Devolution of Local Government in the Philippines - Free Essay Example

Sample details Pages: 19 Words: 5615 Downloads: 5 Date added: 2017/09/19 Category Politics Essay Type Narrative essay Topics: Government Essay Did you like this example? DECENTRALIZATION AND DEMOCRATIZATION In the later part of the 20th Century there has been a dramatic shift in the manner governments around the world managed their states. Instead of having a centralized form of government, most nation nation-state now somehow adopts the idea of shifting some of the national or central powers to the local government units. This shifting of powers is called Decentralization. Decentralization is the transfer of planning, decision making, or administrative authority from the central government to its field organizations, local governments, and nongovernmental organizations as defined by Rondinellei and Cheema. According to de Guzman and Padilla, decentralization is the dispersal of authority and responsibility and the allocation of powers and functions from the center or top level of government to regional bodies or special purpose authorities, or from the national to the sub national levels of government. Decentralization is a strategy us ed by the government towards democratizing the political system and accelerating the attainment of sustainable development†[1] for the reason that it will promote or allow fuller participation of the citizens in government affairs and will give the local governments and the communities a more active role in the economic, social and political development [2]. Government further assumes that through decentralization â€Å"development would be more responsive to the needs of the people and would create opportunities in the regions, promote employment and economic activities and as well strengthen people’s participation in the affairs of the government†[3]. Different forms of decentralization can be distinguished primarily in terms of the extent of authority transferred and the amount of autonomy. Decentralization may take the form of devolution and deconcentration. Deconcentration involves the â€Å"redistribution of administrative responsibilities only withi n the central government†[4]. It is not a transfer of power from the central government but merely to â€Å"delegate such powers and responsibilities to the hierarchical levels, primarily to facilitate the administration of national programs and services, and this approach is otherwise referred to as administrative decentralization†[5]. Administrative decentralization can take effect without the necessity of legislation but with the issuance of an executive or administrative order. Although the local units now have responsibilities bestowed to them, they are still supervised and controlled the central government; therefore all transactions cannot be done unless approved by the central government. They are not to decide on their own. Deconcentration is the assignment of functions to ad hoc bodies and special authorities created in the region to render technical assistance on regional development. This could be done in different ways: 1) the shifting of the workload from a central government ministry or agency headquarters to its own field staff located in offices outside the national capital. 2) The transfer of some decision-making discretion to field staffs but with guidelines set by the central ministry. 3) Local administration, in which all subordinate levels of government within a country are agents of central authority, usually the executive branch[6]. Another form of decentralization is delegation or the transfer of some functions to semi-autonomous organization not directly under the control of the central government. Often these organizations have semi-independent authority to perform their responsibilities and may not even be located within the regular government structure[7]. This form is more definitely extensive than administrative deconcentration. Examples are public corporation, regional planning and development authorities, multi purpose and single purpose functional authorities and special project implementation units. D evolution, on the other hand, â€Å"seeks to create or strengthen independent levels or units of government through giving them certain functions or create units of government that are outside its control[8]. It is also called as â€Å"political decentralization and involves the transfer of power, responsibility and resources for the performance of certain functions from the national to the local governments†[9]. Its fundamental characteristics are: a. Local government units (LGU’s) are autonomous, independent and learly perceived as a separate level of government over which central authorities exercise little or no direct control. b. LGU’s have clear and legally recognized geographical boundaries within which they exercise authority and perform public functions. c. LGU’s have corporate status and have the power to secure resources to perform the function. Lastly, d. Devolution implies the needs to develop local governments as institutions. This is an ar rangement in which there is reciprocal relationship between central and local governments. The LGU’s has the ability to interact reciprocally with other units in the system of government of which it is part. Lastly, Nongovernmental Organizations (NGO) and Community Organizations is used to â€Å"decongest the government by mobilizing the NGOs and COs for planning, implementation, monitoring and evaluation of government programs which will make government actions more responsive to the needs and demands of those who truly deserve government assistance and may minimize graft and corruption while injecting cause-orientedness in the bureaucracy†[10] There are mixed motives and causes of the shift to decentralization worldwide, primarily politically driven. Some commonly sited reasons are democratization increases efficiency and economic growth, improves supply and delivery of local services, vested interests of national politicians, preservation of national political systems in the face of growing local demands and general failure of centrist experiments. In the case of the Philippines, of the four given forms of decentralization, devolution is the prevalent form of decentralization used by the government. Decentralization and democratization tend to reinforce each other; decentralization is a factor in increasing democratization while successful decentralization can only take place with democratic process. To a certain extent, that is what the devolution and the local autonomy is all about: unleashing the creative powers and resources at the local level towards the general objective of developing of self-reliance and lessen dependence upon the central government which after all has been one reason for the state of nderdevelopment of local government unit in the Philippines. Indeed, local governments in the Philippines are undergoing a fundamental structural and ideological transformation as a result of the devolution in 1991. This transform ation will be better appreciated within the context of decentralization, democratization and local empowerment. THE EVOLUTION OF PHILIPPINE LOCAL GOVERNMENTS AND CENTRAL- LOCAL RELATIONS: FROM PRECOLONIAL BARANGAY TO THE 1991 LOCAL GOVERNMENT CODE Although it is commonly assumed that the decentralization process in the Philippines is a complete break from the overly centralized past, evidences show that â€Å"the so-called landmark LGC of 1991 is not an abrupt break from the past but a result of a long struggle for decentralization and local autonomy. [11]† According to Hutchcroft, scholars viewed the Philippine public administration as â€Å"over centralized because they tend to concentrate far more attention to formal structures of authority than on informal networks of power†[12]. But looking back in time, â€Å"before the arrival of Arab traders, scholars and the Spaniards in the sixteenth century, everything was local. † â€Å"The ancestors of the Fi lipinos established an indigenous and autonomous political institution known as the barangay, which was composed of some thirty to one hundred households. Some of these small-scale political units were clustered together, but most of them ‘had not attained a level of political organization above and beyond the kinship principle. †[13] When the Spanish colonizers came, they introduced â€Å"a centralized system with the Spanish governor-general as the supreme authority in all matters†[14] with the â€Å"subnational officials acting as his agents†[15]. The barangay (renamed as barrio) remained as basic administrative units but other ties of local government were added: â€Å"the pueblos (municipalities), cabildos (cities), and provincias (provinces). †[16] Local discretion in the governance of local affairs was allowed only towards the end of the Spanish regime. The Maura Law of 1893 sought reforms in the local government system by granting greater local autonomy to towns and provinces in Luzon and Visayas and by allowing local citizens to select some of their officials. †[17] But because of the Philippine Revolution which shortly followed in 1898, these reforms did not make much impact at all. According to Tapales, the Spanish period had impacts, however, on the development of local governments in the Philippines. â€Å"First, indigenous activities were supplanted by putting in place an alien system of local government. Second, a high degree of centralization in the capital of Manila in Luzon came to characterize national-local relations for another century after the Spanish colonization. Third, the divide-and-rule policy of Spanish colonizers, their concentration of all political activities in Manila and the ensuing neglect of the other regions outside Manila, and the curtailment of many elements of internal trade strengthened regionalism and the other regions’ contempt for the center, which remain strong un til today. Fourth, at the end of Spanish rule, there were still areas in the Philippines that considered themselves not part of the emerging nation at all which was because the Spaniards were unsuccessful in consolidating all the islands under their control. And finally, the Spanish period left local elite that would continue to play important roles in the decades ahead. The datu in the Philippines were incorporated into the Spanish colonial regime. They were dependent upon Spanish patronage and support but they also exercised considerable powers in the local areas. †[18] In 1898, against the backdrop of the Philippine Revolution against Spain, the first but short lived Philippine Republic under the Malolos Constitution was established. Officials were elected on a popular basis and decentralization and administrative autonomy were among the rallying cries of the period. [19] The Malolos Constitution which served as the framework of the Philippine revolutionary government , provided for the creation of municipal and provincial assemblies, autonomous local units, and popular and direct elections. [20] The American occupation of the Philippines (1902-1935) saw the promulgation f a number of policies promoting local autonomy. These included the organization of municipal and provincial councils based on general suffrage. Other pronouncements indicative of the thrust towards local autonomy included the following: the Instructions of President McKinley to the Taft Commission; the incorporation of the City of Manila (Act 183 of the Philippine Commission in 1902); the establishment of the Moro Province (act 787 in 1903); the organization of provincial governments (Act 1396 in 1905); and the extension of popular control, like the elimination of appointive members from the provincial board. 21] The American colonial period began with an emphasis on local self-government with the aim of building democracy from below. Municipal and then provincial elections were first introduced before national elections. However, American administrators discovered that Filipino elites who came to fill posts in municipal governments â€Å"where regularly ‘mishandling public funds’ by voting all available revenue to pay for their own salaries. [22] Concerned with inefficiency and corruption in local governance, Americans tinkered with the liberal democratic system they introduced by moving toward centralization to prevent the â€Å"evils† of unrestricted and â€Å"untutored† Filipino rule. While the United States attempted to institute a new system, it ended up preserving much of the informal power structure and in ruling through the ilustrado and cacique classes. Like their Spanish predecessors and other colonial regimes in South East Asia, American administrators allowed the cooperative elements of the Filipino elite an increasingly larger role in government for expediency purposes. But in the process, they turned a blind ey e on the local elite who â€Å"enriched themselves at the expense of the peasants and increased their traditional power within the local communities. [23] In spite of the enactment of the above-mentioned policies purportedly supportive of local autonomy, the Americans maintained a highly centralized politico-administrative structure. Largely because of security considerations, local affairs had to be under the control of the Americans. The Commonwealth period (1935-1946) saw local government in the Philippines placed under the general supervision of the President as provided for under Article VII Section II of the 1945 Constitution. Additionally, the President, by statute, could alter the jurisdictions of local governments and in effect, create or abolish them. [24] Ocampo and Panganiban note that the constitutional provision limiting the Presidents power to general supervision was a compromise measure substituted for the stronger guarantee of local autonomy proposed during the constitutional convention. President Quezon preferred to appoint the chief officials of cities and would brook no democratize nonsense. [25] During the 1934 – 1935 Constitutional Convention, emerging Filipino leaders were group into two camps: those who favor stronger local government, and those who consider state control more important than local governments. The second group won. Thus, the 1935 Constitution had no separate article on local governments, in contrast with the two succeeding constitution of the Philippines. In addition, the 1935 Constitution formally created a very powerful Philippine president. Thus, the trend during the Commonwealth period, the transitional government before the granting of independence, was centralization. Aside from the state-control bias of the 1935 Constitution, some writers also attribute the centralization trend to the strong leadership style of President Manuel Quezon. Quezon believed that under a unitary system, the national chi ef executive should control all local offices. The result was that central supervision rapidly increased and was personally exercised by the president to a degree previously unheard of. However, as Hutchcroft noted, Quezon was primarily concerned with centralizing control over patronage resources. Thus, he achieved great success in establishing central-local relations aimed at electoral objectives rather than promoting administrative effectiveness. Formal centralization continued during the brief Japanese occupation (1942 – 1945). As in the case of the Spanish and American colonization of the Philippines and especially since there was a world war going on, an even greater degree of central control was imposed on local governments by the occupying power through a national government where Filipinos collaborators, still from the local elites that cooperated with the Americans, held positions. Philippine political independence was granted by the Americans in 1946. The firs t local autonomy act (RA 2264) was enacted in 1959, entitled, An Act Amending the Laws Governing Local Governments by Increasing their Autonomy and Reorganizing Provincial Governments. This act vested in city and municipal governments greater fiscal, planning and regulatory powers. It broadened the taxing powers of the cities and municipalities within the framework of national taxing laws. [26] The year 1959 also saw the passage of landmark legislation as afar as local autonomy is concerned. The Barrio Charter Act (RA 2370) sought to transform the barrios, the smallest political unit of the local government system into quasi-municipal corporations by vesting them some taxing powers. Barrios were to be governed by an elective barrio council. Less than a decade later, the Decentralization Act of 1967 (RA 5185) was enacted. It further increased the financial resources of local government and broadened their decision-making powers over administrative (mostly fiscal and personnel) matters. [27] More specifically, the Decentralization Act provided that it will: Grant local governments greater freedom and ampler means to respond to the needs of their people and promote prosperity and happiness to effect a more equitable and systematic distribution of governmental power and resources. To this end, local governments henceforth shall be entrusted with the performance of those functions that are more properly administered in the local level and shall be granted with as much autonomous powers and financial resources as are required in the more effective discharge of their responsibilities. [28] By any measure, the imposition of martial law in 1972, which abolished local elections and vested in the dictator the powers to appoint officials who were beholden to him, was a great setback for the local autonomy movement in the Philippines. Notwithstanding the highly centralized dictatorial set-up, the 1973 Marcos Constitution rhetorically committed itself to a polic y of local autonomy: The State shall guarantee and promote autonomy of local government units, especially the barrio, to ensure their fullest development as self-reliant communities. [29] The document likewise constitutionalized the taxing powers of local government units thus: Each local government unit shall have the power to create its own sources of revenue and to levy taxes subject to limitations as may be provided by law. 30] However, the President continued to exercise supervision and control over the local governments. The authoritarian government promulgated the Local Government Code of 1983 (Batas Pambansa Bilang 337) which reiterated the policy of the State to guarantee and promote the autonomy of local government units to ensure their fullest development as self-reliant communities and make them effective partners in the pursuit of national development. [31] Obviously, genuine autonomy could not be realistically implemented under the authoritarian regime. 32] From the gr anting of formal independence in 1946 until 1972, the general trend had been toward the decentralization. Until 1950, national executive departments made all administrative appointments at the provincial and municipal levels. However, they were generally made in consultation with the local political elite. A number of laws passed by Congress gave greater autonomy to local government through the grant of additional powers or the lessening of national control on local affairs. Significant legislative enactments include the Local Autonomy Act (Republic Act RA 2264), the Barrio Charter (RA 2370, later amended by RA 3590), and the Decentralization Act of 1967 (RA 5185). The Supreme Court also contributed to the cause of local autonomy by moving away t a liberal to a narrower interpretation of constitutional power of the president to supervise local governments. The decentralization trend culminated in the inclusion of a separate article on local government in the draft of the new cons titution and the draft Integrated Reorganization Plan (IRP). The draft constitution contained provisions guaranteeing local government autonomy, local power to create their own sources of revenue and to levy taxes, greater citizens’ draft IRP, meanwhile, strengthened the regions. But under the draft law, LGUs were still supervised through the office of the President and the various departments. [33] Furthermore, central-local relations in the Philippines before the declaration of martial law in 1972 differed from other developing Asian countries that were characterized by the widespread phenomenon of tight central control at the time. According to Friedman, this difference sprang from the country’s colonial heritage and reflected formal, structural, alternatives, albeit unaccompanied by new conceptions of government. Before the 1970s the Philippines already had constitutionally differentiated provincial governments and a variety of elected governing bodies and of ficials at the city, municipal, and barrio levels. Friedman continued that while financial resources needed for governing were always lacking, â€Å"a complicated and politically influenced system of grants† made the Philippine local government system more autonomous than in other Asian countries. While this type of system generated its own benefits as well as problems, â€Å"the potential for continued development† that is not discernible everywhere in Asia existed in the Philippines. After the 1896 EDSA People Power Revolution toppled the Marcos dictatorship, the Philippine government headed by Corazon Aquino renewed its commitment to greater decentralization as a means of attaining its development goals and objectives. This was expressed in the goals of the new administration’s development program (â€Å"the Policy Agenda for People Oriented Development†). The program stated that the role and structure of government would be guided by the key org anizational principles of decentralization, among others. The administration’s commitment to achieving greater decentralization was further reinforced by the extensive provision on local autonomy in the 1987 Constitution. Article 2 (Declaration of Principles and State Policies), Section 25, says: â€Å"The State shall insure the autonomy of local governments. † There is also a separate State shall insure the autonomy of local government (Article 10) that is more extensive than its counterpart in he 1973 Constitution. Article 10 has the following very important provisions: 1. Creation of autonomous regions in Muslim Mindanao and the Cordillera. 2. Granting LGUs the power to create their own sources of revenue and to levy taxes which shall be automatically released to them. 3. Providing local governments with a just share of the national taxes which shall be automatically released to them. 4. Entitling local governments to an equitable shares in the proceeds of the utili zation and development of the national wealth within their respective areas. 5. Providing for regional development councils for other similar bodies composed of local government officials, regional heads of departments and other government offices, and representatives from NGOs within the region for purposes of administrative decentralization to strengthen the autonomy of the units thereon and to accelerate the economic and social growth and development of the units in the region. [34] The provision of the 1987 Constitution would serve as the legal precedent for the enactment in 1989 of two laws creating autonomous regions in Muslim Mindanao and the Cordilleras. Then, in 1991, after almost five years of debate in Congress, the Local Government Code or RA 7160 was enacted. This law is by far the most focused on devolution and democratic decentralization in the country. It is also considered the most important piece of legislation to emerge from the Aquino administration. The 19 91 LGC is a product of both external factors, although internal factors play a stronger role in terms of the actual contents of the legal basis as well as the dynamics of its implementation. Decentralization has been carried out not solely for the traditional public administration arguments but, more important, in light of its democratic dimensions and other political considerations. There are mixed motives and a conjuncture of political factors in the decision to undertake decentralization. First, there are practical and administrative reasons. For decades and peaking with Marcos’s dictatorship, a formal centralized structure failed to deliver services. This failure is especially relevant in a diverse archipelago of thousands of islands. In addition, overly centralized formal mechanisms limited prospects for development in the countryside. Second, The Philippines undertook decentralization after the overthrow of Marcos for idealistic reasons. President Aquino, civil-so ciety groups, various leagues of local governments, and some national legislators genuinely felt that decentralization and local autonomy were more than administrative innovations. They were tools toward achieving democratization and vice versa. The Code was meant to be centerpiece of a government that came into power by overthrowing a dictatorship. Finally, political leaders also have personal reasons for undertaking decentralization. Obviously, traditional local politician saw the new benefits they would reap from devolution. More important, subject to the new constitution’s imposition of term limits, members of the House of the Representatives were motivated by a desire to assume local government positions in the failure in an environment where significant powers and finances have been devolved to LGUs. In terms of timing of the Code’s approval, many legislators were also motivated by a desire to get reelected or get elected to higher positions in the coming elec tions. Philippine politico-administrative history is replete with examples of tensions between a highly centralized governmental structure and the demands for autonomy among the various component local units: at one level, there is an imperative for a dominant and assertive leadership necessary for the consolidation and even the very survival of a weak state; at another level, there is demand among component local institutions for autonomy from the central government in order to enable them to become more responsive to situations obtaining locally and, paradoxically, strengthen a weak state. 35]Earlier historical attempts to decentralize power and authority to local institutions through various means are testimony to the fact that the problem of overcentralization is one that has been recognized but continued to persist through the years. For instance, the decentralization of administrative authority (but conspicuously unaccompanied by political decentralization) was a hallmark of the Marcos dictatorship. A Local Government Code was in fact enacted in 1983. But these attempts at decentralizing government remained simple administrative formalisms. Power continued to be concentrated in Manila with local units heavily dependent upon central government. In fact, before the enactment of the Code, local governments were beginning not only to be restive but also assertive, demanding that the umbilical cord that tied them to Manila be severed because this was the root cause behind their stunted growth and underdevelopment. With Philippines archipelagic nature, it is no wonder that the Philippine government had made lots of experiments to find the most suitable way to govern the country. The reinforcement of a centralized and decentralized  government varied from the pre-colonial barangay to the 1991 Local Government Code. A lot of factors triggered such trend variation. Aside from the countrys geographic nature, which hindered the successful consolidation of all islands under the control of one government, the public officials were not yet properly trained or educated on the implementation of governments policies and procedures to prevent unethical acts such as corruption and  red  tape. Despite of this, decentralizing the government has been the best option to effectively implement governments programs and policies, wherein the provinces, cities, municipalities and barangays of the nation enjoys local autonomy which are then generally supervised by a central government. [36]And because of a greater degree of accountability, responsiveness and participation, effective decentralization can make a big difference by making the provision of local (social and economic) services more efficient, equitable, sustainable and cost-effective. Through community participation in decision making, planning, implementation and monitoring and backed by appropriate institutions and resources, it can go a long way in improving the quality of life, particularly of the poorer and marginalized sectors of the population, thereby alleviating poverty. THE LOCAL GOVERNMENT SYSTEM AND CHANGES BROUGHT ABOUT THE 1991 LOCAL GOVERNMENT CODE The passing of RA 7160 or the Local Government Code (LGC) contain five major features which gave noteworthy supremacy to those local government units (LGUs). It transfers the responsibility for the delivery of various aspects of basic services plus some regulatory and licensing powers to the local governments. It also increases the financial resources available to LGUs, lays down the policy framework for the direct involvement of civil society, most especially non-government organizations and people’s organizations in the process of local governance, and encourages LGUs to be more entrepreneurial. [37] These are as follows: 1. ) the code devolves or transfers the responsibility for the delivery of various aspects of basic services to the local governments. Most significant devolved services include health, agriculture, environment and natural resources, social services and public works funded by local funds. 2. ) The code transfers certain regulatory and licensing powers to local governments. These include reclassification of agricultural lands, enforcement of environmental laws, inspection of food products and quarantine, enforcement of National Building Code, operation of tricycles, processing and approval of subdivision plans, and establishment of cockpits and holding of cockfights. 3. It increases the financial resources available to LGUs by broadening their taxing powers, providing them with specific share from the national wealth exploited in their area, and increasing their automatic share from national taxes. 4. )It lays down the policy framework for the direct involvement of civil society, most specially NGOs and Pos, in the process of local governance – some degree of debureaucretization. These openings for civil society are meant to promote n ot only popular participation but also local accountability and transparency. Finally, 5. The code encourages the LGUs to be more entrepreneurial by providing them with opportunities to enter into joint ventures with the private sector, engage in the BOT arrangements, float bonds, and obtain loans from local private institution and the like. In a sense, the code encourages them to be less reliant on the national government instead generate their own resources but still the President has the authority to exercise general supervision over the LGU delegated to the DILG – the successor of the pre – martial department of local government and community development. More specifically, this could be done through the following: First, sectoral representation in local legislative councils, particularly those represents women, worker, and other sectors as determined by the specific Sanggunian. ( either sanggunian panlalawigan, panglungsod, sanggunian kabataan and the like); se cond, through allocation of specific seats for NGO and PO representative in local special bodies (like the local development council, the local health board, and the local school board);third, participation in political exercises like plebiscite, referendum, and recall. and lastly, involvement in the planning and implementation of development programs. Moreover, the present local government unit creates criteria according to the 1991 Local Government Code. The country has existing levels on the local government which has an elected set of chief executive and members of a legislative body called sanggunian as well as bureaucracy. The levels of the government include the provinces, cities, municipalities, and the village-level barangay. [38] This shows that there exists an established administration on the local sector. However, in the case of cities, higher-income cities are autonomous and classified as highly urbanized or chartered cities, while the rest are component cities that , like the municipalities, are under provincial supervision. [39] When a city is already considered as a highly-urbanized one, it becomes independent to the provincial government. However, when it has not yet reached the level of being a chartered city, then, it still remains under the authority of the provincial government. DEVOLUTION’S IMPACTS, ISSUES AND CHALLENGES Local government indeed plays a central role in any democratizing polity. For one, being in the frontline, they are regarded by many citizens as the government. If local governments fail and are unresponsive to the basic needs of the people then government to those people is a failure, regardless of the grandiose plans and visions it has. The increased role of governments in the democratizing polity may also be seen within the context of global trends and development. The rapid breakdown of many centralized institutions has led to the observation that the â€Å"center cannot hold†. While the implementa tion of the code may not have been a smashing success, it may be rightfully claimed that it has not been a failure either. A high point in the battle for devolution was the presidential veto of the proposed bill to recentralize health services. If anything, this maybe a major indicator of the current leadership’s political will to follow through the devolution process. The support of the various concerned agencies to increase the LGU’s absorptive capacities, through the preparation of guidelines and even developing various capability programs with appropriate institution also augurs well for devolution. The most controversial issue in decentralization is implementation in the real world. It presents problem which are as follows: first is that a significant number of LGUs â€Å"refuse and hesitate to accept the devolved functions and services for reasons such as limited financial resources to maintain and sustain the operations of the offices charged with the functions and delivering the devolved services†[40]. For example the health practitioners, they are now the responsibilities of the LGUs and be compensated with accordance of the Magna Carta involving heath services[41]Next are the problems which have something to do with personnel management, because some of them do not want to be directly under the control and supervision of the local executives, especially those devolved personnel from the national agencies. According to the Legaspi there are concerns on to what extent the basic services and functions which includes financial allocations from the national government and support facilities be transferred to the LGU’s because it is not clearly defined. Indeed there are things to be settled until it can be said that the decentralization in the country is successful. â€Å"However, it is important that the devolution process not be romanticized and seen as the end-all and panacea for all our problems. National government c ertainly still plays a critical role in the overall development process. The preparation and development of standards, redistribution of resources and identification of projects and activities that national government can finance given its unique capabilities and perspectives still are areas where it has some comparative advantage and therefore demonstrate competence†[42]. [1] Philippine Politics and Governance: An Introduction. Edited: Morada, Noel. Tadem, Teresa. [2] Decentralization Towards Democratization ann Development in the Asian Pacific Region: Eastern Regional Organization for Public Organization (EROPA). dited; De Guzman, Raul. Reforma, Mila. Bookman Printing House, Manila, 1993. p 5 [3] Decentralization Towards Democratization ann Development in the Asian Pacific Region: Eastern Regional Organization for Public Organization (EROPA). edited; De Guzman, Raul. Reforma, Mila. Bookman Printing House, Manila, 1993. p 3 [4] Philippine Politics and Governance: An Intro duction. Edited: Morada, Noel. Tadem, Teresa. [5] Decentralization Towards Democratization ann Development in the Asian Pacific Region: Eastern Regional Organization for Public Organization (EROPA). dited; De Guzman, Raul. Reforma, Mila. Bookman Printing House, Manila, 1993. p 4 [6] Philippine Politics and Governance: An Introduction. Edited: Morada, Noel. Tadem, Teresa. [7] Philippine Politics and Governance: An Introduction. Edited: Morada, Noel. Tadem, Teresa. [8] Philippine Politics and Governance: An Introduction. Edited: Morada, Noel. Tadem, Teresa. [9] Decentralization Towards Democratization ann Development in the Asian Pacific Region: Eastern Regional Organization for Public Organization (EROPA). edited; De Guzman, Raul. Reforma, Mila. Bookman Printing House, Manila, 1993. p 4 [10] Decentralization Towards Democratization ann Development in the Asian Pacific Region: Eastern Regional Organization for Public Organization (EROPA). edited; De Guzman, Raul. Reforma, Mila. Boo kman Printing House, Manila, 1993. p 4 [11] Philippine Politics and Governance: An Introduction. Edited: Morada, Noel. Tadem, Teresa. [12] Philippine Politics and Governance: An Introduction. Edited: Morada, Noel. Tadem, Teresa. [13] Philippine Politics and Governance: An Introduction. Edited: Morada, Noel. Tadem, Teresa. [14] Philippine Politics and Governance: An Introduction. Edited: Morada, Noel. Tadem, Teresa. [15] Philippine Politics and Governance: An Introduction. Edited: Morada, Noel. Tadem, Teresa. [16] Philippine Politics and Governance: An Introduction. Edited: Morada, Noel. Tadem, Teresa. [17] Philippine Politics and Governance: An Introduction. Edited: Morada, Noel. Tadem, Teresa. [18] Philippine Politics and Governance: An Introduction. Edited: Morada, Noel. Tadem, Teresa. [19] Alex B. Brillantes, Jr. Decentralization, Devolution and Development in the Philippines, UMP-Asia Occasional Paper No. 44, 1999 [20] Philippine Politics and Governance: An Introduction. Edit ed: Morada, Noel. Tadem, Teresa. [21] For the extensive and detailed discussion of these various initiatives, see Laurel, op cit. , pp. 289-293 [22] Philippine Politics and Governance: An Introduction. Edited: Morada, Noel. Tadem, Teresa. [23] Philippine Politics and Governance: An Introduction. Edited: Morada, Noel. Tadem, Teresa. [24] Ocampo and Panganiban, op. Cit. , p. 5 [25] Brillantes Cit. 26] Brillantes Cit. [27] Brillantes Cit. [28] Ibid. [29]Brillantes cit. [30] Ibid. [31] Ibid. [32] Ibid. [33] Philippine Politics and Governance: An Introduction. Edited: Morada, Noel. Tadem, Teresa. [34] Philippine Politics and Governance: An Introduction. Edited: Morada, Noel. Tadem, Teresa. 14 Brillantes, Cit. 15 [35] Philippine Politics and Governance: An Introduction. Edited: Morada, Noel. Tadem, Teresa. [36] Philippine Politics and Governance: An Introduction. Edited: Morada, Noel. Tadem, Teresa. [37] Philippine Politics and Governance: An Introduction. Edited: Morada, Noel. Tadem, Teresa. [38] Decentralization, Autonomy and the Local Government Code: The Challenge of Implememtation. edited; Legaspi, Perla. Local Government Center ,College of Public Administration, University of the Philippines and Ford Foundation. Philippines, 1995. p 2 [39] Philippine Politics and Governance: An Introduction. Edited: Morada, Noel. Tadem, Teresa. [40] Democritization: Philippine Perspectives. Miranda, Felipe. University of the Philippines Press. Diliman, Quezon City, 1997, p. 98,99 Don’t waste time! Our writers will create an original "Devolution of Local Government in the Philippines" essay for you Create order

Shakespeares Novel Macbeth - 1577 Words

What would the world be like if no one felt guilt? If no one ever caught caught for their crimes? In Shakespeares novel, Macbeth, the main characters commit crimes driven by their ambition. After committing the first crime Macbeth, the main antagonist is overwhelmed with guilt. His wife, Lady Macbeth plotted the first crime and was the main force pushing Macbeth to kill. In the end Macbeth is charged with the truth and Lady Macbeth kills herself both brought down equally from guilt. Guilt and fear of being found out causes anxiety and slow disintegration of the subconscious which leads to psychosis and therefore, because of insanity causes confession of crimes or suicidal thoughts. According to the Medical Health Foundation, anxiety is†¦show more content†¦Guilt, anxiety, and depression can lead to serious health issues like psychosis. Psychosis is when one experiences things and believes them to be real, they have lost their contact with the real world (MacGill). When one l ooses touch with reality they become unpredictable, not knowing what they are capable of people try to stay away. In Macbeth, Lady Macbeth and Macbeth all fall victim to insomnia, after loosing rash amounts of sleep they begin to loose their grip on reality. Some symptoms of psychosis are delusions, depression, personality changes, suspicion, and suicidal thoughts (MacGill). Macbeth and Lady Macbeth both experience delusions, personality changes, suspicion, and depression. This leads Lady Macbeth to suicide and Macbeth to give away his nicely covered up plans. This causes them both to have personality changes, and others begin to notice. Paranoid delusions cause people with psychosis to experience suspicion of individuals, they believe that others are plotting against them (MacGill). Macbeth shows this attribute multiple times throughout Macbeth. After making himself king he believes that even his close friend, Banquo is plotting against him. He has his friend killed and then grows suspicious of Banquos son plotting against him as well. Lady Macbeth experiences other symptoms, she has hallucinations and is never sleeping normally. Hallucinations can affect all sensesShow MoreRelatedShakespeares Monk981 Words   |  4 PagesShakespeare’s Monk If there is one thing that Matthew Lewis’ novel The Monk: A Romance teaches us about writing, it is that William Shakespeare was an amazing creative author. Just about every facet of Lewis story is, at least in some part, borrowed from Shakespeare’s work. The most obvious allusion to Shakespeare in The Monk: A Romance, is the plot line of Lewis’ novel and Shakespeare’s work Measure for Measure. The story of Measure for Measure centers on Lord Angelo, who is given controlRead Morecome on work728 Words   |  3 PagesQuestion 1: Consider the events of Shakespeare’s Macbeth and the fates of the title character and his wife. 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Valuating Financial Prediction of Fortescue Metals Group Ltd Free Essays

| Valuating Financial Prediction of Fortescue Metals Group Ltd| AFX9540 BUSINESS FINANCE| | | | Executive Summary This report is written to offer a business analysis of Fortescue Metals Group Ltd (FMG) where there will be a discussion on the background of the company, its return on the pre-post announcement of raising funds, the capital structure during the global financial crisis in comparison to its peers and the estimation on the share valuation in comparison to the actual share value. Fortescue Metals Group (ASX:  FMG) is an Australian iron ore mining company. The company has holdings of more than 87,000 km? in the Pilbara region of Western Australia making it the largest tenement holder in the state. We will write a custom essay sample on Valuating Financial Prediction of Fortescue Metals Group Ltd or any similar topic only for you Order Now It is listed as FMG on the Australian Securities Exchange (ASX). In 2008, the group loaded its first iron ore shipment bound for China. Fortescue have at least 10 Chinese steel mill contracts lasting for around 10 years. Baosteel was the first company to receive their iron ore. For the share valuation, the report uses the CAPM model to determine the prevailing cost of capital and also uses the dividend discount multistage model to predict the share price for the company. The components of the CAPM model (i. e. risk free rate, company beta, Market return and growth rate) are calculated and predicted on historical data. The valuation data is then compared with the actual market price of the shares for the corresponding years and a brief analysis is then performed on the economic and internal reasoning behind any variance encountered. Table of Contents Executive Summary2 1. 0Brief overview of the company4 2. 0Capital Structure4 2. 1Funds raised by the company4 2. 2Usage of the fund5 2. 3Announcement date for the issue5 2. 4Share-return pre and post announcement5 2. Market return same period6 2. 6 Market Perception6 2. 7 Effect of recent financial crisis7 3. 0 Valuation of FXJ shares7 3. 1Risk free rate calculation8 3. 2Market rate calculation8 3. 3Beta calculation9 3. 4CAPM Calculation10 3. 5Growth rate calculation10 3. 6Share valuation11 3. 7Comparison of valuation vs. actual data12 3. 8 Evaluation of the variation13 4. 0 Conclusion13 Appendix 1: Cash rate target14 Appendix 2: Market data for beta calculation14 Reference Bibliography†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 16 . 0General background of the Firm Fortescue Metals Group Ltd is the New Force in Iron Ore and has joined the world’s leading producers of iron ore. Since the Company was formed in 2003, its extraordinary growth has been unparalleled. Listed in the S;P/ASX 50 share index, Fortescue has firmly established itself as one of the world’s largest producers and sea-borne traders of iron ore. From Construction to Production Construction of Fortescue’s port, rail and mine project commenced in February 2006 with the turning of the first sod at the Company’s port site at Anderson Point in Port Hedland. Just two years later in 2008, the open-access rail infrastructure was complete and  operations were underway  at the Fortescue Herb Elliott Port and at the Company’s first minesite, Cloudbreak. Shipping started on 15 May 2008 and Project Completion was achieved within months. On 18 July 2008, Fortescue’s fifth anniversary, the Company successfully mined, railed and shipped at a rate of 24mtpa (Million ton per annum) for a one month period. In the first full year of operations, Fortescue mined, railed and shipped more than 27 million tonnes of iron ore to customers in China. Finance Fortescue’s project was founded on the raising of A$3. 7 billion capital, including A$1 billion equity, during two finance road shows in August 2006 and July 2007. The August 2006 raising was the largest single high-yield Asia-Pacific transaction, the largest high-yield bond project financing ever, one of the largest corporate bonds out of Australia and one of the largest global bond issues in the sector. Since then Fortescue has grown to become an S;P/ASX 50 company. Over 55,000 Australians have become shareholders in the proudly Australian founded and managed company. A substantial increase in Fortescue’s Resource Inventory to 10. 03 billion tonnes in March 2011, including 1. 6 billion  tonnes of Reserves,  positioned the company as one of the world’s major resource houses. This massive Resource Inventory was achieved in record time and was delineated from approximately 10 per cent of  Fortescue’s 88,000 square kilometres of Pilbara tenements. 2. 0Capital Structure of the Firm 2. 1Funds raised by the company 1,326,316 number of Ordinary Shares were issued to generate A$6. 3 million. 2. 2Purpose of Fund 1,326,316 number of Ordinary Shares were issued as payment for a distribution of A$6. million due under the A$140m, Redeemable Preference Share issued with maturity on or before February 2017. 2. 3Announcement date of the issue The initial announcement date for this issue of the Ordinary Share was 15th September 2010. 2. 4Share return from two days before the announcement date to two days after the announcement. Holding Pe riod Return=Ending Price-Beginning PriceBeginning Price ? 100 Holding Period Return=p1-p0p0 ? 100; P1 = Ending Price, P0 = Beginning Price | Date| Open| High| ow| Close| Volume| Adj Close*| 17 Sep 2010| 4. 87| 4. 92| 4. 83| 4. 84| 25,307,700| 4. 82| 16 Sep 2010| 5. 2| 5. 02| 4. 85| 4. 86| 15,360,000| 4. 84| 15 Sep 2010| 5. 03| 5. 08| 4. 99| 5. 03| 11,614,800| 5. 01| 14 S p 2010| 4. 99| 5. 07| 4. 97| 5. 02| 10,319,500| 5. 00| 13 Sep 2010| 4. 91| 5. 01| 4. 90| 4. 97| 14,643,800| 4. 95| | Closing price adjusted for dividend and splits Before the Announcement Date: Holding Period Return=p1-p0p0 ? 100 So, HPR=5. 02-4. 914. 91 ? 100 = 2. 24% After the Announcement Date: Holding Period Return=p1-p0p0 ? 100 So, HPR=4. 84-5. 025. 02 ? 100 = -3. 59% 2. 5Market Return same period | Date| Open| High| Low| Close| Volume| Adj Close*| 17 Sep 2010| 4,657. 70| 4,692. 50| 4,657. 0| 4,685. 10| 1,523,846,600| 4,685. 10| 16 Sep 2010| 4,703. 00| 4,707. 70| 4,648. 90| 4,650. 00| 1,813,657,000| 4,650. 00| 15 Sep 2010| 4,670. 10| 4,710. 50| 4,669. 90| 4,702. 70| 1,644,565,600| 4,702. 70| 14 Sep 2010| 4,661. 40| 4,688. 90| 4,661. 10| 4,669. 10| 1,422,233,600| 4,669. 10| 13 Sep 2010| 4,613. 30| 4,660. 90| 4,612. 70| 4,654. 20| 1,433,713,600| 4,654. 20| Closing price adjusted for dividend and splits Holding Period Return=Ending Price-Beginning PriceBeginning Price ? 100 Holding Period Return=p1-p0p0 ? 100; P1 = Ending Price, P0 = Beginning Price Before the Announcement Date: Holding Period Return=p1-p0p0 ? 100 So, HPR=4669. 10-4613. 304613. 30 ? 100 = 1. 21% After the Announcement Date: Holding Period Return=p1-p0p0 ? 100 So, HPR=4685. 10-47034703 ? 100 = -0. 38% 2. 6Market Perception From the above analysis it can be seen that the share performance of the company and the market was stable during the pre and post two days of the announcement. Previously before the announcement the performance of both is going the similar path (upward movement). On the other hand post announcement illustrated negative result (-3. 59% against -0. 38%) for Fortescue Metals Group Ltd. There might be two causes behind this; one, the share price have been over estimated for which the price had to be adjusted. Secondly, the investors did not take the fund raising issue positively as they might think it would not generate much fund for the company’s growth and thus unable to generate enough wealth for them. 2. 7Effect of recent financial crisis | | BlueScope| Fortescue Metals| Mount Gibson| OneSteel| Net Gearing| 2007| 0%| 0%| 0%| 46. 65%| | 2008| 0%| 0%| 25. 42%| 56. 72%| | 2009| 0%| 9%| 6. 29%| 28. 22%| | 2010| 14. 82%| 169. 90%| 3. 97%| 21. 45%| | 2011| 24. 43%| 183. 43%| -| 38. 36%| Table 1: Gearing ratio-peer analysis of Fortescue Metals Group Ltd. We can conclude that the recent financial crisis did not affect the industry’s capital structure. As of now the mining industry is going boom. In the time of recession, most of the companies will not have enough profit to repay a debt so; investors are more interested in investing in mining industry rather than some other industry. By using the gearing ratio, it can be seen that Fortescue’s degree of leverage is higher, the more higher the  company is considered risky. However Fortescue Metals Ltd is very strong with their high growth rate compared to its competitors. For them paying off the debt would not be a big issue as they are enjoying three benefits which are; one, mining industry is going boom; two, Australian dollar (AUD) getting stronger; and three, Fortescue’s operations are well placed to maintain the 55mtpa rate across the 2012 financial year while development to 155mtpa continues in a mixture of brownfields and greenfields projects, scheduled to take place through to June 2013. 3. 0Valuation of shares The dividend discount multistage model is a procedure for valuing the price of a stock by using predicted dividends and discounting them back to present value. The idea is that if the value obtained from the dividend discount multistage model is higher than what the shares are currently trading at, then the stock is undervalued. Formula P0 = D11+R The required return can be calculated using the CAPM (capital asset pricing model) model, which becomes the cost capital of the project. Formula CAPM: E(r)= Rf+[? i (Rm-Rf)] 3. 1Risk free rate calculation The benchmark interest rate in Australia was last reported at 4. 75 percent. In Australia, interest rates decisions are taken by the Reserve Bank of Australia’s Board. The interest rate needs to be adjusted yearly using the Effective Annual Rate. EAR = (1+in)n-1 EAR| 2011| 2010| 2009| Calculation| (1+. 0475/365)365-1| (1+. 0396/365)365-1| (1+. 0479/365)365-1| Rf| 4. 86%| 4. 03%| 4. 90%| Table 2: Risk Free rate 3. 2Market rate calculation The calculation of market return will include statistics from 5 years to counteract any data abnormality from recession or seasonal spikes. | 2005| 2006| 2007| 2008| 2009| 2010| 2011| Calculation| 4,229. 93,546. 1-1| 5,034. 04,225. 9-1| 6,310. 65035. 4-1| 3,947. 85,345. 8-1| 3,947. 85,345. 8-1| 4,324. 83,934. 4-1| 4,659. 84,309. -1| Return| 0. 1928| 0. 1912| 0. 2532| -0. 1549| -0. 2615| 0. 0992| 0. 0811| Average Market return based on five years performance is: Rm2011 = (0. 2532-0. 1549-0. 2615+0. 0992+0. 0811)5 = 0. 0034 = 0. 34% Rm2010 = (0. 1912+. 2532-0. 1549-0. 2615+0. 0992)5 = 0. 0254 = 2. 54% Rm2009 = (0. 1928+0. 1912+0. 2532-0. 1549-0. 2615)5 = 0. 04416 = 4. 42% 3. 3Beta calculation: The beta is taken from FinAnalysis. Beta (? ) is a number describing the relation of its returns with those of the financial market as a whole. The beta coefficient is a key parameter in the capital asset pricing model (CAPM). It measures the part of the asset’s statistical variance that cannot be removed by the diversification provided by the portfolio of many risky assets, because of the correlation of its returns with the returns of the other assets that are in the portfolio. Formula for Beta is: i=1n[Ri-ER]2n-1 Data from 2009 to 2011 has been used and a data of 3 years is used to calculate the beta. | 2009| 2010| 2011| ?| 0. 91| 0. 80| 0. 88| A beta of greater than 1 indicates that the security’s price will be more volatile than the market. Fortescue Metals Ltd has a beta of 0. 88; therefore it is less volatile than the market. 3. CAPM Calculation: Hence, using Capital Asset Pricing Model (CAPM) as Required Return E(r)= Rf+[? i (Rm-Rf)] | 2009| 2010| 2011| Calculation| 4. 90% + [0. 88(4. 42%-4. 90%)]| 4. 03% + [0. 88(2. 54%-4. 03%)]| 4. 86% + [0. 88(0. 34%-4. 86%)]| Return| 4. 48%| 2. 72%| 0. 88%| Table 4: Cost of Capital 3. 5Growth Rate Calculation Growth rate calculation represents theà ‚  compounded annualized rate of growth of a company’s revenues, earnings, dividends, etc. The formula for growth rate = Return on equity X Plowback ratio = ROE ? (1-DividendEPS) This growth rate will be used for the calculation of share prices for the last three years. ROE, DIV and EPS from 2009 to 2011 are shown below: | 2009| 2010| 2011| ROE| 13. 62%| 51. 57%| 75. 36%| DIV ($)| -| -| 7. 0| EPS ($)| 21. 90| 22. 12| 31. 88| Table 5: Financial data g2011 = ROE(2011) (1- Div(2011)/EPS(2011)) = 75. 36%(1-7/31. 88)= 58. 81% g2010 = ROE(2010) (1- Div(2010)/EPS(2010)) = 51. 57%(1-0/22. 12)= 51. 57% g2009 = ROE(2009) (1- Div(2009)/EPS(2009)) = 13. 62%(1-0/21. 90)= 13. 62% Below is the summary of the data discussed: Components| 2009| 2010| 2011| Er| 4. 48%| 2. 72%| 0. 88%| Rf| 4. 86%| 4. 03%| 4. 90%| Rm| 4. 42%| 2. 54%| 0. 34%| ?i| 0. 91| 0. 80| 0. 88| | 13. 62%| 51. 57%| 58. 81%| Table 6: Summarisation of component 3. 6Share Valuation To calculate the value of the shares, we need to determine the method of valuation so; mixed stage dividend model can be used to calculate the value of the share. Bearing in mind the business nature, we can see an average of 41. 33% growth which is abnormally high. For the purpose of calculation we will presume this high gro wth rate will continue for another 40-45 years at least. As it is a new mining company and as we know that the return comes late so, the growth rate is high even after a long term. From 2053 onwards we assume that the business will grow at 7% rate, which we believe is a conservative approach, as because by then there will be many mining companies opening both domestically and internationally. China is progressing very fast and by next 15-20 years they will level up, not just China; India, South Africa, South America etc are also catching-up fast, so due to the high competition the market would not remain the same and it will change consecutively as forecasted. The valuation calculation will take this assumption towards establishing the model. P2009=i=20092012D0 (1+g)i(1+Ke)i + Pi(1+Ke)i P2010=i=20102012D0 (1+g)i(1+Ke)i + Pi(1+Ke)i P2011=i=20112012D0 (1+g)i(1+Ke)i + Pi(1+Ke)i | Growth Rate| Net Cash Flow| Cost of Capital| | D2009| | -13,643| 4. 48%| | D2010| | 1,877,963| 2. 72%| | D2011| 41. 33%| 4,206,365| 0. 88%| | D2012| 50%| 4,906,922| 0. 92%| | D2013| 55%| 6,767,080. 65| 0. 99%| | D2014| 60%| 10,435,594. 64| 0. 99%| | D2015| 60%| 16,587,385. 22| 0. 96%| | D2016| 60%| 26,477,415. 36| 0. 98%| | D2017| 60%| 42,346,454. 77| 1%| | D2018| 60%| 67,743,188. 44| 0. 95%| | D2019| 60%| 108,379,297. 7| 0. 96%| | D2020| 60%| 173,398,415. 1| 0. 98%| | D2021| 60%| 277,429,356. 2| 1%| | D2022| 60%| 443,881,664. 5| 0. 98%| | -| -| -| -| | D2052| 8. 19%| 13,101,273,811| 0. 98%| | D2053| 7%| 22,933,861. 67| 0. 98%| | | P2009| 3. 89| | P2010| 3. 61| | P2011| 5. 46| Table 7: Summary calculation 3. 7Comparison of valuation vs. actual data From the valuation calculated through the process, now we will compare that with the actual data from the market. Year| Valuation Data| Actual Data| Variance| Comment| 2009| 3. 89| 3. 64| -6. 40%| Undervalued| 2010| 3. 61| 3. 96| 9. 64%| Overvalued| 2011| 5. 46| 5. 98| 9. 43%| Overvalued| Table 8: comparison of actual and calculated data 3. Evaluation of the variation The valuation of the shares seems to be in the right track compared with the market trend. Nevertheless, post state gives a more variable scenario. Dividend was replaced by using the net operation Cash Flow per share. The operation cash flow only represents the cash flow in the company’s operation activities; whilst the company also have investing activities and fina ncing activities. Thus, only use of the operation cash flow in the valuation has a high percentage of uncertainty. According to the table above, the actual price is undervalued. The valuation can be endorsed to the lower than expected risk premium in the market resulting from the controlled risk free rate determined by the government. Another issue can be AUD getting stronger compared to USD, resulting additional dent on the nominal cost of capital for the company. In the later part of the table, the actual price is overvalued. In order to illustrate this phenomenon, one possible reason is inflation. Inflation is an overall general rise in prices. As we know, global financial crisis happened few years back, the effect of the financial crisis was significant on the whole market and caused inflation. Therefore, due to inflation, the market prices are higher than the actual prices. Another possible reason is some unpredicted economic/natural events happened during this period and lead to movements of the market price. On the other hand the factors can be attributed to the assumptions and predictions using the calculation components. CAPM formula and Beta calculation has its own risk and de-merits. The growth rate is strongly manipulated by the industry’s landscape, economic status and political issues. The information available could also affect the actual share prices in the market which will impact on decision making for share buyers/sellers. The share price valuation will be varied from one investor to another depends on their information. As there is an existence of asymmetric information in the market, one cannot estimate the share price exactly the same with the actual share price. Besides, the investors behaviour are different between one another, hence, the pattern of the actual share price is not only based on market returns in general, but also depends on whether the level of the risk that the investors are willing to bear. . 0Conclusion In conclusion, we need to consider about inflation and unpredicted events when we investigate the market price. In addition, we need to distinguish nominal interest rate and real interest rate when we calculate. Appendix 1: Cash rate target: Effective date| New cash rate| Adjusted cash rate| | | 2011| 4. 75| 5 May 2010| 4. 75| 2010| 3. 96 | 7 Apr 2010| 4. 50| | | 3 Mar 2010| 4. 25| | | 2 Dec 2009| 4. 00| | | 4 Nov 2009| 3. 75| | | 7 Oct 2009| 3. 50| | | 8 Apr 2009| 3. 00| | | 4 Feb 2009| 3. 25| 2009| 4. 79| 3 Dec 2008| 4. 25| | | 5 Nov 2008| 5. 25| | | 8 Oct 2008| 6. 00| | | 3 Sep 2008| 7. 00| | | Appendix 2: Market Data for beta calculation: Date| Open| High| Low| Close| Volume| Adj Close| 3/10/2011| 0. 81| 0. 94| 0. 79| 0. 89| 18267300| 0. 89| 1/09/2011| 0. 85| 0. 9| 0. 74| 0. 82| 16091200| 0. 82| 1/08/2011| 0. 87| 0. 92| 0. 68| 0. 85| 15948300| 0. 85| 1/07/2011| 0. 98| 1. 01| 0. 86| 0. 88| 11603100| 0. 88| 1/06/2011| 1. 09| 1. 09| 0. 94| 0. 98| 17479100| 0. 98| 2/05/2011| 1. 32| 1. 33| 1. 03| 1. 08| 21843500| 1. 08| 1/04/2011| 1. 29| 1. 37| 1. 25| 1. 32| 17067200| 1. 32| 1/03/2011| 1. 29| 1. 3| 1. 17| 1. 29| 18402900| 1. 29| 1/02/2011| 1. 34| 1. 46| 1. 28| 1. 3| 14583200| 1. 3| 4/01/2011| 1. 4| 1. 42| 1. 33| 1. 35| 10259000| 1. 5| 1/12/2010| 1. 37| 1. 46| 1. 36| 1. 4| 18060000| 1. 4| 1/11/2010| 1. 44| 1. 49| 1. 32| 1. 37| 15254000| 1. 37| 1/10/2010| 1. 45| 1. 55| 1. 4| 1. 45| 12209300| 1. 45| 1/09/2010| 1. 47| 1. 57| 1. 44| 1. 47| 10714700| 1. 47| 2/08/2010| 1. 48| 1. 52| 1. 33| 1. 44| 12983000| 1. 43| 1/07/2010| 1. 3| 1. 51| 1. 29| 1. 48| 10254300| 1. 46| 1/06/2010| 1. 52| 1. 52| 1. 26| 1. 32| 17287600| 1. 3| 3/05/2010| 1. 72| 1. 76| 1. 4| 1. 51| 19697600| 1. 5| 1/04/2010| 1. 79| 1. 83| 1. 72| 1. 73| 12311100| 1. 71| 1/03/2010| 1. 62| 1. 86| 1. 62| 1. 8| 16808300| 1. 78| 1/02/2010| 1. 7| 1. 88| 1. 64| 1. 65| 17412500| 1. 63| 4/01/2010| 1. 74| 1. 88| 1. 7| 1. 73| 13261300| 1. 71| 1/12/2009| 1. 63| 1. 75| 1. 56| 1. 74| 8904800| 1. 72| 2/11/2009| 1. 55| 1. 77| 1. 52| 1. 63| 11449600| 1. 62| 1/10/2009| 1. 72| 1. 8| 1. 52| 1. 61| 14759100| 1. 59| 1/09/2009| 1. 46| 1. 75| 1. 42| 1. 72| 18761900| 1. 7| 3/08/2009| 1. 49| 1. 55| 1. 4| 1. 47| 18455600| 1. 46| 1/07/2009| 1. 19| 1. 48| 1. 07| 1. 48| 15136300| 1. 46| 1/06/2009| 1. 15| 1. 35| 1. 15| 1. 22| 15624600| 1. 21| 1/05/2009| 1. 18| 1. 18| 0. 99| 1. 14| 15047200| 1. 13| 1/04/2009| 1. 01| 1. 19| 1. 01| 1. 18| 16260500| 1. 17| 2/03/2009| 0. 95| 1. 08| 0. 8| 1. 01| 18923300| 1. 01| 2/02/2009| 1. 35| 1. 39| 0. 92| 1. 08| 9490000| 1. 07| /01/2009| 1. 64| 1. 76| 1. 25| 1. 4| 5383300| 1. 39| 1/12/2008| 1. 4| 1. 6 7| 1. 33| 1. 63| 7776700| 1. 62| 3/11/2008| 1. 94| 2. 09| 1. 12| 1. 35| 8740000| 1. 34| 1/10/2008| 2. 75| 2. 76| 1. 85| 1. 92| 6877000| 1. 9| 1/09/2008| 2. 82| 3. 11| 2. 59| 2. 64| 7193700| 2. 62| 1/08/2008| 2. 65| 3. 05| 2. 58| 2. 82| 10400800| 2. 79| 1/07/2008| 2. 9| 3. 2| 2. 57| 2. 75| 8612800| 2. 72| References Bibliography * http://www. asx. com. au/asx/research/companyInfo. do? by=asxCodeasxCode=FMG * http://www. investsmart. com. au/shares/asx/Fortescue-Metals-Group-FMG. asp * http://www. fxj. com. au/shareholders/Fairfax_AnnualReport_2011. df * http://www. fmgl. com. au/IRM/Company/ShowPage. aspx/PDFs/2147-13354473/Appendix3 bAllotmentofShares * http://au. finance. yahoo. com/q/ao? s=FMG. AX * http://datanalysis. morningstar. com. au. ezproxy. lib. monash. edu. au/af/company/issuedcapital? ASXCode=FMGpage=1resultsperpage=25xsl_predicate=xsl_start_year=1999xsl_end_year=2011active=ISU_Sec1xsl_start_date=1999-01-01xsl_end_date=2011-12-31xtm-licensee=dat#Active_ISU_Sec2 * http: //www. asx. com. au/asx/statistics/announcements. do? by=asxCodeasxCode=fmgtimeframe=Yyear=2010 * http://www. specthuntley. com. au. ezproxy. lib. monash. edu. au/af/company/mainview? ASXCode=FMG * http://au. finance. yahoo. com/q/hp? s=FMG. AXa=06b=1c=2008d=05e=30f=2011g=m * http://www. asx. com. au/research/market-statistics. htm ——————————————– [ 1 ]. http://www. fmgl. com. au/IRM/Company/ShowPage. aspx/PDFs/2147-13354473/Appendix3bAllotmentofShares [ 2 ]. http://au. finance. yahoo. com/q/hp? s=FMG. AXa=08b=13c=2010d=08e=17f=2010g=d [ 3 ]. http://au. finance. yahoo. com/q/hp? s=%5EAORDa=08b=13c=2010d=08e=17f=2010g=d [ 4 ]. ttp://www. bluescopesteel. com/investors/annual-reports [ 5 ]. http://www. igo. com. au/IRM/content/investor/annualreports. htm [ 6 ]. http://www. mtgibsoniron. com. au/pages2/InvestRelations. aspx? PageID=IR_AR [ 7 ]. http://www. aspecthuntley. com. au. ezp roxy. lib. monash. edu. au/af/company/annualratios? ASXCode=OSTxtm-licensee=finanalysis [ 8 ]. http://www. investopedia. com/terms/d/ddm. asp#axzz1aBqlpkfj Table 3: Market return [ 9 ]. http://www. tradingeconomics. com/australia/interest-rate [ 10 ]. http://www. aspecthuntley. com. au. ezproxy. lib. monash. edu. au/af/company/annualps How to cite Valuating Financial Prediction of Fortescue Metals Group Ltd, Papers

Business Valuation and Analysis Analysis of Blackmore Free Solution

Question: Describe about the Business Valuation and Analysis for Analysis of Blackmore. Answer: Introduction: The following study is concerned with the prospective analysis of Blackmore. The study has been undertaken to analyse the several models such as Dividend Discount Models, Free cash Flow and Residual Income Method. The valuation undertaken in the study outlines the estimate the value of firms stock price along with the future forecasting of the results derived. The information is derived from the financial statements including the current price shares with future forecasting of stock values. The cost of capital and forecasting of stock values reflects either pessimistic or opportunistic outcomes. Residual Income Method: The residual income is one of the processes concerned with the determination of equity, which formally relates to the cost of equity. Under the given study of Blackmore, the residual income represents the excess of opportunity cost, which is relatively measured in terms of the book value of the shareholders equity (Imam, Chan and Shah 2013). The residual income is the revenue generated by Blackmore after taking into the consideration the cost of capital of the organisation. The conceptual approach adopted by the organisation is concerned with the investors required rate of return from their resources such as equity by compensating them with the opportunity cost (Lazzati and Menichini 2015). Consequently, in order to create a shareholder value the management of Blackmore must generate returns at least as high as the opportunity cost. The residual value of Blackmore reflects a positive value of 27,377,000. Dividend Discount Model: The dividend discount model is the procedure, which helps in evaluating the stock prices through using the predicted dividends after discounting them back to the present value (Francis, Olsson and Oswald 2012). If the value obtained under the dividend discount model is higher than that of the shares, which are currently being traded, then such stocks are termed as undervalued. The value of shares for the Blackmore under the Dividend Discount model reflects a negative value of -9.90. On the other hand, if Blackmore follows the average growth rate to calculate the share price under the DDM model then the value of shares will be -11.88. Therefore, it can be concluded that under the DDM model the company will be considered as poor and should be avoided for any such future investment. Analysis: From the following discussions, it is understood that the net revenue projected growth rate is 18% for the financial year of 2016, which represents $599,485. The earnings before interest and tax is $145,221 for the year ended 2016. The Ra materials consumed are projected to grow by 23% for the financial year of 2016 and it is projected to grow over the years. The projections also identify the employees benefits expenditure, which is scheduled to grow by 20%. It is worth mentioning that the employee benefit is projected to grow by 134,933 for the financial year 2016 where as for the financial year of 2017 the projected growth is $161,515. The selling and marketing expenses consisted of 15% growth rate with $19,177 for the financial year of 2016. DDM: The share price derived from the dividend discount model reflects a negative amount of $9.90 with the equity value standing -$170,511 Residual Income Method: Under the residual income method share price represents $344.59 since the equity share value highlights a positive $17,225. Residual Operating Income Method: From the analysis it can be understood that sum value of share price derived through implementation of this model is -$40.70 with total number of ordinary shares 17,225 representing the equity value of $5,127,461.92 Free cash Flow (FCF): The forecasted share price derived with the implementation of free cash flow is $294.81 with total value of equity obtained $51, 44,778.99 In the computation of EBIT the depreciation and amortisation cost for the financial year of 2016 represents 7,045 with projected growth rate of 7% for the rest of the five-forecasted year. It is noteworthy to denote that the operating lease rental expenses for the forecasted five year is 22% with $4,496 for the financial year 2016. The operating lease rental expenses have a scheduled growth contributing to the growth of the company. The repairs and maintenance cost has a scheduled growth rate of 16% and the freight expenses is forecasted to grow by 21% with $10,906 for the financial year of 2016. It is notable to denote that the bank charges and other expenses are forecasted to grow by 27% and 10% respectively with $2,099 and $17,494 for the financial year of 2016. The cash flow statement of the Blackmore consists of taxable profit with projected growth rate of 30% with $143,411. The tax rate for the forecasted five years is 31% with $43,391 however after adding up the depreciation amount of $7,045. In order to ascertain the Net present value and Internal rate of return cost of capital has been computed with annual interest rate of 6.40%. The sum value of discounted cash flow for the financial year of 2016 derived represents $188,916 while on the other hand for the year ended 2017 the discounted cash flow increased to $2,48,643. The net present value computation rate is assumed at 6.40% annually, which approximately stood $2,279,600. It is worth mentioning that the Internal rate of return represents 161.50 %. The net present value derived is largely based on the write off value of the assets having a growth rate of 32% while the inventory changes represents the growth rate of 57%. The financial assets are classified under the fair value using p rofit and loss account. Therefore, the classification of these financial assets is largely dependent on the fact that the nature and objectives of the financial assets are identified and derecognised based on the trade data basis. The effective interest method is used in the computation of the amortised cost of debt instrument along with the allocation of the interest income over the relevant period. Therefore, income is identified based on the effective interest for debt instrument apart from the financial assets classified under the fair value of trading and profit and loss account. ROIM: Information is considered as central focus for every business organisation. It is worth mentioning that when an organisation has an access to a large number of data to access it can fulfil its business development in order to improve the customer services relationship by enabling enhanced business operations (Dolvin, Jordan and Miller 2012). For Blackmore it can get the benefit of quick access of data, which helps, in securing the requirement the investors information. Blackmore can maximize the Return on Information management by investing its resources in large management best practices. Managing the information with sustained returns: Blackmores organisational success depends upon maximisation of the organising records concerning the information management (Bielecki and Rutkowski 2013). Such organisational information management is concerned with potential business value regarding each kind of assets. Below listed are the best features of ROIM towards records information management. Consolidation of paper records: Blackmore consolidates its paper by bringing in various records and regarding multiple storage of vendor (Penman and Yehuda 2015). This helps in bringing the records under single vendor by helping in cutting down the storage and ensuring the records are managed under same set of rules and policies. Keeping the retention schedule updated: The records retention schedule helps the business to keep all their information under one roof unless or otherwise when needed. Well that being said, Blackmore keeps the necessary records and eliminates those, which unnecessarily occupies space (Agosto et al. 2016). Such practices help in reducing the cost of storage for Blackmore with the help of retention schedule. Classification of scheme: Blackmore classifies all its records through data generated authorization. Such classification enables the Blackmore accurately retain its data through retention schedule in the lead up to new business opportunities. This enables the company to remain competitive and operate more efficiently. The company also ensures that all the information provides a tangible return by ensuring that the documents are securely managed. Perspective analysis: Perspective analysis is one of the most common ways of computation of risk assessment for potential future years. Such procedure is helpful in forecasting the projected outcomes of the organisation in analysing from the figures undertaken based on the current market situations and historical cost of Blackmores. The current portion of this report justifies the figures obtained, which is applicable on the current market situations along with the past financial history of Blackmore through prediction of financial data. Projected sales growth: The projected sales growth provides in depth in to the working and functional operations of Blackmore. By analysing the previous results of the Blackmore, it is evident that the firm is putting more emphasis on the industries to increase along with the decrease in the offset of revenues of other industries. Blackmore are considered as one of the oldest industries in the Australian market from the decades however, with the advent of globalisation new potential competitors operating in the same industries has emerged as competitors in the consumer market and the company may in future face problems in retaining their customers from going in the hands of competitors. From the analysis, such impact has already been noticed in the revenue of the company in the financial year of 2015 when the sales revenue represents 34.24% with total value of 717,211. From the analysis it can be understood that the sales forecasted value has fallen 27.60% in the financial year 2016. However, it can be conc luded that the reason behind the downfall of such revenue is to the lack of innovating ideas and high amount of competition. Such indication of lost consumer compelled the firm to undertake the establishment of new stores so that they can cover up the lost grounds by capturing the market share Assets turnover ratio: The assets turnover ratio of Blackmore is computed based on the reformatted financial statements from the financial data along with the existing scenario of the particular industry. While looking at the financial statement of 2015 it is observed that the asset turnover ratio is was 2.86 times and it is worth mentioning that in the next financial year the assets turnover for the financial year of 2016 is 3.33 times. With the computation of forecasted Asset Turnover Ratios, Net Operating Assets (NOA) can be obtained by (NOA= Sales/ATO). Profit margin: Profit margin representing the (NOPAT/Sales) can be defined as the parameters, which requires the stakeholders to understand the estimated amount of profit a firm has the ability to generate. From the analysis it is understood that the profit margin of Blackmore 9.03% for the year ended 2015 whereas 13.14% for the financial year of 2016. Share valuation: As per the analysis the dividend discount model of the firm is -9.90 with abnormal earning model reflects negative amount of -14.02. The current investment situation concerning the shareholders is that Blackmore should re-invest their money towards profit maximisation with the objective of increasing the sales revenue and profit for the organisation as whole. Conclusion: To conclude with the study evaluates all the four models in the determination of the future stock prices with the help of the data from the financial statement of Blackmore. The value of shares for the Blackmore under the Dividend Discount model reflects a negative value of -55.27. Whereas, if Blackmore follows the average growth rate to calculate the share price under the DDM model then the value of shares will be -11.88. Therefore, it can be concluded that under the DDM model the company will be considered as poor and should be avoided for any such future investment. Reference List: Agosto, A., Mainini, A. and Moretto, E., 2016. Covariance of random stock prices in the Stochastic Dividend Discount Model.arXiv preprint arXiv:1609.03029. Bielecki, T.R. and Rutkowski, M., 2013.Credit risk: modeling, valuation and hedging. Springer Science Business Media. Bodie, Z., Kane, A. and Marcus, A.J., 2014.Investments, 10e. McGraw-Hill Education. Damodaran, A., 2012.Investment valuation: Tools and techniques for determining the value of any asset(Vol. 666). John Wiley Sons. Dolvin, S.D., Jordan, B.D. and Miller Jr, T.W., 2012.Fundamentals of investments: valuation and management. Francis, J., Olsson, P. and Oswald, D.R., 2012. Comparing the accuracy and explainability of dividend, free cash flow and abnormal earnings equity valuation models. Hann, R.N., Ogneva, M. and Ozbas, O., 2013. Corporate diversification and the cost of capital.The journal of finance,68(5), pp.1961-1999. Hurley, W.J., 2013. Calculating first moments and confidence intervals for generalized stochastic dividend discount models. Imam, S., Chan, J. and Shah, S.Z.A., 2013. Equity valuation models and target price accuracy in Europe: Evidence from equity reports.International Review of Financial Analysis,28, pp.9-19. Lazzati, N. and Menichini, A.A., 2015. A dynamic approach to the dividend discount model.Review of Pacific Basin Financial Markets and Policies,18(03), p.1550018. Lee, A.C., Lee, J.C. and Lee, C.F., 2016. Valuation of Bonds and Stocks. InFinancial Analysis, Planning Forecasting: Theory and Application(pp. 197-267). Li, Y., Ng, D.T. and Swaminathan, B., 2013. Predicting market returns using aggregate implied cost of capital.Journal of Financial Economics,110(2), pp.419-436. Maravas, A. and Pantouvakis, J.P., 2012. Project cash flow analysis in the presence of uncertainty in activity duration and cost.International Journal of Project Management,30(3), pp.374-384. Norman, S., Schlaudraff, J., White, K. and Wills, D., 2013. Deriving the dividend discount model in the intermediate microeconomics class.The Journal of Economic Education,44(1), pp.58-63. Park, K. and Jang, S.S., 2013. Capital structure, free cash flow, diversification and firm performance: A holistic analysis.International Journal of Hospitality Management,33, pp.51-63. Penman, S., 2016. Valuation: accounting for risk and the expected return.Abacus,52(1), pp.106-130. Penman, S.H. and Yehuda, N., 2015. A matter of principle: Accounting reports convey both cash-flow news and discount-rate news.Columbia Business School Research Paper, (14-16). Pinto, J.E., Robinson, T.R. and Stowe, J.D., 2015. Equity valuation: a survey of professional practice.Available at SSRN. Rackley, J., 2015. Return on Investment. InMarketing Analytics Roadmap(pp. 71-85). Apress. Waz, M.A., 2014.Return on Investment(Doctoral dissertation, Miami University).

Experience free essay sample

Wouldn’t it have been easy for a well-off, suburban boy like me to go to a well-off, suburban high school, hang out with other well-off, suburban boys, and believe that the world is full of the happiness and sunshine of my stable suburbia? Yeah, but that isn’t the path I’ve taken in my life. I grew up in a world that most people would consider pretty solid: good relationships with family and friends, safe house to live in, food always on the table, along with countless other blessings. When choosing where to attend school for seventh grade, I was drawn to my school for its emphasis on faith, along with its use of technology being such a large part of the curriculum. By the time I graduate in June, I will have learned a whole lot more in the last six years than just how to do cool things on a computer, or how to pray most effectively. We will write a custom essay sample on Experience or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page I will have learned how to relate to people from all different backgrounds, appreciate the blessings in my life, and empathize with people of all sorts. The halls of my school are filled with all types of people imaginable: well-off, suburban kids like me, kids from low-income families trying to get a better education than what is offered in the city, Chinese and Korean exchange students, getting their education a long ways from home, and refugees from impoverished and at war countries in Africa. By attending my school, I have been able to interact with people from every social class on a day-to-day basis; those who are very rich to those who are very poor. There is not a day that passes that I am not reminded how blessed I am to have what I have and be who I am. This is my story. This is my life. This is who I am. Maybe I haven’t saved the world, or had a massive tragedy in my life. Maybe I was lucky to be brought up in a home with two, loving parents. Maybe I’m lucky to be living in the same area as where I was born. But every day I interact with people who haven’t been so lucky, and I learn from them. Since I was a young, naive seventh-grader I have witnessed firsthand not only my growth at school, but also the growth of my peers. Around 20 of my classmates who have attended school for as long as I have, six years, will graduate with me in June. This is a long time to spend in such a diverse melting pot, and the time has been well spent. I have been able to learn things about people much different from myself, things I never would have been able to learn if I had kept myself locked up under the rainbows and sunshine of my stable suburbia. I have learned that I am able to empathize with people very different from myself, who are experiencing very different things from what I have ever experienced. I have learned that I am able to make friends with people whose lives have been very unlike mine, because although someone may be different on the surface, a human being will always be a human being. I think my experiences at my school give me an advantage that few others have, and that is being able to truly relate with a wide variety of people. I believe this skill will allow me to be successful wherever I end up, because this world is a connected world, and to be truly successful I will need to be able to relate to all people on this now very small planet. My story may not be world-saving or heartbreaking, but it is who I am, and I believe it will allow me to succeed in this diverse and ever-changing world.

Free Essays on Heroic Code

Heroic Code in the Iliad and the Odyssey In Webster’s Dictionary, a hero is defined as a person noted for courageous acts or nobility of purpose, especially if this individual has risked or sacrificed his life. In the Iliad and the Odyssey, the code which administers the conduct of the Homeric heroes is a straightforward idea. The aim of every hero is to achieve honor. Throughout the Iliad and the Odyssey, different characters take on the role of a hero. Honor is essential to the Homeric heroes, so much that life would be meaningless without it. Thus, honor is more important than life itself. Throughout the Iliad, heroic characters make decisions based on a specific set of principles, which are referred to as the â€Å"code of honor.† The heroic code that Homer presents to readers is easy to recognize because the heroic code is the cause for many of the events that take place, but many of the characters have different perceptions of how highly the code should be regarded. Hector, the greatest of the Trojan warriors, begins the poem as a model for a hero. His dedication and firm belief in the code of honor is described many times throughout the course of the Iliad. As a reward for heroic traits in battle, prizes were sometimes awarded to victors of war. In Book 1 Achilles receives Chryseis as a prize and a symbol of honor. Heroism had its rewards and its setbacks which ultimately was the backbone of the Illiad in the case of Achilles prize. Hector, arguably the greatest Trojan warrior or even the bravest of the Homeric heroes is very fierce and fights for wh at he believes is his destiny. In book VI Hector expresses his bravery when Andromache pleads with Hector not to fight when Hector says, â€Å"But I would die of shame to face the men of Troy and the Trojan woman trailing their long robes if I would shrink from battle now, a coward. Nor does the sprit urge me on that way. I’ve learned it all too well. To stand up... Free Essays on Heroic Code Free Essays on Heroic Code Heroic Code in the Iliad and the Odyssey In Webster’s Dictionary, a hero is defined as a person noted for courageous acts or nobility of purpose, especially if this individual has risked or sacrificed his life. In the Iliad and the Odyssey, the code which administers the conduct of the Homeric heroes is a straightforward idea. The aim of every hero is to achieve honor. Throughout the Iliad and the Odyssey, different characters take on the role of a hero. Honor is essential to the Homeric heroes, so much that life would be meaningless without it. Thus, honor is more important than life itself. Throughout the Iliad, heroic characters make decisions based on a specific set of principles, which are referred to as the â€Å"code of honor.† The heroic code that Homer presents to readers is easy to recognize because the heroic code is the cause for many of the events that take place, but many of the characters have different perceptions of how highly the code should be regarded. Hector, the greatest of the Trojan warriors, begins the poem as a model for a hero. His dedication and firm belief in the code of honor is described many times throughout the course of the Iliad. As a reward for heroic traits in battle, prizes were sometimes awarded to victors of war. In Book 1 Achilles receives Chryseis as a prize and a symbol of honor. Heroism had its rewards and its setbacks which ultimately was the backbone of the Illiad in the case of Achilles prize. Hector, arguably the greatest Trojan warrior or even the bravest of the Homeric heroes is very fierce and fights for wh at he believes is his destiny. In book VI Hector expresses his bravery when Andromache pleads with Hector not to fight when Hector says, â€Å"But I would die of shame to face the men of Troy and the Trojan woman trailing their long robes if I would shrink from battle now, a coward. Nor does the sprit urge me on that way. I’ve learned it all too well. To stand up...

System Analysis and Design Essay Example | Topics and Well Written Essays - 2500 words

System Analysis and Design - Essay Example With the use cases, UML enables us to study existing objects to see if they can be reused or adapted for new uses, and to define new or modified objects that will be combined with existing objects into a useful business computing application. This identification objects within the systems environment, and the relationships between those objects makes the drawing of the diagrams much faster and easier. For example, in our case we identify the objects (member), their data attributes (member no, firstname), associated behavior such as booking for a tennis court, and relationships which support the required business system functionality. Also we employ Use Case Modeling which is the process of identifying and modeling business events, who initiated them, and how the system responds to them. Another comparison comes in that SSADM adopts the Waterfall model of systems development, where each phase has to be completed and signed off before subsequent phases can begin while the use of UML the no phases of development are defined thus as long as the classes and objects are clearly identified any diagram can be drawn. Finally, SSADM uses three key techniques, namely Logical Data Modeling, Data Flow Modeling and Entity/Event Modeling. In all this modeling techniques we can use UML to produce the diagrams such as the data flow diagrams and entity relationship diagrams. The success of SSADM may lie in the fact that it does not rely on a single technique. Each of the three system models provides a different viewpoint of the same system, each of which are required to form a complete model of the system. Within SSADM each of the three techniques are cross-reference against each other to ensure the completeness and accuracy of the complete model Advantages of UML UML is window based thus it is easy to use The graphical user interface provides an interaction with the user reducing the time and effort UML helps software practitioners visualize their ideas and hence communicate and analyze them more effectively UML developed systems have reduced lifetime maintenance because of the aforementioned system quality improvements combined with better documentation Improved productivity (through automation of tasks and rapid application development) Disadvantages of UML Technical for business analysts Requires training for one to use UML With the use of UML key operational considerations are often overlooked Advantages of SSADM Appropriate for big systems such as government projects Good documentation i.e. it is document driven Systems produced are easy to maintain Consist of phases that are to be completed hence sequence and flow of modules is clear Feedback loops that ensure cohesiveness of a system being produced and also reduce errors Provide maximum management control Ensures that system requirements can be traced back to stated b/s needs Disadvantages of SSADM It is tedious User not able to visualize how the final product would look like Requirements process not well established Cannot accommodate new user

Social Psychology Assignment Example | Topics and Well Written Essays - 500 words

Social Psychology - Assignment Example First, Bernice stood up in the wedding and announced to all the visitors that the reason for the wedding was the advice-seeker’s pregnancy. And that the pregnancy was done in purpose to tie down Simon. Second, during Bernice’s hospital visit when the advice-seeker gave birth, she once again reiterated that the pregnancy was just a rouse to tie her son down. The final straw for the advice-seeker was during the college graduation party of her husband. Bernice made reservations for everyone but the advice-seeker and her baby. And everytime conflict happens, the advice-seeker will get the same answer from her husband, â€Å"I can’t control my mother.† The situation shows high consistency in Bernice’s and Simon’s behaviour thus implying that the root cause of the conflict between the marriage is Bernice’s behaviour towards the advice-seeker. These situations also indicate low distinctiveness since in different stimuli and events, Bernice ha s the same reaction towards her daughter-in-law. Bernice’s behaviour indicates clearly resentfulness towards her daughter-in-law and Simon’s behaviour indicates clearly that Simon hasn’t come into terms that he should be supporting his wife and defending her and their marriage against her mother. The situation shows high consensus, low distinctiveness and high consistency. This leads to a conclusion that the marriage is continually being destroyed because of the behaviour and actions of the mother-in-law and the husband’s low response with his wife’s need of support against her mother’s behaviour. The marriage may then really be saved if the couple will not encounter anymore of the mother-in-law’s behaviour. The second situation tells about how a woman wanted to help out her friend in dealing with his son (Dear Abby). The deep friendship between the woman and the father started from the time