The Shareholder Wealth Maximization Finance Essay - Free Essay Example

Sample details Pages: 4 Words: 1091 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? To understand and make it clearer, we should pay attention to several definitions of shareholder, stakeholder and theories of shareholder and stakeholder and what the differences between them are, and what debates between them? with the long-term ability of the corporation to remain a going concern. From the above views of the shareholder and stakeholder theory, I support the ideal shareholder wealth maximization should be a superior objective over stakeholder interest because as follows: As we know, from a modern financial perspective the main objective of a firm is to maximize its value to its shareholder. Value is represented by the market price of the companys common stock, which is a reflection of the 3 key variables: timing of cash flows, magnitude of cash flows and the risk of the cash flows that investors expect a firm to generate over time. Normally, profit maximization after tax (ETA) is regarded as the proper objective of the firm, but it is regarded as a goal of maximizing shareholder wealth because total profits are not as important as earnings per share (EPS).ÂÂ  A firm could always raise total profits by issuing stock and using the proceeds to invest in Treasury bills for earnings.ÂÂ  Even maximizing profit per share, but, is not a completely suitable goal, firstly because it does not show the time factor or period of expected interest. Secondly, next mistake of maximizing EPS is that it does not take interest in the risk or uncertainty of the future return flow. So, there are several investment projects will more risky than others.ÂÂ  Consequently, the prospective flow of EPS would not be more ensured if these projects were undertaken.ÂÂ  Besides, a firm will be more or less risky to be conditional on the amount of debt in relation to equity in its capital structure.ÂÂ  This risk is considered as financial risk and it contributes to the uncertainty of the future flow of earnings per share too.ÂÂ  For instance, there are two companies A and B with the same of the expected future EPS. However, the earnings flow of the company A depends significantly more uncertainty than the earnings flow of the company B, so the market price per share of the company As stock may be lower. For the mentioned-above reasons, a maximization objective of EPS may not be the same as maximizing market price per share.ÂÂ  The market price of a firms stock represents the focal judgment of overall market participants as to what the value is of the particular firm.ÂÂ  It mentions to present and prospective EPS, the timing, duration, and risk of these returns, and any other factors relating to market price of stock. The market price is regarded as a performance index of firms progress and this let us know that how well management is running in behalf of its stockholders. In some circumstances the management goals perhaps differ from those of the firm stockholders.ÂÂ  In a corporation (especially it goes public) whose stock is extensively held, stockholders give a bit of their control or influence over the company operations.ÂÂ  When the company control is separated from its ownership, management may not completely try their best to do jobs for the best benefits of the stockholders. They perhaps feel satisfied to run and seek a growth level accepted and concerned a lot with maintaining their own existence than with firms value maximization to its shareholders.ÂÂ  The top important purpose to this management may be its own survival.ÂÂ  Consequently, this leads to unwilling to face with reasonable risks for their fear of making a mistake, hence becoming easily seen to the suppliers of capital from outside. Then, these suppliers may give out a threat to managements existence. To exist over a long time, management has to know to behave by a way that is reasonably suitable with maximization of shareholder value. However, the objectives of th e parties are not always necessary the same.ÂÂ  Maximizing shareholder value, subsequently, is a consistent example for how a firmÂÂ  shouldÂÂ  act.ÂÂ  When management does not follow these guides, we must recognize this as a restriction and make decision for the opportunity cost. This cost is measurable only if we decide what the result would have been had the firm attempted to maximize shareholder value. The purpose of capital markets is to effectively apportion savings in an economy from last savers to last users of funds who invest in real assets. If savings are interested in the top auspicious investment chances, a reasonable economic criteria must exist that manages their flows. In general, the savings allocation in an economy happens on the basis of expected return and risk. The market value of a firms stock is both of these factors. Accordingly, it reflects the markets equilibration process between returns and risk. If making decisions in accordance wi th the likely effect upon the market value of its stock, a business will only be able to attract capital from outside when its investment chances defend the use of that capital in the whole economy. However, this is not to say that management should ignore the questions of social responsibility and stakeholders interests. Namely, Social responsibility of a firm towards shareholders is to ensure good return on investment, towards employees is fair pay and working conditions, towards suppliers is prompt payment and fair procurement process, towards customers is fair price, safe product and after sales service and towards local community is providing jobs and supporting the community development activities, supporting education, and becoming actively involved in environmental issues like clean air and water. Hence, the stakeholders interest is the interest of stakeholders said above. The stakeholder interests sometimes conflict or influence with the shareholders interests in maxi mizing wealth. Furthermore, the criteria for social responsibility and stakeholders interests are not clearly defined, making formulation of a consistent objective function difficult. Therefore, manager has to know to coordinate between the shareholder wealth maximization and its stakeholder interests with superior financial results. In conclusion, maximizing shareholder wealth is a superior objective which a business firm must obligatorily fulfill to survive. If firms do not operate with the goal of shareholder wealth maximization in mind, shareholders will have little incentive to accept the risk necessary for a business to thrive. However, this maximization of wealth is not understood to be at all costs. It will be a contented combination between shareholder and stakeholder interests with best financial results. Depending on each specific situation, each specific circumstance and each specific condition of firms, they can sort out what is the best solution for their organizati on. Don’t waste time! Our writers will create an original "The Shareholder Wealth Maximization Finance Essay" essay for you Create order

Professional Athletes and Drug Use Essay - 1423 Words

Professional Athletes and Drug Use This research paper is about athletes and their use of drugs. The drug that is most frequently used by athletes is alcohol. Most athletes who use drugs do not get the punishment that they deserve instead they receive punishment that is too lenient. The penalties for professional athletes who use drugs are too lenient, they should be more severe. Examples of drugs that are used by most athletes are the following: Anabolic Steroids, Dietary supplements, Blood Doping, Stimulants, Narcotics and Corticosteroids, and Alcohol. Anabolic steroids are used illegally by athletes, to increase muscle mass and strength. Anabolic steroids are also called Androgenic-anabolic†¦show more content†¦Alcohol is a depressant that is used by athletes. A depressant is a drug that slows down brain and body reactions. Alcohol is the drug most frequently used by athletes. 1 The effects of drugs on the users and those around them sometimes do not seem To be as bad as they really are. The athletes play a vital role as role model for the nations young people. As athletes they have obligations to their sport, teammates, fans, and most importantly themselves. Professional sports are a workplace. Pro athletes are paid to play their sports, just as a doctor is paid to treat his patients, a carpenter is paid to build houses and a truck driver is paid to drive his truck. Athletes have an example they must set, but when they use drugs they fail at the example they set. Marijuana and Steroids affect the human body in various ways, which is what some athletes do not know. Marijuana is an addictive drug. Marihuana smoke produces functional, structural, And irreversible lung changes in long term smokers. 2 Marijuana smoke is more damaging to the lungs than tobacco smoke. The effects of marijuana in psychiatry evaluated conditions such as schizophrenia and alcoholism. Steroid use has many long term effects. Months to years of steroid abuse can lead to liver tumors, sterility coronary artery disease and increased aggression. In males shrinkage of the testis and an increase in breast sizeShow MoreRelatedUse Of Performance Enhancing Drugs1338 Words   |  6 PagesResearch Paper Final Draft The Use of Performance-Enhancing Drugs in Sports According to NPR.com, the argument over the use of performance-enhancing drugs by professional athletes has been at the center of an international ethical debate for many years (Katz). Many people argue that these drugs should be allowed, while others argue that these drugs should be banned from professional sports. Professional sports athletes should avoid the use of performance-enhancing drugs so that the integrity of sportsRead MoreShould Athletes Be Stripped Of Their Titles And Medals For Using Sports Enhancing Drugs?1497 Words   |  6 PagesShould athletes be stripped of their titles and medals for using sports-enhancing drugs? Do sports-enhancing drugs actually improve the athlete’s natural abilities to the extent where their abilities are no longer natural? These are the controversial questions that stem from athletes involved with sports-enhancing drugs. Substances that improve the performance of an athlete are classified as an enhancing drug. Anabolic steroids, h uman growth hormones, and even diuretics are some commonly used sports-enhancingRead MoreSteroid Use in Sports1732 Words   |  7 Pagesfifteen percent of professional athletes use illegal steroids which are also known as performance enhancing drugs. These substances which are banned in professional sports aren’t just any type of steroid or drug. They are called anabolic steroids or performance enhancing drugs, and they are synthetically produced substances of male testosterone hormones. The use of these illegal steroids has garnered a lot of publicity within the world of sports over the past few years. As athletes continue to becomeRead MoreDoping And Performance Enhancing Drugs1262 Words   |  6 Pageshis professional cycle careers. He joins other great names; such as Tyson Gay, Mark McGwire, Barry Bonds, and Alex Rodriguez; all great athletes who have had their reputations tarnished by using performance enhancing drugs (sometimes shortened to PEDs). In his interview wit h Opera Winfrey, Armstrong stated that â€Å"I didn t view [doping] [as cheating]. I viewed it as a level playing field† (Lance). With this statement, Armstrong is declaring that many professional cyclists and other professional athletesRead MoreAthletes Should Use Performance Enhancing Drugs941 Words   |  4 Pagesbe a star athlete on any team of your choosing? Therefore, this is one of the reasons why I think steroids should be able to be used for anything of the professional athletes choosing.. Due to the amount of people using performance enhancing drugs in pro sports today, most people when they hear â€Å"Steroids† they think of huge men or women with big bulging muscles. Steroids have been used throughout sports in every way in almost every sport. I think that the professional athletes that use performanceRead MorePerformance Enhancing Drugs in Sports1686 Words   |  7 PagesPerformance Enhancing Drugs in Sports Athletes use performance enhancing drugs to boost their game. The professionals who use these drugs are ruining the integrity of the game. Many people don’t understand why professional athletes would go to such extreme measures to be better when they have already proven themselves. Athletes are just taking away from their natural ability by using these dangerous drugs. The risk of using performance enhancing drugs is a lot greater than the reward, because anRead MoreHundreds of professional athletes across the world have been accused of taking performance1200 Words   |  5 PagesHundreds of professional athletes across the world have been accused of taking performance enhancing drugs. The use of performance-enhancing drugs by professional athletes, or doping, has been acknowledged as a problem since at least the 1960s. The first use of performance-enhancing drugs has been traced back to the first Olympics in Greece. Scandinavian mythology says Berserkers could drink a conco ction prepared from a mushroom, to increase their physical power a dozen times. â€Å"We have to makeRead MoreSteroids Shouldn t Be Used For Anything925 Words   |  4 Pagesfootsteps of a drug user? Therefore, this is one of the reasons why I think steroids shouldn’t even exist or be used for anything. Due to the amount of people using performance enhancing drugs in pro sports today, most people when they hear â€Å"Steroids† they think of huge men or women with big bulging muscles. Steroids have been used throughout sports in every way in almost every sport. I think that the professional athletes that use performance enhancing drugs should be able to use them since theyRead MorePED in Sports Essay1644 Words   |  7 Pages PED in Sports Performance enhancing drugs have been a longstanding problem in sports. It not only deteriorates the honesty of the game, but also can have broader social affects that one may not even realize. The use of performance enhancing drugs is especially apparent in Major League Baseball. This problem can be traced back to the 1980’s when baseball was facing one of its first â€Å"dark periods†. During the 1980’s Major League Baseball was experiencing a home run drought. Home run totals wereRead MoreEssay Athletes And Drug Use1690 Words   |  7 PagesAthletes And Drug Use Many people believe that drug use in professional athletics is not a serious problem, however it is more widespread and serious than people think. In professional athletics the use of drugs is looked upon as somewhat of a serious problem, but is also very discrete and low key. Every once in a while one might see a prominent figure in a certain sport being reprimanded for the use of some outlawed drug, however this is just one of the many who happened to get caught. Athletes

The Color Purple free essay sample

A comparative essay showing the differences between Alice Walkers The Color Purple and the movie based on the novel, directed by Spielberg. The paper shows the differences between the novel by Alice Walker, The Color Purple and the film by the same name, directed by Steven Spielberg. The paper shows the distinct differences between film and the literature that inspired both versions of The Color Purple, differences unique to each different media that yield very different effects upon the reader and upon the viewers of Walkers tale. In contrast, Celies pregnancy in the film is revealed not verbally but visually. Film is often called a visual rather than a verbal medium and the films rendering of this event confirms this. In the film, a sense of Celies innocence is conveyed by the young girls voice singing songs with her younger sister, the sight of the child Celie playing patty-cake with her sister and the two girls running through green fields. We will write a custom essay sample on The Color Purple or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The scene looks idyllic, until the young actress playing Celie becomes entirely revealed from head to toe. Then, the viewer suddenly realizes with a jolt, the child is pregnant.

Macbeth Hero Essays - Characters In Macbeth, English-language Films

Macbeth Hero The character of Macbeth is a example of a tragic hero. There are many factors which contribute to the deterioration of Macbeth of which three will be discussed. The three points which contribute greatly to Macbeth's deterioration are the prophecy which was told to him by the witches, how Lady Macbeth influenced and manipulated Macbeth's judgment, and finally Macbeth's long time ambition which drove his desire to be king. Macbeth's growing character deterioates from a noble man to violent individual. The prophecies which were told by the witches were one of the factors which contributed to the deterioration of his character. If it had not been for the witches telling him that he was to be Thane of Cawdor, Thane of Glamis, and King of Scotland, Macbeth would still be his ordinary self. As a result of the prophecies, this aroused Macbeth's curiosity of how he could be King of Scotland. As the play progresses, Macbeth slowly relies on the witches prophecies. The influence of Macbeth's wife, Lady Macbeth also contributed to his deterioration of character. Lady Macbeth's character in the beginning reveals that she is a lovable person. When Lady Macbeth was ready to kill King Duncan herself, it showed that Lady Macbeth could not murder King Duncan because he reminded her of her father. This proves that Lady Macbeth has a heart deep inside her. Lady Macbeth plays an important role in this play because she provided a scheme which caused Macbeth to assassinate King Duncan. After Macbeth had killed King Duncan, he later regrets on his wrong doing. At the point of this play the audience can note the change in Macbeth's character. Macbeth's first murder was a trying experience for him, however after the first murder, killing seemed to be the only solution to maintain his reign of the people of Scotland. Therefore, it was Lady Macbeth who introduced the concept of murder to Macbeth. Macbeth's ambition also influenced his declining character. However, Macbeth's ambition had not been strong enough to carry the motive to kill King Duncan. Lady Macbeth's influence also comes in to play because if not for Lady Macbeth, his ambition would not have been intensified enough to drive him to obtain and maintain his title of King of Scotland no matter what it took, even if it meant murdering. Macbeth's ambition influenced the cause of his new character. This new character of Macbeth contained greed, violence, and power hunger. Macbeth shows this when he kills King Duncan. In conclusion, the prophecies given to him by the witches, Lady Macbeth's influence and plan, and his intensified ambition, all contributed greatly to his deterioration of character which resulted to his downfall...death. Therefore Macbeth character displays strong signs of a tragic hero, making him the ideal classic example.

Short talk Is Disney stereotipical Essays

Short talk Is Disney stereotipical Essays Short talk Is Disney stereotipical Essay Short talk Is Disney stereotipical Essay Essay Topic: Beauty and the Beast and Other Tales Clueless Talk The Disney industry began in the 1930s with a simple drawing of a mouse which emerged slowly and to this day is a household name. It was started with the purest of intentions; to bring joy and happiness to children everywhere. But as the technology developed, so did the tastes of Disneys audience. They started to use stereotypical images of the main charactors in their stories. A tall, dark and handsome hero, an evil looking villain and of course the beautiful princess. In my talk, I will show you the true message displayed by Disney to young children by giving you the example of one of Disneys most famous and loved films; Alladin.In Disneys Aladdin, the movie opens with a scene that has a small sleazy man trying to sell goods that are too expensive and cheaply made. The same stereotype that Americans have for the car salesman of our country, they are always shown as slimy dirty dealing men. This just shows how much Disney incorporates American views on all their stories no matter wh ere they are supposed to be. The man even slurs his words making him look and sound even sleazier. The next to come into the story is the Villain Jafar. Disney is infamous for making their villains ugly and dark in coloring and clothing. Jafar definitely covers this; he is a tall, emaciated man. He wears dark red and black, and looks mean and ugly. What does this put across to young impressionable kids watching? Should they fear tall ugly men while walking down the street? I believe Disney emphases too much on outer beauty.Also, Aladdin the big hero of the story is a young and very attractive man. He has light skin, large eyes, and is very muscular. Little kids looks up to him, and small boys want to be him. But how good is that? Looks aside, Aladdin is a common theif, who lies his way through life, and depends on a genie to do everything challenging for him. Disney makes the crowd actually cheer for Aladdin when he is being chased by the vendors that he stole from. Why wouldnt the vendors be mad that a street rat stole from them yet again? This is just showing children that it is ok to steal what they want. Even in the song he sings that he is broke, and he has to steal what he cant afford, and that is everything. Aladdin does not have a job, nor is it ever brought up as to why he dosnt have one. The song blames his parents, but if he is old enough to marry the princess he is old enough for a job. But in the story he is a common theif that we are made to feel bad for because he is to lazy to get a job.Jasmine is the stereotypical Disney princess. She is flawlessly beautiful and all men in the story ogle at her. When she is in the market place and Aladdin sees her for the first time he supposedly instantly falls in love with her. But he merely finds her attractive. Little girls look up to Jasmine, and they are being told if they arent as attractive as Jasmine, men will never fall in love with them. Although she is shown as being a beautiful girl that everyone loves, she is a strong female character. She stands up for what she believes and wont give in to what she doesnt believe in. You can see that Disney is trying to make their damsels in distress less helpless, but it doesnt counteract all the other negative aspects.Another staple of any Disney movie is the clueless, helpless parent. If there is a parent around they are on most occasions shown as stupid, and silly. They dont have anything to do with the plot and a lot of the time is the reason for something getting messed up. In Aladdin, Jasmines father is a short, jolly, roly poly old man. He hardly knows what to do with his daughter on most occasions, and listens only to Jafar his right hand man. For this reason Jafar ends up with power and becomes the biggest obstacle. So in true Disney spirit we yet again see a ridiculously stupid and scatterbrained parent figure. I am fairly sure that Jasmine and Belle from The Beauty and the Beast have the same father. Both characters have the sa me personality, stature, and facial expressions. It is abundantly clear that Disney had issues with his own parents. This is a horrible thing to incorporate into a childrens story though. Children will them associate the fictional parents to their own and believe they do not need their parents for anything, and could possibly become defiant to them. Is this a good message to give to young, vunurable children?The end of Aladdin, like all Disney movies has Jasmine and Aladdin marrying. They have known each other for a very short time, and Jasmine hardly knows Aladdin for who he is not the lies he told, yet they marry. The act of marrying someone you hardly know is evident in almost every Disney movie. The characters fall in love and everything is peaches and cream. I believe this gives children a false sense of reality. If a child was reared with Disney movies as their only basis of the world, what happens when something horrible happens? What happens after the happily ever after? In real life, everything isnt always perfect. The villains arent always caught and put away or killed. Marriages dont always last forever. How are you supposed to explain divorce to a little girl that is used to seeing the prince and princess in love forever?Disney movies are supposed to be just for entertainment, and sure a more mature child can accept that as true. But a child of four or five can not always understand that what they see on the television and real world arent the same thing. Little girls want to be beautiful princesses, they want to be swept off on a white horse, or take a magic carpet ride. Little boys want to be the strong handsome prince that saves the day and gets the insanely beautiful princess. But they wont, because they are only fairy tales. Disney should start making movies that encourage girls to be happy with who they are, and show them becoming something great with their lives and not rushing into marriage with a handsome prince. They should show boys grow ing up and becoming something their parents can be proud of, and not just getting by on good looks and charm.I hope this gives you some insite on the real message that Disney gives to young children. Maybe next time we see a little kid sat in front of the television, glued to the screen in awe, watching the brave hero with the rippling biceps saving the day, and the beautiful princess fall into his arms, you will think twice, before its too late.

Analysis of President Bush's Address to a Joint Session of Congress Speech or Presentation

Analysis of President Bush's Address to a Joint Session of Congress and the American People - Speech or Presentation Example Present during the speech are top government officials including departmental secretaries and different states legislative officials. The speech is a reaction to the 9/11 attack and a declaration of War against Alqaeda and the Taliban regime. The speech takes place on 20th September, 2001, only nine days after terrorists hijacked two American planes and crushed them on the twin towers. The speech is also serves to assurance the people of America that America is strong and cannot be shaken by its enemies (terrorists). Furthermore, the speech is aimed at reassuring Muslims across the globe that America is not against Islam but is against those who go against Allah’s commands by wrecking havoc on innocent people. In my view, the speech is held at an appropriate time and setting considering that the American people at the time were in grief having lost loved ones and property beyond value. The American people also needed an assurance that their government was in action and would t ake measures to avoid similar happenings as those of 9/11. The speech is said at an appropriate setting and the message delivered as weighty as it should have been. Speech Transcript President Bush Address to a Joint Session of Congress and the American People   On September the 11th, enemies of freedom committed an act of war against our country.  Ã‚  Americans have known wars -- but for the past 136 years, they have been wars on foreign soil, except for one Sunday in 1941.  Ã‚  Americans have known the casualties of war -- but not at the center of a great city on a peaceful morning.  Ã‚  Looking at the audience, hands still. Americans have known surprise attacks -- but never before on thousands of civilians.  Ã‚  All of this was brought upon us in a single day -- and night fell on a different world, a world where freedom itself is under attack. Hands shift and move gently Americans have many questions tonight.  Ã‚  Americans are asking:  Ã‚  Who attacked our country?   Ã‚  The evidence we have gathered all points to a collection of loosely affiliated terrorist organizations known as al Qaeda.  Ã‚  They are the same murderers indicted for bombing American embassies in Tanzania and Kenya, and responsible for bombing the USS Cole. Mood change anger, tonal variation, hands move, and use of gestures Al Qaeda is to terror what the mafia is to crime.  Ã‚  But its goal is not making money; its goal is remaking the world -- and imposing its radical beliefs on people everywhere. The terrorists practice a fringe form of Islamic extremism that has been rejected by Muslim scholars and the vast majority of Muslim clerics -- a fringe movement that perverts the peaceful teachings of Islam.  Ã‚  The terrorists' directive commands them to kill Christians and Jews, to kill all Americans, and make no distinction among military and civilians, including women and children. This group and its leader -- a person named Osama bin Laden -- are linked to many other organizations in different countries, including the Egyptian Islamic Jihad and the Islamic Movement of Uzbekistan.  Ã‚  There are thousands of these terrorists in more than 60 countries.  Ã‚  They are recruited from their own nations and neighborhoods and brought to camps in places like Afghanistan, where they are trained in the tactics of terror.  Ã‚  They are sent back to their homes or sent to hide in countries around the world to plot evil and destruction. The leadership of al Qaeda has great influence in Afghanistan and supports the Taliban regime in

Assignment #3 Example | Topics and Well Written Essays - 500 words

#3 - Assignment Example Discuss the final result of the different schedules in Figure 21.3 (a) and (b), where M = 2 and N = 2, with respect to the following questions. Does adding the above condition change the final outcome? Does the outcome obey the implied consistency rule (that the capacity of X is 90)? However, a transaction could end in two ways, When it â€Å"Commits† that is all changes to the database are registered or â€Å"Rollback† when the chances are ignored and database returns to original state. With ARIES, main memory buffers that have been modified are not flushed to disk. ARIES, however writes additional information to the LOG in the form of a Transaction Table and a Dirty Page Table when a checkpoint occurs. No-steal means that the cache (buffer) page updated by a transaction cannot be written to disk before the transaction commits. Force means that updated pages are written to disk when a transaction commits. 24.33  - Suppose that privilege (a) of exercise 24.32 is to be given with GRANT OPTION but only so that account A can grant it to at most five accounts, and each of these accounts can propagate the privilege to other accounts but without the GRANT OPTION privilege. What would the horizontal and vertical propagation limits be in this case? 24.34  - Consider the relation shown in Figure 24.2 (d). How would it appear to a user with classification U? Suppose a classification U user tries to update the salary of "Smith" to $50,000; what would be the result of this