Strategies to Maximise Shareholder Value

Strategies to Maximise Shareholder Value Introduction Firms may have different objectives to achieve. However in theory, a firm should set its objectives to increase its value for its owners. Shareholders are the owners of a firm. Therefore according to theory maximising shareholders wealth is the fundamental objective of a firm. (Watson Head –Corporate Finance principles and practice 2007) Investors generally expect to earn satisfactory returns on their investments as they require increasing the value of their investments as much as possible. This is usually determined by dividend payout and or capital gains by increasing the market value of the share price. The managers of the company act on behalf of the investors, such as operating day to day activities and making decisions within the business. In another way they do have the control of the business entity. However, firms may have other objectives to achieve such as maximising of profits, growth and increasing its markets share. When achieving these objectives of a firm, conflicts may arise as a result of ownership and control. Managers may make their decisions on their own interests rather than achieving investors wealth. Discussing the investor related goals as described earlier, in theory behaviour of management should be consistent towards maximising shareholders wealth, enhancing the value of the business (Basely Brigham- Essentials of Managerial Finance).Value of the business is measured by valuing firms price of shares. Its essential to consider maximising of stock prices, and its impact to the investors and the economy as a whole simultaneously. Maximising profits is also an objective of a firm. It is determined by maximising the firms net profits. It is also can be described as a short term objective whilst maximising the value of the company is a long term objective for a firm (Financial Management –Kaplan Publishers 2009). Therefore it is not necessary, maximising profits as maximising shareholders wealth because there are number of potential problems can be occurred adapting to an objective of profit maximisation. It will be discussed in the latter part of the report. Earnings per share (EPS) is one of the main indicators of the firms profitability and it is a broadly used method measuring firms success, as it is determined return to equity in theory(Financial Management – Kaplan Publishers 2009).However, EPS doesnt expose the firms wealth since it is determined by using firms net profits. Therefore EPS is also exist the same criticism as profit maximisation above which will be discussing in the later part of the report. During the past ten years have seen a much greater emphasis on investor related goals. The conflict of ownership and control can be recognised as one of the significant causes which were affected investors and the world economy in the past ten years. The corporate scandals such as Enron, Maxwell and World com which occurred recent past had been lost investors confidence towards capital markets. Therefore its essential to consider the ethical behaviour and social responsibilities towards shareholder wealth maximisation simultaneously. It can also be said the institutional investors such as insurance companies and pension funds had also made a significant influence on investor related goals in the recent past. Review of Literature OBJECTIVE OF PROFIT MAXIMISATION According to Watson and Head 2007, whilst individuals manage their own cash flows, the financial manager involves in managing cash flows on behalf of the company, and its owners. In a firm financial management is concerned with taking decisions in three key areas which are financing, investing and dividend policy. Watson and Head also mentioned, shareholders wealth maximisation as the primary objective of the firm and at the same time the existence of other stakeholder groups such as creditors, employees, customers and community are also affected when adapting to a corporate goal. â€Å"However the firm may adopt one or several objectives in short term whilst its pursued the objective of shareholders wealth maximisation in long term†(Basely and Brigham; Essentials of Managerial Finance). Therefore it is essential to be considered the other possible objectives in short term as well as long term simultaneously. Reviewing one of the main objectives of profit maximisation, a classic article of Milton Friedman in the New York Times magazine 1970â€Å"The social Responsibility of Business is to Increase its profits† (Poitras, Geoffrey 1994). Considering classical views of Friedman (1970), Grant (1991), and Danley(1991), Geoffrey analysed the connection between shareholders wealth maximisation and profit maximisation, as an foundation for establishing an ethical analysis for shareholders wealth maximisation. However, Friedman had a moderate view later relating to the concept of profit maximisation towards social responsibilities. (Pradip N Khandwalla, Management paradigms beyond profit maximisation 2004) While there were similarities between these two objectives, Solomon; 1963, chp.2 highlighted the inconsistencies in his classic article (Poitras, Geoffrey 1994). Considering the above views from different authors, Geoffreys suggestion was â€Å"Even though there are significant consistencies between these two goals, the goal of profit maximisation has designed for the traditional microeconomic environment and for the firms which do not have the conflict of ownership and control. It is also assumed that its applied for the environment where there was no uncertainty and no stock issues†( Poitras, Geoffrey, 1994). According to Keown, Martin and Petty, 2008; Lasher 2008; Ross Westerfield, and Jordan; 2008, â€Å"Managers are encouraged to maximise its current stock prices by the shareholder theory, therefore the criticisms are understandable†. This approach determines the existence of agency problem towards incentive schemes, as incentives are rewarded with the continuous growth of share price and leads to an unethical behaviour of managers, towards manipulating the firms current stock prices (Daniel, Heck Shaffer). CONFLICT OF OWNERSHIP AND CONTROL The conflict of ownership and control was first identified by Adam Smith (RBS Review 1937) and he suggested that the Director cannot protect the other peoples money with the same way that he protects his money (Tony Howell; Shareholder ship model versus Stakeholder ship model). Its also mentioned in Tony and Howells article, that the separation of ownership and control make a significant influence for corporate behaviour and its deeply discussed by Berle and Means (1932). But La Porta et al. (1999) argued against Berle and Means, and he suggested â€Å"its different from the large corporations, because the shareholders of large corporations involved in corporate governance actively where managers are unaccountable† (Tony and Howell; shareholder ship model versus Stakeholder ship model). Winch (1971) suggested the goal of profit maximisation is consistent with the ethical theory of utilitarianism whilst allocating resources under different circumstances. (Poitras, Geoffrey 1994). Having considered Winchs suggestion related to the utilitarian theory and profit maximisation, Geoffreys   (1994) view was that, inter temporal behaviour is important   for firms and efficient investment has a significant affect towards maximising of profits as a result of uncertain future cash flows. It is also discussed the potential conflict of ownership and control. Therefore Geoffrey (1994) suggested the separation of ownership, the decision makers (managers) and owners (shareholders) are involved to the corporate structure. SHAREHOLDERS Vs STAKEHOLDERS Even though most of the economists and authors acknowledge the theory of shareholder wealth maximisation (Berle and Means, 1932; Friedman, 1962), other authors argued the criticisms of shareholder wealth maximisation. They argued that Shareholder Theory encourages the managers to make short term decisions and behave unethically as a result of the influence of the other stakeholders. According to Smith (2003) believed â€Å"Shareholder theory is prepared to maximise short term objectives at the expense of long term goals† (Daniel, Heck Shaffer; Journal of Applied Finance; winter 2008). However Daniel, Heck and Shaffer analysed the reasons for the criticism and the misguidance of the shareholders theory in their article about shareholder theory, â€Å"How Opponents and Proponents Both Get it Wrong?† The misguidance has been occurred as a result of pursuing a long term objective in shareholder theory. Managers should maximise the future cash flows and its important to con sider the stakeholders accordingly (Jensen, 2002; Sundaram and Inkpen, 2004a). According to Freeman (1984) a firm should consider both shareholders and stakeholders when making their business decisions. However Daniel, Heck and Shaffer describes that the stakeholder theory determines the same criticism as short term behaviour but the shareholder theory has got the protection for both shareholders and stakeholders in the long run. â€Å"Therefore stakeholder theory is not predominant to shareholder theory†. Daniel, Heck and Shaffer suggested the expected future cash flows to analyse the above scenario and they argued that its essential to undertake all the positive NPV projects to maximise shareholders wealth analysing towards maximising current stock price. If there was a goal of increasing of current share price, managers who are rewarded by incentives may attempt to boost the stock price of the firm. However Jenson (2005) and Danielson and press (2006) argued â€Å"the eff ort to increase or maintain the stock prices by management could be destroyed the long term values of the firm by manipulation, unethical behaviour, delaying NPV positive projects, reducing or not spending on research and development.† Jenson has taken Enron as an example for explaining the above scenario. The management of Enron had hidden their debts through off balance sheet activities and by manipulating the company accounts (Daniel, Heck and Shaffer). Therefore Daniel, Heck and Shaffer suggested that its essential to design strategies which are consistent with the objective of increasing future cash flows rather than adopting an objective of increasing of current stock price to maximise the wealth of shareholders. Freeman, Wicks and Parmar (2004) argued that â€Å"all the recent business scandals are oriented toward ever increasing shareholder value at the expense of other stakeholders† (Poitras, Jefforey; 1994) After a number of high profile firms collapsed i:e: Enron, WorldCom and Arthur Anderson in US and Maxwell, Polly Peck, BCCI, Barings bank in UK, its been determined the requirement of a good Corporate Governance (Tony Howell; the shareholder ship model versus stakeholder ship model). According to Tony Howell, Corporate Governance has been growing for the past 25 years and the foundation for Corporate Governance was placed, after the introduction of Cadbury report in 1992 (UK). Omran et. al.2002; Mills, 1998; Fera, 1997 suggested â€Å"the importance of Corporate Governance as a result of the new entrance of Institutional Investors to Capital markets, Globalisation of Capital markets, increase of Stakeholder and Shareholder expectations†(Tony and Howell). Analysis According to financial management theory, its assumed that the fundamental objective for a firm is to maximise shareholders wealth (Watson Head 2007).   Analysing the suggestions and arguments towards fundamental objective, it can be seen that not only in theory but also in the real world it is essential to maximise the wealth of shareholder. Analysing the objective of profit maximisation, overriding the classical economics views by Hayek (1960) and Friedman (1970), other authors, Solomon (1963) and Geoffrey (1970) argued about the criticisms associated with the objective of maximisation of profits. The conflict of short term goal of profit maximisation and long term objective of shareholder wealth maximisation can be identified as the main conflict. If a firm adapts to an objective of profit maximisation and the managers are rewarded incentives for achieving it, the agency problem could be arise. Therefore in such a situation managers may take decisions towards their own selfish interests, rather than on shareholders. Achieving their self interest managers may reduce costs by cutting research and development costs, reducing quality control measurements, reduce advertising, using lower quality materials. At the same time the NPV positive projects could also be postponed to reduce their costs to determine more profits in s hort term. Producing low quality products, losing market share, losing customer trust on their products and finally reducing financial performance could be resulted as a result of using low cost strategies. It may lead the business towards insecure stock prices in long run. The other criticism is profit maximisation does not appraise the associated risks. Therefore managers may undertake higher NPV projects to determine higher returns. â€Å"However higher the required returns, higher the risk† (Peter Atrill; Financial Management for Decision Makers, 2008). Investing on risky projects will result future cash flow problems. However, shareholders are assumed as rational investors who provide finance for firms to invest in future projects. As rational investors they require a reasonable return for their investments. Therefore it can be suggested that objective of profit maximising is different from the wealth maximising. Even though shareholder wealth maximisation is the fundamental, firms are not being able to reject the profit perspective goals, because there are stakeholder groups who is interesting about financial activities in a firm. In addition to shareholders, Managers, Employees, Customers, Suppliers, finance providers and the community at large are included in the typical stakeholder group. Therefore its essential to take account of profit maximisation within the firm. As a result of these multiple objectives managers can easily pursue their own interest. In real world, financial statements are used to assess firms performance. However, profits are defined as profit before interest and tax, profit after interest and so on. Therefore the ratio of Earnings per Share is often used instead of profit which is calculated using the net profits and the number of shares issued. Investors usually use EPS as a measurement of valuing stock. EPS is mostly used as it contains of net income of the firm, and it is also used as an indicator measuring firms future cash flows. Although the disadvantage is EPS does not determine shareholders wealth. However, firms value should be determined by the future cash flows and the risk also need to be considered which is associated to the cash flow. However as mentioned earlier, profits does not take account of risks. I:e:â€Å"Reported profit figures such as Biotechnological companies and other new economy ventures have insignificant relationship on its stock prices† (Financial Management –Kaplan Publishers, 2009). Therefore, in the short term theres an inconsistence between profit maximisation and increase in stock prices in a firm. According to Smith (1937), Berle and Means (1932) and Geoffrey (1994) the separation of ownership is involved the corporate structure. The conflict was mostly seen during the recent past, following the corporate scandals. According to Maria and William in the article of Privatisation and the Rise of Global Capital Markets (Financial Management; winter, 2000) â€Å"The past years there was significant growth in capital markets valuation, growth in security issuance as a result of the privatisation programmes†. The impacts of share issue privatisation are increasing market liquidity, pattern of share ownership (i:e: Individual and institutional investors such as Pension funds and Insurance Companies), and increasing of number of shareholders in many countries. However, globalisation was also affected on firms activities simultaneously. Therefore the firms (i:e: Enron Maxwell), which had poor Corporate Governance had the possibility to involving in unethical activities such as creative accounting and off balance sheet finance(Financial Management, Kaplan Publishers; 2009). At the same time Directors involved in high level of corporate takeover activities, achieving their personal interest such as empire building, large remuneration packages (Financial Management, Kaplan publishers; 2009). Further analysis of Stakeholder theory and Shareholder theory by different authors, Jenson â€Å"2005) and Daniel and Press (2006) argued the criticism of stakeholder theory, whilst Daniel, Heck and Shaffer (2008) and Freeman (1984) argued the importance of both shareholder and stakeholder theory. However, it can be suggested that the stakeholders play a significant role towards increasing shareholders value. As an example to motivate employees of the firm, they should be treated in a good manner by rewarding increments, bonuses and so on. Long term employee satisfaction could drive the firm towards higher performance and the development of the business by increasing higher productivity and better quality of products. Simultaneously, building up a trust among customers and acquire and maintain the industry leadership. At the same time shareholders provide finance for firms for its working capital management and noncurrent assets for its future projects. Therefore it can be seen an inter relationship and importance of shareholders and the other stakeholders. According to Peter Atrill, (Financial Management for Decision makers , 2008)â€Å"In the early years financial management theory was mainly developed as part of accounting and the suggestions and arguments were based on casual observations rather than theoretical frame work†. But after the number of high profile firms collapsed, the requirement of corporate governance occurred. Number of committees met and discussed to improve the Corporate Governance and the main concern was the conflict between shareholders interest and managers. Enron was the seventh largest listed company in US when its collapsed in 2001 as a result of manipulation of financial statements. Its affected to shareholders, more than 20000 employees worldwide, creditors and customers (Janis Sarra; St Johns Law Review ; Enrons Repercussion in Canada). The 11 titled â€Å"Sarbanes Oxley Act 2002† CONLUSION By analysing the review of literature, it can be suggested that its essential to maximise shareholder value rather than maximising profits alone. However maximising profit is also can be defined as a performance measurement of a healthy business. Extremes of profit maximisation can also be caused unethical behaviour of management towards its shareholders and stakeholders. Although, Earnings per Share inconsistent with the long term value of shareholder, its still can be used as a performance measurement, since its got firms net profit. As a result of recent corporate scandals such as Enron, WorldCom and Arthur Anderson, shareholders and other stakeholder groups had given much emphasis on corporate behaviour. The unethical and illegal behaviour of those high profiled firms were lost investor confidence of capital markets. They identified the importance of Corporate Governance which provides the â€Å"road map† for managers to follow, pursuing different objectives towards the firm (Basley Brigham). At the same time the arrival of Sarbanes Oxley Act 2002 provided investors a much more confidence and strength towards capital markets. However, stakeholders are also important for firms. They are also treated well for the to maintain a Even there are conflicts between stakeholder theory and Shareholder theory, it‘s necessary to balance these two theories. According to Cathy Haywards article (Black – hole sums; Financial Management May 2003), during the period of May 2003 the pension funds in US and UK were in a bad condition. According to the assessment of National Association of Pension Funds, there was a drop in UK pension funds by more than  £250 million in 2002. Its being told that there were many reasons for the crisis but, the huge drop in stock market during the economic down turn 2000-2003 has mainly been affected. The pensions funds are heavily depend on the dividend payments and the stability of the equity markets, as a result of the drop in share prices the pensions funds struggled to meet their obligations. References Besley Brigham â€Å"Essentials of Managerial Finance† Daniel, Heck Shaffer Journal of Applied Finance; Fall Winter 2008 – Shareholder theory,  Ã‚   â€Å"How Opponents and Proponents Both Get it Wrong?† Denzil Watson Antony Head â€Å"Corporate Finance (electronic resource): principles and practice 2007 â€Å"Management paradigms beyond profit maximisation† – Colloquium a debate by S K Chakraboty, Verghese Kurien, Jittu Singh, Mrityunjay Athreya, Arun Maira, Anu Aga, and Anil K Gupta. Maria K. Boutchkova William L. Megginson â€Å"Privatisation and Rise of Global Capital Markets† , Financial Management;   Winter, 2000, p31-76 Peter Atrill â€Å"Financial Management for Decision Makers† 5th Edition 2008 (electronic resource) Poitras, Geoffrey â€Å"Share Holder wealth Maximisation, Business ethics and social responsibility, Journal of Business Ethics; feb 1994;13,2;ABI/INFORM Global pg125 Rebecca Stratling â€Å"The Legitamacy of Corporate Social Responsibility† ; Corporate Ownership and Control; Volume 4; Issue 4, Summer 2007 Tony Ike Nwanji, Kerry E. Howell; â€Å"A review of the two main competing models of Corporate Governance: The Shareholder ship model versus the Stakeholder ship model; Corporate Ownership and Control, Volume 5, Issue 1, Fall 2007

Culinary Arts Essay

Culinary Arts is a broad field that contains many different specializations. Culinary Arts is something that will never go away, you have to eat everyday to live and lead a healthy life. Food as we know is essential for the growth and maintenance of the human body. Culinary Arts enhances your knowledge of life skills and cooking. Being in the Culinary Arts career field you have to have a specific set of skills to make delicious appetizing meals. For example you have to follow safe food handling procedures, learn the dos and don’ts of food safety and sanitation. see more:why do you want to be a chef Learning the proper knife skills is one of the first things you learn in culinary arts; knowing the proper cutting techniques. Something I didn’t know about Culinary Arts was that a Pastry Chef is the number one culinary careers. Pastry Chefs are skilled in the making of pastries, desserts, breads and other baked goods. I Chose Culinary Arts because I always aspired to be a chef since I was a child. I’ve always wanted to start my own restaurant or little bakery to show off my culinary skills. My FootPath) Culinary Arts started off as a work of apprenticeship, daughters would learn recipes from their mothers, and traditional recipes passed on through oral history. The first academic Culinary Arts program was started back in 1800. The Boston Cooking School was emphatically popular drawing a vast amount of international students. The Boston Cooking School was founded by the Woman’s Educational Association of Boston. They started the school to offer instruction in cooking to those who wished to earn their livelihood as cooks, or who would make practical use of such information in their families or business. One of Boston’s most famous students was Fannie Merrit Farmer; she published the world’s first cookbook in 1896. â€Å"The Boston Cooking School Cookbook† which is still a reference book for students of Culinary Arts today. Ernie Kovacs hosted the first televised cooking show â€Å"Deadline for Dinner† (aka â€Å"Dead Lions for Breakfast† as Ernie liked to call it). The show premiered on Monday, March 20, 1950 at 3 pm for a half-hour. The show aired on Mondays, Tuesdays and Fridays. (Broad Casting Pioneers) There are millions of people in this world, but what sets individuals apart from one another, it is our personal qualities and characteristics. We come from different backgrounds. However, everyone has one special quality that makes him or, her a unique individual, different from anyone else. For me it’s my passion for cooking. Most people would not consider cooking a quality, but for me it is. Ever since I was a child, watching my grandmother and my great grandmother cook, they are the ones that gave me aspirations to pursue a career as a chef. With the time and effort they put in the kitchen their food is always delicious. I started out at two years old, going to get my grandmother ingredients and her cooking utensils. As she would measure out her ingredients she would let me pour it into what it was she was cooking. I used to stand on a stool just so I could stir the food as it cooked and sometimes when she wasn’t looking I would try to add my own little ingredients. As I got old around four or five that’s when she taught me how to make simple things such as cereal and milk, peanut butter and jelly sandwiches, and sometimes she would get a little advanced and show me how to make soups, desserts and show me some of her special recipes that she wouldn’t show anyone else. Even though I was to young to make them or remember them I felt special because she shared something special to her that she wouldn’t share with anyone else. I would always be the first person up in the morning climbing on the counters like a little monkey getting the cereal off the top of the refrigerator, and getting a two bowls out of the cupboard just so I could make me and my brother breakfast every morning. I was always there when anyone was cooking in the kitchen; I was very curious, ready to learn something new, and ready to give my assistances to anyone who needed it. My favorite foods to cook till this day is desserts, but anything I could get my hands on to cook I surly would no questions asked. I have a clear vision of my career goals, and after high school I will attend the culinary arts program at the Raleigh-Durham Art Institute. There culinary arts program comprises exactly the skills and tools I need to succeed in becoming a Pastry Chef, and starting my entrepreneurship. Because I am determined and focused, I do not need anything more than the training and education the Art Institutes will provide. I have visited there campus and viewed some of their classes, they have a extraordinary culinary arts program. They focus mainly on cooking; The Art Institute does not waste time on classes that won’t help you excel in life, that’s why I know The Art Institute is the perfect school for me to shine and show off my culinary skills. First, because I know exactly how I want to apply my new skills, I do not need any extraneous courses. The Art Institute program perfectly reflects my own pragmatism and professional sensibility because it is focused and directly related to my goals. Second, I do not want to alter my lifestyle by engaging in a four-year program. I want to incorporate this education into my life seamlessly and smoothly. The Culinary Arts program will allow me to express myself creatively and professionally in the field of my choice. This program offers practical education and training that I can immediately apply to the workplace, preferably as a Pastry-chef in my own restaurant. The Art institute provides a seven-quarter culinary arts program, which prepares their students for various careers in the food industry field. The program includes simulated situations and real-world production applications in the dining lab and in internship environments. The Art Institute focuses on enabling there students to be well-rounded citizens by offering them a few general study classes in the culinary program. The Art Institute has a steep tuition which is 42,570 a year. Apply for financial Aid, and scholarships will cut down the tuition expense. There are also three other fees that include books and digital resources, program fees, and room and board if you plan on living on campus. This all together adds up to a total of 29,410 in addition to the tuition. This is assuming that I would do the four year program in earning my bachelors degree. Even though the expenses are lofty I still aspire to attend The Art Institute. (The Art Institute of Raleigh-Durham) The Art Institute has a career service department that provides assistance in employment, career counseling, and professional development. Their staff helps students and graduates network, cultivate, explore career opportunities, and provides individualized job search assistance. Many students choose to seek part-time employment while they attend school. This employment is an excellent opportunity to make industry contacts while building a portfolio of work. The Art Institute is the all around perfect school, you gain an astounding education, along with individual assistance with finding a job while your attending school, or after you completed the culinary program.

Struggle for Individuality Essay

The autobiography, Black Boy, follows the life of Richard Wright and his experiences as a young African American teenager facing racism in the South. Throughout the novel, Wright focuses on the oppression society inflicts upon him. He finds difficulty in remaining employed because he does not act â€Å"black† or submissive enough. He is physically and emotionally attacked for being African American as the majority of the South contains an extremely racist culture. Wright does not even have his family to rely on for support because they criticize and beat him as well. Differences within his family along with incidences of violent attacks and disrespectful language plague Wright and try to deplete his confidence and identity. However, Wright simultaneously finds measures within these aspects to gain back his individuality and happiness. He fights back through violence to uphold his right of walking safely in Memphis; he uses all of his ability to avoid beatings from his family, and he finds joy and sense of worth when he writes stories. Ultimately, Wright struggles to keep his sense of identity in a society that degrades his persona, but manages to obtain his individuality in the end. Through violence, Wright begins to understand that society is laying out a persona for him to accept that is not initially his. In the South, he learns he must accept the role as the meek and respectful â€Å"nigger.† Wright experiences violence one day that teaches him how whites expect him to act in the South. Wright recounts, â€Å"The car stopped and the white men piled out and stood over me. ‘Nigger, ain’t you learned no better sense’n that yet?’ asked the man who hit me. ‘Ain’t you learned to say sir to a white man yet?’† (181). Wright is smashed between the eyes with a glass bottle when he does not answer a white man by â€Å"sir†. The repetition of questions from the white man illustrates the authority the white man feels over Wright. The white man questions Wright as if he is an uneducated child. His word choice of â€Å"sense† portrays that saying â€Å"sir† to a white man should be common sense. After this incident, Wright â€Å"[learns] rapidly how to watch white people, to observe their every move, every fleeting expression, how to interpret what was said and what left unsaid† (181). He treats and studies white people delicately to ensure that he does not upset the balance between the higher  citizen and lower citizen, and thus does not have to suffer their brutal consequences. As Wright learns he is unable to act naturally, society gradually shapes him into what it thinks he should be. Wright recalls, â€Å"all the violent expressions of hate and hostility that had seeped into us from our surroundings, came now to the surface to guide our actions† (83). Wright’s utilization of the â€Å"h† alliteration in â€Å"hate† and â€Å"hostility† emphasizes a heavy â€Å"h† sound to reinforce the thickness and greatness of their conflict, that their differences were not just on the surface, but blood deep. The â€Å"s† alliteration in the word, â€Å"seeped,† â€Å"surroundings,† and â€Å"surface† creates a low, rattling â€Å"s† sound to create a sense of savagery in their actions. As Wright grows, he begins to experience the segregation between white and black. He also begins to accept the role of an angry African American that society casts him to play. He learns that he must act as a quiet and obedient â€Å"nigger† as he is constantly beaten whenever he acts otherwise. Wright’s family also takes away his freedom to be himself as they consistently beat him. In one incidence, he tells of the time his Uncle Tom was infuriated with the way he speaks. His uncle says, â€Å"I never heard a sassier black imp than you in all my life† (157). Wright does not understand what he said or what he did wrong; yet his uncle is persistent in beating him, believing that Wright does not know how to live with people. Wright asks â€Å"How long was I going to be beaten for trifles and less than trifles?† (158). Wright’s questioning of time illustrates the weariness he feels toward his family. He cannot endure any more beatings over trivial matters. Because of his family members, Wright is trapped in his grandmother’s home. He is unable to speak freely as his family members find him impolite. The one place that Richard Wright should feel comfortable, if nowhere else, is his own home, but he is so alienated by his family that he cannot. Wright feels that the only way he can escape his mental imprisonment is by moving to the North, thus creating the North as a symbol of hope. Language functions as a powerful device that portrays white women attacking Wright’s individuality. When Wright searches for jobs and interacts with  white people for the first time, he experiences a double consciousness: how he views himself and how the white women view him. The language that white interviewers use is insulting and depicts how unintelligent they perceive him. After a few interviews Wright â€Å"quickly [learns] the reality- a Negro’s reality- of the white world† (148) as being thought of as dumb witted. The first woman illogically asks Wright if he steals to that white he thinks, â€Å"Only an idiot would have answered: Yes ma’am. I steal† (146). When Wright answers. â€Å"Lady, if I was a thief, I’d never tell anybody,† the lady bluntly states, â€Å"Now, look, we don’t want a sassy nigger around here† (145). The first interviewer seems to believe that black people do not have enough sense to lie abou t stealing, even when they are being interviewed for a job position. She considers a black person with common sense as a â€Å"sassy nigger.† The last interviewer finds it appalling that Wright cannot milk a cow as she mentions, â€Å"You mean to stand there, nigger, and tell me that you live in Jackson and don’t know how to milk a cow?† (149). She places Wright in the stereotype that all black boys from Jackson know how to milk a cow. The fact that she demanded an answer in surprise illustrates the disbelief she feels in finding one black person that cannot milk a cow. The white women stereotype Richard as an uneducated black boy with no level of intelligence and skill. They insult his knowledge and strip him of his individuality believing that all black boys are the same. The white women demean him causing him to leave every interview. The portrayal of the white women labeling Richard Wright as another dumb â€Å"nigger† illustrates how narrow-minded and similar they are to each other. Within Black Boy, language illustrates the racial resentment that the white women feel towards Wright for the color of his skin. Language acts as a device seizing Richard’s individuality and personal respect he obtains for himself. Although Richard Wright’s relationship with violence, family and language teach him that he was no power as an individual, Wright rebels and utilizes these same aspects in an effort to seek some sort of control. Wright’s mother is the first to offer him power through violence. Wright recalls, â€Å"I was baffled. My mother was telling me to fight, a thing that she had never  done before† (17). After Wright fights off a group of boys with a stick and delivers his mother’s groceries he says, â€Å"on my way back I kept my stick poised for instant use, but there was not a single boy in sight. That night I won the right to the streets of Memphis† (18). Although violence acts as a method to teach him of his lower social stance in society, he is able to gain personal power though this same violence. After bearing those boys, he is able to walk freely by himself in peace. In addition, Wright gains power within his family as he refuses to be whipped. After his Aunt Addie whips him in class for walnuts that another boy had left he says, â€Å"I was sure of one thing: I would not be beaten by her again† (107). Many times throughout the novel Richard’s family relatives endeavor to beat him, but he refuses and with that gains power over them and individuality because he will not let them lay a single hand upon him. Wright recalls, â€Å"Aunt Addie took her defeat hard [†¦] I was conscious that she had descended to my own emotional level in her effort to rule me, and my respect for her sank† (110). After Aunt Addie tried to beat him for a fault he did not commit and fails, he begins to feel that he is on the same level of an adult. Furthermore, Wright is able to obtain power and individuality again through language. When Richard is younger he writes a passage about an Indian girl; he says, â€Å"I had never in my life done anything like it; I had made something, no matter how bad it was; and it was mine† (120). Afterwards, Richard shows his written passage to his neighbor and â€Å"her inability to grasp what [he] had done or was trying to somehow gratified [him]† (121). Being able to write gives Richard a strong sense of individuality since it is his creation. Writing the passage also gives Wright a surge of empowerment, as his neighbor cannot fathom why or how he did it. Throughout Black Boy, Richard Wright is inhibited as a person. He is expected to act as a subservient African American. He is insulted and degraded for merely possessing a different color of skin. Wright is restrained by society and learns this oppression when he is violently beaten by white people as well as his family. Wright quickly learns how white people view him as inferior when they insult his intelligence and stereotype  him as a person that will never amount to anything. Richard Wright is constantly belittled as a person, but he uses these same aspects to gain back his power as an individual. He fights a range of people, from a gang of kids trying to take his money to his own family relatives, in order to keep his sense of power. He writes short stories that bring him happiness and confidence and respect. Black Boy offers the life story of Richard Wright’s battle against violence, family differences, and insulting language to uphold his individuality and freedom to be himself against all forces.

Incorporated In 1938, Walt Disney Has Been A Well-Known

Incorporated in 1938, Walt Disney has been a well-known name in the entertainment business. According to Global Financial Data, Disney first started offering stock to the public in 1940 with a cumulative convertible preferred and then in 1946 it offered â€Å"OTC† (over the counter) common. On November 12, 1957, the NYSE added Disney to its list. So how is the financial condition of Walt Disney today? In the next few sections, I will take a closer look at the financial records of the company including the balance sheet and income statement to perform an analysis to see how strong the company is today and if they can keep that strength moving forward. The company’s capital structure, liquidity, and profitability along with other data will be†¦show more content†¦This will help to see how the stock will move with the market in the next few years. With a beta score of 2.0 or greater, the risk increases and the stock can double or it can be reduced to very little in minutes. A beta score of 0.5 would mean that there is little risk involved. The average beta score is 1.0. The beta score for Disney is 1.32 which means that historically, the stock has been moving closely with the market. In comparison, Time Warner has a beta score of .87, showing that it is moving a little slower than average with the market. WACC WACC or Weighted average cost of capital is found from a common stock, preferred stock, bonds and different components of debt cost. Signs of increased risk in the market can be found if the WACC increases, which also increases the beta and the rate of return. The WACC is important to know because it gives insight to future funding expenses. If the number is high, it means that the company will have more expenses to fund new projects. If the number is low, funding new projects will be less expensive and easier to complete. Walt Disney’s WACC is 9.99% and its return on invested capital is 14.60% in comparison to its competitor Time Warner who has a WACC of 6.87% and a return on invested capital at 12.34%. (Walt Disney Co, n.d.) Average Bond Yield The amount of return an investor expects on a bond is the bond yield. The average bond yield is the average that is expected from the bonds. According toShow MoreRelatedI Am Enamored By The Man Who Made All Of It Possible3289 Words   |  14 Pagesborn. Walt was one of five children. He had three older brothers one of which he would later in life be business partners with. Roy and Walt Disney would eventually be Walt Disney Studios. In 1906 the Disney family moved to a 45 acre farm in Marceline Missouri. Walt learned about teamwork while working the farm. Disney farm is where he began to draw animals and nourish his imagination. 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