Return calculation As per the model of constant growth, we can say that Stock Price (denoted as ‘P’) = DIV1 / (r-g) Where the given values are: P = $40 DIV1 (value of given next dividend) = $4 r (rate of discount) = x (unknown) g (rate of growth) = rate of retention * investment return rate = 0.40 X 0.15 = 0.03 Putting this value of ‘g’ in the equation of constant growth, we get, P = DIV1 / (r-g) or, 40 = 4 / (r – 0.06) or, r – 0.06 = 4 / 40 or, r – 0.06 = 0.1 or, r = 0.1+0.06 = 0.16 Therefore, rate of discount = 16%. As per the model of constant growth, we can say that Stock Price (denoted as ‘P’) = DIV1 / (r-g) Now, P0 = DIV1 / (r – g) And, DIV1 = DIV0 X (1 + g) Discount rate (r) = 15% Replacing the values in the constant growth model equation, we get, P0 = DIV1 / (r – g) P0 = {DIV0 X (1 +…
The Global Financial Crisis of 2008 The global financial crisis of 2008 is one of the worst economic disasters to have hit Europe after the Great Depression of 1929. The tragedy hit Europe despite the efforts from the Federal Reserve and the Treasury Departments to calm the Europe’s economic turbulence (Fassin & Gosselin, 2011). The Global Financial Crisis of 2008 had ethical concerns which swept across the affected governments and the organizational leaders. Federal governments and corporate leaders faced ethical issues emanating from the mortgage brokers, subprime mortgage lenders, and to the securitization of mortgages. The organizational leaders who managed the rating firms were incompetent regarding the assignment of investment ratings and the collateralized debt obligations. The leadership of the regulatory agencies and the Security Exchange Commission (SEC) failed to review the required adequate disclosures in the supplemental prospectus for banks (Elliott, 2011). Consequently, the international banks failed to underwrite the criteria used to assemble the pooled loans, thus presenting one of the significant ethical concerns during the 2008 global economic tragedy. States, global leaders, and federal personnel agreed to…
Worldwide economic recession of 2009 As per the given article, the great recession of 2009 was caused by the policies of the United States government. The housing policies of the government had resulted in the money of the federal banks getting concentrated around the housing sectors. This was primarily because the government wanted most of the population to buy homes. The government also lowered the lending standards, which resulted in the housing financial bubble getting inflated with time. The governments then encouraged firms to buy riskier mortgages, which became a liability once the pricing fell in 2008. As a result, the financial firms on which the government relied on loans and mortgages, collapsed one by one. Some of the notable examples are Freddy Mac and Fannie Mae, which helped the governments in providing affordable housing plans in 1992. The investment made by these financial institutions became bad once the housing prices began to decline, and the loans started to default at higher interest rates. In the given article, the author states that the worldwide economic recession of 2009 was caused…
Poverty and its relation to health as a social problem The first episode introduces viewers to the poor health statistics in the United States of America in comparison to other fellow industrialized countries. The results are presented to Marmot’s Whitehall Studies, which comes with particular findings. The findings are that health status and wealth status have a steady correlation in a continuous gradient that ranges from extremer poor to extreme wealth. The film addresses poverty and its relation to health as a social problem. There is the usage of people of different levels to represent social class within society. The lives of the Chief Executive Officer (CEO), the lab supervisor, the janitor, and a jobless mother illustrates well how the social class influences the opportunities of gaining good health. Those at the top class with higher incomes and power influence are in a better position of getting the required resources to obtain good health. On the other hand, those at the bottom are usually the victim of stressors. The stressors are inclusive of unpaid bills, the jobs which are not…
The diverse workforce The diverse workforce contains employees of different gender and age. Workforce diversity is becoming an essential aspect of most small and large businesses. According to Brown (2017), Workforce diversity is likely to be among the four world’s trends of work soon. For this reason, he credits the workforce diversity as the dictation of specific features is displayed. Also, a scholar, Johnston, recognizes the advantages of a diverse workforce to be more than the disadvantages. He renders a diverse workforce a tool to the increase of productivity (2019). Therefore, it is evident that a diverse workforce is a crucial contribution to the succes s of the richness of both small and large business.
evolution of food supply in the recent past Since human kind started practicing agriculture, there has been a constant evolution of food systems. The evolution has been manifested in production, storage and consumption. The strive to satify quality and quantity of food with the ever changing climate and cuture has been the key contributing factor to this evolution . food production governance has become complex day by day due to continuous restructuring so as meet humans demands.This paper explore the evolution of food supply in the recent past. Food supplies has gradually been slowed down by changing climates, resource degradation diseases and rapid population growth. Despite these strong forces acting against food production, mankind has embraced science and technology to counter react and anable sufficient food supply.This has led to adoption of genetical modification of food (GM).Genetically modified foods are obtained from genetically modified organisms. The organism can be an animal, insect, microorganism or a plant.Genetically modified organisms have specific DNA sequences due to artificial or natural manipulation of their genomes.Only selected genes are transferred to the genetically modified organisms…
importance of organization and individual ethical practice and thinking, theories that underpin ethical issues Decisions of business individuals and organizations are guided by a system of ethical or moral beliefs within a business firm. The behaviors, values, and determination are examples of ethical guidelines and ideas known as business ethics. Business ethical requirements are typically codified into governmental laws, minimum wage, environmental regulations, restrictions, and cooperation. Organizational and individual ethical thinking and practice helps an organization to build a positive reputation in the society. An ethical business organization is also able to retain its employees by building stronger bonds in the team of management, thus stabilizing the company. The role of business organizations in society is to satisfy the demand and the needs of the public. Ethical theories are critical in decision making since they offer a view point where an individual can seek guidance when making decisions. However, it does not provide the necessary answer to practice. The paper will focus on the importance of organization and individual ethical practice and thinking, theories that underpin ethical issues, and the…
Turtle Excluder Devices Introduction A turtle excluder is a device used by sea shrimpers to exclude turtles that are caught during their casting. The device is a clear structure that is modified with the persistence of excluding the turtles, which can become hazards to the shrimper’s societies and their catch. The community of Texas has raised apprehension about the use of turtle excluder. The devices have turned to have negative impacts on their harvests since the alteration of the invention allows some of their catch to outflow together with the turtles, therefore reducing the amount of shrimp that is conserved in the excluders. Despite many of Texas societies stressing on the use of excluder devices, some are distressing. This paper explores the argument raise among the stakeholders and the sea shrimpers. Importance’s and performance of excluder devices It’s desirable to use the turtle excluder devices since they have excessive significances as compared to their minor effects. By retaining the use of the tools, the shrimpers exclude themselves from the risks which can accompany them during their casting progression. Despite the…
Agency Resources I Food and Shelter Introduction In the whole world, several agencies are offering basic needs to the needy, and most of the time, they can be privately or publicly managed. Commonly known as donors in the developing countries, the teams play a crucial job of providing foreign aid, which not only creates exportation but also for investments. Besides, due to economic development, donors try as much as they can to facilitate economic development practices in such areas to stimulate growth (Button, Reform, Councils, Fisherfolk, Labor & Poor, 2019). Among many, the resources provided by the donors could serve different purposes such as housing, food, travelers’ assistance, rent, or utilities. The goal of this essay is to provide a list of agencies that help with basic needs mentioned above in the United States of America. The table below provides an overall summary of the different agencies helping with basic needs in the United States of America. Rent Utilities Travelers’ Assistance Housing Food Name of Agency Offering Aid The Salvation Army; USA U.S Agency for International Development…
Turkish financial and economical crisis Even though there have been conflicting thoughts that purported finance and economics as totally separate disciplines, however, scholarly factual arguments reveal that the two fields are strongly interrelated in the sense that finance and economics influences and informs each other. Therefore, the economics often associated with a vast point of focus, such as a country or a federal region market performance and the relevant public policies concerned. However, finance highlights the return and risk evaluation associated with investors and companies. Thus there exists a financial crisis when money supply is overtaken by money demand, which therefore leads to economic crisis. A phenomenon in which a country’s economy encounters an immediate downturn attributed to the financial crisis. Both financial and economic turmoil characterizes in recent years. In 2018, many countries witnessed monetary tightening worldwide, which mainly affected the emerging markets in which Turkey was one of the most affected. Turkey has been one of the best performing and fast-paced economic growth rates globally, outshining countries such as India. Reports indicate that the country recorded a growth…