Shareholder Wealth Maximization free essay sample

The ultimate goal of any financial manager (as well as the firm) is the maximization of shareholders’ wealth. A good financial manager therefore should carefully consider and weigh the risk of undertaking a certain project against the profits associated with undertaking such a project. Capital Budgeting techniques enable the manager to make such decisions. The first question that comes to mind is, when making a capital investment decision, should we focus on cash flows or accounting profits. The book is stating â€Å"In measuring wealth or value, we will use cash flows, not accounting profits, as our measurement tool. That is, we will be concerned with when the money hits our hand, when we can invest it and start earning interest on it, and when we can give it back to the shareholders in the form of dividends. Remember, it is the cash flows, not profits that are actually received by the firm and can be reinvested. We will write a custom essay sample on Shareholder Wealth Maximization or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Accounting profits, however, appear when they are earned rather than when the money is actually in hand. † The answer to the question now seems too obvious; it is cash that buys new equipment, used to pay suppliers and employees etc; it is also cash that is to be reinvested to further increase shareholders’ wealth and hence brings the firm closer to its goal. This brings us to another question, should all cash flows associated with the project be considered? Again, the book provides an answer â€Å"In measuring cash flows, however, the trick is to think incrementally. In doing so, we will see that only incremental after-tax cash flows matter. † By incremental we mean â€Å"marginal†, or â€Å"additional†. Incremental cash flows are those cash flows that would affect the capital budgeting decision, but another condition also applies, those incremental cash flows must be considered on after-tax basis, this is because what really increases the value of the firm is the net cash flow (free cash flow) that would be available to the financial manager in considering future investments. In analyzing a project, one has to also consider depreciation, and although depreciation in itself is a noncash expense, it still affects free cash flow because it has an effect on taxes. Depreciation reduces Earnings before Tax (EBT), and therefore reduces the Tax Expense. Another important type of cost that needs to be discussed is what is known as â€Å"Sunk Costs†. As discussed above, only incremental (differential cash flows) need to be considered in making a capital budgeting decision, yet if the firm has, for example an empty lot of land that it had purchased in the past and that lot of land is suitable for the investment decision on hand, does the financial manager need to consider the cost of this piece of land when making his capital budgeting decision? The answer is a firm â€Å"No†; and the reason behind this is real logical: if the investment is not accepted, the cost of the land cannot be recovered, hence whether or not the investment is undertaken; the cost of the land (a sunk cost) is irrelevant to the decision. As I have stated earlier, in making a capital budgeting decision, the financial manager needs to consider only incremental cash flows, and the first of those are the initial outlays. This is because to take up an investment, the financial manager needs to make sure he has the funds initially required to undertake a certain investment (project). Those include, for example, cost of equipment, installation costs, cost of training as well as any increase in Working Capital. Based on the above, and based on the calculations on the attached excel sheet, the initial outlay for the new project is $8,100,000. The second set of cash flows that need to be analyzed is the â€Å"Differential Cash Flows†; again as stated above, those are the cash flows that are relevant to the project under consideration. Those include (but are not limited to), added revenues (less added selling expenses), any labor and/or material saved or incurred, any increase or decrease in overhead costs. Needless to say here that all such cash flows should be analyzed on after-tax basis. Such cash flows, however should not include any finance charges whether those are interest charges paid on a bank loan, interest charges on the firm’s issued debt securities, as well as dividends on preferred and common stock. The reason behind such exclusion is that such finance charges are implicitly accounted for when calculating the cost of capital (also known as the Weighted Average Cost of Capital). Having said that, Caledonia’s differential cash flow (as per the attached xcel sheet) are: Year 12345 $3,956,000 $8,416,000 $10,900,000 $8,548,000 $5,980,000 The last type of cash flows to be examined is the Terminal cash flow which includes all incremental cash flows realized at the termination of the project such as the salvage value of the equipment plus (or minus) any taxable gains or losses associated with selling the equipment. Terminal cash flows also would include any non-expen se cash outlays related to the project such as the recovery of working capital needs. Caledonia’s terminal cash flow then is $5,980,000 as per the above table and the attached excel sheet. A cash flow diagram of the project would provide a full image of the cash out flows and cash inflows associated with the project as it would provide a summary of those cash flows that are to be analyzed using the various capital budgeting techniques: $3,956,000 $8,416,000 $10,900,000 $8,548,000 $5,980,000 0 1 2 3 4 5 $8,100,000) Going back to the main goal of the firm maximization of shareholders’ wealth, an important question arise: how can the financial manager of Caledonia make sure that the new project adds to the value of the firm. Capital Budgeting techniques would help, and the first of such techniques is the Net Present Value method. Net Present Value (NPV) is a capital-budgeting decision criterion defined as the present value of the free cash flows after tax less the project’s initial outlay. The most important advantage of the NPV as per the book is as follows: â€Å"The project’s NPV gives a measurement of the net value of an investment proposal in terms of today’s dollars. Because all cash flows are discounted back to the present, comparing the difference between the present value of the annual cash flows and the investment outlay does not violate the time value of money assumption. † . This method tells us to accept any project for which the NPV is equal to or greater than zero. Applying this to Caledonia, the NPV is equal to $16,731,096. (Please see the full analysis on the attached excel sheet). Another capital-budgeting decision criterion that is widely used by financial managers is the Internal Rate of Return (IRR), which is defined as â€Å"the discount rate that equates the present value of the project’s free cash flows with the project’s initial cash outlay. † The IRR method states that projects with an Internal Rate of Return that is equal to or higher than the required rate of return should be accepted. This makes sense because if the project’s rate of return (IRR) is equal to the required rate of return, then investors would be happy as they are earning the rate of return that they initially require. The Internal Rate of Return of the proposed project is 77% (Please see the attached excel sheet). Based on the above, Caledonia should accept the project since its Net Present Value is greater than zero, and the Internal rate of return is much higher than the required rate of return. Equally important as maximizing shareholders’ wealth, risk management is an important consideration when evaluating new projects. In capital budgeting, risk can be measured from three perspectives; first there is the Systematic Risk, and this type of risk is the risk of the project from the view point of a well-diversified Finally, there is systematic risk, which is the â€Å"risk of the project from the viewpoint of a well-diversified shareholder; this measure takes into account that some of a project’s risk will be diversified away as the project is combined with the firm’s other projects, and, in addition, some of the remaining risk will be diversified away by shareholders as they combine this stock with other stocks in their portfolios† The second type of risk is the Project’s Contribution to Firm Risk, which is the â€Å"the amount of risk that the project contributes to the firm as a whole; this measure considers the fact that some of the project’s risk will be diversified away as the project is combined with the firm’s other projects and assets, but ignores the effects of diversification of the firm’s shareholders† . Finally, there is the Total Risk (or stand alone risk of the project) which combines all risk associated with the project ignoring the fact that some of this risk will be eliminated through diversification. Actually, according to CAPM, the only relevant risk for capital budgeting purposes is Systematic Risk yet sometimes the firm might have undiversified shareholders, and for them the only relevant measure of risk is the project’s contribution to the firm’s risk. For these shareholders, a project’s contribution to firm risk brings the ghost of bankruptcy closer and therefore such measure of risk could be more relevant. Risk can also be incorporated into capital budgeting analysis through the use of simulations. Simulation â€Å"involves the process of imitating the performance of the project under evaluation. This is done by randomly selecting observations from each of the distributions that affect the outcome of the project, and continuing with this process until a representative record of the project’s probable outcome is assembled. † This enables the financial manager to base his decision on a range of possible outcomes. Usually Simulations are accompanied by a Sensitivity analysis (also known as the What-if Analysis). In this analysis, the financial manager changes the value of one input variable (Direct material, Direct Labor, Variable Overhead Rates, Interest Rates) while holding all other variables constant. The distribution of possible net present values and/or internal rates of return â€Å"is then compared with the distribution of possible returns generated before the change was made to determine the effect of the change. † In conclusion, a financial manger must realize that there is always a trade-off between risk and return, he should always utilize the tools available to him in considering any new projects such as capital budgeting techniques (Net Present Value, Internal Rate of Return, †¦etc) as well as simulations and sensitivity analysis to arrive at the most accurate decision. He also need to know how shareholders perceive risk and how they measure it so as to avoid agency problems and arrive at the ultimate goal of the firm- Maximizing shareholders’ wealth. In analyzing Caledonia’s proposed project, we only performed a capital budgeting analysis and based on that the project seems to be acceptable, but the financial manager should also strive to conduct other forms of analysis as stated above to ensure that he has taken all possible measures to achieve his goal. References:

Chrysalids essays

Chrysalids essays The Chrysalids is a science fictional book of suspense, irony and pathos. The six main characters in the novel are David Strorm, Joseph Strorm, Gordon Strorm, Petra Strorm, Rosalind, and Sealand woman. They have different situations and different opinions in the story which adds more suspense and keeps the reader interested right to the least page. In this novel the differences between people are not physical but mental as well. The novel's narrator is a left-handed, brown haired man called David, one of the chrysalids. When he was small, he sometimes dreamed of a city that was different from Waknuk. David has the power to communicate with his mind and it is called thought-shapes. However, he is unable to communicate with everyone by using thought-shapes. He can only communicate with people who have telepathic power. On the other hand, he lives in a world where people think of themselves as normal and the Norms try to destroy those who are abnormal. He makes friends with Sophie, the mutant, when he was ten. He keeps her as a secret but is still afraid that her secret will be revealed one day. Nevertheless, she still goes out to the Fringe because Alan Ervin discovers Sophie has six toes and goes telling David's father and the inspector. At the end of the story, David, Rosalind and the people who have telepathic powers es cape to the Fringe. Finally, the Sealand woman save them from the war between Waknuk and Fringe, and lead them to the new place. When they arrived in Sealand, it just looks like David's dream. His dream finally comes true when he is eighteen years old. Joseph Strorm is David's father and the leading figure in Waknuk. His father, Elias Strorm, is a founder of Waknuk. He dislikes his father and does not want to repeat his father's mistake, so he marries Emily Morton after his father's death. In his situation, he tried to destroy those who are abnormal because he thinks that the mutant will bring the evil to...

Latin Verbs and Infinitive Endings

Latin Verbs and Infinitive Endings An infinitive is a basic form of  a verb that in English often is preceded by to and that serves as a noun or a modifier.  In Latin, infinitives are rarely used to indicate purpose, but rather are most often used to express indirect speech (oratorio obliqua). Latin Infinitive Basics When you look up a Latin verb in a Latin-English dictionary, you will see four entries (principal parts) for most verbs. The second entry- usually abbreviated -are, -ere, or -ire- is the infinitive. More specifically, its the present active infinitive, which is translated into English as to plus whatever the verb means. The vowel (a, e, or i) of the infinitive indicates which conjugation it belongs to. Example of a dictionary entry for a verb in Latin:Laudo, -are, -avi, -atus. Praise The first entry in the dictionary entry is the present, active, singular, first-person form of the verb. Note the -o ending. Laudo  I praise is a first conjugation verb and, therefore, has an infinitive ending in -are. The entire present active infinitive of laudo is laudare, which translates into English as to praise.  Laudari is the present passive infinitive of laudo and means to be praised. Most verbs have six infinitives, which have tense and voice, including: Present active (to praise)Present passive (to have been praised)Perfect active (to have praised)Perfect passive (to have been praised)Future active (to be about to praise)Future passive (to be about to be praised) Perfect Infinitives of Latin Verbs The perfect active infinitive is formed from the perfect stem. In the  example of a first conjugation verb, laudo, the perfect stem is found on the third principal part, laudavi, which is listed in the dictionary simply as -avi. Remove the personal ending (i) and add isse- laudavisse- to make the perfect active infinitive. The perfect passive infinitive is formed from the fourth principal part- in the example, laudatus, plus esse. The perfect passive infinitive is laudatus esse. Future Infinitives of Latin Verbs The fourth principal part also informs future infinitives. The future active infinitive is laudaturus esse and future passive infinitive is laudatum iri. Infinitives of Conjugated Latin Verbs In Latin, verbs are conjugated to indicate voice, person, number, mood, time, and tense. There are four conjugations, or verb inflection groups.  Ã‚   Infinitives of a first conjugation Latin verb include: Present active- amare (love)Present passive- amariPerfect active- amavissePerfect passive- amatus esseFuture active- amaturus esseFuture passive- amatum iri Infinitives of a second conjugation Latin verb include:   Present active- monere (warn)Present passive- moneriPerfect active- monuissePerfect passive- monitus esseFuture active- moniturus esseFuture passive- monitum iri Infinitives of a third conjugation Latin verb include: Present active- regere (rule)Present passive- regiPerfect active- rexissePerfect passive- rectus esseFuture active- recturus esseFuture passive- rectum iri Infinitives of a fourth conjugation Latin verb include: Present active- audire (hear)Present passive- audiriPerfect active- audivissePerfect passive- auditus esseFuture active- auditurus esseFuture passive- auditum iri Interpreting the Infinitive It may be easy to translate the infinitive as to plus whatever the verb is (plus whatever person and tense markers may be required), but explaining the infinitive isnt as easy. It acts as a verbal noun; therefore, it is sometimes taught alongside the gerund. Latin Compositions Bernard M. Allen says that just under half of the time that an infinitive is used in Latin, it is in an indirect statement. An example of an indirect statement is: She says that she is tall. In Latin, the that wouldnt be there. Instead, the construction would involve a regular statement- she says (dicit), followed by the indirect part, with the subject she in the accusative case followed by the present infinitive (esse): Dicit eam esse altam.She says (that) she [acc.] is [infinitive] tall [acc.]. Allen says that Charles E. Bennetts New Latin  Grammar provides a rule for the tense of the infinitive that is only applicable to the present infinitive in an indirect statement. According to Bennetts rule: The Present Infinitive represents an act as contemporaneous with that of the verb on which it depends. Allen prefers the following: In Indirect Statements the present infinitive represents an act as contemporaneous with the time of verb on which it depends. In other substantive uses it is merely a verbal noun, without any tense force. Tense in Latin Complementary Infinitives As an example of why tense is a difficult concept with present infinitives, Allen says that in Cicero and Caesar, a third of their present infinitives follow the verb possum  to be able. If you are able to do something, that ability precedes the time of the statement. Other Uses of the Infinitive An infinitive can also be used as the subject of a sentence. The subjective infinitive is found after impersonal expressions like necesse est,  it is necessary. Necesse est dormire.it is necessary to sleep. Sources Allen, Bernard Melzer. Latin Composition (Classic Reprint). Forgotten Books, 2019Bennett, Charles. New Latin Grammar. Ithaca, NY: Cornell University, 1918.

The Causes of World War III Essay Example | Topics and Well Written Essays - 1250 words

The Causes of World War III - Essay Example For instance, the wake of World War I and World War II showed possibility of World War III. The use and testing of nuclear weapons and the commencement of Cold War as well as its development was enough evidence that there could be a possible World War III. This war was planned after anticipation by the civil authorities and military who explored in fiction in various countries. There were ranging concepts of destruction of the planet and even use of atomic weapons. Other leaders such as Podhoretz Norman has suggested that Cold War could be associated with World War III since it was fought on a global scale with United States, NATO, Warsaw Pact, and Soviet Union countries who provided military, political and economic support. However, World War III is today a popular culture and those who could start it forms perennial topics of discussion. Authors have talked about possible causes of the World War III while others have strongly disagreed and criticized. This paper therefore seeks to discuss why Wright Mills thought there could be World War III and the reason why under, military industrial complex that created elite in the United States trying to take power over, Ted Goertzel does not agree with Mill on his concept of the causes of the Third World War. According to Wright Mills, there were dire warnings on the imminence of the Third World War in the 1950s. As the world faces the nuclear weapons introduction, other critical authors as well as Wright Mills have exaggerated the weaknesses of the social civilian forces and the military power in the American society as the major anticipated causes of World War III. Since thirty years after Wright Mills published his book on the causes of the Third World War, there has been assertion of the mass society and the non nuclear conflicts which have remained the primary threats to the peace of the world. Wright Mills thinks in his book that the Third World War may be cause by the likely hood of militarism, arms race, nuclea r war, and the industrial military complex. Peace movements have however made attempts to calm the fears of emergence of World War III. Wright Mills goes ahead to warn that in the history of our instantaneous epoch, there is a likely hood of World War III emerging in the world. Mills believed in the imminence of nuclear catastrophe. In addition, other nuclear pacifists have also predicted occurrence of disaster for quite a long time. There were predictions of short time remaining just before a nuclear night comes to surface. According to Wright Mills, the explosion of the Soviet Union bomb is a likely indication that World War III may take place. He also thinks that the power elites of the Soviet Union and the United states back in the 1950s were thrusting relentlessly and mindlessly drifting towards war. He also developed the analysis’ implications on the survival of the planet and asserting that the power elite of the United States and their counterparts in Kremlin led the media manipulated and indifferent masses down the Armageddon through the primrose path (Ted, 1989). According Wright Mills, the industrial military complex increasingly dominated American life and should be seen in the indicators of the economy. The intervals of military that buildup in the last thirty years such as the Reagan and the Vietnam War years were exceptional and likely to suggest the emergence of the Third World War. Mill says that these two exceptional wars were as a result of political civilian forces. These were associated with ideological and political reasons and not at the military urging. The overwhelming pressure by the public against the military increasing spending may

Why do I want to become a U.S Parks Police officer Essay

Why do I want to become a U.S Parks Police officer - Essay Example Moreover, it maintains fairness and accountability in all its endeavors. Personal conduct and ethical behavior constitute its fundamental principles; and as a consequence, it requires all its personnel to maintain the highest standards of conduct (Mission and Value Statement). This extraordinary and truly awe inspiring organization is dedicated to the safeguarding of human life. Furthermore, it provides the excellent service to the public, the Department of the Interior and the National Park Service. Another important feature of this institution is that its personnel hold themselves accountable to each other and the public whom they serve (Mission and Value Statement). The United States Park Police was established in the year 1791, by George Washington, the first president of the US. Its inception was prior to that of the Department of the Interior and the National Park Service. Subsequently, the US Park Police was rendered a branch of the Department of the Interior and the National Park Service. Its jurisdiction extends to all Federal Park Service areas in the US, and specific Federal and State lands. Some of the important areas to which the United States Park Police extends its exemplary services are Washington DC, New York City, San Francisco and the metropolitan areas of California (The United States Park Police). This organization performs several significant duties. For instance, it promotes and implements the objectives and goals of the Department of the Interior and the National Park Service. It achieves this laudable objective by providing exemplary law enforcement, in order to protect human life, national treasures, democratic icons, and natural resources (Mission and Value Statement). I fell under the charm of these blue clad protectors of society at a very early age. Moreover, I had opportunity to see these supermen and superwomen in action, on several occasions.

Women In 20th Century Europe

Women In 20th Century Europe Women are the blessings; they are a gift from God because they play a vital role in every part of our life. From being infant till maturity an individual just need his mother to feed him, to control him, to motivate him, to love and to encourage him. (Young, 2010) Those unfortunate who had lost their mother during childhood can better understand the importance of women. Women are able to serve men in every form that is a mother care for her child since birth, then a sister assists her brother in solving his problems, a wife supports her husband in order to make him successful and finally a daughter holds her fathers hand in order to share burden and difficulties. Role of women can never be forgotten. They are an essential element since years and are struggling a lot for their family, their children and for their state. Before fifteenth century women were not given such regards, respect and honor as in today; but after eighteenth century women took the challenge to prove them as material by serving the world during World Wars (Pepek, 2000). After the advents of French Revolution, there were crises everywhere that is, economic crises, people were not able to meet up their needs because of rise in bread prices, then financial crises because of France being bankrupt, social crises, etc. Both women and children were treated in a ruthless manner, they were threatened, coerced and thousands of women and children got dead. Due to which people start to migrate from Europe to other parts of the world (Stoff, 2008). People before eighteenth century were not very much educated, they were illiterate who dont know the difference between right and wrong, they were strong so they had ruled over women. Due to poor level of education, women were unaware of their basic rights so they follow the rules of their society that is they did the same as their mothers and sisters did in past. They consider them as inferior and men as dominant authority (Helms, 1997). In Europe women were not allowed to enter in any reputable position, they were not a part of business world; they were not allowed to move beyond the four walls of house. Women were interested to serve their nation, so they themselves hold authority and led out certain movements for independence (Tudor, 2000). Actually after French Revolution, several wars and events were conducted that is First World War and Second World War, Napoleon Era, Colonial period, Civil Pact, Russian Revolution, European Union, Cold War, etc. In all such events women played a vital role; proved themselves as materialistic, they hold guns, they serve as nurses, they led out movements for independence, they did food strikes, etc. Finally in twentieth century women entered in business world; they enhanced their level of education, their market experience and took steps to further diverse their powers. After European Union, women quickly gained independence, they move out from their houses to work along with men. They gained voting rights and their presence was then confirmed by government. Explanation: Women have worked so long that it cannot be restricted to introduction only and if the topic is on European women then one can discuss up to years and years because history has discussed a lot about their efforts. Women always had an influential and powerful role in the prosperity, affluence and growth of any group of people (Radek, 2006). These roles have varied depending on the time period, geography and race of the people. As explained above that before eighteenth century European women performed as a care taker, as a nurse or as a mother, but women of twentieth century was a ruler, a warrior, professionals or a teacher. Speaking about women of Europe then they are renowned for their hard work, bravery and valor. Besides being servants or the one who had faced a lot of restrictions they were still had a lot of passion and spirit to prove them. Later women became an agent to satisfy needs of people, to resolve their problems and to improve life conditions of women in European Union (Helms, 1997). During the times of war, European families suffered from financial crises, in that era, they were under privileged to hold servants so women worked like slaves, that is, besides holding household duties they worked a lot for freedom movements (Pepek, 2000). Usually their day begin with starting the fire, then milking the cows, and creating cream and butter, that what the life style of poor European women then they spent the bulk of her morning preparing food for the day and bread for the dinner. Their afternoons were every now and then taken up by functioning in the garden, restoration, or taking grain to the miller (Young, 2010). Besides being a daily house wife, her point in time also was seasonal, as she had to elevate the farm animals, make sausage, maintain bacon, and comprehensive the sewing of clothes. The workload obviously didnt get easier for the women. They also had to take care of their own children as well (Stoff, 2008). There role was even harsh then that of men, they were only responsible for earnings but European women has to hold those earnings to adjust their life in accordance with the desired money. At the commencement or inception of the twentieth century, the thoughts or ideas of nineteenth century on the subject of the separate, and incontrovertibly paradoxical, natures of men and women, which had been further exaggerated by the industrial revolution in defining computerized manual labor as the province or territory of men and the domestic responsibilities as the ordinary or natural domain of women, men and womens relationships to and with each other in addition to society change (Helms, 1997). It was because they have realized the importance of women and the power they have, so a natural thought appear that the one who supports in crises can support throughout life. In addition to that women had also decided to never restrict them inside the boundaries of house and to work along with men (Radek, 2006). Government of Europe then launched Equal Employment Opportunities Plan with regard to access to employment, professional training and career development. It was then suggested to have equal votes of women in decision making, women workforce to gain maximum authority and participation of women in science research was made compulsory. Speaking in terms of historical period of wars then European women played a vital role by supporting factories that is they went to work instead of men as all men were drafted into European armies. Women were the only soul to fill the economic and social needs that was performed by men preceding the war (Young, 2010). Due to the severity of World War I not only women but children suffered as well, they shed their blood, they strive from hunger but never divert or change their faith. Some of the courageous women had decided to move along the battle field in order to serve their armies, so a group of Aristocratic nurses and Austro-Hungarian POW Relief went to assist them but there they become dishearten because they did not enjoy the positive response from the armies (Rubio, 2011). These women were not in supplementary medical positions assistant to male workforce, but rather they were in positions of authority and power assigned with the task of reporting on the conditions of the POWs within the camps and ensuring their loyalty to the Austro-Hungarian government. It was reported that during war times, men often found it complex to accept women as a care taker who were working outside their houses (Helms, 1997). Besides this women fought for their personality as an individual because German Nazi and Italian Fascist which were led by Great Adolf Hitler and Mussolini respectively had clearly addressed that role of women is only to produce more children, but Modern Feminist Movement which was led by Wollstonecraft stood along with women to bring Industrial Revolution. Women entered the workforce in huge numbers and a majority stayed in the workforce after the war (Tudor, 2000). At the very initiation women faced difficulties; there were small number of women units. Some extremists were against their work so they brutally attacked those who work in factories, women rapes; killing and kidnapping were common in that period. Soon after observing the terrorism against women, provincial government set up voting privileges for women in order to enclose that from now onwards women will have complete rights to vote along with a small number of social rights (Stoff, 2008). It was then included in Code of Communism that there will be no difference between men and women; they both carry equal rights and both can work together according to their level of talents. European women also hand round as soldiers during the Russian Revolution and later World War II. After the rebellion, women hold rights to have equal opportunities in terms of education (Young, 2010). They become allowed to go to institution of higher education and to work in all fields of employment. The state opened the doors for medical care, education, and day-care for all women. By gaining a diversified level of knowledge role of women in French society had reached at its peak. They represent themselves as a strong player in every field. Due to having enough education they mold themselves as an independent body that have their own identity and served Europe as being professionals (Radek, 2006). Throughout the century, upper class women inaugurated salons which are considered as most heavy work for inexperienced one and though they were inexperienced and less motivated to speak or debate but they had fulfilled their responsibilities by inviting intellectuals, scholars and philosophers to share their experience and to define the necessary ways to lead a successful life. Besides economic stability they cultivate social connections between those philosophers and the community of Europe. Also, they inaugurated various institutions to provide guiding principles for those women who want to be a part of prosperity (Helms, 1997). European women who belong to lower or middle class did not lag behind in terms of their responsibility as already discussed that women began exercising their powers during the era of revolution by storming Bastille. They hold guns and shells; participated in bread strikes as they remained hungry for weeks and weeks, they assist in invading the palace of Versailles, arresting the Royal family and forming high-ranking political organizations. Although they were women of twentieth century but due to their extra ordinary efforts, women of today are worthy. They were not very educated or some are completely illiterate but their role was incredibly modern (Tudor, 2000). It was reported in past that after the murder of Jean-Paul Marat, who was a scientist, a physician and a renowned character of European Revolution, by Charlotte Corday, another renowned figure from French Revolution, women felt broken and it seemed like that there democratic movement will would not precede. Above mentioned women that is, Marat, Corday, Catherina Sforza, Isabella I along with Jacobin Terror were key figures who support women in every step but due to the heights of unfortunate both women were charged for engaging themselves in the political circles by supporting German Nazi in the reestablishment of France and for this act they were punished. Due to this people lost their belief and trust from them and thus they failed to revive their position again. They try to regain competitiveness by joining allied forces or by introducing the sense of modern Europe but got defeated (Stoff, 2008). Earlier, France was the intellectual capital of Europe but when it got defeated by Germany, there were threats that due to France being a central figure, threat of war will always be there, so idea of continents having their own capital was doomed to disaster. Till that era, women were dominant enough to contribute their role through industrial revolution and some of them had put their steps in business world. Some women joined government and political offices so as to work for European Union (Tudor, 2000). The concept of Feminism was then discouraged as it has only promoted the rights for women whereas concept of communism was promoted as it has allowed all people of all classes to have equal rights. Women were continuously climbing the stairs of success which was unacceptable for men to digest at any cost. It was difficult for them to work under women and to observe them holding authority or dominant position in any organization. The gender disturbance between men and women soon transformed into hostility and aggressiveness which then hold war between men and women in every field (Radek, 2006). It has been observed that men often avoid females; sometimes insulting or dishonoring them in front of seniors or juniors, there were lack of support and guidance but women then also fought and raised the flag of success through their skills, abilities and talent. European women enjoyed a suitable position in Soviet Union and contributed there by educating young girls, they raised the minimum age of marriage because before eighteenth century childhood marriages were common (Radek, 2006). It was the women of twentieth century who contributed a sense of career and growth. They presented a prosperous role in times of Ottoman Empire as well by amalgamating the western style with that of east. In the later twentieth century laws were bring to an end that has limited the roles of women and women of Turkey then gained the right to vote (Vinciguerra, 2012). Conclusion: The prosperous phase that Europe is now facing with is because of the women of twentieth century. They were the one who were responsible for generating peace, prosperity and success in Europe; they were diligent, honest, industrious, well planned, brave and trustable because besides controlling their house as a house wife they assisted their men in earnings. They always hold their husbands at the time of crises like they run out to work in factories at the time of war in order to bear their expenses, to maintain the economy of state and to avoid financial crises. As far as thesis statement is concerned then European women had groomed a lot in twentieth century. They worked along with men from shoulder to shoulder, although there aim was to assist men but doing so their objective becomes vast and now they are holding such a dominant position in every sector, whether it is business, finance, politics, government, law, medicine etc. So, by observing such a tremendous growth women should be given equal rights as that of men as they are the one behind the success of men. European women suffered a lot but never got that prestige that they really belong. So, in order to give them a pride of honor for their efforts, one can salute them with equal rights, protection and security. It is because of European women that women all over the world are now building or developing their career and ate struggling to run accordingly with success.

Legality and Ethicality of Financial Reporting Essay

As the case of Excello Telecommunications is reviewed it can be seen that the CFO was facing financial difficulties due to increased competition. In 2010 the earnings estimate was not going to be met and this would have affected the bonuses, stock options, and the share prices of the Excello stocks. After discovering a large sale that was pending until the shipment could be made for the following year the CFO asked the company controller to find a way to capitalize on the sale in the current year so that the budget shortfall could be met. The only way to accomplish the task was to work around the rules of accounting. The intent to find a way around the rules presents possible legal issues. This case can be evaluated by the Sarbanes-Oxley Act and the AICPA and we look at the financial reporting standards and ethics involved. The CFO of Excello, Terry Reed, discovered that the company made a sale of $1.2 million dollars on December 20, 2010 but it could not be recorded until January 11, 2011 because the purchasing company’s warehouse capacity could not accommodate the equipment. After this discovery Reed determined that the monetary shortfall for 2010 could be solved if the company could record the sale for 2010 instead of in 2011. The Controller, Marty Fuller, for the company approached the accounting department and there were three possible ways found to work around the dilemma. The first was to transfer the product to an off-site warehouse that was owned by Excello by December 31 and hold it there until January 11 when it could be shipped to the purchaser. The second would be to transfer the product to the purchaser by December 31 and offer a full refund upon return. The third option is to offer a ten percent discount to the purchaser if they accept the product by December 31. In reviewing this case it can be seen that there are legal issues that are involved. The controller of the company is fully aware of the rules of accounting and is willing to work around them at the request of the CFO practicing earning management in an effort to achieve the company financial goal. Excello cannot legally report the income of the $1.2 million dollar sale in 2010 due to the fact that it will not be shipped until 2011. If the sale is recorded the way the CFO wants it to appear the company would be artificially inflating the profits for the year 2010. If the sale is recorded in 2010 it will be overstated earnings and will violate the GAAP for revenue recognition. The revenue recognition rule is stated so that the goods are to be delivered to the buyer before  revenue can be recorded. Falsely reporting this will artificially inflate the revenue and is deceiving to the shareholders. The Sarbanes-Oxley Act (SOX) was designed so that it could regulate the rules and regulat ions and appropriately guide companies in reporting their financial statements and performing audits. The CFO for Excello decided to use earning management practices and falsely inflate the financial statement from 2010 in order to meet the earnings estimate it and in doing so breached Section 302 of the SOX codes. Section 302 of the SOX is the Corporate Responsibility for Financial Reports and states â€Å"This section requires the certification of periodic reports filed with the SEC by the CEO and CFO of public companies. (Mintz & Morris, 2011)† The reports that will be filed by Excello for the 2010 year with the SEC will contain false information and in doing so will violate the code. The goal of the SEC is to protect activities and interests of investors, lenders, and companies. The artificial inflation for earned revenue in 2010 by Excello causes risks to the investors, lenders, and shareholders as it is fraudulent information that is reported and is an unethical practice. The unethical financial reporting that Excello considered in this case goes against the AICPA Code o f Professional Conduct. The AICPA holds Certified Professional Accountants to a high ethical standard. As the Excello Company reports revenue prematurely it violates several of the principles that the AICPA is built on. The reasoning of the decision to prematurely record $1.2 million dollars was based on bonuses, stock, and shareholders and was not done in the interest of the public. This decision could have affected the integrity of the company as the trust to the public, clients, and lenders would be broken. The decision to artificially inflate the profits for the year 2010 proves to be unethical in the terms of the AICPA. Putting the bonuses, stock options, and the share prices ahead of the public interest is unethical behavior and unaccepted by the AICPA, GAAP, or SEC. The accounting department for Excello came up with three ways that the rules of the GAAP could be bent in order to accommodate recording profits earlier than appropriate. The first was to ship to an offsite warehouse owned by Excello by D ecember 31, 2010 and ship it again on the requested January 11, 2011 date. The second was to transfer the product to the buyer by December 31 and offer a full refund if retuned to Excello. The third option was to offer the buyer a ten percent discount to take the  product by December 31, 2010. Of the three options the best alternative seems to be offering a discount if the customer takes the product by December 31, 2010. Giving discounts to a buyer is not an uncommon practice and is not an illegal practice that is defined by the GAAP or the SEC. If the product is delivered to the buyer by the December 31, 2010 deadline the sale will be legitimate and the $1.2 million dollars can be appropriately recorded in 2010. Transferring the product to the buyer before January in order to make the earnings estimate and procure the bonuses and stock options is not the most ethical reason but does not appear to be illegal. The CFO of the company asked the controller to find a way around the GAAP regulations in order to record a large sale by the end of the 2010 year that would have been otherwise legally recorded in 2011. After reviewing the GAAP regulations it is seen that recording a sale before the buyer takes ownership is a fraudulent recognition of profit. The process of recording and recognizing revenue before it is actually due is illegal in the eyes of the SEC. This artificial inflation of profits can affect the public and investors in the company. The unethical behavior of fraudulent profit recording goes against the AICPA Code of Professional Conduct as well because it puts the company ahead of the public interest. There were three options given by the accounting department to solve the issue of the year-end profit earnings. Of the three options presented, the third was to offer a discount in order for the customer to take delivery of the product by the deadline allowing for profits to be recorded legally. It is understandable that a company needs to make the earnings estimate, however it should be done legally and no CFO or CPA should consider bending the rules set forth by the GAAP. The idea of trying to work around the rules and guidelines set forth by the GAAP is unethical behavior. References Mintz, S. M., & Morris, R. E. (2011). Ethical Obligations and decision making in accounting (2nd ed.). New York, NY: McGraw-Hill/Irwin.