Essay on video games violence Essay Example for Free

Essay on video games violence Essay The gaming industry greatly impacts how people, from young children to adults, spend their time. According to Health Magazine (2009), â€Å"90 percent of kids aged 8 to 16 play video games, and they spend about 13 hours per week doing so (more if you’re a boy). † Whether its educational, or just plain fun and entertainment video games have evolved greatly in the last 40 years. Today’s sophisticated games are in a class of it’s own with it’s realism and impressive graphics. With this ever advancing technology, comes better games with realistic situations. There’s no harm in playing video games for recreation. However, the problem lies within the violent video games and the aggression that these video games cause in children. For years researchers and experts have issued studies linking video games to aggressive behavior. It’s a controversial subject, nonetheless, it shows just how powerful the affect the games have on children. To illustrate, CBSnews. com reports a story of a 17 year who bought the popular game, â€Å"Grand Theft Auto†. In this game, the player is encouraged to do as much illegal activity and engage in as much violent behavior as they can to be rewarded with accolades and higher points. The more heinous the act, the higher you move up in the game. After playing this game for nine months, the 17 year old gunned down three men, two police officers and a dispatcher in a county jail, in the same style he was trained from the video game. In the kids statement to police, he said : â€Å"Life is like a video game. Everybody’s got to die sometime. † This is just one example of aggressive behavior as a result of violent video games, but there are many more cases. Children’s minds are very impressionable, and violent video games are harmful to their minds because of how interactive and realistic these games can be. According to research by child psychologist David Walsh, as further reported in the article, violent video games can be linked to physical aggressive behavior in children because of the brain. His study revealed that the teenage brain is not fully developed. Violent video games have a deeper impact on a teenage brain versus an adult brain. Walsh further states, it’s â€Å"largely because the teenage brain is different from the adult brain. The impulse control center of the brain, the part of the brain that enables us to think ahead, consider consequences, manage urges thats the part of the brain right behind our forehead called the prefrontal cortex. Thats under construction during the teenage years. In fact, the wiring of that is not completed until the early 20s. Therefore, since children’s mind are still underdeveloped, violent video games have a negative effect and cause children to believe aggression is appropriate. From the National Institute on Media and Family, six medical groups issue warnings as to the effects that violence has on children: (1) â€Å"Children will increase anti-social and aggressive behavior. (2)Children may become less sensitive to violence and those who suffer from violence. (3) Children may view the world as violent and mean, becoming more fearful of being a victim of violence. (4) Children will desire to see more violence in entertainment and real life. (5) Children will view violence as an acceptable way to settle conflicts. † From studies to real life examples of violent behavior, video games has shown to have an influence on children’s behavior. Violent video games will not be going away anytime soon. The only solution to combat the issue of violent video games is for parents to be actively involved in their children’s free time and take an interest in what their children play. Once parents are informed on their decisions to allow their children to play violent video games, they will know that if choosing violence, it will have an effect on the impressionable child mind.Parents beware. References Harding, A. (2008). Violent video games linked to child aggression. Health Magazine. Retrieved from http://www. cnn. com/2008/HEALTH/family/11/03/healthmag. violent. video. kids/ Bradley, E. (2005). Can a video game train someone to kill? Retrieved from http://www. cbsnews. com/stories/2005/03/04/60minutes/main678261. shtml 2010. Fact Sheet. National Institute on Media and the Family. Retrieved from http://www. mediafamily. org/facts/facts_vlent. shtml.

The Hewlett Packard Economic Analysis Business Essay

The Hewlett Packard Economic Analysis Business Essay Hewlett-Packard is the worlds largest technology company. Based in Palo Alto, California, HP maintains segments that cross sectors such computing hardware (printers, personal computers, servers, and storage), software, cloud computing services, IT infrastructure, and connectivity products. HP offers its products to over 1 billion customers in over 170 countries. HP has roughly 332,000 employees worldwide. The company ranked No. 10 in the Fortune 500 rankings, and its revenue for 2012 was approximately $120.4 billion (Hewlett-Packard Development Company, L.P., 2011).   Hewlett-Packard was one of the first technology based businesses in Silicon Valley. HP was founded by Stanford graduates David Packard and William Hewlett. They began the company, in 1939, in a garage next to Packards home in Palo Alto, Calif. As the company grew, the founders based the organizational structure on an informal, non-hierarchical culture (Hewlett-Packard Development Company, L.P., 2011). In order to foster and environment of innovation, they allowed engineers to access tools and parts after hours. Hewlett-Packard Company (HP) is a provides numerous products, technologies, software, solutions and services to private consumers, businesses of all sizes, including the Government, health and education sectors. Its operations are organized into seven divisions including the Personal Systems Group, Services, the Imaging and Printing Group, Enterprise Servers, Storage and Networking, HP Software, HP Financial Services and Corporate Investments. HPs offers products for personal computing, customer services, infrastructure technology, business process outsourcing, application development and support services, and imaging and printing products. Since HP extends across numerous IT markets, it has numerous competitors in each Market. For instance, in the personal computing market Apple and IBM offer very similar products and would be considered direct challengers. In the printing sector, direct competitors are Epson, Cannon, and Lexmark. In the server sector, again IBM is direct competition along with Dell. Overall, HP had a 3.3% market share in the IT market. That number is based on industry wide revenue figures for 2012. HPs 2012 revenue was $123 billion out of roughly $3.79 trillion spent within the industry worldwide (Hewlett-Packard Development Company, L.P., 2011). In comparison, the No.1 vendor was Apple Inc. with revenues of $149 billion and a 3.9% market share. (Hewlett-Packard Development Company, L.P., 2011) (Hernandez, 2012) (Hingley, 2012) According to the course text, the concept of  elasticity involves the percentage change in one variable associated with a given percentage change in another variable (Hirschey, 2009, p. 170). Elasticity relates to the principles of supply and demand. When something changes in a market, elasticity conveys how much other elements will change. For instance, price elasticity conveys the amount of impact a change in price will have on consumer willingness to buy that item. If prices rise, the law of demand dictates that the quantity demanded will decrease. Price elasticity of demand points out how much the quantity demanded decreases. Elastic demand means that the consumers of that good or service are highly sensitive to changes in price (Tuck, 2013). Typically, a good or service which is not a necessity or has multiple substitutes has elastic demand. Inelastic demand has the converse meaning and indicates that consumers are not highly sensitive to price changes. Price elasticity of a product is calculated as the percent change in the quantity demanded of a good divided by the percent change in the price for that good (Tuck, 2013). A result greater than one means that the product is elastic and that demand is highly sensitive to changes in price. Elasticity less than one means that a product is inelastic and price change will have a minimal impact on the quantity demanded. HP is a technology and hardware company. Any consumer that has been to an electronics store knows that there are a tremendous amount of hardware and software options available. There are numerous competitors that offer similar printers, computers, servers, and software packages. In addition, the technology market is rapidly evolving and new products are being consistently released onto the market. This drives short life cycles for products and rapid obsolescence. Though, technologies have become a necessity worldwide, consumers are extremely price sensitive due to the high number of alternative products available. These factors drive a high level of elasticity in the technology sector, which impacts many of HPs products. Regression analysis is statistical technique that describes the way in which variables are related to one another (Hirschey, 2009, p. 85). This type of analysis is commonly used to identify demand, cost, and profit relations. For the purposes of this assignment, the regression analysis can be used to demonstrate the relationship between total sales, employment rates, and personal income levels. Sales Levels (Revenues Fiscal Year 2012) Unemployment Rate Personal Income (Monthly) Oct-11 $32,122,000.00 8.5 $3,044.00 Jul-12 $29,669,000.00 8.2 $3,088.00 Oct-12 $29,959,000.00 7.9 $3,088.00 (Bureau of Labor and Statistics, U.S. Department Of Labor, 2010) In order to accomplish this, the equation: Sales Levels (Y) = a + b1*Personal Income + b2*Unemployment Rate + e y = 230100 + -966.671 + -62.3412 Based on the analysis that has been done to this point, it appears as though software revenue grew 14% year over year with a 27.2% operating margin. Software revenue was driven by 9% license growth, 9% support growth, and 48% growth in services. HP Financial Services revenue grew 1% year over the year. However, there was a decline in other aspects of the business as the personal systems, printing, and enterprise server and storage, as revenues declined in each of these areas. The technology market and these statistics indicate that HP should continue to develop its software and financial services divisions. These aspects of the HP organization have demonstrated growth and the company should continue to move toward expanding in these sectors. Despite declining revenues, HP is still a leader in the hardware market as well. The company may want to leverage the software division and work toward integrating more of the licensed software into the hardware products. For example, the HP server and storage division could incorporate HP software bundles, used to drive the technology, at a reduced price. This would make the hardware more lucrative to enterprises and personal consumers. Instead of purchasing software and services from a competitor, a more cost effective, all-in-one solution could be bundled by HP. Apple Inc. has become a dominant competitor in the technology market. They have accomplished this with an emphasis on design, not hardware. HP should also make an effort to replicate the Apple model to a certain extent. They need to place resources into the design and innovation of new products. The technology market demonstrates a high level of price elasticity. So, HP needs to push towards well designed products that provide unique and cutting edge tools for users. Any edge that the company can gain without increasing prices will ultimately improve their bottom line.

Womens Rights :: essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  In the early 1800s the textile mills of Lowell Massachusetts were a celebrated economic and cultural attraction. Visitors always made sure to pass this place when they visited. Surprisingly most of the workers in the mills were women. The first factory recruited Yankee women from the area.   Ã‚  Ã‚  Ã‚  Ã‚  As Lowell expanded becoming the nation’s largest textile manufacturing center, the experiences of women operatives changed as well. With the pressure of competition overproduction became a problem, and high profits of the early years declined. Wages were reduced and the pace of work was stepped up. The women did not accept these changes without any protest.   Ã‚  Ã‚  Ã‚  Ã‚  In 1834 and 1836 they went on strike to protest wage cuts. Between 1843 and 1848 they had petition campaigns aimed at reducing the hours of labor in the mills. These women were very close with each other, and they all shared the same values. This made it easy for them to be so strong in their protests. Most of these women working in the Lowell mills were housed in company boarding homes. In 1836 more than seventy-three percent of females employed by the Hamilton Company lived in houses next to the mills.   Ã‚  Ã‚  Ã‚  Ã‚  They lived in close quarters which played a role in the growth of the community. These boarding houses were the center of social life for these women after their long work days. They ate together, talked with one another, read books together, and also wrote letters. The community of women operatives developed in a setting where women worked and lived together twenty four hours a day.   Ã‚  Ã‚  Ã‚  Ã‚  When the women went on strike in 1834 they marched to numerous mills in an effort to induce others to join them. They said they would not go back to work until their demands were met. They wanted the wages they were getting before the reduction, to be received all of them as one, and if they do not have enough money to carry them home they shall be supplied.   Ã‚  Ã‚  Ã‚  Ã‚  The first strike was brief and failed. By the next week the women either went back to work or left town. The first strike was important not because is failed or succeeded but because it took place. This showed the women were starting to have a voice in the workplace even if they were not being listened to yet.   Ã‚  Ã‚  Ã‚  Ã‚  In 1836 the women went on strike again.

The True Cost of Posttraumatic Stress Disorder (PTSD) Essay -- PTSD Es

In 2010, veterans with post-traumatic stress disorder (PTSD) cost the government about $1.3 billion (United States of America 17). This is an enormous amount of money, but it hasn’t even been helping veterans. Many vets aren’t finishing treatment but continue to receive disability checks from the Veterans Health Administration, abbreviated to VHA. Not only this, but some veterans are faking their way into the system and evading the diagnosis process by coming up with an tall tale. It is on the Veteran’s Affairs (VA) to determine whether these stories are fake (Department of Veterans’ Affairs), which is many times impossible to regulate. New laws that are being passed that make it easier for veterans to receive disability checks are not helping this problem either (Brown and Thompson 43). The government is spending too much money on a system that is failing our veterans; the public should not have to pay when the money is going to waste on misdiagnosis, fa iling treatment, and unjust laws. PTSD, also known as post-traumatic stress disorder, is an anxiety disorder. It affects people that have experienced, witnessed, or were confronted with a life threatening event. It can cause flashbacks, depression, nightmares, and change of mood. Other common symptoms of PTSD are difficulty sleeping, anger outbursts, decreased interest in activities, avoidance of people and places that can trigger a memory, and inability to recall part of the trauma. Symptoms can occur right after the incident but also much later in life. Other common occurrences with PTSD are depression, suicide, and alcohol or drug abuse (FAQs about PTSD). Treatment can last from three months to sometimes longer than 4 years. Treatment types are exposure therapy, using me... ...Angeles Times, 21 Dec. 2013. Web. 20 Mar. 2014. . United States of America. Congress of The United States. Congressional Budget Office. The Veterans Health Administration’s Treatment of PTSD and Traumatic Brain Injury Among Recent Combat Veterans. Congressional Budget Office, Feb. 2012. Web. 24 Feb. 2014. Wood, David. "Iraq, Afghanistan War Veterans Struggle With Combat Trauma."The Huffington Post. TheHuffingtonPost.com, 4 July 2012. Web. 20 Mar. 2014. . "The human cost our veterans are paying.." The human costs our veterans are paying. Expedition Balance, n.d. Web. 19 Mar. 2014. .

Attending High School Essay -- Education Papers, high school experienc

High School Do you remember your high school days? High school for me has proved to be a learning experience and also a challenge. There are many lessons that can be learned. You can learn more about yourself, who your friends are, what kind of help is offered to you, and what your strengths and your weaknesses are. Attending High School helped build my confidence because my classmates were supportive, my teachers taught me how to study for tests, and the math tutors helped me overcome my fear of math. My classmates were supportive in many ways. I used to attend study groups for the subjects that I was struggling in. In these meetings with each other,we would study our notes and review the chapters that we would be tested on. My classmates would also tutor one another in subjects that they were strong in and others were weak in. My classmates would even talk and try to comfort me when I was having personal problems and help me get my priorities straight that took place outside of school. So without my clas...

How My Personal Values Influence My Way of Teaching

Relating philosophy to pedagogy – how my personal values influence my way of teaching Within any early childhood education (ECE) setting the pedagogy of the educators will have great impact on the programmes and philosophies which the children within that setting will be influenced by. Teachers have a responsibility to build and maintain authentic, open, reciprocal relationships with children, families and the community (Gailer, 2010).This is not only an integral part of the early childhood curriculum Te Whariki which has relationships as one of its four foundation principles (Ministry of Education [MoE], 1996) but also part of the teaching standards and ethics. As a teacher I relish in the chance to build relationships with many different children, all unique in their culture, strengths, ideas and way of being. The importance I place on relationships sits well with both Vygotsky’s and Bronfenbrenner’s sociocultural theories. Vygotsky emphasised the importance of the people surrounding a child, seeing them crucial for supporting and enhancing the child’s development.Bronfenbrenner extended this into a model of contextual factors, using ideas about five kinds of contexts surrounding the individual child including their micro- and meso-systems where the interactions of their day-to-day realities occur (Drewery & Bird, 2004). These theories have been vital in the development of New Zealand’s early childhood curriculum, Te Whariki, and so my understandings of these and with my personal philosophy I hope to have the skills to be able to build respectful reciprocal relationships with all learners. Building these relationships however is not as easy as people outside of the profession often assume.Appendix 2 shows Suzie Gailer’s (2010) article on being professional, the article discusses how professional integrity of practice is reliant on teachers having a particular set of values, respect, authenticity, empowerment and trans parency. The image of the child is culturally constructed and linked to our time and place in history, the image I have as a teacher today of children is very different to that of which I was viewed as a child. My image of the child has altered as I have gained both practical and theoretical teaching experience.In my first practicums I did not necessarily know what to expect about building initial relationships with children but as I have gained knowledge I now know that children can be trusted to build these relationships in timeframes which are right for them. Te Whariki (MoE, 1996) presents the image of children as competent learners and communicators and I now uphold this image in my teaching practice and as a parent (Appendices 3, 4 & 5), along with the values of respect which I have articulated through the following of Magda Gerber’s work.From my own relatively limited practical experience and theoretical knowledge I can relate to the notion of Edwards & Nuttall (2005) where â€Å"the pedagogy, or ‘the act of teaching’, is not only mediated by educators’ understandings about the children, learning, and the curriculum; their understandings about the social settings in which they work, their personal experiences beyond the workplace and their engagement with the centre’s wider community all have a role in determining the educator’s actions† (p. 36).My own underlying beliefs, values and philosophies all impact on my teaching style and, although often unconsciously, on the way I relate to individuals. Commitment to reflective practice, the personal philosophy I have articulated and the desire for professional development will aid me in holding true to a pedagogy which is responsive in time as well as to individuals. This pedagogy with its identified aspects of assessment, planning, implementation and evaluation is influenced by my values and experiences and I attempt to explain and reflect upon these in this es say.The main assessment process I use is ‘Learning Stories’, an approach developed by Dr. Margaret Carr. Learning stories show a snapshot of a learning experience which has been shared with the child or children involved and are a record of the interests and strengths of the child. Research shows that learning is more effective when it is derived from interests, encouraging motivation and the sense of confidence that comes from working within one’s own strengths.The learning story framework is based on the belief that developing good learning dispositions is the most important skill in early childhood and this fits well with my values of respect and having the Te Whariki image of the child, a confident, competent learner and communicator. The foundations of learning stories are the dispositions found in Te Whariki and in my own learning stories these are highlighted, showing fellow educators, parents and whanau how I work to support children’s learning in all aspects of the programme and curriculum (Appendices 4, 6 & 7).Upholding this image of children in practice is however met with challenges. Woodrow (1999) describes how there are resulting constructions of childhood based on how individuals experienced childhood, on cultural artefacts and on professional knowledge, Ellen Pifer (2000) also describes these conflicting images in her book Demon or Doll (Appendix 8) which has truly opened my mind to ways of seeing individuals. Other teaching professionals may hold different images of children such as the child as innocent or as an embryo adult and this will impact on the way they act around and towards children.Having a commitment towards reflective practice and regularly evaluating my personal pedagogy will allow me to deal with these challenges, giving me the skills to explain my viewpoint and understand that of others so that the best possible outcome is achieved. To undertake such assessment it is important to build a relationship with the children and these reciprocal relationships are another key part of my philosophy.This value has changed with my experience and theoretical knowledge, in my initial practicum I was unsure about how to go about building relationships that are both respectful and reciprocal (Appendices 9 & 10) but my confidence in this has, and will continue, to grow (Appendix 11). I believe that building a reciprocal relationship means sharing aspects of my life with children and not expecting them to reveal themselves without the favour being returned. I have a huge passion towards animals and I have shared this with the children on my last two practicums by taking along my guinea pigs (Appendix 12).The children feel aspects of empowerment and trust as I allow them to be intimately involved with a very important part of my personal life. Building such relationships prior to undertaking assessment highlights the spiral nature of teaching and the aspects of pedagogies. Taking the guinea pigs to the centre required planning and careful implementation, including discussion with staff and families to ensure cultural needs were met. Some cultures do not agree with the keeping of animals as pets and in order to uphold the respectful image of the child and relationships with the family and community I needed to accept and respect this belief.The centre policies and legislation also play a role in planning and implementation, health and hygiene regulations needed to be considered for this activity and for others many different policies will come into play. For further assessment and planning the involvement of colleagues and whanau in the learning stories and other documentation would play a vital role in the continuation of the interest but unfortunately the short nature of the practicum did not allow for this.Cultural needs and matches weight heavily in the planning and implementation stages of my pedagogy. This is linked to all the values in my philosophy; relationships, r espect and equity. These values mean that I believe in focussing on skills and talents rather than on deficiencies to create learning environments, for example respecting that crying is a valid attempt at communication and can be a qualified learning experience (Appendix 11). Nyland (2004) describes how the participation rights and contexts of infants’ knowledge can be overlooked in childcare settings.On-line discussions with fellow students regarding this reading give support to the idea that disrespectful environments adversely affect the identity and participation of children. What happens in an environment when an identity is missing altogether and children are faced with images of white middle class able bodied members of society? What message is that giving to these children and their families? You don’t belong? You are not a real member of our society? We don’t value you? The environments we plan for the children speak volumes about how we view society an d the people we respect and value (Ellis, R. , Fuamatu, P. Perry Smith, A. M. Moodle; September 2011). During planning I therefore need to think ahead about resources which reflect the cultures within the setting and the community. This can be achieved through communication with other educators in the setting, parents, and other members of the community such as kaumatua or the local priest. Planning for social occasions is also important to me as I feel they link the ECE setting with the wider community and social values. This includes events such as Mother’s and Father’s day (Appendix 13) as well as cultural occasions such as the Lantern Festival, Diwali and Pasifika events.Although during such planning I am mindful of the goals and learning outcomes which Te Whariki and the teaching standards present I also constantly remind myself of the holistic nature in which the learning will occur. Lawrence (2004) describes the shift in thinking and programme planning in ECE se ttings over the past two decades, from keeping children busy to planning cycles and then Te Whariki. Lawrence clarifies that although the word planning is still used; it is not in the traditional sense of the word but rather can be seen as â€Å"reflectively responding to children’s thinking (p. 16). † An example in her rticle shows how the learning experience of children can be very different to that pre-planned or expected by the teacher (Appendix 14). A challenge presents itself where teachers have been trained and had experience in times where different planning programmes were utilised, disagreeing views and beliefs can lead to conflict within teaching teams and a dedication to reflective practice is required by all parties if favourable outcomes are to be reached. This reflective practice is a vital part of the evaluation process of my pedagogy. What worked? What didn’t work? Where do I go from here?Schon (2002) described how the entire process of reflecti on-in-action, where our knowing is in our action, is central to the skill practitioners have in dealing with situations of uncertainty, instability and uniqueness as well as valuing conflict. Holding true to a value where children are respected as individuals and valued for their own unique set of skills, uncertain and unique situations are inevitable in the day-to-day practice of an ECE setting. With the set of reflective skills I now possess I hope to be able to turn these situations of uncertainty into ones of learning, for both myself and children involved.With continuing professional development and an ever increasing amount of practical experience I feel I am in good stead to continue my career as an early childhood educator and support the children within my influence to grow up in line with the aspirations of Te Whariki, â€Å"competent and confident learners and communicators †¦ a valued contribution to society† (MoE, 1996, p. 9). References Drewery, W. & Bird, L. (2004). Human Development in Aotearoa: A journey through life. (2nd ed. ). Sydney, Australia: McGraw-Hill. Edwards, S. & Nuttall, J. (2005).Getting beyond the ‘what’ and the ‘how’; Problematising pedagogy in early childhood education. Early Childhood Folio, 9, 34-38. Gailer, S. (2010). Being professional: First, do no harm! The First Years: Nga Tau Tuatahi. New Zealand Journal of Infant and Toddler Education, 12(2), 19-24. Lawrence, R. (2004). Making sense of planning – A teacher’s story. Early Education, 36, 15-19. Ministry of Education. (1996). Te Whariki: Early Childhood Curriculum / He Whariki Matauranga mo nga Mokopuna o Aotearoa. Wellington, New Zealand: Learning Media. Nyland, B. (2004).Infants, context and participation rights: An Australian image. The First Years: Nga Tau Tuatahi. New Zealand Journal of Infant and Toddler Education, 6(1), 19-22. Pifer, E. (2000). Demon or doll: Images of the child in contemporary writing and cultur e. Virginia, USA: University of Virginia Press. Schon, D. (2002). Reflection-in-action. In A. Pollard (Ed. ). Readings in reflective teaching (pp. 5-7). London, England: Continuum. Woodrow, C. (1999). Revisiting images of the child in early childhood education: Reflections and considerations. Australian Journal of Early Childhood, 24(4), 7-12.

Fin 515 Week 4 Homework Assignment

FIN 515 WEEK 4 HOMEWORK ASSIGNMENT (7–2) Constant Growth Valuation Boehm Incorporated is expected to pay a $1. 50 per share dividend at the end of this year (i. e. , D1 = $1. 50). The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, rs, is 15%. What is the value per share of Boehm’s stock? For this problem we can use the formula from the book P=d1(R-G) to find the price. We just need to plug in the values†¦ so, 1. 5/(8% [15-7]). The value is 18. 75. (7–4) Preferred Stock ValuationNick’s Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $5 at the end of each year. The preferred sells for $50 a share. What is the stock’s required rate of return? From the book we discover that we simply need to plug into the formula, r=5/50. The required rate of return should be 10 percent. (7–5) Nonconstant Growth Valuation A company currently pays a dividend of $2 per sha re (D0 = $2). It is estimated that the company’s dividend will grow at a rate of 20% per year for the next 2 years, then at a constant rate of 7% thereafter. The company’s stock has a beta of 1. , the risk-free rate is 7. 5%, and the market risk premium is 4%. What is your estimate of the stock’s current price? I used the financial calculator online for this problem, but we can find it manually†¦ To solve this problem we need to first calculate the required rate of return, which is Rs=Rf+B(Rrm-Rrf), so 7. 5+(11. 5-7. 5)*1. 2=12. 3†¦ So, D0 would be 2, D1 would be 2. 4, D2 would be 2. 88, and D3 would be 3. 08. We then have to calculate the PV for the dividends, which is 4. 42. We have to calculate P2, which came out to 46. 10. After adding up the PV values we get the stock’s price which is 50. 0, or at least that’s what I got†¦ (9-1) After-Tax Cost of Debt Calculate the after-tax cost of debt under each of the following conditions: à ¢â‚¬ ¢a. Interest rate of 13%, tax rate of 0% To calculate, take 0. 13*(1-0), we get 13 percent. †¢b. Interest rate of 13%, tax rate of 20% To calculate, take 0. 13*(1-0. 20), we get 10. 4 percent. †¢c. Interest rate of 13%, tax rate of 35% To calculate, take 0. 13*(1-0. 35), we get 8. 45 percent. (9-4) Cost of Preferred Stock with Flotation Costs Burnwood Tech plans to issue some $60 par preferred stock with a 6% dividend. A similar stock is selling on the market for $70.Burnwood must pay flotation costs of 5% of the issue price. What is the cost of the preferred stock? We’re given the par value, the divident percentage, the market value of the stock, and the flotation costs, and are looking for the cost. The ADP of the preferred stock is 6 percent*60, which comes out to 3. 60. The cost of Preferred Stock can be calculated as (Preferred stock dividend/MP of Preferred Stock*(1-FC)†¦ We just need to plug in the numbers, so you get basically (60*. 06)/70*(1-0. 05 )†¦ calculating that out, the cost of preferred stock should be 5. 1 percent. (9-5) Cost of Equity: DCF Summerdahl Resort’s common stock is currently trading at $36 a share. The stock is expected to pay a dividend of $3. 00 a share at the end of the year (D1 = $3. 00), and the dividend is expected to grow at a constant rate of 5% a year. What is its cost of common equity? For this problem, we are to use the equation r=(D1/P0)+g†¦ Since we are given the P0, D1, and G (36,3,0. 05) we are looking for r†¦ so, just plug-and-chug. Comes out to 13. 3 percent. (9-6) Cost of Equity: CAPM Booher Book Stores has a beta of 0. 8.The yield on a 3-month T-bill is 4% and the yield on a 10-year T-bond is 6%. The market risk premium is 5. 5%, and the return on an average stock in the market last year was 15%. What is the estimated cost of common equity using the CAPM? For this one, looked to me like we need to use the formula Rs=Rrf+Bi(RPm)†¦ Like the last problem, we are g iven all the values except one. Plugging-and-chugging again, I got 0. 06+0. 8*(0. 055), came out to 10. 4 percent. (9-7) WACC Shi Importer’s balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity.Shi’s tax rate is 40%, rd = 6%, rps = 5. 8%, and rs = 12%. If Shi has a target capital structure of 30% debt, 5% preferred stock, and 65% common stock, what is its WACC? So, for this problem we need to find the WACC which can be found by the formula (Wd)*(Rd)*(1-T)+(Wps)*(Rps)+(Wce)(Rs)†¦ We are again given most of the values, so it’s plug-and-chug from here on, pretty much. Debt is 0. 30, PS is 0. 05, Equity is 0. 65, Rd is 0. 06, T is 0. 40, Rps is 0. 058, and Rs is 0. 12†¦ So when plugged it looks like: (0. 30*0. 06*(1-0. 40))+0. 05*0. 058+0. 65*0. 12, and that came out to 9. 17 percent.