1996). Likewise, a similar procedure was employed to calculate the expected monthly returns of the share market from a dataset than contained monthly return values of shares (from dates 1st January 2006 to 2nd February 2012) (Bond Meghir 1994). The free market rates were obtained from the 20 year Federal Reserve rates (from the historical data of the United States treasury ra tes) (Gozzi et al. 2006). As we have been using in other data sets, our period of interest here is from 1st January 2006 to 2nd February, 2012. The frequency of the treasury rates that we used is monthly. The premium rate was then obtained by subtracting A from B (Lintner 1965). An appropriate graph was then drawn in excel where the rate of share returns was plotted against the premium rates (Lintner 1965). Our raw Beta is thus the coefficient of the premium rate, which (as shown below) was shown to be 0.9691. As it is usually suggested, our raw beta needs to be adjusted as below: 0.9691 (0.67) + 0.33 =0.979 Thus, we obtain an adjusted value of 0.979 as our new beta (Lintner 1965). In analysing the CAMP model, we used treasury rates from the Australian Reserve bank to proxy free market rates (Gozzi et al. 2006). Such a direction was informed by the stability of the treasury rates, and the very unlikely scenario of a default from the Australian government (Bond Meghir 1994). Many e conomists are confident in using the US treasury rates to represent free market rates (Liynat Zarwin 1990). Such rates are often approximated at 5 %( Liynat Zarwin 1990). However, it is useful to observe that in exceptional circumstances, treasury rates can decline (Liynat Zarwin 1990). Such a direction was observed during the recent economic crisis, and also during the early months of 2012. Here, treasury rates went even below 3% during some months. On the other hand, we employed the return value of the stock market to proxy the market return rate (Green et al. 1996). Since such a value is a representation of the average performance in market stocks, it may not represent a true picture of the market return rate (Green et al. 1996). Here, it would be useful to obtain the standard deviation on stock performance so as to understand whether the estimation that we have used is useful in representing market returns (Bond Meghir 1994). However, since such an approach would involve a c umbersome procedure of evaluating the performance of all listed companies in the share market, we simply used the total value of stock returns to calculate our assumed market return rate (Liynat Zarwin 1990). Considering the micro-economic factors that we have discussed above, we found it useful to split the financial performance of Goodman Fielder into four categories: Very strong GDP growth, strong GDP growth, flat growth, weak growth. The table below summarize our estimates. Table 2: Market Return for Different Conditions of Growth. GDP Market Return Estimate(%) Probability (%) Market Return (%) Very Strong ( 5%) 25 10 2.5 Strong (2-5%) 15 60 9 Flat (1-2%) 5 20 1 Weak (1%) -10 10 -1 Average 11.5 With an adjusted Beta, we calculated the current risk premium rate as follows. With a beta of 0.979, taking the current treasury rate (2.75% as obtained from the historical treasury rates), and assuming an average free market return of 5% (since most economist est imate that the premium rate varies from 3.5% to 6%, we take an average of 5%), the risk premium rate can be calculated as: A= 0.05+ 0.979 (0.05) = 9.9% The Dividend valuation Model can be represented as follows: Value= Expected Dividend/ (Return on equity-Growth rate) The table below summarizes returns for different conditions of economic growth. Table 3: Returns for different conditions of economic growth GDP Market Return (%) Risk Premium Required Rate Of Return Very Strong ( 5%) 2.5 -0.025 0.025525 Strong (2-5%) 9 0.04 0.08916 Flat (1-2%) 1 -0.04 0.01084 Weak (1%) -1 -0.06 -0.00874 Average (11.5) 11.5 0.065 0.113635 The discount rate is thus 9.9% and the last dividend payout was 2.5 cents per share (Liynat Zarwin 1990). We estimate a growth rate of 2%. As we had seen earlier during equity returns analysis, the ratio of profit margin was approaching 1%. Such a scenario implies that the management of Goodman Fielder will in future have a slight impact on future pro fit declines (Bond Meghir 1994). Since share prices have also declined to lowest levels, we can expect the share prices to stabilize and grow at a stabilized rate of 2% (Lone et al. 1996). We do not expect the shares to grow at a higher rate at the moment since the company (Goodman Fielder) will require a longer period of time to recover (Bowen et al. 1986). Table 4: DDM Approximations for Share Prices Year Growth Growth Rate Share 2012-2014 Slow Growth 0.02 0.639240506 2014-2016 High  Growth 0.08 2.736842105 2017 0NWARDS Stable  Growth 0.03 0.735507246 Thus, as shown in the table above, the current price for Goodman Fielder Shares is about 0.6392. This particular value is comparable with the market value that has been ranging from 80 cents to 40 cents in 2011. We can also calculate the implied growth rate by assuming that the stock prices for Goodman and Fielder are correctly valued (Lone et al. 1996). Here, with the greatly unstable Goodman Fielder stocks, the cha llenge would be in picking a historical value of the stock (Lone et al. 1996). We can select the sock value on 1st January, 2012 (Green et al. 1996). On this particular date, the stock was traded at 42.42 cents. Thus: 0.4242 = 0.025 (1+g/2)/ (0.099/2-g/2) Thus, implied growth rate is 0.019. Cash Flow Since Goodman Fielder does not always pay dividends, we can use cash flows per share (instead of dividends) to estimate its share value (Head 2008). The cash flow model is similar to the DDM model except that we use cash flows per share, instead of dividends, to calculate share returns. Based on our macro-economic assumptions, we think that Goodman Fielder will experience a slow growth followed by a stage of high growth, before settling at a steady growth. The table below presents approximations of the share price for the three stages above. Table 5  Price Earning Ratio and Price Book Value model Year Growth Growth Rate Share 2012-2014 Slow Growth 0.02 1.856865823 2014-2016 Slo w Growth 0.08 7.949978947 2017 0NWARDS Stable Growth 0.03 2.136501449 Price earnings ratio is useful in indicating the amount of money that investors are willing to spend for each dollar earned in the Goodman Fielder company. Dividing the formulae above by EPS (Earnings per share): Price earning ratio/EPS= Share market Price/EPS/ Earnings pet share According to the DDM: P = A (1+g)/(k-g). Dividing the formulae above by EPS: P/EPS = Payout Ratio (1+g)/(k-g). Thus, price earnings ratio is dependant on the following: the rate of growth, the required rate of return, and payout ratio. However, since the performance of Goodman Fielder has been very unstable, we will use the ratio multiplier to estimate the EPS of Goodman Fielder as shown below. Table 6: Approximated EPS Year 2011 2012 Market Price 0.639 Growth Rate 0.02 EPS 0.128 0.13056 Approx P/E Ratio 4.894301471 It is important to note that with the presence of many dynamics at Goodman fielder, the earning ratio has been changing constantly (Bowen et al. 1986). Price Book Ratio Likewise, Price book ratio = Equity market value/ Equity book value Price book ratio has been computed in the table below. Table 7: Price Book Ratio YEAR 2012-2014 2014-2012 2017 ONWARDS EBV 1754.4 1857.6 1771.6 EBVPS 0.8772 0.9288 0.8858 P/B 1.372253465 0.339369231 1.204338916 Discussion As we had seen, one of the main challenges that one is likely to face while evaluating a company like Goodman Fielder is the presence of many dynamics at play here (Head 2008). For example, data on stock returns for the past six years indicates a gradual dip in stock prices, which change on a continuous basis (Bowen et al. 1986). During our earlier analysis, we were able to observe a pattern of struggle and poor performance at Goodman Fielder (Chitou Ketz 1991). Generally, the overall trend of stock returns has been on a downward trend (Peasnell 1981). Although a number of catalytic activities have once in a while helpe d to stimulate the share prices to rise slightly, the general direction of the stock prices has been a dip (Head 2008). For example, on 6th January 2012, the stock prices for Goodman fielder rose by a third following a 10 percent acquisition of the company’s stake by Wilmer international limited (Ohlsen 1995). However, this particular rise of stocks was short-lived as share prices fell down again after some time (Bowen et al. 1986). Below is a graph showing an analysis of Goodman Fielder stocks in the past 18 months. As it can be seen, the performance has generally been poor. With such a trend, the Goodman Fielder shares have decreased their competitiveness in the stock market: hence, the observed dipping prices (Head 2008). The root mean square that was calculated by Excel’s regression was 0.19. As a result, about 19% of the risks that can be associated with Goodman Fielder are systematic (Peasnell 1981). Such Risks are related to trading activities at the stock mark et (Hitchner 2006). On the other hand, 81 percent of the risks that can be associated with Goodman Fielder are non systematic (Rappaport 1981). Such risks can be associated with the management of Goodman Fielder. From an analysis of the DDM model, we were able to obtain a stock price of 63.28 Cents (Chitou Ketz 1991). Such a value is comparable with the present value of the company’s stock at the share market (Hitchner 2006). However, it is still difficult to determine the accuracy of such a calculated value due to the volatile prices of the company’s share prices (leading to great variations in dividend payouts), which change constantly at the share market (Rappaport 1981). Still, the calculated value can hold for the period under which we evaluated the company (January 2006 to March 2012). On the other hand, our calculated value from cash flows was quite higher than the average share prices of Goodman Fielder (Chitou Ketz 1991). A possible explanation for such an a rrangement is the usual handling of large cash flows in companies that deal with perishables such as Goodman Fielder (Hitchner 2006). There is also a possibility of having taken wrong assumptions in our calculations, and, or errors in our computation (Jorgenson 1968). Due to a continual decrease in its share prices, the shares of Goodman Fielder could also be undervalued at the moment (Chitou Ketz 1991). In the last six years, the share prices of the (Goodman Fielder) company have decreased by over 50%. The management of Goodman fielder needs to develop innovative solutions that would steer their company back to the years of high profitability and high share capitalization (Rayburn 1986). Again, it is important to note that our understanding of the company from the models that have been evaluated above is limited (Scott 1992). Since such an evaluation is dependant on the usually speculative share market, we cannot depend on the company’s volatile share prices to arrive at ou r conclusions (Sainsbury 2010). Although many investors will use some of the methodologies that we have employed above to evaluate the potential of companies, their overall investments are usually based on speculation (Scott 1992). Still, since the performance of a company’s share price is proxy to the financial performance of a company, it can give us important information in evaluating a company (Sharpe 1964). The problem with shares like those of Goodman is that since they have been changing very gradually, it is difficult to associate specific share prices with the company’s performance (Sharpe 1964). The observed overall trend however has been a general decline in the price of the shares (Siegel 1985). Although the Dividends model approach has been useful in helping us to approximate a seemingly accurate value of Goodman fielder’s share price (based on comparison with other share prices), the cash flow system is a more accurate method of determining a compa ny’s share value (Sainsbury 2010). With a poor performance record that has recently streamed from the company (Goodman Fielder), the seemingly high price of shares that was approximated by the cash flow model indicates that the company is currently undervalued at the stock Market (Stewart 1991). In the direction of increasing its market share value, Goodman Fielder company needs to convince investors of its worth (Stiglz Weiss 1981). A robust and creative management will especially help in achieving such a goal (Stiglz Weiss 1981). Comment on Models We have used four different models to evaluate the financial performance of Goodman Fielder Company. These four models include the dividend valuation model, the cash flow model, the price earnings model and the price book value model. The value of Goodman Fielder share price that was approximated by the dividends ratio model is close to the stock performance of the company at the moment (Jorgenson 1968). t. Although the above mo del could have provided a useful approach in evaluating the share value of Goodman Fielder, a number of factors can compromise the accuracy of the DDM. As we have seen, the general performance of Goodman Fielder has been volatile, poor, and a bit unpredictable. It therefore means that the financial state of Goodman Fielder has been on a constant change (mostly in a negative direction). Dividend payouts from Goodman Fielder have reflected the unstable state of Goodman Fielder by changing constantly. Since we used the last dividend payouts to calculate the share price of Goodman Fielder (through the use of the DDM model), the price value that was calculated may not reflect the current state of Goodman Fielder. As it can be reflected in the 2011 half year a financial result, a lot has changed in Goodman Fielder since the last dividend payout. Moreover, with the current state of dismal performance, Goodman Fielder will likely avoid paying dividends payouts in the near future (as it has been doing lately); thus, presenting a difficulty in obtaining dividend values for feeding the DDM. Still, the main advantage that arises in the use of the DDM to calculate share values is the strong relationship that usually exists between share values and dividend payouts. However, for a company that has been moving in a difficult labyrinth like Goodman Fielder, it is not wise to use the DDM to calculate its share value (Collins Kothari 1989). For a company that is undergoing a crisis like Goodman fielder, the cash flow system is a more accurate method for determining the company’s share value (Sainsbury 2010). With a poor performance record that has recently streamed from the company (Goodman Fielder), it is wiser to rely on cash flows (rather than dividends) to calculate the share price of the company. Such a direction eliminates two major problems that were presented by the DDM; unsteady dividend payouts and lack of dividend payouts. As it is often the case, companies t hat are undergoing a crisis will prefer to reinvest resources than pay dividends (Stewart 1991). The cash flow model is therefore the best tool that can yield a more accurate and reliable value of a company’s share price than all the other approaches that we used. The share price of Goodman Fielder as per the cash flow model was much higher than the current share price of Goodman Fielder at the stock market (Ohlsen 1995). It is worth mentioning here that although the cash flow value was marginally higher than the stock value of Goodman fielder at the share market, the stock prices of Goodman Fielder have in recent years been performing better than the cash flow value. Here, the pointer of the cash flow value could be that the current share price of Goodman Fielder is undervalued. The calculated value of the earning ratio for Goodman Fielder is 9.2. This particular value is slightly different, but comparable with the 11 points value that has been approximated at the Bloomberg site. Our calculated price book value for Goodman Fielder Company is 1.33. Again, this particular value is different, but comparable to the 0.98 points value at the Bloomberg site. Although the price earnings ratio and the price book value are great in providing us with values that we can use to calculate share values for Goodman and fielder, they lack one important component in estimating share values-the future performance of Goodman and Fielder. Through the use of a growth rate, the DDM and cash flow models estimate the future performance of a company while estimating the current share value of a company. Conclusion During the past six years, the financial performance of Goodman Fielder has declined steadily. Such a direction has seen the company’s share value drop over the same period. While we obtained a yield from the dividends model that approximated the current value of shares at the stock market, the more accurate cash flows model yielded a value that was at least th rice the current share price. Since most stock investors like earning dividends, the stock market can thus value shares on the basis of dividend payouts (Strong Walker 1993). Such a direction can explain the seemingly accurate value that was obtained from the dividends evaluation model. However, dividends can at times be misleading on the true value of a company’s share price. After paying a dividend of five cents, Goodman Fielder Company was able to pay only half of that amount in the last financial year. Therefore, as it was implied by the cash flow model, the share prices of Goodman Fielder are thus undervalued at the moment (Strong Walker 1993). References Ali, A. Pope, P. E., 1995, ‘The Incremental Information Content of Earnings, Funds Flow and Cash Flow: The UK Evidence,’ Journal of Business Finance and Accounting, vol. 22 no. 1, pp. 121-126. Atrill, M., Harvey, J. 2006, Accounting an Introduction, Pearson Prentice Hall Baker, H. K. Powell, G. E., 1999 , ‘How corporate managers view dividend policy?’ Quarterly Journal of Business and Economics, vol. 38 no. 2, pp. 17-27. Beneda, N. 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Zmijewiski, M., 1989, â€Å"Cross Sectional Variation in the Stock Market Response to Accounting Earnings Announcements†, Journal of Accounting and Economics, vol. no. 2, pp. 117-141 Edwards, E. O. and Bell, P. W., 1961, The Theory of Measurement of Business Income, University of California Press Fama, E. F. French, K. R., 2001, ‘Disappearing Dividends: Changing Company Characteristics or Lower Propensity to Pay’, Journal of Financial Economics, vol. 60, pp. 3-43. Fazzari, S. M., Hubbard R. G. Perersen, B.C., 1988, â€Å"Financial Constraints and Corporate Investments†, Brooking Papers on Economic Activity, vol. 1, pp. 141-195. Fruhan W. E. Jr., 1981, â€Å"Is Your Stock Worth its Market Value†, Harvard Business Review, vol. 59 no. 3, pp. 124-132 Gozzi, J, Levine, R, Sergio L., 2006, â€Å"Internationalization and the Evolution of Corporate Valuationâ€Å", World Bank Policy Research Working Paper 3933, June Green, J., Stark, A. and Thomas, H., 1996, â€Å"UK Evidence on the Market Valuation of Research and Development Expenditures†, Journal of Business Finance and Accounting, vol. 23 no. 2, pp. 191-216 Head, T 2008, ‘CAPM: Theory, Advantages and Disadvantages, Student Accountant Magazine, June/July 2008, p 50 Hitchner, J, 2006, Financial Valuation: Applications and Models, 2nd Edition, Wiley Finance, John Wiley Sons Inc, New Jersey Jorgenson, D. W. and Siebert, C. D., 1968, â€Å"A Comparison of Alternative Theories of Corporate Investment Behaviour†, American Economic Review, vol. 58 no. 4, 681-712 Kenneth, M. 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Human health Essay Example | Topics and Well Written Essays - 2250 words

Human health - Essay Example The development of stress related heat diseases will continue until they become epidemic if adaptation and remedies to the problem are not put into place. As a result of increases in overall temperatures on the surface of the Earth and increase radiant effects from the sun, the increases in non-communicable disease caused by global temperature elevation will continue to increase as human life begins to change in relationship to the effect. Climate change is about the sun. The way in which the radiation of the sun is distributed by the complex systems that prevent the Earth from scorching or freezing from the balance between radiation and the gasses that radiate into the system is essential to understand in order to understand how temperature affects the human body. It is also essential to understand how the sun’s rays affect the overall nature of human health both through giving vitamins, but also in creating damage to the skin, which is the body’s way of regulating tem perature. ... biodiversity loss, changing timing of growing seasons, coastal erosion and aquifer salinisation, permafrost thaw, ocean acidification, and shifting ranges for pests and diseases†. In other words, the entire natural world is at risk for changes that can be detrimental to existing ecological balance and will result in a shift in the way in which disease and pestilence is spread. The UK government is in a constant effort to pass and implement Bills that will require the reduction of greenhouse emissions because of the importance of this problem (Great Britain 2007). The greenhouse effect is defined by the way in which thermal radiation is absorbed by gases in the atmosphere and then re-radiated into a variety of directions. Some of it is radiated towards the Earth. This re-radiation is being increased by the accumulation of gasses in the atmosphere which in turn is increasing the temperature of the Earth’s surface. The natural greenhouse gasses help the Earth to make human life possible by creating the optimum temperature at which life can thrive. Human activities are now putting that balance in jeopardy as deforestation and burning fossil fuels are putting the effect out of balance (Porteous 2008, p. 314). Human activity has created an anthropogenic influence on the ozone layer which impacts the greenhouse gasses and radiation of the sun since the 1950s, but the debate about its existence still rages on (Muller 2010, p. 12). 2.1 Affects of Climate Change The surface effects will be drought, the inability to grow grains, about 25% of the worlds species will be at risk for extinction, and communities will suffer from heat stress that will result in a number of different manifestations (World Bank 2011, p. 78). Industry capacities will change, meaning that work may

Primary and Community Care Policy Essay Example | Topics and Well Written Essays - 2500 words

Primary and Community Care Policy - Essay Example These families need to be supported on the huge responsibilities (Department of Health 2008). Primary care is diverse and wide in terms of its healthcare with different skilled people who work for the care of patients. Patients can be taken care of by different community service in the comfort of their homes (Walshe and Smith 2011). This paper will review the health care policy relevant to the primary or community care setting, and identify the key factors of the policy and analyze how effective the policy has been in the primary and community environment. This document will analyze some of the major policies that are often discussed. Health care policy Health care policy is the strategic plan, and decision performed to achieve specific health care goal within a society. An explicit health care can make up for a couple of important things (Nolan and Badger 2002). It sets up a vision for the future that assists in establishing targets of reference for the short and medium term goals. It lays down the priorities, and the role expected of different groups, and it creates consensus and informs people on the better way of life. Various policies have been placed to ensure that children are in a position to have the best start of life, and support their families need to give them in the form of a chance to fulfill their potentials. In essence, children and young adults with a grievous life condition are in positions that best equate them to access of high-quality, family centered, sustainable care support, with services provided in a selected setting, as stated by the children, and their families’ desires (Nolan and Badger 2002). The services shall be commissioned and delivered in line with identified local need and national policy and driven by best practice. These practices are associated with the myriad of services that are generally provided in the proposed settings, those that have been chosen by the children, and their families’ (Sines et al 2009). Moreover, disabled children will be considered both at local and national priority in all the settings that the government shall be undertaking. The healthcare communities must be in positions where they can deliver excellent health care services to all their clients without discrimination of the payment of services. According to Smith and Goodwin 2005, better care in all the settings ensures help in improving the outcome for children, young people together with families who might be living with limiting and threatening health conditions (Ashworth et al 2002). Effect created by policy in primary and community environment. Partnership working The government is determined on working together with other partners in the voluntary and private sector in sharing the agenda towards the realization of better changes in the improvement of lives for children who experience life-limiting and life-threatening conditions like the disabled persons. Patient care teams are professionals who are div erse in their line of duty. In fact, the professionals continually communicate on the best ways of taking care and attending to different patient groups, and participate in the care through out. Good working teams are depicted by strong working leadership that is effective, shared obligations, common visions, and cooperation, and obedience, members must also invest in their talents, defined roles, and responsibilities (Cox and Hill 2010). This

The Impact Of Fashion

The Impact Of Fashion Fashion and Identity Long ago people started wanting to stand out from the crowd and tried be different from other people by means of changing their clothing. This was the moment when fashion first appeared. Currently, fashion is sometimes defined as a constantly changing trend. However, it is necessary to say that at present moment fashion has a deeper influence on the life of people and possess more than just trifling reasons for its existence. Fashion through clothing has become an integral part of self-realization of every person. People have been using clothing and accessories for many years to decorate the human body. From various parts of the world people present themselves in different ways and they may follow certain trends and make their own trends and trademarks. Fashion changes regularly with respect to time and location. For many centuries clothes gave out some message by those who wore it. Some trends were maintained in clothing in order to follow the cultural traditions. Fashion and style changed from each era. The major change occurred after the World War I; it shocked everyone by their own styles and morals. In the early days people used to wear clothes in such a way that the appearances of them give out the gender, age, economic class and sometimes their intentions. Fashion is a medium through which people communicate about their occupation, class and wealth. Apart from the dresses we wear there are other features for fashion like hairstyles, makeup and accessories like jewelry. People were more conserve and obligated in the past but it completely changed their life styles by cutting their hair, having tattoos and piercing their body. An important aspect of fashion is the relationship it maintains with the society, which has become more complex in the recent years. Whatever clothes we wear give out a statement to the world about us, which reveals some information about our status in the society. People were much influenced psychologically and physically by fashion and its trends. Fashion is an overlapping and interconnection of bodies which involves in promotion and production of dress and the actions performed by the individuals acting when they are dressed. Fashion clothing examines the connection between colonization and clothing material. People are spiritual and social beings, where their identity is affected by clothes in both realms. Modern tyrannies attacked the spiritual authorities of various cultures directly or indirectly by abandoning the traditional dress they need to wear and wear the clothes of modernity like party clothes of various communist moments and clothes worn by those riding the waves of fashion. Any discussion of clothing must also consider the implications of the style of clothing that is these days overwhelming all other forms of clothing: the modern Western attire. It almost abolished all distinctions among people, race or language, religion or culture or tradition.   Western dresses were developed with a certain conception of what it means to be human. Western dresses first emerged in Medieval Europe among the high classes, in a world still attached to a semblance of tradition, but, like other habits of the Western elite, it eventually became the habit of the masses, once it had become relatively affordable and readily available. There is one area where most of the part has not succumbed to the temptations of the Western mode of dress that is the clothing of women in traditional and Eastern societies. While men have almost completely abandoned their traditional dress and adopted the uniforms of the West, either of the conformist or consumerist type, women not only hold fast to their traditional clothing in their own societies, but that they choose to wear them in the progressive West, while their men are wearing suits, sneakers and jeans. Clothing does depict that a persons character can be changed or modified. It brings even honor and respect to the people. In Macbeth, the image of clothing is used to suggest that throughout the play, Macbeth tries to hide himself from his eyes and from others. Shakespeare wants to keep alive the ironical contrast between the wretched creature that Macbeth really is and the disguises he assumes to conceal that fact. Secondly, honors are thought of as garments to be worn; likewise, Macbeth is constantly represented symbolically as the wearer of robes for honor. Fashion is symbolism and all its attributes forms an outstanding base for cultural and personal identification. Identity is a necessary process of someones personality as it is a part of self-realization of a person that is required for finding a place in life. Now a days fashion is a tool for achieving harmony with the inner world and a way of revealing or concealing peculiarities. Fashion symbols are accepted as long as it does not hurt people around and when we think about fashion and identity it is necessary to remember the ethical side of the issue. Fashion and identity still remains a twofold issue which has lot of positive aspects one can enjoy and share with other people. Of course, there are many factors in the flight to and from tradition and fashion, and perhaps clothing seems a trivial matter with which to be concerned, for clothing does not fully make the identity of a person; as Dickens say in his ‘The Great Expectations. Food and shelter, is an important factor in life, the individual and the environment in which the individual lives helps to interacts with others. However, Fashion is not about utility. An accessory that is merely a piece of iconography used to express individual identity as stated by the famous Lauren Weisberger in her notable work The Devil Wears Prada. Finally to say, Fashion does impact the world largely by significantly depicting ones identity and character through clothing and other trends.

Work for Migrant Workers Essay -- Immigration Labor Essays Papers

Work for Migrant Workers Works Cited Not Included In the early 1970’s, by examining profit rates globally, it was determined that a falling rate of profit existed. The chief method to counter this problem was to seek out cheaper labor. Global factories were then created as the solution to this problem of falling profit rates. With the birth of these global factories, came not only transnational corporations but also transnational migrant workers. Therefore, why is there so much debate concerning migration when it was basically conceived and in many cases continues to be, a solution to a problem? Through global economic integration and the birth of global factories, many â€Å"underdeveloped† countries believed that these corporations would resurrect their dying economies by providing jobs to their many unemployed workers. However, these corporations did not hire the unemployed male but women usually between the ages of sixteen and twenty-one who worked approximately ten hours per day in extremely poor working conditions for very low wages. As a result, this left mostly the unemployed male (and/or the unemployed female over twenty-one) in a position to either migrate for work or become a caretaker for their families’ children. As documented by several of the films we’ve watched during class, many of these unemployed workers chose to migrate – sometimes both mother and father leaving behind children to be cared for by extended family members. One such child when asked if he missed his mother and father replied â€Å"No, because I don’t even know them† which truly epitomizes the migrant workers’ sacrifices for their families!! One might ask why do these migrant and/or global factory workers do the things they do? ... ...storical context of differential power and inequality.† (Schiller, Basch & Blanc-Szanton 8). Again, migrant workers exist because of economic circumstances and the innate sense of survival. Therefore, why are there so many beliefs and debates concerning migration? Because some people just don’t get it! What some seem to be missing in these debates is that with global economic integration obviously come transmigrant workers (and in some cases their families too), so why debate whether they should be allowed to cross borders as they are simply the product of globalization. Further, one should not forget that in many instances, these workers were â€Å"solutions† to economic or wartime problems!! Therefore, I strongly feel that migrant workers must be given the right to work regardless of what country they are from or what country they must work in!

Current Ethical Issues Paper Essay

The Virtual Organization that I have chosen to discuss is the Huffman Trucking Company. The Huffman Trucking Company’s mission is to be a profitable company that is capable of growth and able to adapt in an industry that is intensely competitive in a business environment. The vision of the Huffman Trucking Company is to become a model company to its dedicated employees, stockholders, stakeholders and its customers. The Huffman Trucking Company is based in the United States and its customers are based in the United States as well of its primary customers being the United States government itself. Customers of the Huffman Trucking Company also include automotive parts suppliers and its manufacturers. The Huffman Trucking Company also transports electronic parts to its customers. They also transport raw materials for manufactures of plastic goods as well as many other materials. The Huffman Trucking Company is a medium sized company and currently employs 925 drivers and 425 support personnel. Its facilities are located in Cleveland OH, Los Angeles CA, St. Louis MO and Bayonne NJ. The Huffman Trucking Company currently owns and operates 800 road tractors, 2,100 45 foot trailers and 260 â€Å"roll-on/roll-off’ units. Each piece of equipment undergoes safety maintenance every 25000 miles which ensures the safety of its drivers and the safe arrival of its customer’s precious cargo. The Huffman Trucking Company is privately owned company which was founded by K. Huffman who was a native of, and born in Cleveland OH. K. Huffman founded the Huffman Trucking Company in 1936 with the use of a single tractor-trailer. The trucking company got its start during World War II, the company was able to grow quickly during this time. This growth was due to an increased need for shipping services in 1945 between the Midwest and the East coast. By 1945, the Huffman Trucking Company grew from a single tractor-trailer to 16 tractor and 36 trailers. As a result of high internet sales, the Huffman Trucking Company continues to grow this continued growth allows for the company to remain privately owned. The one ethical issue that I found with the Huffman Trucking Company is that 100% of the company’s Information Software Systems are outsourced to countries outside of the United States. This poses to be an ethical issue because it seems contradictory because the company is owned by an American and was started in the United States and all of its business is conducted inside of the United States. By outsourcing parts of the business, this company that is American owned seems to be capable of cutting corners to save money on staffing its departments. In an effort to save money by outsourcing, the Huffman Trucking Company may lose the loyalty of its employees and its customers. Its employees may begin to feel as though their current positions within the company are not stable positions and could be at stake of being outsourced as well. With that fear may come a decrease in trust of their employer; the Huffman Trucking Company. When employee ratings are low, productivity decreases and can have an effect on the company on a larger scale. Employees may be come unproductive and as a result of poor customer service, sales decrease and put the company in jeopardy. A once large and long standing company will crumble if the trust of its employees is lost. It may be wise for the business to reconsider outsourcing an entire department and giving away jobs that are greatly needed here in the United States.