The Cost of Capital

THE COST OF CAPITALQ1. Place the creditor's hierarchy in the correct order. (P;D)Ordinary Shareholders 1Unsecured Creditors 2Creditors with floating charges 3Preference Shareholders 4Creditors with fixed charges 5(2 marks) Q2. Gecko Co. has just paid a dividend of $0.65/share ; the current share price in the market in the stock market is $3.6. Calculate the cost of equity? (FIB)3613156159500Ke %(2 marks) Q3. A share has a current market value of 86c, and the last dividend paid by the company was 7.23c. The expected annual growth rate of dividends is 7%. Calculate the cost of equity capital? (FIB)4013205270500Ke %(2 marks) Q4. Reeve Co. is about to pay a dividend of $1 per ordinary share. The Net assets of the company are $500,000. The Earnings for the company is $180,000.The Current share price is $7 per share. Reeve Co. has in total 100,000 Ordinary shares. What is the cost of equity to the nearest whole percentage? (MCQ)27%30%33%35%(2 marks) Q5. Sago Co.'s has 5 million shares in issue & their dividend payments in the years were as follows:End of the year 20X7 20X8 20X9 20Y0 20X1Dividends ($000) 250 275 295 222 350The current share price of Sago Co is $2/share. Calculate the cost of equity? (MCQ)11%12.6%13%15.1%(2 marks) Q6. Amok Co. is about to pay a dividend of 20c per share. The share price is 300c. The rate of return is 16% & 25% of the earnings is a dividend. Calculate the cost of equity? (FIB) 3917954508500Ke %(2 marks) Q7. Which of the following is/are the assumptions used by Dividend valuation model (DVM)? (MRQ) Income stream for the shareholders are the dividends paid by the companyDividends are constant or grow at a fixed rateThe model assumes there is no need to incorporate any riskThe dividends paid by the company are till eternity (2 marks) Q8. Which of the following statements is a disadvantage for Dividend valuation model (DVM)? (MCQ)The model takes capital gains of shareholders into accountIt assumes huge cost is applicable to the issue of new sharesNo allowance is made for the taxationThe growth in earnings is incorporated(2 marks) Q9. Shares in BLACK and WHITE have a beta of 0.75. The equity risk premium is 5% and the risk-free rate of return is 3%. What is the cost of equity capital for BLACK and WHITE? (FIB)4921256223000Ke %(2 marks) Q10. The current average market return being paid on risky investments is 14%, compared with 7% on Treasury bills. Halo Co cost of equity is 17.5%. What is the beta factor? (FIB)4921256350000Beta (2 marks) Q11. The Government securities return is 7%. The overall stock market return is 11%. The expected beta is 0.9. What would be the share's expected value if it is expected to earn an annual dividend of 5.3c, with no capital growth? (FIB) 2006606096000Cents (2 marks) Q12. All companies given below operate in the same business industry. They all have same characteristics except for the fact that their capital structures are different, which are as follows:Loco Co. Choco Co. Rocco Co.Debt from the total market 27 35 49Equity from the total market 73 65 51The equity beta of Rocco Co. is 1.32 ; the equity beta of Loco Co. is 0.74.What range will Choco Co. beta fall? (MCQ)The beta of Choco Co is higher than 1.32The beta of Choco Co. is above 0.74The beta of Choco Co. is between 0.74 ; 1.32The beta of Choco Co is lower than 0.74(2 marks) Q13. Investments required return can be predicted using the Capital asset pricing model. The risk-free rate of return is 5%. Investment Beta Value Return ValueAlpha 1.5 13%Beta 0.7 15.3%Mega 1 12%Zeta 1.2 12.2%If Zeta is correctly priced then select the appropriate option for each investment? (P;D) Alpha UnderpricedBeta Correct PriceMega Overpriced(2 marks) Q14. Beak Frees Co. makes biscuits and cookies and there are some factors in the market that the investors are unable to distinguish either they are a systematic or un-systematic risk to them. Help the investors in choosing the appropriate Risk? (HA) The immediate increase in interest rates SYSTEMATIC UNSYSTEMATIC Price increments in Flour used by the company SYSTEMATIC UNSYSTEMATICThe downfall of the economy in which the company operates SYSTEMATIC UNSYSTEMATICIndustrial unrest in one of the factories SYSTEMATIC UNSYSTEMATIC (2 marks) Q15. Which of the following assumption is not related to Capital asset pricing model? (MCQ)Investors have a spread of investment in multiple companiesThere are no taxes applicableIt ignores earning a potential of the companyAll forecast made are for single period transaction(2 marks) Q16. The systematic risk of a portfolio relative to the market portfolio is measured using the beta factor. Which of the following statements is/are true? (MRQ)If Beta is greater than 1, the security is less sensitive to systematic risk than the marketIf Beta is lesser than 1, the security is less sensitive to systematic risk than the marketIf Beta equals 1, the security's exposure to systematic risk matches the marketIf Beta equals 0 the security is risk-free(2 marks) Q17. Which of the following is an advantage of Capital asset pricing model? (MCQ)It provides a basis for establishing risk-adjusted discount rates for capital investment projects.Ignores taxation for the investorsIt is unable to distinguish between dividends & capital gainsIndividual companies have different systematic risk characteristics of their shares(2 marks) Q18. The cost of equity of a company is directly unaffected by which of the following? (MCQ)The expected market returnThe company's expected betaThe expected return on the company's assetThe government securities return (2 marks) Q19. 10% irredeemable preference shares having a share price-dividend of $7/share. The tax rate is 27%. Calculate the cost of preference shares if the par value is $0.6 correct to two decimal places? (FIB) 4521207747000Kp %(2 marks) Q20. Tangerine Co. wants to invest in an Investment appraisal project. The company decided to invest using a bank loan. The company borrowed 7% $200,000 loan for the investment. What will be the cost of debt if the tax rate is 25%? (FIB)4521207175500Kd %(2 marks) Q21. 3G Co. has in issue 12% irredeemable loan notes, currently trading at $105 cum-interest.If the tax rate changes from 27% to 20% for 3G co. then the cost of debt would likely: (MCQ) Decreases to 8.4%Decreases to 9.42% Increases to 9.42%Increases to 10.3%(2 marks) Q22. A company issued their 10% irredeemable loan notes at 150. The current market price is $75. The company is paying corporation tax of 28%. What is the cost of loan notes? (FIB)4521206985000Kd %(2 marks) Q23. A company has in issue 8% redeemable debt with three years to redemption at par. The current market value of the debt is $107.59. The corporation tax rate is 30%. What is the interest cost to the company? (MCQ)$8.6$32.3$8$5.6(2 marks) Q24. A company has in issue 5% redeemable loan notes having a current market value of $103/bond. These bonds will be redeemed in three year time at par value. Calculate the cost of debt if the tax rate is 29%? (MCQ)2%2.15%2.63%3% (2 marks) Q25. A 6% irredeemable preference shares are traded for $1.5 cumulative dividend. The tax rate is 30%. What is the cost of preference shares nearest to two decimal places? (FIB) 4521207810500Kp %(2 marks) Q26. A 3% 60,000 irredeemable preference shares are being traded for $0.5 ex. Dividend. What is the cost of preference shares? (FIB)4521206985000Kp %(2 marks) Q27. A company has irredeemable loan notes currently trading at $36 ex-interest. The coupon rate is 11% and the rate of corporation tax is 30%.What is the return required by the debt providers before tax is applicable? (MCQ)21.4%27.6%30.6%33%(2 marks) Q28. Sitcom Co. has a 5% redeemable loan notes which are redeemable at a 10% premium in 5 years' time. The current market value is $100 per loan note. The tax rate is 25%. Calculate the cost of debt? (MCQ)2.7%3.53%4%5.62%(2 marks) Q29. A company has issued convertible loan notes which are due to be redeemed at a 5% discount in five years' time. The coupon rate is 7% and the current MV is $85. Alternatively, the investor can choose to convert each loan note into 10 shares in five years' time. The company pays tax at 30% per annum. The company's shares are currently worth $9 and their value is expected to grow at a rate of 4% pa. Find the post-tax cost of the convertible debt to the company? (FIB)4521207683500Kd %(2 marks) Q30. Cobol Co. has in issue 6% convertible bonds having a market value of $115. These bonds can redeem at a premium of 2% in two years' time or can be converted to 25 ordinary shares in two years. The current share price $4 and its expected growth is 3% per annum. The corporation tax rate is 29%. Calculate the net present value if discount factor is 4%? (MCQ) $1.53$4.26$8.03$10(2 marks) Q31. Fichte Co. has in issue 12% convertible bonds having a market value of $97. These bonds can be converted into 40 ordinary shares in seven years' time or can be redeemed at 12% premium in seven years' time. The current share price is $3 with an annual growth rate of 4%.The tax rate per annum is 24%. Choose whether bonds should be converted or redeemed in seven years' time? (MCQ)$108.64 Redemption $157.91 Conversion$108.64 Conversion$157.91 Redemption (2 marks) The following information is for Q32 & Q33:Trico Co. has the capital structure:Capital Structure $ m4 million $0.2 ordinary shares 0.810% irredeemable loan notes 13.58% Preference shares 10Reserves 15Total 39.3The loan notes are quoted and the ordinary shares are currently quoted at $50 and $4 respectively in the market. The cost of equity for Trico Co. is 11% and the current corporation tax is 30%. The preference shares are currently traded for $2.25 ex. Dividend. Q32. Calculate the weighted average cost of capital (WACC) for Trico Co. using the Book values? (MCQ) 8.45%10.37%11.13%11.27%(2 marks) Q33. Calculate market value weighted average cost of capital (WACC) for Trico Co.?9.24%9.97%10.79%12.38%(2 marks) Q34. Zeeman Co. has 5m $1 ordinary shares, the reserves are held at $10m and there are 15% irredeemable loan notes of $9m. The market value of ordinary shares is $5, and the loan notes are currently traded at $80. Zeeman Co. has just paid a dividend of $0.7 and its corporation tax is 26%. What is the cost of capital? (MCQ)13.98%14.23%16.76%17.89%(2 marks)THE COST OF CAPITAL (ANSWERS)Q1. Creditors (payables) hierarchy:Creditors with fixed charges 1Creditors with floating charges 2Unsecured Creditors 3Preference Shareholders 4 Ordinary Shareholders 5 Q2. 18.1%Ke = (0.65 à · 3.6) Ãâ€" 100 = 18.1% Q3. 16%Ke = (7.23 [1 + 0.07] à · 86) + 0.07 = 0.1599 0.1599 Ãâ€" 100 = 16% Q4. DGrowth = b Ãâ€" re b = (1 – [1à ·1.8]) = 0.44 re = (1.8à ·5) = 0.36g = (0.44 Ãâ€" 0.36) Ãâ€" 100 = 15.84%Ke = [1Ãâ€"(1+15.84%)] à · (7 – 1) = 0.1931 + 15.84% = 0.351Ke = 0.351 Ãâ€" 100 = 35% Q5. Bg = [(350 à · 250) 1 à · (5-1) – 1] Ãâ€" 100 = 8.8%D1 = (350 à · 5000) Ãâ€" (1 + 8.8%) = 0.076Ke = [(0.076 à · 2) + 8.8% ] Ãâ€" 100 = 12.6% Q6. 12%g = (0.75 Ãâ€" 0.16) Ãâ€" 100 = 12%D1 = 0.2 (1 + 12%) = 0.224Ke = [0.224 à · (3 – 0.2)] = 0.08 + 12% = 0.2 Ãâ€" 100 = 12% Q7. All statements below are assumption of DVM: Income stream for the shareholders are the dividends paid by the companyDividends are constant or grow at a fixed rateThe dividends paid by the company are till eternity The model assumes there is no need to incorporate any risk. This is weakness not an assumption for Dividend growth model. Q8. CThe model does not take capital gains of shareholders into accountIt assumes no cost is applicable to the issue of new sharesNo allowance is made for the taxation (Disadvantage)The growth in earnings are ignored Q9. 6.75%Ke = 3 + (5 Ãâ€" 0.75)Ke =6.75% Q10. 1.517.5% = 7 + (14 – 7) Ãâ€" (beta)Beta =1.5 Q11. 50cKe = 7 + (11 – 7) Ãâ€" (0.9) = 10.6%Share price = 5.3c à · 10.6% = 50c Q12. CThe higher the debt, the riskier the company. The higher the equity, the safer the company.Loco Co. is safer as Debt lower & Rocco Co is riskier as debt is higher which indicates that Choco Co falls between both betas as its debt is between both companies debt. Q13.Alpha OverpricedBeta UnderpricedMega Correct PriceIf Investment Zeta is correctly priced, the actual return via CAPM will be 12.2 = 5 + 1.2 (Rm – 5)Rm = 12 Investment Alpha should provide a return of 5 + 1.5 (12 – 5) = 15.5Investment Beta should provide a return of 5 + 0.7 (12 – 5) = 9.9Investment Mega provides a return of 5 + 1 (12 – 5) = 12Investment Alpha does not provide a high return so is overpriced. Investment Beta provides too high return so is underpriced. Investment Mega provides the correct return so correct priced. Q14.The immediate increase in interest rates SYSTEMATIC Price increments in Flour used by the company UNSYSTEMATICThe downfall of the economy in which the company operates SYSTEMATIC Industrial unrest in one of the factories UNSYSTEMATICSystematic risk cannot be diversified by the investorUnsystematic risk can be diversified by the investor Q15. CInvestors have a spread of investment in multiple companies (Well-diversified portfolio)There are no taxes applicable (Indication of being in a perfect capital market)It ignores earning a potential of the company (Disadvantage of DVM)All forecast made are for the single period transaction (Considers single transaction rather than multiple transactions at once) Q16.If Beta is greater than 1, the security is less sensitive to systematic risk than the market (True)If Beta is lesser than 1, the security is less sensitive to systematic risk than the market (False, It is highly sensitive to systematic risk than the market)If Beta equals 1, the security's exposure to systematic risk matches the market (True)If Beta equals 0 the security is risk-free (True) Q17. AIt provides a basis for establishing risk-adjusted discount rates for capital investment projects. (Advantage)Ignores taxation for the investors (Disadvantage)It is unable to distinguish between dividends ; capital gains (Disadvantage)Individual companies have different systematic risk characteristics of their shares (Disadvantage) Q18. CThe formula for required return is Ke = risk-free rate + beta Ãâ€" (market rate – risk-free rate) Q19. 0.86%D= 0.6 Ãâ€" 10% = 0.06Ex-Dividend = 7 – 0.06 = 6.94Kp = (0.06 à · 6.94) Ãâ€" 100 = 0.86% Q20. 5.25%Kd = 7% Ãâ€" (1 – 25%) = 0.0525 Ãâ€" 100 = 5.25% Q21. DKd = [(12% Ãâ€" 100) Ãâ€" (1 – 27%)] à · (105 – 12) = 0.094 Ãâ€" 100 = 9.42%Kd = [(12% Ãâ€" 100) Ãâ€" (1 – 20%)] à · (105 – 12) = 0.103 Ãâ€" 100 = 10.3%Increases to 10.3% Q22. 9.6%Kd = [ (10% Ãâ€" 100) Ãâ€" ( 1 – 28%) ] à · 75 = 0.096 Ãâ€" 100 = 9.6% Q23. DInterest = (8% Ãâ€" 100) Ãâ€" (1 – 30%) = $5.6 Q24. BYear Cash flow ($) DF (5%) Present value ($) DF (10%) Present Value ($)MV/Bond 0 (103) 1 (103) 1 (103)Interest 1-3 3.55 2.723 9.67 2.487 8.83Redemption 3 100 0.864 86.4 0.751 75.1NPV (6.93) (19.07)IRR = 5 + [-6.93 à · (-6.93 – (-19.07)] Ãâ€" (10 – 5) = 2.15% Q25. 4.17%D= 1 Ãâ€" 6% = 0.06Ex-Dividend = 1.5 – 0.06 = 1.44Kp = (0.06 à · 1.44) Ãâ€" 100 = 4.17% Q26. 6%D= 1 Ãâ€" 3% = 0.03Kp = (0.03 à · 0.5) Ãâ€" 100 = 6% Q27. CAs the question states before tax the calculation will be:Kd = [(11% Ãâ€" 100) à · 36] Ãâ€" 100 = 30.6% Q28. DYear Cash flow ($) DF (5%) Present value ($) DF (10%) Present Value ($)MV/Bond 0 (100) 1 (100) 1 (100)Interest 1-5 3.75 4.329 16.23 3.791 14.22Redemption 5 110 0.784 86.24 0.621 68.31NPV 2.47 (17.47)IRR = 5 + [2.47 à · (2.47 – (-17.47)] Ãâ€" (10 – 5) = 5.62% Q29. 9.7%Year Cash flow ($) DF (5%) Present value ($) DF (10%) Present Value ($)MV/Bond 0 (85) 1 (85) 1 (85)Interest 1-5 4.9 4.329 21.21 3.791 15.58Convertible 5 109.5 0.784 85.85 0.621 68NPV 22.06 (1.42)Redemption= 85 Ãâ€" 95% = 80.75Convertible= 10 Ãâ€" [9 Ãâ€" (104%)5 ] = 109.5IRR = 5 + [22.06 à · (22.06 – (-1.42)] Ãâ€" (10 – 5) = 9.7% Q30. AYear Cash flow ($) DF (4%) Present value ($)MV/Bond 0 (115) 1 (115)Interest 1-2 4.26 1.886 8.03Redemption 2 117.3 0.925 108.5NPV 1.53Redemption= 115 Ãâ€" 102% = 117.3Convertible= 25 Ãâ€" [4 Ãâ€" (103%)2 ] = 106.1 Q31. BRedemption= $97 Ãâ€" 112% = $108.64Conversion= 40 Ãâ€" [3 Ãâ€" (104%)7] = $157.91 Q32. DKp= [(8% Ãâ€" 1) à · 2.25] Ãâ€" 100 = 3.56%Kd= [(10% Ãâ€" 100) (1 – 30%)] à · 50 = 0.14 Ãâ€" 100 = 14% Book Value ($m) Cost ($m)Equity (15+0.8) 15.8 15.8 Ãâ€" 11% 1.738Preference shares 10 10 Ãâ€" 8% 0.8Debt (irredeemable) 13.5 13.5 Ãâ€"14% 1.89Total 39.3 4.428WACC = (4.428 à · 39.3) Ãâ€" 100 = 11.27% Q33. CKp= [(8% Ãâ€" 1) à · 2.25] Ãâ€" 100 = 3.56%Kd= [(10% Ãâ€" 100) (1 – 30%)] à · 50 = 0.14 Ãâ€" 100 = 14% Market Value ($m) Cost ($m)Equity 4m Ãâ€" 4 =16 16 Ãâ€" 11% 1.76Preference shares 4m Ãâ€" 2.25 = 9 9 Ãâ€" 8% 0.72Debt (irredeemable) (13.5 à · 100) Ãâ€" 50 = 6.75 6.75 Ãâ€"14% 0.945Total 31.75 3.425WACC = (3.425 à · 31.75) Ãâ€" 100 = 10.79% Q34. AKe= ($0.7 à · $5) Ãâ€" 100 = 14%Kd= [(15% Ãâ€" 100) (1 – 26%)] à · 80 = 0.1387 Ãâ€" 100 = 13.87%Market Value ($m) Cost ($m)Equity 5m Ãâ€" 5 =25 25 Ãâ€" 14% 3.5Debt (9 à · 100) Ãâ€" 80 = 7.2 7.2 Ãâ€" 13.87% 1Total 32.2 4.5WACC = (4.5 à · 32.2) Ãâ€" 100 = 13.98%

Coca-Cola Market Opportunity

The Coca-Cola Company has long been a worldwide business. The first soda fountain sales to Canada and Mexico were recorded in 1897 with the first international bottler established in Panama in 1906. Coca-Cola entered China in 1927 and the 100th country, Sierra Leone, in 1957. Today, the Coca-Cola Company is the largest beverage company with the most extensive distribution system in the world. In the first two decades of the twentieth century, the international growth of Coca-Cola had been rather haphazard. It began in 1900, when Charles Howard Candler, eldest son of Asa Candler, took a jug of syrup with him on vacation to England. A modest order for five gallons of syrup was mailed back to Atlanta. The same year, Coca-Cola travelled to Cuba and Puerto Rico, and it wasn't long before the international distribution of syrup began. Through the early 1900s, bottling operations were built in Cuba, Panama, Canada, Puerto Rico, the Philippines, and Guam (western Pacific island). In 1920, a bottling company began operating in France as the first bottler of Coca-Cola on the European continent. In 1926, Robert W. Woodruff, chief executive officer and chairman of the board, committed the company to organized international expansion by establishing the Foreign Department, which in 1930 became a subsidiary known as the Coca-Cola Export Corporation. By that time, the number of countries with bottling operations had almost quadrupled, and the company had initiated a partnership with the Olympic Games that transcended cultural boundaries. Coca-Cola and the Olympic Games began their association in the summer of 1928, when an American freighter arrived in Amsterdam carrying the United States Olympic team and 1,000 cases of Coca-Cola. Forty thousand spectators filled the stadium to witness two firsts: the first lighting of the Olympic flame and the first sale of Coke at an Olympiad. Dressed in caps and coats bearing the Coca-Cola trademark, vendors satisfied the fans' thirst, while outside the stadium, refreshment stands, cafes, restaurants, and small shops called ‘winkles' served Coke in bottles and from soda fountains. The company began a major push to establish bottling operations outside the USA. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, and South Africa. By the time the Second World War began, Coca-Cola was being bottled in forty-four countries, including those on both sides of the conflict. Far from devastating the business, the war simply presented a new set of challenges and opportunities for the entire Coca-Cola system. The entry of the United States into the war brought an order from Robert Woodruff in 1941 ‘to see that every man in uniform gets a bottle of Coca-Cola for 5 cents, wherever he is and whatever it costs the Company. This effort to supply the armed forces with Coke was being launched when an urgent cablegram arrived from General Dwight Eisenhower's Allied Headquarters in North Africa. Dated 29 June 1943, it requested shipment of materials and equipment for ten bottling plants. Prefaced by the directive that the shipments were not to replace other military cargo, the cablegram also requested shipment of 3 million filled bottles of Coca-Cola, along with supplies for producing the same quantity twice monthly. Within six months, a company engineer had flown to Algiers and opened the first plant, the forerunner of sixty four bottling plants shipped abroad during the Second World War. The plants were set up as close as possible to combat areas in Europe and the Pacific. More than 5 billion bottles of Coke were consumed by military service personnel during the war, in addition to countless servings through dispensers and mobile, self-contained units in battle areas. But the presence of Coca-Cola did more than just lift the morale of the troops. In many areas, it gave local people their first taste of Coca-Cola. When peace returned, the Coca-Cola system was poised for unprecedented worldwide growth. From the mid-1940s until 1960, the number of countries with bottling operations nearly doubled. As the world emerged from a time of conflict, Coca-Cola emerged as a worldwide symbol of friendship and refreshment. The Coca-Cola Company is now operating in more than 200 countries and producing nearly 400 brands; the Coca-Cola system has successfully applied a simple formula on a global scale: provide a moment of refreshment for a very small amount of money-a billion times a day. The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought pleasure to thirsty consumers around the globe. 1. Trace the Internationalisation / Globalisation model of coco cola. 2. What were the Triggers & Motives for coco cola to global? 3. Why do you think coco cola was so successful despite the fact that ‘food & drinks’ preferences are highly local like in case of tea/ coffee?

The Spiritual-Needs Assessment Tool Essay Example | Topics and Well Written Essays - 1000 words

The Spiritual-Needs Assessment Tool - Essay Example From this discussion it is clear that  the reporter made several significant discoveries about the patient that he chose to assess. He found out that morality and ethics were high on his list of spiritual needs. The illness he had was a challenge and struggle to him and he needed guidance and support in maintaining a commitment to his principles that for a foundation of his spiritual life. For example, because of the realization that he could not make the decision by himself to do as he pleases in regard to his spiritual needs, for instance going to the mass, he requested that he be given particular times both in the morning and in the evening so that he can pray without disturbance. He also requested that his belongings for his spiritual needs be respected.  This study outlines that the author of the essay  discovered that the patient wanted his spiritual needs to be respected by the health care team and that he could put his trust on them to do exactly that. To him respect an d trust were very important as aspects that could help the healthcare team to fulfill his spiritual needs. His requests acted as an agreement between him and the healthcare team who will be providing care for him while he was in hospital. Therefore, this agreement ought to be respected.  The reporter discovered that the patient was not ready at any cost to compromise his spiritual needs even though he was ill.

Marketing communications Essay Example | Topics and Well Written Essays - 750 words

Marketing communications - Essay Example It initiates as mental imageries such as emotions, pictures, thoughts and ideas. Mental images in formed when one person desires to convey these images with another. The sender is described as a person who wants to communicate. Moreover, these images can be transferred by sender through translation and transpose of these images in to symbols. This process of transposing images that can be understood by receiver is known as encoding. The next level of communication and transmitting message to receiver is done through visual media, printed materials, telephone communication and face-to-face interaction (Fill, 2009, p.64). Additionally, the decoding process occurs; when message is being effectively received by another individual. The effective process of communication occurs, when message is decoded precisely as proposed and envisioned by sender. When feedback are received in the form of changed behaviour and actions, then sources will understand that communication have been sent succes sfully. This entire process of communication is known as basic communication model. In 1948, Hazel Gaudet, Bernard Berelson and Paul Lazarsfeld formulated two-step flow model of communication in the book the People Choice. This communication model is one of the theories of communication that suggests and recommends that mass media outlets have less influence on determining public opinion than that of interpersonal interactions. This model is also known as Multistep Flow Model. The Two Step Flow of Communication Model states that ideas and notions flow from mass media to judgment frontrunners to widespread population. It is believed that opinion formed by most people is primarily based on opinion leaders. These opinion leaders are those who interpret based on their personal views and judgments. Moreover, they are exposed to particular media content. These opinions are infiltrated by opinion leaders with the help of general public

Theories, models and techniques on Business Environment, Marketing and Assignment

Theories, models and techniques on Business Environment, Marketing and Human Resources - Assignment Example The growth of businesses in the modern market is depended on their ability to face the market’s pressures – as these pressures are reflected to the delays and the difficulties each organization faces when trying to secure its position towards its rivals. Current paper is important for the following reason: it explains the potential relationship among key organizational aspects, such as business environment, marketing and human resources. Moreover, it clarifies the terms under which the above frameworks can be developed. At this point, the reference to the theories and the techniques used for promoting organizational growth – especially in regard to the above frameworks – has been considered as necessary for highlighting the following issue: organization is a complex entity – meaning its processes but also its needs. For responding to the needs of organizations, as parts of the business environment in all markets worldwide, theorists and researchers have developed appropriate theoretical and practical models. It has been proved that the management of critical organizational factors can be based on tools and theories which have similar characteristics; however, the level at which these theories and techniques are effective is not standardized. The literature published in the specific organizational sectors, those mentioned above, has been carefully reviewed – as possible.... It has been proved that the management of critical organizational factors can be based on tools and theories which have similar characteristics; however, the level at which these theories and techniques are effective is not standardized. The literature published in the specific organizational sectors, those mentioned above, has been carefully reviewed – as possible. It has been proved that even if business operations are likely to be equally addressed – in terms of their needs – there are organizational sectors which are likely to attract more the attention of organization’s management team – for example HR needs are often set as a priority when designing the organizational plans while other aspects of the organization are not given equal attention, for example, the marketing of the firm’s products/ services. Such phenomenon is explained by the following fact: all firms are likely to be based on certain sectors/ operations. These sectors are not equal, in terms of their contribution in the development of daily organizational tasks. For instance, employees are traditionally considered as being the most important organizational asset; however, today, the role of employees within organizations has been changed – not only financially. The theories, models and techniques presented below reflect this inequality but at the same time they highlight the following problem: the monitoring on the firm’s practices is often problematic, meaning that employees are not always aware of their obligations towards the organization. The use of the theories, models and techniques suggested above could help to the increase of effectiveness of organizational plans – since the planners of the

Corporate Fundraising Essay Example | Topics and Well Written Essays - 1750 words - 1

Corporate Fundraising - Essay Example The Relevant Laws Green Coffee Company Limited a Fair Trade and Rainforest Alliance certified company, thus it has earned a significant extent of goodwill over the years (Rainforest Alliance 2013). In this regard, issue offer (sec 706), sale offer (sec 707) of securities need to be disclosed. In case of right issue, disclosures are not necessary (sec 708AA), apart from the disclosures on sale offer under section 707, there are certain sale offer which do not need discloses (sec 708A). Corporations Act 2001 prohibits the organisation which raises funds to execute its endeavour without the proper disclosures of the documents (Section 727) (AustLII n.d.). If an organisation offers 20 issues in 1 year then the publicity and the advertisements for issues will be restricted fir them. Prospectus issued by the company, in this case Green Coffee Company Ltd, will be a very important document relating to investments. Prospectus protects the investors by educating them regarding the investment proposals. Australian Accounting Standards Board continuously closely observes the work of the capital markets and makes amendments on the rules prevailing in the countries whenever necessary. On the other hand, Australian Securities and Investments Commission (ASIC) works as a legislator and regulator. With regard to fundraising, Green Coffee Company Ltd needs to disclose various kinds of documents (sec 705). In case of full disclosure made in prospectus, a company needs to include the terms like content (sec710, sec 711, sec 713), procedure (sec 717), liability (sec 728 and sec 729) and defences (sec 731, sec 733); sort form of prospectus only needs to disclose its content (sec 712) (Thomson Playford 2006). Certain other kind of documents includes profile statement (sec 721) and offer information statement (sec 709). Details are given in the website of Commonwealth Consolidated Acts namely â€Å"www.austlii.edu.au†. Disclosures are not necessary when $10 million (includes t he received amount at past) or less is the targeted amount (ASIC 2012). Application of the Law Green Coffee Company Ltd. desires to expand its business in Vietnam. Investment in foreign country involves a substantial proportion of capital expenditure. Capital formation of an organisation includes debt financing and equity financing, which constitute capital structures of the firm. An optimum capital structure provides the firm better results. It is a registered company, for this reason it has to carry out its fundraising activities in consideration with the Chapter 6D of the Corporations Act 2001 (Cth). As it is a public limited company so it has the opportunities to raise funds from the country which helps this organisation in terms of its expansion program. Before the distribution of the prospectus in the market, Green Coffee Company Ltd. has to ensure that it is providing its financial data which are correct from all the ends. The company also needs to evaluate the future earning potentials of the firm in respect of Vietnam. Vietnam’s guidance for the operations needs to be scrutinised. Forecasting techniques for cash inflows and outflows has to be compared. Owing to the reason that Chapter 6D deals with the fundraising activities, thus at the time the preparation of prospectus certain aspects need to be take into

A Doll's House Play Essay Example | Topics and Well Written Essays - 750 words

A Doll's House Play - Essay Example It would also be discussed whether her decision to leave are justified or not. The Fisher girl costume that Nora wore in the play symbolizes the pretentious lifestyle that she was living as this was used to show that she was hiding under this costume. Italy as used in the play also symbolizes the false image that was portrayed by Nora. The macaroon that was eaten by Nora also showed Nora’s deceit to her husband. Nora was deceptive to her husband and she definitely hid her feelings from him and this was the symbolism of the Macaroon in the play. â€Å"Are you happy now? There - there - there - don't look like a frightened little dove - the whole thing's just sheer imagination. Now, you must rehearse your tarantella - with the tambourine. I'll go sit in the inner room and shut the doors, so you can make all the noise you like - I shan't hear a thing.† (Ibsen 190). The tarantella dance by Nora also suggests her unhappiness as a wife and a mother. This tarantella dance was used to show Nora’s struggle with life and her agitation with her husband. â€Å"Nora, darling, you're dancing as if your life depended on it!† (Ibsen 204). Evidence to show that Nora is unhappy with the life that she leads as a wife and mother was when she realized that she had been hiding under another person’s shadow and pretending to be what she was not. ... She was also not happy that, she had to secretly work in order to pay off her loan as it was illegal for a woman to procure a loan without the consent of her husband. These were signs that she was unhappy with the way she lived as a wife and a mother as she could no longer continue living like that. Nora was blackmailed by Krogstad and it was actually after this that readers would learn that she is unhappy. She then begins to consider her concept of freedom and decide within herself whether she was happy or not. It was at this point that the reader begins to discover that she was unhappy with the life she led as a wife to Torvald. Thus, it was clear that Nora was unhappy with the manner at which she had been made to cope with the orders and edicts of her husband. â€Å"Still it was tremendous fun sitting there working and earning money. It was almost like being a man.† (Ibsen 162) It was now clear that she wanted to break free from her familial obligations as she sought to pur sue her own ambitions. Nora made her decision to leave after coming to the sudden realization that she was living her father’s life. She discovered that her marriage was actually contracted in order to please her father and the dictates of the society. It was Nora’s realization of the truth about her life that influenced her decision to leave her husband; quit her marital status and abandon her children. She wanted to be independent and she was of the opinion that, being under a man that her heart was not right with would hinder her from really being the kind of independent woman she would have loved to be. â€Å"It's a sweet little bird, but it gets through a terrible amount of money. You wouldn't believe how much it costs a man when he's got a little song-bird like you!† (Ibsen