Differentiation or Cost Leadership

The textbook suggests that there are only two generic strategies available to a firm: differentiation or cost leadership. Both strategies can be applied either into a focused market or a broad market. Do you agree that these are the only two strategies available? Are they mutually exclusive? Why or why not? Porter's Generic Strategies Target ScopeAdvantageAdvantage Low CostProduct Uniqueness Broad(Industry Wide)Cost Leadership StrategyDifferentiation Strategies Narrow (Market Segment)Focus Strategy(low cost)Focus Strategy(differentiation)Generally ,as per the Porter's Generic Strategies there are only two strategies are available to the firm i. e. , differentiation and cost leadership. These strategies are the strength of the market which is independent of the product and industry. Along with these two strategies the focus strategy is also there which is the combination of low cost and differentiation strategy. The Focus strategy help firms to provide the unique good quality product with the low cost that focus on the Narrow Market segments. Advantage with the Focus Strategy is that it helps the both customer and organization side.Customers fulfil their needs within their budget and organization also gain its profits but the implementation of the Focus Strategy is very risky which required more studies of the market and about competitors. As per my aspects Focus strategy really helps the organization to able to produce the good quality of product within the customer budgets which also focus on the market demand. Daft, R. L. (2010). Management (9th ed. ). Mason, OH: South-Western Cengage Learning. ISBN: 13-9780324595840 Ref: Porter's Generic Strategies

Perfect competition V. Monopolies Essay

In the American Economy, business is controlled by the government and the consumer. When a person is the owner of a business that is alone in its product that it provides for the consumer, it is said to be a monopoly. As a monopoly you have sole control over price. Monopolies are regulated by the government in order to prevent the misuse of power that a monopoly has. If a person can only get turkey, for example from one store. Then the store can charge a lot more for that turkey than it could if the store next door was selling it too because then there would be competition. Also, the store would not have to produce a better quality of turkey because there would be no reason for it to do so. In this situation the consumer is taken unfair advantage of by the business owner, in this case the store. Government regulates monopolies to promote a perfect competition economy and to get rid of the â€Å"turkey situation† discussed above. The benefits of a perfect competition economy benefit consumers. For example, if we go back to the store, in a perfect competition economy all of the stores have turkey. Now the stores want to make sure that the turkey that they sell is the best turkey and cost the least. In this situation they are competing for the consumer’s business. However, business owners of a monopoly situation disagree with the government. When there is a business that has the potential to become a monopoly the government watches it very closely and the business has to go through the government for mergers and such. The more the business becomes a monopoly, the more the government says no to the business’s requests. For example, there is Microsoft. The government has been working to keep Microsoft from being the big business that it is today. So, in conclusion, a perfect competition economy makes benefits for the consumer. Likewise, a monopolistic economy makes benefits for the business owner. On the flip side, a perfect competition shows drawbacks for the business owner and a monopolistic economy shows drawbacks for the consumer. The best way to run an economy is to have a balance between the two options. America’s economy does this.

An Exegetical Essay On John Chapter 1 Religion Essay

An Exegetical Essay On John Chapter 1 Religion Essay INTRODUCTION Unlike the synoptic Gospels, the Gospel of John does not begin with the historical Jesus, instead, the author exalts his eternal existences over his earthly entrance into the world. The eternal existence of Jesus is perceived by the use of ‘Word’ (logos) in the prologue. Thus, the author begins his gospel with the words, ‘In the beginning was the Wordà ¢Ã¢â€š ¬Ã‚ ¦Ã¢â‚¬â„¢ John’s Gospel stresses on the deity of Jesus, he strikes the reader straight with the Greek ‘Word’ (Logos) as a replacement of Jesus until the end of the prologue. One could say that the understanding of this Gospel is centred on the ‘Word’ (logos) as a key affirmation of the entire Gospel. The prologue affirms that Jesus used the eternal ‘Word’ which has been translated from the Greek word (logos). In chapter (1:1-5) the author talked about the pre- existence, in (1:6-8) he elaborated on the witness of John the Baptist, in (1:9-13) he highlighted on the light coming to the worlds, in (1:14-18) he accounted on the incarnation of the Word. This prologue is specially or specifically designed to prepare the way for the evidence of the doings of no ordinary person but Jesus Christ. This paper is an attempt to exegete the passage of (John 1:1-18). The Pre-existence Word (1:1-5) The commencement of this Gospel as stated, ‘in the beginning was the word’ has something to do with (Genesis 1:1). John was trying to say that Jesus Christ was in the beginning and He was the ‘Word’ which existed in the beginning before creation or before the world began and ‘was fully God’ (John 1:1-3). Jesus is indeed the creator, sustainer of all belongings, our source of living and the establishment of eternal life. To understand this concept one must commence with the Father-Son relationship which is the central revelation of John’s Gospel and also the key to understand the sayings and deeds of Christ Jesus (17:5, 24). Extensively, this term (logos) which has a meaning in English as â€Å"the Word† was used in Greek literature or theologians and philosophers; among them were the ‘Stoics who used the term to describe the principle of divine reason which caused the natural creature to grow.’   [ 1 ]   Philo of Alexander was the mastermind of this idea in his writings and maintained it as an instrument of the world creation. There are dissimilarities between the usage of the ‘Word’ by John and Philo. In the mind of Philo, he by no means consider the ‘Word’ as a person and he did not maintain its pre-existence, he denied the incarnation of the ‘Word’ which is known as Jesus. But in Johns mind the ‘Word’ was maintained and became ‘flesh.’ This points to Jesus Christ who came to save humanity and dwell among them. One could say the fifth verse of this chapter shows the compassion of the auth or as a beloved disciple and an eyewitness of Jesus who is trying to communicate the good news to the Jews, Greek philosophers and all kinds of people from generation to generation in his writings. Here John declares that Jesus Christ is the true light, who shines in the darkness, but the darkness which can be translated as sinful man ‘has not understood it.’ The better understandings of this verse rely on (verse10-11).   [ 2 ]

Evaluation of a workplace learning environment(school) Essay

Evaluation of a workplace learning environment(school) - Essay Example Given this acknowledgement of the importance of workplace learning, I proceed by investigating the utility of learning theories in identifying barriers to such learning. Workplace learning has been defined as â€Å"learning or training undertaken in the workplace, usually on the job, including on-the-job training under normal operational conditions, and onsite training, which is conducted away from the work process (e.g. in a training room† (Australian National Training Authority, online). It critical to undertake workplace learning since it accords the key competencies needed by the school to stay competitive. How is a workplace ideal for learning envisioned? Smith & Hayton (1999, p. 252) puts forth that the school’s openness to change is a critical factor in the progress of training and development. They have also stated that there are external and moderating variables that influence training levels. The interplay among these factors is the key determinant to the kind of training which shall be prioritized by the firm (Ridoutt et al., 2002, p. 14). Moreover, it has also been presented that smaller-sized schools were more involved in informal training compared to larger ones. There are several drivers that affect and push training within any school, as follows: Approaches: Having pointed out this distinction, it may be worthwhile for me to delve more lengthily on learning processes which may be more applicable to the work setting, including action learning, situated learning, and incidental learning. Action learning is defined as a systematic way through which learning transpires by application of theory or by doing. It is anchored on the assumption that learning necessitates action and that this in turn needs input from learning. Learning per se is the expected result of action learning, and it does not intend to focus on the resolution of a problem (Lewis & Williams, 1994, p. 12). Brown et al (1988)

Assessment of the Overall Impact of Colonialism in the Philippines Research Proposal

Assessment of the Overall Impact of Colonialism in the Philippines - Research Proposal Example The strong resistance of the Filipinos to colonial rule paved the way to its national independence in 1946 from the American rule (Weightman 483). Today, the Philippines remarkably is trying to run its own government under a democratic procedure which gives more freedom for all Filipinos to exercise their right for citizenship. Today, 65 years passed after the Philippine independence from American rule, it is still important to look at the following aspects as a particular way to assess the overall impact of colonialism in the Philippines: leadership in governance, political, economic and culture. In 1972, Ferdinand Marcos proclaimed martial law which placed the entire nation under the military authority. Once again, Filipinos had proven that oppression is a significant triggering factor as far as their level of resistance is concerned. Based on these, it is clear that the Philippines together with its people have remarkable characteristics that are in line with its momentous history particularly its experience with colonialism. It is therefore important to asses at this point the level of impact colonialism brought to the Philippines particularly in the country’s leadership in governance, politics, economy, and culture. For instance, corruption in the Philippines is something Filipinos observed from Spaniards, which today became its major and significant problem. In fact, to alleviate if not eliminate it is the very goal of the recent administration.  

Health Campaign Research Paper Example | Topics and Well Written Essays - 2000 words - 1

Health Campaign - Research Paper Example food safety and physical activity, though according to the overview results they mainly impact academic achievements of students from the target groups. Harris County Hospital District, official authorities, HCPHES, school administrations and volunteers from the target communities certainly try to change the situation for better. Nevertheless, their efforts are uncoordinated and not widely-advertised, that’s why local Hispanic and African-American communities are not involved in it properly. Thus, to improve current situation in Harris County an efficient Health Campaign is required. To establish this Health Campaign detailed statists is required, because organizes should be well-aware of quantity of the target groups, its basic needs, socio-economic status, health-related problems etc. In 2009 Harris County population included circa 4,070,000 residents; absolute majority (98%) lives in urban zone. Thus, large distances and transportation will not hamper arrangement of the health campaign. Both African-American (18.5%) and Hispanic (32.9%) communities make 50% of total population, that’s why the campaign must be large-scale and involve all abovementioned interested parties. (Appendix A) â€Å"According to the US 2005 American Community Survey, both the HA (14%) and the AA (12%) populations are represented as minorities.† (Talpade, 2008) Using CDC BRFSS, the campaign organizers can make a brief comparative analysis of general health status in the county with Healthy People 2010 objectives. As for improvement of daily ration and weight management, average weight of men makes 190 pounds, for women – 159 pounds. (CDC BRFSS, 2004) It means that obesity rate in the county is above average US obesity rate. 57% of residents drink alcohol more than twice per month and 40% smoke quite regularly. Thus, majority of members of African-American and Hispanic communities do not follow healthy diet and prefer fast-food or semi-finished products from the supermarkets.

Preeclampsia Essay Example | Topics and Well Written Essays - 500 words

Preeclampsia - Essay Example Other risk factors include promigravida, hydatidiform mole, multiple pregnancy, urinary tract infection, black race, nulliparity, presence of chronic diseases like diabetes, obesity, chronic hypertension and renal disease, and positive family history of preeclampsia (Erogul, Emedicine). Hypertension means a systolic blood pressure (BP) greater than 140 mm Hg and a diastolic BP greater than 90 mm Hg on 2 successive measurements 4-6 hours apart. Proteinuria means 300 mg or more of protein in a 24-hour urine sample or a urine protein-to-creatinine ratio of 0.19 or greater (Erogul, Emedicine). The pathophysiology of preeclampsia is not well established. However, most researchers believe that placental hypoperfusion is the inciting event resulting in abnormal formation of uteroplacental spiral arterioles. These arterioles are highly sensitive to vasoconstriction. Placental hypoperfusion causes release of systemic vasoactive compounds which cause exaggerated inflammatory response, vasoconstriction, endothelial damage, capillary leak, hypercoagulability, and platelet dysfunction (Erogul, Emedicine). Mild-to-moderate preeclampsia may be asymptomatic. Most of the cases are detected through routine prenatal testing. Infact symptoms are mostly seen when end-organs are affected. Some of the symptoms which can be attributed to preeclampsia are headache, visual disturbances, dysnea, malaise and edema. Along with increased blood pressure, physical examination may reveal altered mental status, decreased vision, papilledema, hyperreflexia, seizures and focal neurodeficit (Erogul, Emedicine). Preclampsia should be managed by controlling blood pressure with antihypertensive agents. The goal should be to maintain diastolic blood pressure between 90 and 100 mm Hg and systolic pressure between 140 and 155 mm Hg. In case the patient develops seizures, the patient should be admitted to emergency

Business studies - asian pacific studies Essay Example | Topics and Well Written Essays - 1000 words

Business studies - asian pacific studies - Essay Example The chaebol were guaranteed loans to divert the investment form agricultural setups to industrialisation (Song, 1990). With the availability of resources and support of the government, the chaebol played a tactical role in exposing the export market for the Korean economy and placed the country among the East Asian Tigers. Most of the success of the chaebol has come from the realisation of the Korean government after in the 1960s and later that they needed the ideas and cooperation of the chaebol to implement much of the government’s plans to turn the economy away from consumer driven goods and small industries (Stiglitz, 2001). Furthermore, in return to the chaebols’ cooperation, the government would extend special favours and allow monopolistic and oligopolistic presence of these business groups to grow. In addition, these business groups were also facilitated with foreign and domestic investments as loans as the Korean government guaranteeing their return if the business group failed to. In the shade of this government support, the chaebol not only helped themselves with huge foreign investments but also benefited from access to foreign technology. Since the chaebol were the only leaders to develop the industrial sector their success came with the expansion of the South Korean exports. The chaebol were solely dominating all industrial sectors with the support of the government and in the 1980s the chaebol were financially independent and did not need any further government assistance. The chaebol were heavily invested in meeting the demand of the export market and had tailored their products in accordingly. They had completely overseen the local market and the opportunities available within the borders of Korea (Stiglitz, 2001). Moreover, by the 1990s, the chaebol had developed oligopolistic competition among themselves and had reached overcapacity which the local market could not have supported in case of a decline in the

International Management College Assignment Example | Topics and Well Written Essays - 750 words

International Management College - Assignment Example Being open at the very outset will help set the mindset of the workforce, who would then be able to work with a clear set of requirements (both at an individual as well as at the organizational level). 3. Educate the workers on modern industry: the new manager also has to ensure that the Chinese workers are well-educated about changes in work practices and the way in which modern industry is profit oriented. This will pave the way for bringing out any opinions on the part of the workers, which may be addressed well in time. Such issues generally require that the manager be skilled enough so as not to offend the sentiments of the Chinese workers, which requires that the manager have prior exposure to Chinese culture and the way things need to be said and done under it. 4. Motivate workers: the new manager can help further the interests of the company by offering performance based incentives in the form of financial benefits. This requires that the manager monitor the performance of every worker and keep track of those who are performing better in comparison to others. Other sources of motivation such as promotions etc. also work a long way in this regard. 5. 5. Encourage feedback and suggestions from workers: the manager must understand the fact that it is the worker who spends most of the time in the manufacturing process, and as such has a better knowledge of how the production can be improved within the existing framework. Typical examples in this regard could be scenarios whereas certain stages of production are underutilized and others are unable to cope up with the supply and demand. Under such situations, it is the workers who can offer better suggestions. Gathering such information requires that the manager establish effective communication with the workers and make efforts to obtain feedback from them on a regular basis. CHANGES TO COMPENSATION PACKAGE Keeping in view that the manager is supposed to work in a foreign country; two important changes to the compensation package are suggested. The first and the foremost change to the compensation package would be decide the salary amount depending on the personal income tax rates of the country where the manager is supposed to work (China in this case). This is extremely crucial as tax rates vary from country to country and having a fair idea of the tax rates for a particular country is absolutely important in order to cut down on the costs (incurred in sending the expatriate to another country, which is substantially more than hiring local managers in China). Secondly, changes have to be made to the compensation package to accommodate the expenditure incurred for the purpose of schooling. This is because of the fact that the children of expatriates most likely would prefer an international school, which is quite costly in almost any city. As such, considering these costs is quite imp ortant while deciding upon the compensation package. REFERENCES 1. Geoffrey W. Latta (2006), the Future of Expatriate Compensation. Found at:

How Single parenting has negative effect Essay Example | Topics and Well Written Essays - 1000 words

How Single parenting has negative effect - Essay Example In this regard, the current discourse aims to contend that single parenting has negative effects that are detrimental to the children, and to the single parent, in the long run. Single parenting poses risks to the parent tasks to raise the children alone due to exposure to more stressors in responding to the needs of the family. As a single parent, the mother or father has to find ways and means to support the children holistically; meaning, financially, physically, emotionally, mentally, and even spiritually. As asserted by Hertz, â€Å"women who came from working class backgrounds were at one and the same time proud of their mothers’ employment achievements and sad that it was their mothers who were doubly burdened with keeping family life together† (6). As such, the need to fit all tasks and endeavors in a limited time frame poses health risks to single parents, including risks for developing anxieties, depression, cardiovascular diseases, and even burnout. Concurren tly, single parenting also exposes the children to be recipients of bursts of emotions and negativity. This fact was revealed by Aldort and Aldort who contended that â€Å"sometimes, in spite of all our intentions to love and be kind, what we might feel toward a child is anger and even resentment† (15). ... These are often feelings that we may not be aware of because of fear and discomfort rooted in our past experiences† (Aldort and Aldort 15). The negative impact of these outbursts to children include loss of confidence in themselves, depression, low morale, and even fear to socialize, trust others, and open up, as required. After having presented the negative effects of single parenting to the parent and the children, it could also be asserted its damaging repercussion to social structures, particularly in terms of maintaining a solid and unified family as the basic unit of society. Single parents need to exert double efforts to make up for the loss of the physical presence of spouse and of a father or mother to the children. As such, there seems to be something lacking that is felt by the parent and the children alike. This void could not be replaced by material things or by other people. Therefore, the negativity associated with trying to fill the void remains persistent. As a verred, â€Å"warmth, discipline, materialism - dealing with all these issues effectively demands that we address not only the challenges that parents face, but also the needs that they have as they try to be the best parent they can† (Levine 169). As such, inasmuch as the single parent focusing all his or her efforts to provide a holistic support to the children, the needs of the parent could most likely be neglected and wanting. Thus, the core values of maintaining a cohesive and supporting family, as the basic unit, are definitely eroded as society begins to accept single parenting as the socio-cultural norm in contemporary societies. There are those who argue that

Observation Narrative Essay Example for Free

Observation Narrative Essay Days of Old When Knights Were Bold Growing up, I was never that girl that fantasized about becoming a princess and meeting that special prince that would sweep me off my feet and save me from all misery. Even sorcery books such as the Harry Potter series did not appeal to me. I did not believe in any of that quirky fantasy land stuff so the idea of being dragged to the Michigan Renaissance Festival with my family over Labor Day weekend did not appeal to me; I would have much rather been out having fun in the sun barbequing with friends just as any other American typically celebrates the holiday. Staring out the car window all I saw was cornfields and the occasional Ma and Pa family owned restaurant or ice cream parlor. Mt. Holly came into view a little further down the road, but the slopes were dry and scarce due to it being summer. Tucked behind all the forestation was a small fairground where police orderly directed cars into the lot. The parking lot, overwhelmingly large in size, branched in two directions. One led to a general area and the other took cars single file down a long and winding path. This brought butterflies to my stomach. License plates were country wide varying from fellow Michiganders to visiting guests from neighboring states such as Indiana and Ohio and some traveling from as far away as Florida or Kansas. Once we secured our designated spot and our legs were fully stretched after sitting stationary for the hour drive we merged with the herd of people and marched together through the forest to discover this new unknown world. The walk was a journey in itself. The weeds in the wasteland of the parking lot stood knee high and tickled my leg with every movement. There appeared to be no end in sight as it was at least a mile long containing various obstacles such as logs barricading the path and bridges. Surprisingly there were no mosquitoes but the sound of the crickets chirping and the leaves crinkling all echoed loudly. I so badly wanted to turn around and hike back to the car but as I got closer I could catch glimpses of the festivities through bare spots between branches and heard ear piercing screeches and rowdy whistles along with bursts exiting out the tall vintage buildings. This shot my curiosity level through the roof and the excitement continued to build. The path had ended and before my eyes was a new world; something I had only seen before in movies. The spirit of the festival had overtaken my  body and the feeling was enchanting. Giant castles awaited me along with colorful flags and banners streamed over the entrance with cheerful greetings labeled, â€Å"Huzzah!† I was suddenly willing to give this all a chance and I had a new frame of mind that was open to adventure. Walking in those front gates was a lot to take in and represented a totally new side of the social spectrum when compared to a normal festival. People were dressed in a wide range of attire and it was hard to differentiate the workers from the tourists. The main clue was that tourists casually walked around grinning whereas the staff tended to get fully into character by perfecting their accent. Each got the chance to live out a life they had always dreamt of through roll play and step outside their comfort zone without being judged. There were fair maidens, juggling court jesters, wizards, elves, and fairies. All fantasy elements were covered and all of this contributed to the illusion of taking a step back and reliving medieval times. Coming from a family of macho men it was absurd to see a men proudly sporting kilts along with boots accented with bells that jingled with every step creating a musical tune of its own. Even more shocking was the fact that they all had a strong family support system lined up behind them all dressed matching in theme as well. It seemed that the more eccentric the outfit, the better. Long velvet capes with matching feathered hats or flowery garland in the women’s hair were also common while others dressed as mystical animals and pranced around with tails and ears. These costumes were all things that I would never be caught dead in but after a while strangely enough, we all blended together. There was an aroma of sweat due to everyone dressed in multiple layers but no one seemed to mind as it was a mere part of the ambiance as back in the Renaissance Period people did not shower for days. There was a plethora of patrons however that attended dressed in causal street clothes that sought a gratifying day out with friends and family but even they got sucked into the spirit of things and unexpectedly started curtseying and using the language. Dressing in garb expressed the true rapture of upgrading from being a patron to now a participant. This event catered to all ages. Fairy Godmothers rested on stones along the pathway making them readily approachable and eager to share their tales with anyone willing to listen. Their voices were so soft spoken it was impossible for anyone to simply pass by. Street peasants welcomed on goers  into their dancing circle as they chanted traditional hymns. I have never been much of a dancer due to my lack of rhythm but I must say once they got me started with the basics I refused to stop and entirely forgot others were watching. The petting zoo provided a wonderful hands on experience featuring encounters with livestock as well as other exotic animals such as lion cubs, kangaroos and toucans that could be bottle fed if you wished to do so. The king set aside a playscape for the kids to interact, swing and slide but also had other ways to test one’s knightly skills. The bungee jump seemed to draw the most attention but the archery, king of the log challenge and axe throws did not fall short in interest. Little girls had the chance to learn proper waves, curtsies and poise through a boot camp run by the village Princesses themselves. The Mermaid Lagoon was a disappointment in my opinion. After patiently waiting in a line for over thirty minutes I expected to see a luxurious area with mermaids whose tails sparkled elegantly in the sunlight, when in reality all it turned out to be was one girl in a cheesy costume floating in a dunk tank. On the flip side there was a wonderful replica wooden horse hung between two massive oak trees that allowed kids to race down full speed to master the art of ring spearing just as they had seen the real knights do out on the playing field at the nearby arena. The smiles on the children’s faces were contagious and it was a continuous chain reaction of happiness that spread rapidly. The adults had just as many activities to keep busy as well. Throughout the day various competitions were held to win bragging rights and often at times, gold chalices. Some of these included beard competitions where one could show off his whiskers and have the chance to win in the following catego ries: longest, thickest, most unique, and best overall. Part of me felt as if the cast and crew of the reality television series Duck Dynasty should have guest appeared at the ceremony to distribute the prizes but my wish fell short. The tattoo contest was run in the same manner but instead with the categories being: best black and grey tattoo, best color tattoo, best overall, and worst overall. I was amazed to see that the male to female contestant ratio was relatively close to equal. To continue the friendly competitions, in one of the main colorful tents was a Root Beer belching competition that some competitors were proudly capable of rumbling the stage. It was impressive yet disturbing all in one. Good sportsmanship was  well displayed and no one took the loss to heart by sincerely congratulating the winners. The objective of the Pub Crawl was to drink one beer at each of the four stations while led by entertainers to keep the atmosphere cool, calm, and relaxed. Upon the departure from each bar, fairies would splatter glow paint on one’s chest. The streets were flooded with an abundance of vendors ranging from apparel and candles, to plants and paintings. This is how most vendors earned a living so without surprise, they pushed their products diligently. Unfamiliar musical instruments such as bird whistles and bongos brought a new sense of relaxation as I closed my eyes and let my mind take me elsewhere. I was utterly fascinated with the number of people willing to pay for palm reading to uncover different aspects of future life including successes and love. Superstitions were more common than I thought. As some would say, there is no harm in jumping on the bandwagon every once in a while. With that being said, a hookah station was set up encouraging tourists to take a break and get a little weird. Men dressed in puffy shirts and flared out pantaloons walked around carrying large, woven baskets overhead selling flowers to all the fair maidens. All were very well mannered and charming. The patrons were invited to participate in the annual fairy house competition in which the top three winners received awards for their hard work and creativity. The rules advised artists to make durable houses that could withstand any weather using entirely natural materials and furnishing the inside and outdoor with landscape. Out in the open area stood two actors that mastered the art of pretending to be a statue and were covered head to toe in grey body paint. Their movements were slow and swift as they changed poses to be photographed by on goers. My dad was the only one to spot the man standing in a pot to look like a shrub while the rest of us nonchalantly walked by completely oblivious to such a phenomenon. In this man’s case, he could join in the fun but also camouflage his true identity. The festival as a whole is made up of hundreds of very diverse and multi-talented entertainers that never fail to please and in most circumstances is what keeps people coming back year after year. There is always a show going on ranging from group or stand-alone comedians to singers and quartets greeting newcomers at the welcome gate. A group of the finest acrobats were selected to show off their coordination and extraordinary balance doing tricks requested by audience members. A  costumed human chess game took place behind the jousting arena and was played using actors instead of volunteers to bring out true combat when one tried to take ou t another piece. With this new twist whoever won the choreographed fight earned the right to the spot on the game board. The captain and his fellow ship mates auctioned off one of a kind items from his pirate ship. Here, buyers could purchase things such as swords and daggers at extremely low prices. Zoltan the Adequate was another street entertainer that did anything to please his audience. He did bizarre tricks such a balloon swallowing to fire eating to nearly severing his own arm. As one would assume young children would be the easiest to deceive although Zoltan was able to keep all age groups tuned in with his sense of danger, excitement and edgy interactive magic. An unsuspected audience member was selected to assist him in a few tricks and that individual coincidentally turned out to be my mother. My mother is very shy and certainly does not like being the center of attention so we were dumbfounded that she did not object or throw a tantrum about going on stage. She faced her fears and as result, all we heard for the remainder of the afternoon was how we should be proud of her. The most attended event of the day included the heart stopping jousting tournament which had trained professionals of this skill that were willing to fight to their death to win the honor and respect of their town’s people. I really liked the concept of this because nowadays it is no t as common to find gentlemen of this caliber. Back then, men were raised to be chivalrous towards women and the less fortunate, strongly serve God and do their King proud. Each knight and their noble horse were fancily clothed and color coordinated all promising to use the strength in their hearts to ride their opponents to the dirt. As in any highly competitive sporting event, both the crowd and the contestants heckled one another and at times, I would witness the crowd unite as one as we raised up our drinks and roared together with great enthusiasm. These knights did just as they had promised and played with blood, sweat, grace, and complete dedication never losing focus. The three main events were the warm up which consisted of squires holding the rings and after a few run-throughs, actually tossing them into the air as the knights rode by spearing them. Then proceeded with the joust face off which was quite physical being that the one knight intentionally knocked an opponent off resulting in an injury that sought  immediate medical attention. By the end of the joust all four knights hobbled their way to center stage to face each other one last t ime in a traditional sword fight. A little girl from the sidelines managed to escape her mother’s arms and ran out to an injured knight and healed him with a kiss on the cheek. The show shortly wrapped up after that and the barriers of the different cheering sections vanished as the knights mingled with the crowd and allowed the young children to pet their steed. The royal tavern had an endless array of food that would easily satisfy the heartiest of appetites. From savory turkey legs and Barbarian burgers to deep fried desserts and apple dumplings, there were plenty of options to choose from. The portion sizes were generous for the prices being so reasonable. Most things served to eat came on a stick whether it was hot pickles, which were conveniently sold at every street corner or frozen bananas and cheesecake. Table manners and common eating etiquette did not apply at the festival hence why they did not supply utensils or napkins. In fact, the most lady-like way of eating the authentic turkey leg was to take two fingers and rip off pieces. Most importantly, there was plenty of beer to wash it all down and for the nonalcoholic attendees; sodas, smoothies and other beverages were sold. Stepping out of one’s comfort zone opens a whole new world filled with opportunity and adventure. The biggest setback for exploring something new is fearing what others will say or think. The people involved with this festival clearly did not care abo ut any of that and it was enjoyable to see and appreciate their colorful imaginations. I gained a lot from this experience because going in, I had no clue what to expect it created an exhilarating suspense. I learned that is completely acceptable to be silly to whatever extent and people often tend to respect you more for it because you are willing to take that risk of resisting society’s norm.

White People and Young Black Men Essay Example for Free

White People and Young Black Men Essay Imagine walking down the street and having people stare at you or call you names, or talk behind your back. Imagine not knowing the time because nobody will tell you. Why wont they tell you the time, or spare you some change? Because you are black. Actually, because your skin is a different color, or because you are a different kind of religion. In a way I admire them because theyve survived for hundreds of years until they were free, and now that theyre free, the modern white man harasses them and beats them. I mean, they even had a world wide organization named for them. The KKK has been around for a while. The KKK, or Ku Klux Klan, began because of their intense hatred of black and Jewish people. Valerie Joseph, author of A Monument To Racism, writes that in front of Danny Carvers house, a KKK leader, in Flowery Branch, Georgia, were 8 or more signs, that read: A brain is a terrible thing to waste, thats why niggers dont have one. Another sign read; NAACP or Niggers, Alligators, Apes, Coons, and Possums. Or insisting that blacks dont have brains and that they should be treated like animals. There was also a figure in the front yard that had 4 young black men sitting on it with 2 KKK hooded members by them. To top it off, Carvers lawn was on the Atlantic highway, the main way through the capital. I strongly agree with Valerie Joseph when she says that she wanted to believe that people actually cared, she wanted to believe that there were lawyers, activists, parents, church groups of all races that were bombarding this man with phone calls and letters. She hoped that maybe teenagers would plan to smash the figures in the middle of the night. She also said that you can help stop this, all you have to do is try to accept people different than you as you do anyone else. If you cant, you dont have to express it, keep it to yourself. If you hear somebody saying something about somebody else, all you have to say is, listen, theyre just as equal as you are. If you do, pretty soon theyll quit. Many years ago, the states had to force businesses and schools to allow blacks in. For example, one of the establishments was the Brown V. Board of Education. Many years before, federal troops forced Little Rock Central High School to admit black students. The question I ask is, why would they want to be there if the government had to force the school system to let them in? Many years ago, there was a segregation where blacks and whites were separated in everyday life. They had different water fountains, restrooms, and even different lines at the movie theaters. Blacks also had to sit in the back of the bus while whites had top picks on seats and standing when a white person wanted your seat. Then, segregation was finally abolished. As blacks acquired middle-class status, just like their whites counterparts, they moved out of central cities and the sustaining buffers between lower-class blacks and the surrounding white role models, etc,were largely removed. (USA TODAY 55) I came across a Time magazine article that was titled Evict The Neighbor. It was about a couple that had been getting harassed by their neighbors and so they sued for $10 million in damages. U. S. District Court Judge Ann Williams granted a settlement agreement whereby the harassers will have to leave their home within 180 days. People continue to do these things even though they know that they could go to jail. Why? We ask ourselves, why do people do this? Well, it all started with the slaves. The African-Americans came to the United States hundreds and hundreds of years ago from Africa. Most of the slaves came from Ethiopia, Zaire, Somalia, and Nigeria. They came across that Atlantic Ocean with some of the first settlers. They were then sold to slave traders and auctioned off. But, back to the modern day; blacks should have some sort of protection or sense of safety with police officers, but lets consider the Rodney King trial in 1993 when police pulled over a drunken black man that they said was swerving all over the road. When the man, Rodney King, got out of his car, more than 3 police officers approached him and beat him almost to death. The whole thing was captured on video tape from one of the police cars dash-mounted cameras. The four identified police officers had a trial and when the verdict given was not guilty. The L. A. riots started almost immediately. People were beating others, looting stores, blacks were shooting people and beating white police officers. Some think that there would have been riots all over again if the jury would have found O. J. Simpson guilty a few years ago. Texaco, a large chain of gas stations throughout the United States, was sued for calling black employees porch monkeys and orangutans. Texaco pled guilty because an employee walked in on a faculty meeting and heard white employees copying the way African Americans talk. All the white employees were also getting promoted to higher ranks whereas black employees were working harder and receiving reduced checks. The settlement in the Texaco case was $115 million to about 1,400 current and former black workers, $26. 1 million in pay raises over five years for black employees, $35 million for a task force to set up diversity training programs, and an independent panel to oversee Texacos employment practices. Another suit was filed against Avis for refusing to serve blacks in North and South Carolina. Also, rappers, who everyone knows are mostly black, are harassed and put down daily, because of what they sing about. Nobody criticizes country singers who sing about the same thing over and over, or the love songs that all sound the same; you cant tell one apart from the other. It shouldnt matter what color that are or what they look like, its the music that they sing. Every parent thinks that rap is bad, because it has a few swear words, but not if you get the edited version. Everyone thinks that only rappers commit crimes. But in actuality, blacks make up to 12 percent of the population, and 30 percent of arrests made are blacks being arrested for violent crimes (US NEWS 93). A black man can not even get a cab for hours because cabbies are afraid to drive through the ghetto. Really, what is the ghetto? Only a place where homeless and low income black and white people live and hang out. In a recent Associated Press article, (Charles J. Ogletree, Harvard Law Professor), a powerful group of civil rights and class-action lawyers will seek compensation for American black descendants from slaves. The effort appears to be the most serious initiative to get compensation for American blacks for 244 years of legalized slavery. Ogletree stated, We will be seeking more than just monetary compensation. We want a change in America. We want full recognition and a remedy of how slavery stigmatized, raped, murdered, and exploited millions of African through no fault of their own. There are more questions than answers in the planned lawsuit, such as: when will the suit be filed, who are the defendants, and what damages will be sought? However, both public and private parties will be the subject of their efforts. This will be the most important case in the history of out country. No one knows the magnitude effect the lawsuit will have on this nation. It would have seemed better that America aggressively pursue a political solution but lawsuits and legislation have really gone nowhere in the past. It will probably come down to this, that when corporate America is hit in its own pocketbook, real change will occur. I strongly believe that the responsibility doesnt solely lie with big businesses and government but also within each one of us. one person can make a difference Making a choice to treat everyone equally, fairly, and with respect is the first step. Watching what we say by putting ourselves in anothers situation first is also doing our part. Otherwise, we just become part of the huge problem we currently have. Whats it going to bewill you be a part of the perpetual persecution of blacks or stand up for what is rightÃ'Ž

Dividend Discount Model and Price Earning Model

Dividend Discount Model and Price Earning Model Financial theory holds that the value of a share of stock is equal to the sum of the discounted future expected dividends. The Dividend Discount (DD) requires two inputs, firstly a forecast of future dividends and secondly, a rate at which these dividends will be discounted to their present value. The appropriate discount rate that will be used is the rate of return available on risk-free investments plus a risk premium. The Capital Asset Pricing Model is one of the most widely used models for calculating discount rates. Once the discount rate estimated, all future dividends must be discounted to their present value. Although near term dividends may be estimated with some confidence, to make the DD model operational an assumption regarding long term dividends is necessary. Two common assumptions regarding dividend growth and their associated valuation models are: (i) Earnings growth as well as dividend growth will be constant with the Gordon Model, and (ii) Multiple stages of growth can be approximated. Therefore, it is obvious that the forecasts and the assumptions necessary for operating DD models induce the emergence of significant errors into this theoretically correct approach. Common Stock Valuation Concepts The value of a common stock can be defined as the present value of the future dividend stream in perpetuity. This concept is consistent with the assumption that the corporation will indeed have a perpetual life, in accordance with its charter. If the value of a stock is equivalent to the value for a perpetual annuity with a constant level of payments, the general formula is as follows: Value per share of stock = Where = Expected dividend per share = Cost of equity The formula shown above for stock valuation treats the firm together with its stock as if they will exist forever. There are two basic inputs to the model. First is the expected dividends and secondly the cost on equity. To obtain the expected dividends, we make assumptions about expected future growth rates in earnings and payout ratios. The required rate of return on a stock is determined by its riskiness, measured differently in different models, the market beta in the CAPM, and the factor betas in the arbitrage and multi-factor models. The model is flexible enough to allow for time-varying discount rates, where the time variation is caused by expected changes in interest rates or risk across time. Zero growth model In this model it is assumed that the same amount of dividend will be paid for all the time periods up until infinity. The formula is given as follows after it has been simplified by using the formula sum to infinity of geometric progression: Where V = value, D = dividends per share k = percentage discount rate However, this model is quite restrictive as it is unreasonable to assume that the same amount of dividend will be paid by a stock for an indefinite time period. The model may be useful for determining the value of preferred stock which usually yields a fixed amount of dividend. Constant (Gordon) growth model The major drawback of the zero growth model is that it is assumed that a firm will pay the same dividend throughout its lifetime. However, in the real world most companies are expected to grow over time and consequently make more profits leading to more dividends being paid. This model assumes that there is a constant growth rate for the corporation being analysed and it is most suitable for valuation of stable and mature companies. This model was created by Myron Gordon, and thus it was named as the Gordon Model. The formula for constant growth model is derived from the zero growth model. If the dividends are assumed to grow at a certain constant rate, the formula becomes: Where g = annual constant percentage growth in dividends per share D = next years dividends. The Gordon growth model is a simple and powerful approach to valuing equity. In order for the model to work the following assumptions must be held: Dividends will grow at a constant rate and it will continue for an infinite period. The required rate of return is greater than the steady growth rate. The required rate of return is constant until infinity. It is also important to note that the model has some limitations. The Gordon growth model is a simple and convenient way of valuing stocks but it is extremely sensitive to the inputs for the growth rate. Used incorrectly, it can yield misleading or even absurd results, since, as the growth rate converges on the discount rate, the value goes to infinity. As the growth rate approaches the cost of equity, the value per share approaches infinity. If the growth rate exceeds the cost of equity, the value per share becomes negative. Multistage Dividend Discount Model The assumption of the Gordon Growth Model that there is a stable dividend growth rate from now on to the indefinite future is not realistic for many or even most companies. The studies of Sharpe, Alexander and Bailey (1999) state that the growth fall into three stages namely the growth phase, transition phase and the mature phase. Two-stage Dividend Discount Model The two-stage growth model allows for two stages of growth an initial phase where the growth rate is not a stable growth rate and a subsequent steady state where the growth rate is stable and is expected to remain so for the long term. While, in most cases, the growth rate during the initial phase is higher than the stable growth rate, the model can be adapted to value companies that are expected to post low or even negative growth rates for a few years and then revert back to stable growth. The model is based upon two stages of growth, an extraordinary growth phase that lasts n years and a stable growth phase that lasts forever afterwards. Value of the Stock = PV of Dividends during extraordinary phase + PV of terminal price Where DPSt = Expected dividends per share in year t ke = Cost of Equity (hg: High Growth period; st: Stable growth period) Pn = Price (terminal value) at the end of year n g = Extraordinary growth rate for the first n years gn = Steady state growth rate forever after year n There are three problems with the two-stage dividend discount model. The first two would apply to any two-stage model and the third is specific to the dividend discount model. The first practical problem is in defining the length of the extraordinary growth period. Since the growth rate is expected to decline to a stable level after this period, the value of an investment will increase as this period is made longer. The second problem with this model lies in the assumption that the growth rate is high during the initial period and is transformed overnight to a lower stable rate at the end of the period. While these sudden transformations in growth can happen, it is much more realistic to assume that the shift from high growth to stable growth happens gradually over time. The focus on dividends in this model can lead to skewed estimates of value for firms that are not paying out what they can afford in dividends. In particular, we will under estimate the value of firms that accumulate cash and pay out too little in dividends. The H Model for valuing Growth Fuller and Hsia (1984) presented the H model is a two-stage model for growth, but unlike the classical two-stage model, the growth rate in the initial growth phase is not constant but declines linearly over time to reach the stable growth rate in steady stage. The model is based upon the assumption that the earnings growth rate starts at a high initial rate and declines linearly over the extraordinary growth period (which is assumed to last 2H periods) to a stable growth rate. It also assumes that the dividend payout and cost of equity are constant over time and are not affected by the shifting growth rates. However, the limitations of this model is that it avoids the problems associated with the growth rate dropping precipitously from the high growth to the stable growth phase, but it does so at a cost. First, the growth rate is expected to strictly decline linearly. Therefore small deviations from this assumption do not affect the value significantly, but large deviations can cause problems. Another important point is that the assumption that the payout ratio is constant through both phases of growth exposes the analyst to an inconsistency i.e. as growth rates decline the payout ratio usually increases. Three-stage Dividend Discount Model The three-stage dividend discount model combines the features of the two-stage model and the H-model. It allows for an initial period of high growth, a transitional period where growth declines and a final stable growth phase. It is the most general of the models because it does not impose any restrictions on the payout ratio. This model assumes an initial period of stable high growth, a second period of declining growth and a third period of stable low growth that lasts forever. This model removes many of the constraints imposed by other versions of the dividend discount model. In return, however, it requires a much larger number of inputs for instance year specific payout ratios, growth rates and betas. For firms where there is substantial noise in the estimation process, the errors in these inputs can overwhelm any benefits that accrue from the additional flexibility in the model. Estimating k and g Companies with unpredictable or recurring earnings pattern, or rapidly thriving companies, require a more complex dividend capitalisation model framework that can accommodate dissimilar dividend growth patterns. In practice, applications may require elaborate variations of the dividend capitalisation model, nevertheless this simplified form provides a convenient means of analysing the determinants of stock value. To begin with, the value of the stock should be greater, the greater the earning power and capacity of the corporation to pay out current dividends, D. Correspondingly, the higher the growth rate of the dividends, g, the greater the value of the corporations stock. Finally, the greater the risk of the corporation (the higher the discount rate, k) the lower will be the value of the stock. The discount rate is alternatively referred to as a required return. It is composed of two elements-a risk-free return and a risk premium. The risk-free return is, in turn, generally considered to consist of a real return component and an inflation premium. The real return is the basic investment compensation that investors demand for forgoing current consumption or, alternatively, the compensation for saving. Investors also require a premium to compensate for inflation; this premium will be high when the inflation rate is expected to be high and low when the inflation rate is expected to be low. Because the real return and the inflation premium comprise a basic return demanded by all investors, the risk-free return is a component of all securities. The risk premium is made up of the following elements-interest rate risk, purchasing power risk, business risk and financial risk. The risk premium might be considered to be a function of the stocks systematic risk (beta), which is determ ined by these four fundamental risk factors. As securities differ in their exposure to these risk elements, the premium or return that investors require to compensate for risk will differ across securities. The constant dividend growth model reveals that the following three factors affect stock prices, ceteris paribus: 1) the higher the dividend, the higher the stock price; 2) the higher the dividend growth rate, the higher the stock price; 3) the lower the required rate of return r, the higher the stock price. Empirical Studies on the DDM Issues of dividend policy range from its puzzle by Black (1976) to its irrelevance by Miller and Modigliani (1961), to its relevance by DeAngelo et al. (1996). Other issues include theories on dividend payment, such as stakeholders theory, pecking order theory, agency cost, signalling theory, bird-in-hand fallacy and clientele effect. The information asymmetry between managers and shareholders, along with the separation of ownership and control, formed the base for another explanation of why dividend policy has been so popular. Dividend irrelevance theory Miller and Modigliani (1961) proposed that dividend policy is irrelevant to the shareholder and that stockholder wealth is unchanged when all aspects of investment policy are fixed and any increase in the current payout is financed by fairly priced stock sales. The main assumption is that there is 100 per cent payout by management in every period. Other assumptions are: that there exist perfect capital markets; that is, no taxes or transactional cost, the market price cannot be influenced by a single buyer or seller, and free and costless access to information about the market; that investors are rational and that they value securities based on the value of discounted future cash flow to investors; that managers act as the best agents of shareholders; and that there is certainty about the investment policy of the firm, with full knowledge of future cash flows. Bird-in-hand theory Al-Malkawi (2007) asserts that in a world of uncertainty and information asymmetry, dividends are valued differently from retained earnings (capital gains): A bird in hand (dividend) is worth more than two in the bush (capital gains). Owing to the uncertainty of future cash flow, investors will often tend to prefer dividends to retained earnings. Though this argument has been widely criticised and has not received strong empirical support, it has been supported by Gordon and Shapiro (1956), Lintner (1962) and Walter (1963). The main assumptions are: that investors have imperfect information about the profitability of a firm; that cash dividends are taxed at a higher rate than when capital gain is realized on the sale of a share; and that dividends function as a signal of expected cash flows. Signalling hypothesis Though Miller and Modigliani (1961) assumed that investors and management have perfect knowledge about a firm, this has been countered by many researchers, as management who look after the firm tend to have more precise and timely information about the firm than outside investors. This, therefore, creates a gap between managers and investors; to bridge this gap, management use dividends as a tool to convey private information to shareholders (Al-Malkawi, 2007). Petit (1972) observed that the amount of dividends paid seems to carry great information about the prospects of a firm; this can be evidenced by the movement of share price. An increase in dividends may be interpreted as good news and brighter prospects, and vice versa. But Lintner (1956) observed that management are reluctant to reduce dividends even when there is a need to do so, and only increase dividends when it is believed that earnings have permanently increased. Clientele effects of dividends theories. Investors tend to prefer stocks of companies that satisfy a particular need. This is because investors face different tax treatments for dividends and capital gains and also face some transaction costs when they trade securities. Miller and Modigliani (1961) argued that for these costs to be minimised, investors tend towards firms that would give them those desired benefits. Likewise, firms would attract different clientele based on their dividend policies. Though they argued that even though clientele effect may change a firms dividend policy, one clientele is as good as another, therefore dividend policy remains irrelevant. Al-Malkawi (2007) affirms that firms in their growth stage, which tend to pay lower dividends, would attract clientele that desire capital appreciation, while firms in their maturity stage, which pay higher dividends, attract clientele that require immediate income in the form of dividends. Al-Malkawi (2007) grouped the clientele effect into two groups, those th at are driven by tax effects and those driven by transaction cost. He argued that investors in higher tax brackets would prefer firms that pay little or no dividends, to get reward in the form of share price appreciation, and vice versa. Transaction cost-induced clientele, on the other hand, arises when small investors depend on dividend payments for their needs; this clientele prefers companies who satisfy this need because they cannot afford the high transaction cost of selling securities. Dividends form the hard core of stock values. As Justice Holmes remarked, the commercial value of property consists in the expectation of income from it. (In Galveston, H. S. A. Ry. Co. v. Texas, 210 U. S. 217, 226.) Black (1976) observed, The harder we look at the dividend picture, the more it seems like a puzzle, with pieces that just dont fit together Williams applied Fishers work on stock valuation and developed the famous dividend discount model (DDM) (Fewings, 1979, p. 12). Williams defines the investment value of stock as the present worth of all the dividends to be paid upon it (Williams, 1956, p. 55). He further makes it clear that the investment value of a common stock is the present worth of its net dividend to perpetuity (Williams, 1956, p. 63). Amid this theoretical research, the academic world was divided and a fierce debate erupted concerning the irrelevance of dividend policy in the determination of the valuation of firms or their stocks. The inconsequence of dividend policy in the stock valuation contemplates the equivalence of the valuation using earning approach and the valuation using discounted dividend approach. Fishers inter-temporal investment and consumption model predicted that earnings which are reinvested at the going rate of capital instead of being released for consumption neither adds nor subtracts from the value of the overall stream of benefits (Fewings, 1979, p. 17). Thus, according to Fisher, dividend policy is irrelevant in the valuation of stocks. One must remember that Fishers theory is applicable under perfect capital markets with certain futures. At the same time, Graham and Dodd (1934) developed their valuation methodologies based on the assumption that the firms main objective is to pay dividends to shareholders. Empirical evidence in the market suggested a positive correlation between stock prices and dividend payout (Harkavy, 1953), suggesting the relevance of dividends in the valuation of stocks. Gordon and Shapiro (1956), Walter (1956) and Solomon (1963) supported this hypothesis. In accordance with the relevance of the dividend policy on the valuation of stocks, Gordon extended Williams model of stock valuation to include retained earnings. He further developed the model to include continuous equity financing. These dividend dependent models are called the bird-in-the-hand models by authors like Frankfurter et al. (2003), as they are based on the assumption that there are two opportunity rates one for the firm and the other for the investor. The firm should retain 100 per cent of its earnings if the opportunity rate of a firm is greater than the opportunity rate of the investor. The seminal paper of Miller and Modigliani (1961) argued the irrelevance of dividend policy and the equivalence of the valuation of stocks using four approaches, namely the discounted cash flow (DCF) approach, the current earnings plus future investment opportunities approach, the discounted dividend approach and the stream of earnings approach. This equivalence was proven under assumptions of perfect capital markets, rational behaviour and perfect certainty. In addition, Miller and Modigliani (1961) point out that the dividend policy may be relevant when a revision in the dividend policy points to some information that the investors do not know. This information content of dividends argument led to the development of dividend signaling models. The irrelevance of dividends is not resolved. Academics are still divided into two, if not more, schools of thought on the subject. Price Earnings Ratio A firms profitability, risk, quality of management, and many other factors are reflected in its stock and security prices. Hence, market value ratios indicate the markets assessment of the value of the firms securities. The price/earnings (P/E) ratio is simply the market price of the firms common stock divided by its annual earnings per share. Sometimes called the earnings multiple, the P/E ratio shows how much investors are willing to pay for each dollar of the firms earnings per share. Earnings per share comes from the income statement, so it is sensitive to the many factors that affect the construction of an income statement, from the choice of GAAP to management decisions regarding the use of debt to finance assets. The price/earnings ratio is stated as: Stock prices are determined from the actions of informed buyers and sellers in an impersonal market. Stock prices reflect much of the known information about a company and are fairly good indicators of a companys true value. Although earnings per share cannot reflect the value of patents or assets, the quality of the firms management, or its risk, stock prices can and do reflect all of these factors. Comparing a firms P/E to that of the stock market as a whole, or with the firms competitors, indicates the markets perception of the true value of the company. While the P/E ratio measures the markets valuation of the firm relative to the income statement value for per-share earnings, the price-to-book value ratio measures the markets valuation relative to balance sheet equity. The book value of equity is simply the difference between the book values of assets and liabilities appearing on the balance sheet. The price-to-book-value ratio is the market price per share divided by the book v alue of equity per share. A higher ratio suggests that investors are more optimistic about the market value of a firms assets, its intangible assets, and the ability of its managers. The price-to-book value ratio is stated as: Market value indicators reflect the markets perception of the true worth of a firms future prospects. As such, market perceptions of a firms value are important to the financial analyst. However, the market may not be perfect; investors may become overly optimistic or pessimistic about a firm. The fact that a firm presently has a higher P/E or price-to-book-value ratio than its competition does not automatically imply that the firm is better managed or really deserves its higher valuation. Some firms may have low market value ratios because they truly deserve them; other firms may suffer from extreme and undeserved pessimism on the part of the market. High market value ratios can be similarly deceptive. The analyst must determine whether a firm deserves its market value ratios or not. Empirical Studies on the P/E model Ball and Brown (1968) are amongst the first pioneers who provided evidence that accounting earnings are potentially useful to investors for the valuation of equity. Furthermore, Beaver, Clarke and Wright (1979) also concluded that earnings act as a major determinant for equity valuation. Despite many researchers were inspired by the work of Ball and Brown prior study on price earnings ratio may trace back to 1934 when Graham and Dame considered that the major factors affecting price earnings ratio are factors coming from investors and companies. Internal scholars pay more attention to price earnings ratio status and qualitative or quantitative studies using cross sectional data model or time serials model are made in detail when stock market is established. As an important index measuring stock investment value and reflecting stock market development status, price earnings ratio is not only useful for department of banking custody to make sound regulation measures but helpful for inv estors to distinguish stock investing risk and select advisable invest strategy. Shroff (1995) cites that earnings of firms with high P/E ratio and high return on equity exhibit higher explanatory powers for stock returns. According to Barth et al. (1998) income statement plays fundamental role for equity valuation. Burgstahler Dichev (1997) found that book value and earnings being interrelated, act as component of equity value. Therefore it implies that the value of the firm can be expressed as a function of both earnings and book value of equity. Consequently, the higher is the earnings to book value ratio, the more relevant earnings will be as a determinant of equity value. While a lower earnings to book value ratio will imply book value being more important determinants of equity value. According to the work of Jan Ou (1995) firms which are reporting net losses, their earnings explain very little of equity price, but on the other hand book value of equity is an important determinant of stock price. Penman (1998) finds that book value provides greater relevance than earnings in equity valuation for firms with an extreme earnings to book ratio. Collins et al. (1997) further report that the value-relevance of earnings and book value of equity moves inversely to each other. Ou and Penman (1989) note that P/E ratios are good predictors of future earnings while changes in share price are poor predictors of future earnings. Ou Sepe (2002) find that the larger the spread between analysts forecasts of a firms future earnings and reported current earnings, the less value-relevant current earnings and the more the market relies on book value for equity valuation. Researches undertaken by Nicholson (1960), McWilliams (1966), Latane et al. (1969), Dowen and Bauman (1986), Keim (1990), and Fama and French (1992) provide evidence that stock returns are linked to P/E ratios. Penman (1996) notes that the P/E ratio acts not as a predictor of share price or returns but of future earnings levels. Allen et al. (1998) conclude similarly as their results indicate that firms with high E/P stocks have relatively low earnings growth while companies with low E/P shares experience high earnings growth. Furthermore, Fuller et al. (1992) conclude that low P/E ratio stocks generate low future earnings growth while high P/E ratio shares result in high earnings growth. Another line of research (e.g., Beaver, 1989; Mande, 1994) provides strong evidence that earnings aids investors in evaluating a firms dividend paying ability. As Larcker (1989) notes, share price is determined in the market through capitalisation (i.e., discounting) of the future cash flows or dividends expected to accrue to stockholders. Since earnings provide an information signal about future cash flows, stock price is affected by expectations concerning earnings. Because P/E ratios act as predictors of future earnings, these ratios are also linked to share price or returns. Moreover Nelson and Kim (1993) and Campbell and Shiller (1988) have documented that dividend yield predicts stock returns with some success, as it capture expectations about dividend growth as well as expected returns. While Lamont (1998) argues that the P/E ratio has independent predictive power for excess returns in addition to the dividend price ratio. Ang and Bekaert (2003) detect a strong role for the P/E ratio as a predictive instrument for future dividend growth. Since the P/E ratio is a function of expected growth in earnings, obviously expected growth in earnings are eminent in the valuation of a stock. Limitations of P/E The P/E is a fairly simple tool for assessing company value. But it has been argued that  the P/E ratio is not always reliable. There are plenty of reasons to be wary of P/E based stock valuations. The P/E ratio is supposed to enumerate how many years worth of current earnings a company will need to produce in order to arrive at its current market share value. Naturally, investors want to be able to buy more earnings for every dollar they pay, so the lower the P/E ratio, the less expensive the stock. The calculation of the ratio sounds simple enough, but here are some of the dangers associated with taking P/E ratios at face value. The first part of the P/E equation, price, is straightforward. The market price is easily available from the stock exchange market. On the other hand, coming up with an appropriate earnings number can be tricky. You have to make a lot of decisions how to define earnings. Earnings are not always clear cut. Earnings can be affected by unusual gains or losses which sometimes obscure the true nature of the earnings metric. Whats more, reported earnings can be manipulated by company management to meet earnings expectations, while creative accounting choices, shifting depreciation policies or adding or subtracting non-recurring gains and expenses, can make bottom line earnings numbers bigger and, in turn, P/E ratios, smaller and the stock appear less expensive. Investors need to be wary of how companies arrive at their reported EPS numbers. Appropriate adjust ments often have to be done in order to obtain a more accurate measure of earnings than what is reported on the balance sheet. Then there is the matter of whether to use trailing earnings or forward earnings figures. Located right in the companys latest published income statement, historic earnings are easy to find. Unfortunately, they are not much use for investors, since they say very little about what earnings are in store for the year and years ahead. Its the companys future earnings that investors are interested in most since as they reflect a stocks future prospects. The biggest limitation of the P/E ratio is that it tells investors next to nothing about the companys EPS growth prospects. If the company is growing quickly, you will be comfortable buying it even it had a high P/E ratio, knowing that growth in EPS will bring the P/E back down to a lower level. If it is not growing quickly, you might shop around for a stock with a lower P/E ratio. It is often difficult to tell if a high P/E multiple is the result of expected growth or if the stock is simply overvalued. A P/E ratio, even one calculated using a forward earnings estimate, does not always tell whether or not the P/E is appropriate to the companys forecasted growth rate. Finally, theres the tricky issue of a companys debt load. The P/E ratio does nothing to factor in the amount of debt that a company carries on its balance sheet. Debt levels have an impact on financial performance and valuation, yet the P/E does not allow investors to make comparisons between debt-free firms and those bogged down with outstanding loans and liabilities.

Chaos In The Currency Markets : Currency Crisis Of The EMS :: essays research papers

Chaos in The Currency Markets : Currency Crisis of The EMS 1. What does the crisis of September 1992 tell you about the relative abilities of currency markets and national governments to influence exchange rates?   Ã‚  Ã‚  Ã‚  Ã‚  The currency markets and national governments both have abilities to influence exchange rates. Like other financial markets, foreign exchange markets react to any news that may have a future effect. Speculators are the part of the currency markets that take currency positions based on anticipated interest rate movements in various countries. Day-to-day speculation on future exchange rate movements is commonly driven by signals of future interest rate movements. By using the signal, speculators usually take the position before the things actually occurred. Sometime, if high power enough, the speculators position can influence the exchange rate movement. The government controls is one of the factors affecting exchange rate. The government can influence the equilibrium exchange rate in many way, including direct intervening (buying and selling currencies) in the foreign exchange markets and indirect intervening by affecting macro variables such as interest rates. 2. What does the crisis of September 1992 tell you about the weakness of fixed exchange rate regimes?   Ã‚  Ã‚  Ã‚  Ã‚  From European currency crisis of September 1992, it shows us that there are weakness of the fixed exchange rate system. When exchange rate are tied, a high interest rate in one country has a strong influence on interest rates in the other countries. Funds will flow to the country with a more attractive interest rate, which reduces the supply of fund in the other countries and places upward pressure on their interest rates. The flow of fund would continue until the interest rate differential has been eliminated or reduced. This process would not necessarily apply to countries outside ERM that do not in the fixed exchange rate system, because the exchange rate risk may discourage the flow of funds to the countries with relatively high interest rate. However, since the ERM requires central banks to maintain the exchange rates between currencies within specified boundaries, investors moving funds among the participating European countries are less concerned about exchange rate risk. 3. Assess the impact of the events of September 1992 on the EU 's ability to establish a common currency by 1999.   Ã‚  Ã‚  Ã‚  Ã‚  A major concern of a common currency is based on the concept of a single European monetary policy. Each country's government may prefer to implement its own monetary policy. It would have to adapt to a system in which it had only partial input to the European monetary policy that would be implemented in all European countries, including its own. Chaos In The Currency Markets : Currency Crisis Of The EMS :: essays research papers Chaos in The Currency Markets : Currency Crisis of The EMS 1. What does the crisis of September 1992 tell you about the relative abilities of currency markets and national governments to influence exchange rates?   Ã‚  Ã‚  Ã‚  Ã‚  The currency markets and national governments both have abilities to influence exchange rates. Like other financial markets, foreign exchange markets react to any news that may have a future effect. Speculators are the part of the currency markets that take currency positions based on anticipated interest rate movements in various countries. Day-to-day speculation on future exchange rate movements is commonly driven by signals of future interest rate movements. By using the signal, speculators usually take the position before the things actually occurred. Sometime, if high power enough, the speculators position can influence the exchange rate movement. The government controls is one of the factors affecting exchange rate. The government can influence the equilibrium exchange rate in many way, including direct intervening (buying and selling currencies) in the foreign exchange markets and indirect intervening by affecting macro variables such as interest rates. 2. What does the crisis of September 1992 tell you about the weakness of fixed exchange rate regimes?   Ã‚  Ã‚  Ã‚  Ã‚  From European currency crisis of September 1992, it shows us that there are weakness of the fixed exchange rate system. When exchange rate are tied, a high interest rate in one country has a strong influence on interest rates in the other countries. Funds will flow to the country with a more attractive interest rate, which reduces the supply of fund in the other countries and places upward pressure on their interest rates. The flow of fund would continue until the interest rate differential has been eliminated or reduced. This process would not necessarily apply to countries outside ERM that do not in the fixed exchange rate system, because the exchange rate risk may discourage the flow of funds to the countries with relatively high interest rate. However, since the ERM requires central banks to maintain the exchange rates between currencies within specified boundaries, investors moving funds among the participating European countries are less concerned about exchange rate risk. 3. Assess the impact of the events of September 1992 on the EU 's ability to establish a common currency by 1999.   Ã‚  Ã‚  Ã‚  Ã‚  A major concern of a common currency is based on the concept of a single European monetary policy. Each country's government may prefer to implement its own monetary policy. It would have to adapt to a system in which it had only partial input to the European monetary policy that would be implemented in all European countries, including its own.

Down And Out In The Great Depression Essay -- Robert McElvaine

During the 1920’s, America was a prosperous nation going through the â€Å"Big Boom† and loving every second of it. However, this fortune didn’t last long, because with the 1930’s came a period of serious economic recession, a period called the Great Depression. By 1933, a quarter of the nation’s workers (about 40 million) were without jobs. The weekly income rate dropped from $24.76 per week in 1929 to $16.65 per week in 1933 (McElvaine, 8). After President Hoover failed to rectify the recession situation, Franklin D. Roosevelt began his term with the hopeful New Deal. In two installments, Roosevelt hoped to relieve short term suffering with the first, and redistribution of money amongst the poor with the second. Throughout these years of the depression, many Americans spoke their minds through pen and paper. Many criticized Hoover’s policies of the early Depression and praised the Roosevelts’ efforts. Each opinion about the causes an d solutions of the Great Depression are based upon economic, racial and social standing in America. At the start of the Depression, many letters (mostly discouraging) were sent to President Hoover. These letters came primarily from well-to-do citizens, however some leftist workers’ letters found their way in as well. The well-to-do citizens agreed that the ultimate cause of the lower classes’ depression was their laziness and incompetence. On top of that, these well-to-do citizens thanked Hoover, probably because their money had gone unscathed (McElvaine, 38). Some opinions weren’t as favorable for the Hoover administration, however. Some people believed that â€Å"engineers may be intelligent but poor presidents† (pp. 43). Finally, the leftist parties did not appreciate the endeavors of the Hoover presiden... ...for their misfortune. The rich blamed the poor, the poor blamed the rich, the middle class blamed the blacks, and no one took responsibility themselves. One complaint most of these classes (with exception to the few that benefited) was the lack of success of the New Deal and other relief efforts. Whether the blacks had too much employment, or the poor were too lazy to receive aid, very few Americans appeared to be happy with Roosevelt’s solution. This didn’t stop his popularity. Many Americans stood behind their president rain or shine, depression or big boom. Regardless of their positions, these citizens who turned to the President in their time of desperation proved that the pen is truly mightier. Works Cited McElvaine, Robert S, ed. Down and Out in the Great Depression: Letters from the Forgotten Man. Chapel Hill: The University of North Carolina Press, 1983.

Humorous Wedding Speech for a Groom in Sales :: Wedding Toasts Roasts Speeches

Humorous Wedding Speech for a Groom in Sales Good evening Ladies and Gentlemen - Today, I'd like to take this opportunity to pay tribute to a man who personifies intelligence, ambition, tact, generosity, and integrity. But it is John’s wedding so it's only fair that I talk about him as well. Laughter Now, I only met John a few years ago at university, meaning that I’ve had to rely on him perhaps more than I would have liked to get the details of his past. But apparently, the young John Cervoni was an exceptionally gifted child. After publishing his first novel at 15, John tells me that his English teacher was left in tears when he opted for the Sciences at A Level. He then reluctantly turned down offers from Harvard and Stanford, in order to study at that other great beacon of learning – State University. But between leaving school and going to State, where I met John, I can only assume that something far too terrible to enquire about must have happened to transform him into the mediocre bum that I know. While at State U. John spent so much time skipping lectures they almost changed his degree to home economics. And when he left, his head of department gave him this reference: ‘Any company who gets Mr. Cervoni to work for them will be very lucky indeed’. So not surprisingly, John has done absolutely nothing to help with the planning of this wedding. At one stage, Melissa got so desperate for help she had me search him for a socket. She wondered if maybe she had to plug him in. Believe it or not, I wasn’t John’s only friend at university. Laughter John developed a close relationship with an African exchange student, named Chimaka. Their relationship was close in the sense that John admired Chimaka’s essay writing abilities and John was kindly always on hand to help Chimaka tidy up his written English. Now Chimaka, who’s father was a tribal elder in Chimakaya and who’s village had donated money to send Chimaka to England, was rather shocked to find himself called into the Dean of Faculties office one morning to explain similarities in his essay to those of John. Two hours later, finding Chimaka on his doorstep threatening suicide, or murder, John's future skills as a salesman came into play. Quoting statistical probability, quantum mechanics and astrology with a straight face, John managed to save both university careers.

Mango (Mangifera Indica) Leaves Extract and Coconut Oil as an Antibacterial Ointment

Mango (Mangifera indica) leaves extract and Coconut Oil as an Antibacterial Ointment A Science Investigatory Project of Kristifany C. Mamba Bansud National High School-Regional Science High School for Region IV – MIMAROPA Pag-asa, Bansud, Oriental Mindoro Abstract The purpose of this study is to produce an antibacterial ointment out of Mango leaves extract and coconut oil. Young mango leaves were gathered and was chopped into small pieces. 50 mL of coconut oil was put in a frying pan. Then, the chopped mango leaves was added to the coconut oil. It was mixed for 10 minutes. Next, the small bits of mango leaves were removed from the coconut oil. Lastly, candle wax was added to the mixture. It was stirred again thoroughly. The solution was transferred into an empty container and left to cool down. The mango leaves extract with coconut oil was tested at the Bureau of Plant Industry. It was tested against the bacteria E. coli and S. aureus. The resulting Numerical value was 2. 5 for E. coli and 3. 0 for S. aureus. The bureau used the standard parameter 1-2- slightly inhibited and 3-5 as partially inhibited. Thus, the inhibition of the mango leaves extract and coconut oil in E. oli was slight and it is partial in S. aureus. The researcher concluded that mango leaves extract with coconut oil can kill bacteria like E. coli and S. aureus. It can also be concluded that it can help wounds heal faster because of its antibacterial property. Chapter I Introduction Background of the Study The Philippines have many different herbal plants that can cure different illne ss like body pain, toothache, arthritis, and other diseases. The herbal plants we have contain helpful constituents and properties that can cure different kinds of diseases. We can make useful product made from these plant and other materials. Nowadays, many herbal plants are being discovered with more uses. Many companies used herbal plants to make ointments, tablets, coffee or teas. Ointments are very useful in treating different kind of wounds. The production of ointments from herbal plants found in our country can help us minimize our dependence on the use of high – cost ointments. The herbal plant must have anti-inflammatory, anti-allergenic and antibacterial properties to produce an effective ointment. Most of the wounds are infected by the common bacteria like Escherichia coli. As the wounds go deeper and become more complex they can infect the underlying muscles and bone causing osteomyelitis. Coliforms and anaerobes are associated with osteomyelitis in those people who have infected wounds. You also see the bacteria Staphylococcus aureus in the infected wound. Local factors that increase chances of wound infection are having large wound area, increased wound depth, degree of chronicity, the body, necrotic tissue, and mechanism of injury (bites, perforated viscus). (Neal R. Chamberlain. n. . ) The mango leaves (Mangifera indica) and coconut oil possesses antibacterial activity against different bacteria. (Research Update of Mango and Mango Leaf Extract, n. d. ). Coconut and olive oils are traditionally used to moisturize and treat skin infections. Extensive research done by scientists such as Jon J Kabara, PhD, has shown that the Lauric acid found in Coconut Oil is a potent antim icrobial agent  . Lauric acid is a major component (49%) of Coconut oil. It has also been found to kill the H. Pylori bacteria  in the stomach which are responsible for many stomach problems such as ulcers. The good thing about Lauric acid is that it doesn't kill friendly bacteria in the stomach. Antibiotics kill both good and bad bacteria in the stomach and often need to be followed with probiotics such as acidophilus bacteria to replenish friendly bacteria in the gut. Objectives General Mangifera indica leaves and coconut oil have anti-bacterial contents which can help remove the infection on the wounds. This study aimed to produce an ointment which can kill the bacteria and cure different types of wounds out of Mangifera indica leaves and coconut oil. Specific This research study was conducted to determine if mango leaves extract and coconut oil can be made into an ointment and if it can help wound heal faster. Statement of the Problem Specifically, this study ought to answer the following questions: 1. Can the ointment made from Mangifera indica leaves extracts and coconut oil kill the bacteria in the wounds? 2. Can the Mangifera indica leaves extract and coconut oil be made into an ointment? 3. Can the ointment made from Mangifera indica leaves and coconut oil extract help the wound to heal faster? Hypothesis 1. The ointment made from Mangifera indica leaves extracts and coconut oil can kill bacteria in the wounds. 2. The extract of Mangifera indica leaves and coconut oil can be made into an ointment for curing wounds. Significance of the Study This study greatly benefits the people in the community who cannot afford to buy expensive ointment for wounds. It can also benefit the hospitals and in small clinics. The additional medication in curing wounds can help a lot to save a life. It has significance to those who were far from the store or drug store because they can cure our wounds without taking too long from buying ointments from far drugstores. It can be also a source of income for the people in provinces. Scope and Limitation This study was limited only on the production of ointments from mango leaves extracts and coconut oil. The ointment produced from mango leaves extracts and coconut oil focuses on killing the bacteria in the wounds. It was limited to use if there is irritation on the skin after the application of the ointment. For the patients who have sensitive skin should ask permission from a doctor before using the ointment. Chapter II Review of Related Literature Review of Related Literature Antibacterial Pertaining to a substance that kills bacteria or inhibits their growth or replication. Antibiotics synthesized chemically or derived from various microorganisms exert their bactericidal or bacteriostatic effect by interfering with the production of the bacterial plasma wall; by interfering with protein synthesis, nucleic acid synthesis, or plasma membrane integrity; or by inhibiting critical biosynthetic pathways in the bacteria. (2009, Elsevier. ) E. coli E. coli  is a common type of  bacteria  that can get into food, like beef and vegetables. E. oli  is short for the medical termEscherichia coli. E. coli  normally lives inside your intestines, where it helps your body break down and digest the food you eat. Unfortunately, certain types (called strains) ofE. coli  can get from the intestines into the blood. This is a rare illness, but it can cause a very serious infection. (Steven Dowshen, MD, August 2009) S. aureus Staphylococci (staph) are Gram-positive s pherical bacteria that occur in microscopic clusters resembling grapes. Bacteriological culture of the nose and skin of normal humans invariably yields staphylococci. In 1884, Rosenbach described the two pigmented colony types of staphylococci and proposed the appropriate nomenclature:  Staphylococcus aureus  (yellow) and  Staphylococcus albus  (white). The latter species is now named  Staphylococcus epidermidis. Although more than 20 species of  Staphylococcus  are described in Bergey's Manual (2001), only  Staphylococcus aureus  and  Staphylococcus epidermidis  are significant in their interactions with humans. S. aureus  colonizes mainly the nasal passages, but it may be found regularly in most other anatomical locales, including the skin, oral cavity and gastrointestinal tract. S. ureus  is often hemolytic on blood agar;  S. epidermidis  is non hemolytic. The bacteria are catalase-positive and oxidase-negative. S. aureus  can grow at a temperature range of 15 to 45 degrees and at NaCl concentrations as high as 15 percent. Nearly all strains of  S. aureus  produce the enzyme coagulase: nearly all strains of  S. epidermidis  lack this enzyme. S. aureus  should always be considered a potential pathogen; most strains of  S. epidermidis  are nonpathogenic and may even play a protective role in humans as normal flora. Staphylococcus epidermidis  may be a pathogen in the hospital environment. Pathogenesis of  S. aureus  infections Staphylococcus aureus  causes a variety of suppurative (pus-forming) infections and toxinoses in humans. It causes superficial skin lesions such as  boils,  styesand  furuncules; more serious infections such as  pneumonia,   mastitis, phlebitis,  meningitis, and  urinary tract infections; and deep-seated infections, such as  osteomyelitis  and  endocarditis. S. aureus  is a major cause of  hospital acquired (nosocomial) infection  of surgical wounds and infections associated with indwelling medical devices. S. aureus  causes  food poisoning  by releasing enterotoxins into food, and  toxic shock syndrome  by release of superantigens into the blood stream. S. ureus  expresses many potential  virulence factors: (1)  surface proteins that promote colonization of host tissues; (2) invasins that promote bacterial spread in tissues (leukocidin,  kinases,  hyaluronidase); (3) surface factors that inhibit phagocytic engulfment (capsule,  Prote in A); (4) biochemical properties that enhance their survival in phagocytes (carotenoids,  catalase production); (5) immunological disguises (Protein A,  coagulase); (6) membrane-damaging toxins that lyse eucaryotic cell membranes (hemolysins, leukotoxin, leukocidin; (7) exotoxins that damage host tissues or otherwise provoke symptoms of disease (SEA-G,  TSST,  ET); and (8) inherent and acquired resistance to antimicrobial agents. Membrane-damaging toxins alpha toxin (alpha-hemolysin)  The best characterized and most potent membrane-damaging toxin of  S. aureus  is alpha toxin. It is expressed as a monomer that binds to the membrane of susceptible cells. Subunits then oligomerize to form heptameric rings with a central pore through which cellular contents leak. In humans, platelets and monocytes are particularly sensitive to alpha toxin. Susceptible cells have a specific receptor for alpha toxin which allows the toxin to bind causing small pores through which monovalent cations can pass. The mode of action of alpha hemolysin is likely by osmotic lysis. ?-toxin  is a sphingomyelinase which damages membranes rich in this lipid. The classical test for ? -toxin is lysis of sheep erythrocytes. The majority of human isolates of  S. aureus  do not express ? -toxin. A lysogenic bacteriophage is known to encode the toxin. (2008 Kenneth Todar, PhD  ) delta toxin  is a very small peptide toxin produced by most strains of  S. aureus. It is also produced by  S. epidermidis. The role of delta toxin in disease is unknown. Leukocidin  is a multicomponent protein toxin produced as separate components which act together to damage membranes. Leukocidin forms a hetero-oligomeric transmembrane pore composed of four LukF and four LukS subunits, thereby forming an octameric pore in the affected membrane. Leukocidin is hemolytic, but less so than alpha hemolysin. Only 2% of all of  S. aureus  isolates express leukocidin, but nearly 90% of the strains isolated from severe dermonecrotic lesions express this toxin, which suggests that it is an important factor in necrotizing skin infections. (2008 Kenneth Todar, PhD  ) Wound Healing Wound healing is a complex process with many potential factors that can delay healing. There is increasing interest in the effects of bacteria on the processes of wound healing. All chronic wounds are colonized by bacteria, with low levels of bacteria being beneficial to the wound healing process. Wound infection is detrimental to wound healing, but the diagnosis and management of wound infection is controversial, and varies between clinicians. There is increasing recognition of the concept of critical colonization or local infection, when wound healing may be delayed in the absence of the typical clinical features of infection. The progression from ound colonization to infection depends not only on the bacterial count or the species present, but also on the host immune response, the number of different species present, the virulence of the organisms and synergistic interactions between the different species. There is increasing evidence that bacteria within chronic wounds live withi n biofilm communities, in which the bacteria are protected from host defences and develop resistance to antibiotic treatment. (Edwards R,  Harding KG Apr. 17, 2004) Bacteria and Wounds Bacteria are ubiquitous in the geography of the human body. In the skin, the average human being harbors at least 200 species of bacteria, totaling more than 1012 organisms. Therefore, when the skin is broken by trauma or disease, bacteria are also ubiquitous in wounds. When discussing the presence of bacteria in an open wound of a human host, three conditions are noted with respect to their presence on or in the tissue, their impact on the healing of the wound, and the associated immune response from the host. The first condition is bacterial contamination or the simple existence of bacteria on the surface of the wound. Contamination is specifically defined as the presence of non-proliferating organisms on the superficial tissues. Contaminating bacteria do not elicit an immune response from the hos t and do not impact the healing process. The second condition, bacterial colonization, is differentiated from contamination in that it refers to proliferating organisms on the wound surface – bacteria that have adhered to the superficial tissues and have begun to form colonies. Colonization is also characterized by a lack of immune response from the host and generally is not believed to impact or interfere with the healing process. 2 Wounds that contain nonviable tissue (ie, slough and/or eschar) offer a particularly hospitable environment for colonization because the dead tissues provide a ready source of nutrients for the growing bacterial colonies. In the third condition, bacterial infection, proliferating bacteria are not only present on the surface of the wound or in nonviable tissue, but have also invaded healthy, viable tissue to such a depth and extent that they elicit an immune response from the host. Local clinical signs of tissue redness, pain, heat, and swelling generally characterize this immune response, along with an increase in exudate production or purulence. Bacterial infection delays and may even halt the healing process. The mechanism of this healing delay involves competition between host cells and bacterial cells for oxygen and nutrients and increased host cell production of inflammatory cytokines and proteases in response to the bacteria and their associated toxins. (Liza Ovington, PhD, CWS, n. d) Related studies In the research update of mango and mango leaf extract, effects of a natural extract from Mangifera indica L, and its active compound, mangiferin, on energy state and lipid peroxidation of red blood cells. Following oxidative stress, modifications of several biologically important macromolecules have been demonstrated. In this study they investigated the effect of a natural extract from Mangifera indica L (Vimang), its main ingredient mangiferin and epigallocatechin gallate (EGCG) on energy metabolism, energy state and malondialdehyde (MDA) production in a red blood cell system. Analysis of MDA, high energy phosphates and ascorbate was carried out by high performance liquid chromatography (HPLC). Under the experimental conditions, concentrations of MDA and ATP catabolites were affected in a dose-dependent way by H(2)O(2). Incubation with Vimang (0. , 1, 10, 50 and 100 mug/mL), mangiferin (1, 10, 100 mug/mL) and EGCG (0. 01, 0. 1, 1, 10 muM) significantly enhances erythrocyte resistance to H(2)O(2)-induced reactive oxygen species production. In particular, they demonstrate the protective activity of these compounds on ATP, GTP and total nucleotides (NT) depletion after H(2)O(2)-induced damage and a reduction of NAD and ADP, which both increase because of the energy consumption following H(2)O(2) addition. Energy charge potential, decreased in H(2)O(2)-treated erythrocytes, was also restored in a dose-dependent way by these substances. Their protective effects might be related to the strong free radical scavenging ability described for polyphenols. Mango and Mango Leaf Extract, n. d. ) Mangifera indica L. extract consists of a defined mixture of components (polyphenols, terpenoids, steroids, fatty acids and microelements). It contains a variety of polyphenols, phenolic esters, flavan-3-ols and a xanthone (mangiferin), as main component. This extract has antioxidant action, antitumor and immunemodulatory effects proved in experimental models in both in vitro and in vivo assays. The present study was performed to investigate the genotoxicity potential activity of Vimang assessed through different tests: Ames, Comet and micronucleus assays. Positive and negative contr ols were included in each experimental series. Histidine requiring mutants of Salmonella typhimurium TA1535, TA1537, TA1538, TA98, TA100 and TA102 strains for point-mutation tests and in vitro micronucleus assay in primary human lymphocytes with and without metabolic activation were performed. Results of Comet assay show that the extract did not induce single strand breaks or alkali-labile sites on blood peripheral lymphocytes of treated animals compared with controls. On the other hand, the results of the micronucleus studies (in vitro and in vivo) show Vimang induces cytotoxic activity, determined as cell viability or PCE/NCE ratio, but neither increased the frequency of micronucleated binucleate cells in culture of human lymphocytes nor in mice bone marrow cells under their experimental conditions. The positive control chemicals included in each experiment induced the expected changes. The present results indicate that M. indica L. extract show evidences of light cytotoxic activity but did not induce a mutagenic or genotoxic effects in the battery of assays used. (Mango and Mango Leaf Extract, n. d. ) Anti-allergic properties of Mangifera indica L. extract (Vimang) and contribution of its glucosylxanthone mangiferin. : Vimang is the brand name of formulations containing an extract of Mangifera indica L. , ethnopharmacologically used in Cuba for the treatment of some immunopathological disorders, including bronchial asthma, atopic dermatitis and other allergic diseases. However, the effects of Vimang on allergic response have not been reported until now. In this study, the effects of Vimang and mangiferin, a C-glucosylxanthone isolated from the extract, on different parameters of allergic response are reported. Vimang and mangiferin show a significant dose-dependent inhibition of IgE production in mice and anaphylaxis reaction in rats, histamine-induced vascular permeability and the histamine release induced by compound 48/80 from rat mast cells, and of lymphocyte proliferative response as evidence of the reduction of the amount of B and T lymphocytes able to contribute to allergic response. In these experiments, ketotifen, promethazine and isodium cromoglicate were used as reference drugs. Furthermore, they demonstrated that Vimang had an effect on an in-vivo model of inflammatory allergy mediated by mast cells. These results constitute the first report of the anti-allergic properties of Vimang on allergic models, as well as suggesting that this na tural extract could be successfully used in the treatment of allergic disorders. Mangiferin, the major compound of Vimang, contributes to the anti-allergic effects of the extract. (Mango and Mango Leaf Extract, n. d. ) Anti-inflammatory, analgesic and hypoglycemic effects of Mangifera indica Linn. (Anacardiaceae) stem-bark aqueous extract.   Previous studies in their laboratories and elsewhere have shown that some members of Anacardiaceae family possess antiinflammatory, analgesic and hypoglycemic effects in man and mammalian experimental animals. The present study was, therefore, undertaken to examine the antiinflammatory, analgesic and antidiabetic properties of the stem-bark aqueous extract of Mangifera indica Linn. , M. indica a member of the Anacardiaceae family, in rats and mice. The stem-bark powder of M. indica was Soxhlet extracted with distilled water and used. M. indica stem-bark aqueous extract (MIE, 50-800 mg/kg i. p. ) produced dose-dependent and significant (p