Debt and Equity Essay Example for Free

Debt and Equity Essay Long-term financing requires a meticulous understanding of the various features of debt and equity and their impact an organization. While evaluating debt and equity, an investment banker also has to consider the unique characteristics of the organizations dealings while ensuring that the organizations requirements are met. Debt CapitalDebt capital includes all long-term borrowing incurred by the firm. The cost of debt was found to be less than the cost of other forms of financing. The relative inexpensiveness of debt capital is because the lenders take the least risk of any long-term contributors of capital. Their risk is less than that of other because (1) they have a higher priority of claim against any earnings or assets available for payment (2) they have a far stronger legal pressure against the company to make payment than do preferred or common stockholders, and (3) the tax-deductibility of interest payments lowers the debt cost to the firm substantially. Equity CapitalEquity capital consists of the long-term funds provided by the firms owners, the stockholders. Unlike borrowed funds that must be repaid at a specified future date, equity capital is expected to remain in the firm for an indefinite period. The two basic sources of equity capital are (1) preferred stock and (2) common stock equity, which includes common stock and retained earnings. Common stock is typically the most expensive form of equity, followed by retained earnings and preferred stock, respectively (Pinegar, Wilbricht, 1989). A firms capital structure is determined by the mix of long-term debt and equity it uses in financing its operations. Debt and equity capital differ with respect to voice in management, claims on income and assets, maturity, and tax treatment. Capital structure can be externally assessed using the debt ratio and the debt-equity ratio to measure the firms degree of indebtedness or the times interest earned ratio and the fixed-payment coverage ratio to measure its ability to meet fixed financial payments. Research suggests is an optimal capital structure that balances the firms; benefits and cost of debt financing. The major benefit of debt financing is the tax-deductible interest, and the costs of debt financing include the  probability of bankruptcy, agency costs imposed by lenders in their loan agreements, and asymmetric information costs attributable to managers having more information about the firms prospects than do investors (Modigliani and Miller, 1958). Reference: Modigliani, Franco and Miller, Merton. (1958). The Cost of Capital, CorporationFinance, and the Theory of Investment. American Economic Review. Pinegar, J. Michael and Wilbricht, Liza. (1989). What Managers Think of CapitalStructure Theory.

The Evening News Versus Reality †My Internship at the White House :: Admissions Essay

The Evening News Versus Reality – My Internship at the White House I press the button to playback my voicemail. â€Å"So, Sharon, what war did you plan in Washington?† I groan, and anticipate that the next seven messages are more of the same. I head downstairs, where a roommate had already monopolized the TV and am greeted with â€Å"Hey, Sharon, your boy’s in trouble!† On every channel is the same picture, marines in body bags in a far away land. I had a very different White House internship from Monica Lewinsky’s. Mine came and went without too much national coverage. But I do understand Lewinsky’s awe of power. Though I was most impressed by all the people who worked so hard in D.C., I too was dazzled by the famous personages populating the city. It was hard not to be. Your neighbor might head negotiations for peace in the Middle East. Colin Powell might hold open a door for you. The people filling the town were more than celebrities, they were influencing our future and the fate of nations. On the day of the Vice President’s birthday, his staff threw him a party. All staff were invited, including lowly interns like me. I had not yet met the Vice President, and there was a rumor the President might show up. Finally I would have a chance to meet the man in command. Walking into the Indian Treaty Room, where the party was to be held, I scoped out the best spot to stand for a presidential encounter. I squeezed next to the birthday cake, figuring the Vice President had to stand there at some point, and I waited. I tried to appear outwardly calm, as if I go to these things all the time. I didn’t want to seem too excited to the neurotic Secret Service, or remind a hard-hearted staffer of work needing to be done. But inside, my heart was pumping. Suddenly, the doors swung open and the Vice President casually strode in, smiling. The doors opened again, and President Bush came in, followed by the First Lady. Despite my efforts at nonchalance, my smile was jumping into my ears. Mrs. Bush presented a birthday greeting, then walked over to the Vice President and dumped a bowl of popcorn on his head.

Gatsby Assignment

The Great Gatsby Assignment Directions: * For each chapter (except Ch. 9), at least one of the three columns (Device – Passage – Connection to Meaning) is completed for you. Your job is to correctly and meaningfully complete any blank column. Passages should be directly cited and effectively chosen (Include page number[s]). * Each â€Å"Connection to Meaning† entry will require multiple, thoughtful sentences. * Each â€Å"Connection to Meaning† entry must include: (a) discussion of meaning in the immediate context of the device, and (b) discussion of meaning in the greater context of the novel.You are expected to complete the â€Å"a† portion of your discussion as soon as we read the chapter. You are expected to return to each completed â€Å"a† portion at the conclusion of the novel, as you attempt to find new insight and complete the â€Å"b† portion of your discussion (remember that Ch. 6 is your model for the third column, but your s should be 2-3 sentences longer and more developed). * Send me an email when you get home, and I will send you the assignment electronically. This way you can type the assignment and turn in a printed copy. My email is cecily. [email  protected] org * This is due Thursday, March 28 (TYPED! ) Chapter| Device/Strategy| Passage and page #| Connection to Meaning| 1| Juxtaposition| â€Å"There’s a bird on the lawn that I think must be a nightingale come over on the Cunard or White Star Line . He’s singing away,† her voice sang. â€Å"It’s romantic, isn’t it, Tom? † The telephone rang inside, startlingly, and as Daisy shook her head decisively at Tom the subject of the stables, in fact, all subjects vanished into air. (15)| | 2| | â€Å"But above the gray land and the spasms of bleak dust which drift endlessly over it, you perceive, after a moment, the eyes of Doctor T. J. Eckleburg. The eyes of Doctor T. J. Eckleburg are blue and giganticâ₠¬â€their retinas are one yard high. † (23)| | 3| Allusion (41)| | | 4| | â€Å"Yeah, Gatsby’s very careful about women. He would never so much as look at a friend’s wife. † (72)| | 5| Tone shiftTone #1Tone #2Tone #3Tone #4| | | 6| | | Jay Gatsby invents parents because he does not like what his mother and father represented.Gatsby is new money and is in opposition to the old money; new money was not respected since it was earned fast and quick and not inherited or used to raise and culture those it was passed down to. So, Gatsby â€Å"creates† the image that is needed in order to fit into the society in which Daisy belongs. He creates a perfect, omniscient heritage that only can be achieved by one according to Christianity, and he became the faithful servant to that image.This allowed him to achieve the status that only his â€Å"heavenly† Daisy could complete. | 7| (a) Logos (b) Ethos (c) PathosHint: You need to provide a clear example of e ach appeal in the argument to â€Å"win† Daisy. | | | 8| | â€Å"She was the first nice girl he had ever known. In various unrevealed capacities he had come in contact with such people, but always with indiscernible barbed wire. He found her excitingly desirable. † (148)| | 9| | | |

Macroeconomics Of Slavery Essay - 1709 Words

Macroeconomics of Slavery Sales of Slaves Slaves were freely bought and sold across the antebellum South. Southern law offered greater protection to slave buyers than to buyers of other goods, in part because slaves were complex commodities with characteristics not easily ascertained by inspection. Slave sellers were responsible for their representations, required to disclose known defects, and often liable for unknown defects, as well as bound by explicit contractual language. Hiring Out Slaves Slaves faced the possibility of being hired out by their masters as well as being sold. Hired slaves frequently worked in manufacturing, construction, mining, and domestic service, often labored side by side with free persons. Bond and free†¦show more content†¦By 1860, Southerners owned close to $4 billion worth of slaves. Slavery remained a thriving business on the eve of the Civil War: According to Fogel and Engerman, by 1890 slave prices would have increased on average more than 50 percent over their 1860 levels. No wonder the South rose in armed resistance to protect its enormous investment. Slave markets existed across the antebellum U.S. South. Private auctions, estate sales, and professional traders facilitated easy exchange. Established dealers like Franklin and Armfield in Virginia, Woolfolk, Saunders, and Overly in Maryland, and Nathan Bedford Forrest in Tennessee prospered alongside traveling traders who operated in a few counties, buying slaves for cash from their owners, then moving them overland in coffles to the lower South. Over a million slaves were taken across state lines between 1790 and 1860 with many more moving within states. Some of these slaves went with their owners; many were sold to new owners. Determinants of Slave Prices The prices paid for slaves reflected two economic factors: the characteristics of the slave and the conditions of the market. Important individual features included age, sex, childbearing capacity (for females), physical condition, temperament, and skill level. In addition, the supply of slaves, demand for products produced by slaves, and seasonal factors helped determine market conditions and therefore prices. Age and Price Prices for both male and female slavesShow MoreRelatedCauses Of Child Labour1235 Words   |  5 Pages†¢ Threatens children’s physical, mental or emotional well being. †¢ Involves intolerable abuse, such as child slavery, child trafficking, debt bondage, forced labour or illicit activities. †¢ Prevents children from going to school. †¢ Uses children to undermine labour standards. CAUSES OF CHILD LABOUR For much of human history and across different cultures, children less than 17 years old have contributed to family welfare in a variety of ways. There are various reasons which lead to child labourRead MoreThe Issue Of Freedom And Power1696 Words   |  7 Pagesthe biased character of the freedom where some groups were granted, especially Afro-Americans who lived and labored in chains, while the great pens were being enjoyed by the whites, the makers of the constitution. The Author links the experience of slavery and bondage to the principle of freedom into a dynamic and active struggle for liberation. The principle of liberty also lays a foundation for other philosophical concepts such as the meaning of knowledge, the role of morality, and the historicalRead MoreModern Historical Debate Surrounding The Anglo-American1682 Words   |  7 PagesAtlantic slave trade stems directly from the publication of Eric Williams’ transformative Capitalism and Slavery in 1944. Dismantlin g with fierce efficacy the long-dominant interpretation of abolition as a function of humanitarian enlightenment, Williams’ thesis instead contends that after providing the material foundation and trade infrastructure for Europe’s industrial revolution, slavery had fulfilled its purpose and was thus replaced by capitalism as an economic modality. Though radical forRead MoreThe Relationship Between Africa and Brazil Essay676 Words   |  3 PagesAfter the slavery abolition in 1888 and throughout the 20th century, Africa figured relatively low in Brazil’s foreign policy agenda, which have mostly focused in the relations with the global powers such as the United States and European countries. This configuration started to change significantly in the early 2000s, when the improved macroeconomic situation of Brazil coincided with Africa’s economic revival. The turning point was, with no doubt, under former President Lula’s mandate (2003-2010)Read More How The Economics Of Slavery And Patriarchy Shaped Harriot Jacobs1432 Words   |  6 PagesHow the Economics of Slavery and Patriarchy Shaped Harriot Jacobs’ Life In Incidents in the Life of a Slave Girl Will Collins Harriet Jacobs autobiography, Incidents in the Life of a Slave Girl, describes how the economic realities of the time shaped her life as slave, female and mother. Jacobs was born a slave in Edenton, North Carolina in 1813, five years after the African slave trade was abolished in the United States and about two decades after the invention of the cotton gin. These twoRead MoreThe Scarcity Of Land During Virginia Made Planters Or Male Members With Their Families1741 Words   |  7 Pagesexpansion was fueled by the big business of domestic slave trade diminished slave communities’ collective resistance. Thus, the domestic slave trade consolidated the Old South slavery system and formed solid foundations for further prosperity and expansion(principle 40-41)_. Lacy Ford however, explains the macroeconomic and microeconomic nature of the Domestic slave trade throughout the Old South slave system, to clarify the wider economic mechanism of the peculiar institution. Applying neoclassicalRead MoreWilliam Henry Seward s Speech Essay1733 Words   |  7 Pagesextremist theory proposed by Craven is entirely wrong, or that Seward was wholly incorrect. Seward provides a look into how the long-term effects of macroeconomics and geography proved unbearable while the extremists that Craven focused on made the whole matter considerably worse, primarily during the few years prior to the war. State’s rights, slavery and competition over western influence were key in beginning the bloodiest conflict ever fought on American soil. In antebellum America, the articlesRead MoreBrazils Injustices Essay837 Words   |  4 Pageson both a micro and macroeconomic level. In the late 80s and early 90s the downfall of the rainforest land was immediately correlated with the economic downfall of Brazil. Many of Brazil’s resources, which come from the pasteurized land in the Amazon, are being lost in the deforestation. There is also violence involved with the Amazon. Many people have been and are currently being enslaved and hidden away in the Amazon areas of Brazil. The Brazilian government abolished slavery in 1888 but the governmentRead MoreThe s Philosophies About The Increased Globalization Of The World861 Words   |  4 PagesAppiah’s assertions have to do with something which he deems to be other than globalization: cosmopolitanism. For Appiah, cosmopolitanism goes beyond mere globalization—â€Å"a term that once referred to a marketing strategy, and then came to designate a macroeconomic thesis, and now can seem to encompass everything and nothing† (Appiah xiii)—and even multiculturalism—â€Å"another shape shifter, which so often designates the disease which it purports to cure† (Appiah xiii)—representing a grudging coexistence andRead MoreWhat Is Economic Freedom?1509 Words   |  7 PagesWhat is economic freedom? In fact, what freedom re ally means, at its core? In words of Wayne Dyer, â€Å"Freedom means you are unobstructed in living your life as you choose. Anything less is a form of slavery† and according to Franklin Delano Roosevelt â€Å"True individual freedom cannot exist without economic security and independence†¦Ã¢â‚¬ . Combine the sayings of these two great men and we get the true essence of what it really means to have economic freedom. In more technical terms, for an individual to have