Marjane Satrapis Persepolis - 1238 Words

Persepolis Review â€Å"One can forgive but one should never forget† is one of the quotes that Marjane Satrapi says in her memoir titled Persepolis. The memoir tells the story of Marjane when she was ten years old during the Islamic Revolution in the Middle East, specifically in her home country Iran. Most people evacuated the country because they knew there was not going to be a safe, prosperous future for their children. Due to Marji’s development from youth to maturity, she undergoes teenage rebellion and feels a desire to escape. The entirety of this memoir is portrayed as a graphic novel where Satrapi uses illustrative techniques such as the way she shades and colors and also the way that some panels bleed for emphasis. Marji was a child†¦show more content†¦Furthermore, Marji was not only a girl when the war started, but she was a girl who was a bit of a rebel. Marji skipped school because she wanted to act mature, also because she didn’t want to feel isolated so she chose some 14 year-old friends. She followed them at Jordan Avenue to get some hamburgers but actually her friends went there to see some guys. In addition, Marji was expelled for many reasons. One of the reasons was because Marji hit the principal accidently when she was trying to get her wrists away. She was back talking the principal because of the jewelry policy and then accidently hit her which resulted in expulsion. Marji’s temperament was fiery when it came to something she was passionate about and cared about deeply. Additionally, Marji had been in Iran for the past 12 years of her life and she noticed that Iran will never be the same. She wanted to leave the country with her family but not everything went as planned. Marji was not the only person who wanted to leave Iran, in the memoir she says, â€Å"After my friend’s departure, a good part of my family also left the country. ‘Maybe we should leave too†¦Ã¢â‚¬â„¢ said Taji. ‘So that I can become a taxi driver and you a cleaning lady?’ Ebi (Marji’s father). ‘My friend Kaveh left for the United States too.’ Marji said sadly. ‘Don’t worry. Everyone who left will come back. They’re just afraid of change.’ answered Ebi. Let’s hope so. answered Taji nervously† (64). Taji and Marji wanted to leave theShow MoreRelated Marjane Satrapis Persepolis3668 Words   |  15 Pagesin the sudden transition. As a member of the Iranian diaspora, Marjane Satrapi endured many hardships in her efforts to transition from Middle Eastern culture to a more modernist Western culture. Her series of graphic novel memoirs, Persepolis, depict her childhood growing up in Iran during both the Islamic Revolution and the Iran- Iraq War, and moving to Austria as one of many emigrants of Iran at the time. Marjane Satrapis memoir is just one example of an exile bearing the burden of memoryRead MoreMarjane Satrapis Persepolis 2059 Words   |  9 PagesMarjane Satrapi’s graphic novel Persepolis is an expressive memoir of her growing up in Iran during the Islamic Revolution, the fall of the Shah’s regime and the Iran-Iraq War. The dictionary definition of a memoir is, the description of one’s personal life and experiences, and most writers use the conventional text format to write theirs but Satrapi has contributed to a whole new way of writing memoirs that may last for many generations to come. Unlike conventional memoirs, she uses the black-and-whiteRead MoreMarjane Satrapis Persepolis Essay1403 Words   |  6 PagesWestern culture has often misperceived the east and the way that their society functions. In Marjane Satrapi’s Persepolis, Satrapi uses graphic novels as a way to demonstrate to the western culture how the east has been misrepresented. The use of media helps to depict to the west how their views of the east may have been unfairly formed in the past. The media has only revealed limited knowledge that only shows partial perspectives because it is difficult to get perspectives of the minorities althoughRead MoreCultural Acceptance in Marjane Satrapis Persepolis1616 Words   |  7 Pagesï » ¿Whitfield Logan English 102 Ighade 4-7-14 Cultural Acceptance in Persepolis Marjane Satrapi‘s graphic novel Persepolis  is an  autobiography that  depicts her childhood up to her early adult years in  Iran  during and after the  Islamic revolution.  Throughout the novel Satrapi incorporates character development, religion, and the conflict of freedom vs. confinement in order to develop a greater appreciation between two opposing eastern and western cultures. When analyzing the current relationshipRead More The Veil in Marjane Satrapi’s Persepolis Essay1296 Words   |  6 PagesMarjane Satrapi’s Persepolis introduces the Islamic veil as an attempt by the Iranian government to control women. Islamic radicals promised safety and security for those who abided by their rules. Rebels who refused to wear the headscarf were threatened with beating, rape or death. These modern women who fought against religious oppression met the minimal requirements of the government rules to safely live in the hostile environment. Through being forced to wear the veil, the control of the IslamicRead MoreMarjane Satrapi’s Challenging of Stereotypes in Persepolis1059 Words   |  4 PagesMarjane Satrapi’s Challenging of Stereotypes in Persepolis In Marjane Satrapi’s graphic novel Persepolis, Satrapi states that her goal in writing the book was to dispel many of the hasty generalizations made by the Western world about Iran, a principal sentiment being that the country is little more than a nation founded by fundamentalists and home to terrorists and extremists. To combat the misconception, Satrapi enlists the assistance of examples from her adolescence of barriers and dissent towardsRead MoreMarjane Satrapi’s Challenging of Stereotypes in Persepolis Essay example1112 Words   |  5 PagesIn Marjane Satrapi’s graphic novel Persepolis, Satrapi states that her goal in writing the book was to dispel many of the hasty generalizations made by the western world about Iran, a principal sentiment being that the country is little more than a nation founded by fundamentalists and home to terrorists and extremists. To combat the misconception, Satrapi enlists the assistance examples of barriers and dissent towards the new conservative regime in Iran from her adolescence. By employing eventsRead MoreAnalysis Of Marjane Satrapis Graphic Novel Persepolis823 Words   |  4 Pages Marjane Satrapi’s graphic novel Persepolis, illustrates her own experience of the Iranian world through revolutions and corrupt dictatorship. Throughout her life, Marji is faced with numerous hardships that challenge her life from a young age. From struggling to adapt into diverging cultures to standing up for her identity, Marji’s conflicts force her to choose between family and herself. Unlike the people from her homeland, Marji has many opportunities to explore her liberty, however, she hasRead MoreMarjane Satrapis Persepolis: A Personal Version and Vision of the Iranian Revolution1341 Words   |  5 PagesPersepolis: Marjane Satrapis personal version and vision of the Iranian Revolution Marjane Satrapis Persepolis is a graphic novel that suggests that there is a sharp discrepancy between the world of the Iranian Revolution, as depicted in the Western media, versus how many Iranians experienced it in the context of their own lives. Satrapi was the product of a liberal home environment. Behind closed doors, the life the young Marjane led was often very different from the images of burka-wearingRead MoreEssay on The Role of Women in Marjane Satrapis Persepolis 1111 Words   |  5 Pages Throughout Persepolis, Marjane Satrapi displays the vital role that the women around her have in developing her character and becoming the woman she is today. Women such as her mother, her grandmother, her school teachers, the maid, the neighbors, and even the guardians of the revolution influenced Marjane and caused her to develop into an independent, educated, and ambitious woman. Throughout the novel, Marjane never completely conforms or lets go of her roots, this is prima rily due to

The Person Who Inspire Me - 1293 Words

PART 2: Writing DR. APJ ABDUL KALAM -the person who inspire me- What does someone do to inspire you? To me, inspiration is the process of instilling faith in someone to motivate him or her to do something. Many people do things simply out of the kindness in their heart, and do not realize they are inspiring others around them. To me, a news paper boy who is became an Indian scientist and also administrator who served as the 11th President of India, inspires me the most. Avul Pakir Jainulabdeen Abdul Kalam usually referred to as Dr. A.P.J. Abdul Kalam, is the most motivater to my study and life. He inspires me to do things by example. For example, in Dr. Kalam life, his father wasnt educated but he wanted Kalam to study. Dr.†¦show more content†¦| |Topic sentences |Avul Pakir Jainulabdeen Abdul Kalam usually referred to as Dr. A.P.J. Abdul Kalam, is the | | |most motivater to my study and life. | |Body with supporting details |He inspires me to do things by example. | | |His father wasnt educated but he wanted Kalam to study. | | |After his morning class, Kalam along with his cousin Samsuddin went around town | | |distributing the newspaper. | | |As the town had no electricity, kerosene lamps were lit at his home between 7 pm and 9 pm. | | |But because Kalam studied until 11, his mother would save some for him for later use. | | |Dr. Kalam always said to students that to succeed in our mission, we must have | | |single-minded devotion toShow MoreRelatedPerson Who Has Inspired Me Most736 Words   |  3 Pagesand having others inspire you can only have positive effects. Its one of lifes win win things. By acting in ways that inspire others we ourselves benefit, as we are giving rather than receiving. Also, those we inspire benefit and hopefully go on to inspire others in turn. It can only be good thing for society as a whole when we are inspired by others and are ourselves an inspiration to ohers. So who has inspired me? Well, as a young person there were many people who inspired me. I didnt have aRead MorePersonal Statement : Inspiration And Motivation1459 Words   |  6 Pagesand etc. This inspirational process happens from the beginning and the all the way through until the group’s goal is achieved. There are many ways that people can inspire others. One of the ways that a person can be an inspiring leader is to be charismatic. Charisma meaning is the state of having compelling attractiveness that inspires others to devote themselves to work in a group. Some leaders possess a remark ­able talent that makes them pop out more than others. It causes others to be attractedRead MoreIdentify And Describe Characteristics Of Leaders That Inspire Me My Professional Life828 Words   |  4 PagesThis inventory tool will help me to identify and describe characteristics of leaders that inspire innovate me in my professional life. After I meet this lady my skills and inspiration of help people has growth a 100 % move, because now am clear of what do I want to continue doing for the rest of my life. I learned to be stronger and good decision that will help and demonstrate that our organization is there to help and stable family’s lives. This Director is one of the pioneers of homele ss shelterRead MoreWhat Is The Word Hero? Bravery?767 Words   |  4 Pagesthink of Harry Potter who saved the world seven different times. You may think of Superman, and how he defeats the villains. You may think of Malala Yousafzai, who put her life on the line for her education. You may think of your mom, who cares and supports you unconditionally. God may come to mind, who continues to show mercy and forgiveness every day. These are all perfect, stereotypical heroes. What about those who have impacted your life? Ordinary people, but people who have helped mold you intoRead MoreThe Leadership Styles On Display865 Words   |  4 Pagesworking with a boss whom I do not trust, I tend hold back on giving them my real opinions. I usually keep my commits, concerning day to day activities to myself. I m not sure if they will turn my commits or opinions around and try to use it against me in an evaluation. I also feel when your manager is not worthy of your trust, it creates a somewhat hostile working environment because you are always looking over my shoulder to see what they are observing. Another issue is not being able to go to themRead MorePersonal Vision Statement : My Vision1508 Words   |  7 Pageswill outline my personal vision statement. This vision and mission will help determine the steps I need to take now in order to become the type of leader that others will follow. Next, I discuss those internal and external obstacles which may prevent me from achieving my goals. Lastly, I will identify the steps I will take to overcome or mitigate those obstacles. In conclusion, by outlining my desired personal vision statement I hope to have a picture or image upon which I can reflect regularlyRead MoreEssay on The Teachings of Sri Guru Granth Sahib522 Words   |  3 Pagesfathe As a Sikh, I have read the teachings of the ten gurus, seen the peace that kirtan brings many, and seen how the many aspects of our religion inspires the sangat. All of these positive aspects come from one common source: Sri Guru Granth Sahib. This holy book is composed of the innumerous teachings of our Gurus and moves, appeals, and inspires me and other Sikhs. It was made to lead and guide the sangat for the holy spirit of God that was passed from Guru Nanak Dev Ji to Guru Gobind Singh JiRead MoreWhat Makes A Mentor?1240 Words   |  5 Pagesyou’re a teenager, you need someone to look up to, you need a mentor. You need an inspiration. This person can be anyone. It could be a teacher, a friend, a sibling, a parent, an aunt or uncle, a grandparent, anyone. For me, this person is my dance teacher Erica Ireland. Webster s Dictionary defines a mentor as â€Å"someone who teaches or gives help and advice to a less experienced and often younger person.† Erica fits into that definition. Not only is she my mentor, but she is also my inspiration. Webster’sRead MoreMy Father Essay909 Words   |  4 Pagesmy father, as he has helped me journey through my life till this day and will continue helping me in the n ear future. I think to a large extent that my father has lead me to become the person that I am today, and I believe that I would not be the same person without my father’s positive thoughts and influential words he has provided me during the tough times I have experienced. My father has impacted me in many ways, for example, the morals he lives by has impacted me to keep living by the same moralsRead MoreEmotional Intelligence : An Effective Leader1322 Words   |  6 Pages1. Leadership: the ability to inspire, influence, and motivate oneself and others interpersonally and energetically. Leaders inspire greatness within themselves and each person he/she engages – daily. Leadership is a way of life, a vector, a learned behavior to sharpen through challenges, opportunities, relationships, and experiences. Leadership is not a destination; it is a journey of self-mastery and self-actualization. The moment we stop learning, we have failed ourselves and those in our circl e

Dividend Policy Free Essays

Dividend Policy Vinod Kothari Corporations earn profits – they do not distribute all of it. Part of profit is ploughed back or held back as retained earnings. Part of the profit gets distributed to the shareholders. We will write a custom essay sample on Dividend Policy or any similar topic only for you Order Now The part that is distributed is the dividend. The ratio of the actual distribution or dividend, and the total distributable profits, is called dividend payout ratio. How much of its profits should a corporation distribute? There are several considerations that apply in answering this question. Hence, companies have to frame and work on a definitive policy of dividend payout ratio. Of course, no corporate management can afford to stick to a fixed dividend payout ratio year after year – neither is such fixity of dividend payout ratio required or expected. However, management has to broadly decide its policy on its broad attitude towards distribution – liberal dividend payout ratio, or conservative dividend payout ratio, etc. If one were to ask this question in context of debt sources of capital – for example, how much interest should a corporation pay to its bankers, the answer is straight forward. As interest paid is the cost of the borrowing, the lesser the interest a corporation pays, the better it is. Besides, companies do not have choice on paying of interest to lenders – as the rate of interest is contractually fixed. Rate of dividends may be fixed in case of preference shares too. However, in case of equity shares, there is no fixed rate of dividends. It cannot be said that the dividend paid is the cost of equity capital – if that was the case, corporations may try to minimize the dividend distribution. Hence, the following points emerge as regards the dividend distribution policy: †¢ The cost of equity is defined as the rate at which the corporation must earn on its equity to keep the market price of the equity shares constant. Let us further suppose that the market price of the shares is obtained by capitalizing the earnings of the corporation at a certain capitalization rate – the capitalization rate itself depending on the riskiness or beta of the industry. Suppose the corporation does not earn any profit. Shareholders were expecting a certain rate of return on their shareholding – hence, share prices will fall at the expected return on equity. On the other hand, if just the expected rate of return is earned by the corporation, the price of equity shares remains constant if the earnings are entirely distributed, and xactly grows by the expected rate of return if the earnings are entirely retained. The above discussion leads to the conclusion that the cost of equity is not the dividends but the return on equity – hence, a corporation cannot work on the objective of minimizing dividends. Equity shareholders are the owners of the corporation – hence, retained earnings ultimately belong to the shareholders. Supposing a company earns return on equity of 10%, and retains the whole of it, the retained earnings increase the net asset value (NAV) of the equity shares exactly at the rate of 10%. Assuming there are no other factors affecting the equity price of the company, the market price of †¢ †¢ †¢ †¢ †¢ †¢ the shares should exactly go up by 10% commensurate with the increase in the NAV of the shares. That is to say, shareholders gain by way of appreciation in market price to the extent of 10%. On the other hand, if the company distributes the entire earnings, shareholders earn a cash return of 10%, and there is no impact on the NAV of the shares, hence, the same should remain unchanged. Therefore, in both the cases, the shareholders earned a return of 10% – in the first case, by way of growth or capital appreciation, and in the second case, by way of income. In other words, merely because the corporation is not distributing profits does not mean it is depriving shareholders of the rate of return on equity. The above two points reflect the indifference, sometimes referred to as irrelevance of dividend policy (see Modigliani and Miller approach later in this Chapter) from the viewpoint of either the company or its shareholders. Supposing the corporation decides to retain the entire earning. Obviously, the corporation would earn on this retained profit at the applicable return on equity. Note that the return on equity is relevant, as retained earnings would be leveraged and would, therefore, benefit from the impact of leverage too. On the other hand, if the corporation were to distribute the entire profits, shareholders reinvest/consume the income so distributed at their own rate of return. Hence, it may be contended that whether the company retains or distributes the earnings depends on whose reinvestment rate is higher – that of the company or that of the shareholders? Quite clearly, the rate of reinvestment in the hands of the corporation is higher than that in the hands of the shareholders, (a) because of leverage which shareholders may not be able to garner; and (b) intuitively, that is the very reason for the shareholders to invest in the company in the first place. This argument generally favors retention of profits by the company rather than distribution. [As we discuss later, this argument is the basis of the Walter formula] As a counter argument to this, it is contended that shareholders do not need growth only – they need current income too. Many investors may sustain their livelihood on dividend earnings. Of what avail is the increase in market value of shares, if I need cash to spend for my expenses? However, in the age of demat securities and liquid stock markets, growth and income are almost equivalent. For example, if I am holding equity shares worth $ 100, which appreciate in value to $ 110 due to retention, I can dispose off 10/110% of my shareholding, earn cash equal to $ 10, and still be left with stock worth $ 100, which is exactly the same as earning cash dividend of $ 10 with no retention at all. While the above argument may point to indifference between growth and income, the reality of the marketplace is that investors do have varying preferences for growth and income. There are investors who are growth-inclined, and there are those who are income-inclined. Majority of retail investors insist on balance between growth and income, as they do not see an exact equivalence between appreciation in market value and current cashflows. Hence, the conclusion that emerges is that companies do have to strike a balance between shareholders’ need for current income, and growth opportunities by retained earnings. Hence, dividend policy still remains an important consideration. While making the above points, there are certain special points that affect particular situation that need to be borne in mind: †¢ Company’s reinvestment rate lower than that of shareholders: Sometimes, there are companies that do not have significant reinvestment opportunities. More precisely, we say the reinvestment rate of the company is lesser than the reinvestment rate of shareholders. In such cases, obviously, it is better to pay earnings out than to retain them. As the classic theories of impact of dividends on market value of a share (see Walter’s formula below) suggest, or what is anyway intuitively understandable, retention of earnings makes sense only where the reinvestment rate of the company is higher than that of shareholders. †¢ Tax disparities between current dividends and growth: In our discussion on indifference between current dividends and share price appreciation, we have assumed that taxes do not play a spoilsport. In fact, quite often, they do. For example, if a company distributes dividends, the same may be taxed (either as income in the hands of shareholders, or by way of tax on distribution – like dividend distribution tax in India). Alternatively, if the shareholders have a capital appreciation, which they encash by partial liquidation of holdings, shareholders have a capital gain. Taxability of a capital gain may not be the same as that of dividends. Hence, taxes may differentiate between current dividends and share price appreciation. Shares with fixed returns: Needless to say, there is no relevance of dividend policy where dividends are payable as per terms of issue – for example, in case of preference shares. †¢ Entities requiring minimum distribution: There might also be situations where entities are required to do a minimum distribution under regulations. For example, in case of real estate investment trusts, a certain minimum distribution is required to attain tax transparent status. There migh t be other regulations or regulatory motivations for companies to distribute their profits. These regulations may impact our discussion on relevance of dividend policy on price of equity shares. †¢ Unlisted companies: Finally, one must also note that discussion above on the parity between distributed earnings and retained earnings – the latter leading to market price appreciation – will have relevance only in case of listed firms. Technically speaking, in case of unlisted firms too, retained earnings belong to the shareholders, as shareholders after all are the owners of the residual wealth of the company. However, that residual ownership may be a myth as companies do not istribute assets except in event of winding, and winding up is a rarity. The discussion in this chapter on dividend policy, as far is relates to market price of equity shares, is keeping in mind listed firms. In case of unlisted firms, classical models such as Walter’s model or Gordon Growth model discussed below may hold relevance than market price-based models. From dividends to market value of equity: Dividend capitalisation approach: If, for a second, we were to ignore the stock market capitalisation of a company, what is the market value of an equity share? Say, we take the case of an unlisted company. We know from our discussion on present values that the value of any asset is the value of its cashflows. What is the cashflow a shareholder gets from his equity? As long as the company is not wound up, and the shareholder does not sell the stock, the only cashflow of the shareholder is the dividends he gets. It is easy to understand that if we are not envisaging either a sale of the shares or a liquidation of the company, then the stream of dividends may be assumed to continue in perpetuity. Hence, VE = ? ? (1 + K i =1 Di E )i (1) Where VE : Value of equity K E : Cost of equity Di : dividends in paid in year i Equation (1) is easy to understand. Shareholders continue to receive dividends year after year, and these dividends are discounted by the shareholders at the cost of equity, that is, the required return of the shareholders. If the stream of dividends is constant, then Equation (1) is actually a geometric progression. We can manipulate Equation (1) either to compute the price of equity, if the constant stream of dividends is known, or to compute the cost of equity, if the dividend rate and market price of the shares is known. Applying the geographical progression formula for adding up perpetual progressions, assuming constant dividends equal to D, Equation (1) above becomes: VE = = D (1 + K E ) ? (1 ? 1 ) 1+ KE (2) D KE Example: Supposing a company the nominal value equity were $ 100, and the dividends at the rate of 10 % were $ 10, if the cost of equity is 8%, then the market price of the shares will given by 10/8%, or $ 125. Incorporating growth in dividends: In our over-simplified example above, we have taken dividends to be constant. It would be unusual to expect that dividends will be constant, particularly where the company is not distributing all its earnings. That is to say, with the retained earnings, the company has increasing profits in successive years, and therefore, it continues to distribute more. If dividends grow at a certain compounded rate, say g, then, Equation (2) above becomes: VE = D (1 + g ) (1 + K E ) = ? (1 ? 1+ g ) 1+ KE (3) D (1 + g ) KE ? g Note that we have assumed here that even the first dividend will have grown at g rate, that is, the historical dividend has been D, but we are expecting the current year’s dividend to have increased at the constant rate. If we assume the current year’s dividend will not show the growth, and the growth will come from the forthcoming year, then we can remove (1+g) in the numerator above. The formula as it stands is also referred as Gordon’s dividend growth formula, discussed below. Example: Supposing a company the nominal value equity were $ 100, and the dividends at the rate of 10 % were historically $10. Going forward, we expect that the dividends will continue to grow at a rate of 5% per annum. If the cost of equity is 8%, what is the market value? We put the numbers in the formula and get a value of $350. Note that we can also test the valuation above on Excel. If we take sufficient number of dividends, say, 1000, successively growing at the rate of 5%, and we discount the entire stream at 8%, we will get the same value. Example: Supposing a company the nominal value equity were $ 100, and the dividends at the rate of 10 % were historically $10. Going forward, we expect that the dividends will continue to grow at a rate of 12% per annum. If the cost of equity is 8%, what is the market value? This is a case where the growth in dividends is higher than the discounting rate. The growth in dividends is a multiplier; the discounting rate is a divisor. If the multiplier is higher than the divisor, then the present value of each successive dividend will be higher than the previous one, and hence a perpetual series will have infinite value. There is yet another notable point – the growth rate g above may be also be visualised as the appreciation in the market value of the share. That is, shareholders are rewarded in form of current earnings as well as growth in the value of their investment. Dividend-based equity models: Walter Approach: The Walter formula belongs to James E Walter, and is based on a simple argument that where the reinvestment rate, that is, rate of return that the company may earn on retained earnings, is higher than cost of equity (which, as we have discussed before, the expected returns of the shareholders, or rate of return of the shareholders), then, it would be in the interest of the firm to retain the earnings. If the company’s reinvestment rate on retained earnings is the less than shareholders’ rate of return, the company should not retain earnings. If the two rates are the same, then the company should be indifferent between retaining and distributing. The Walter formula is based on a simple analysis that the market value of equity is the capitalisation of the current earnings and growth in price (g in our formula in equation 3 above). Hence, the basis of Walter formula is: VE = D +g KE (4) Here, the growth factor occurs because the rate of return on retention done by the company is higher than the cost of equity. That is to say, the company continues to earn at r rate of return on the retained earnings, and this is what causes growth g. Hence, g= r (E-D)/ K E Inserting equations (5) into (4), we have VE = (5) D KE + r (E – D)/K E KE (6) Where r = rate of return on retained earnings of the company E = earnings rate D = dividend rate Example: Supposing a company the nominal value equity is $ 100, and the dividends at the rate of 10 % are $10. Supposing the company earns at the rate of 12% , what is the market value of equity if the the cost of equity is 8%? The market value of the share comes to $ 162. 50. This is explainable easily. As the company is earning $12, and distributing $10, it retains $ 2 every year, on which it earns at 12%. The capitalised value of 0. 24 at 8% will be the expected growth. Therefore, the sustainable earnings of the shareholders will be $ 10 +3, which, when capitalised at 8%, produces the value $ 162. 50. Of course, the key learning from Walter’s approach is not what the market value of equity is, but how the market value of equity can be maximised by following a proper distribution policy. For instance, in the present case, it is not advisable for the company to distribute any dividend at all, as the company earns more than the shareholders’ opportunity rate. If the company was not to distribute anything, the market value of the share may increase to $ 225. Gordon growth model: Gordon’s growth model is simply Equation (3) above, that is, VE = D (1 + g ) KE ? g This is, as we have seen above, derived from perpetual sum of a geometric progression, under the assumption that the growth rate is less than the cost of equity. Modigliani and Miller approach: Franco Modigliani was awarded Nobel prize in 1985 and Merton Miller in 1990 (along with Markowitz and Sharpe). MM have theorised on the irrelevance of the capital structure, and a corollary, irrelevance of the dividend payout ratio to the value of the firm. Like several financial theories, MM hypothesis is based on the argument of efficient capital markets. In addition, we believe that a firm has two options: (a) It retains earnings and finances its new investment plans with such retained earnings; (b) It distributes dividends, and finances its new investment plans by issuing new shares. The intuitive background of the MM approach is extremely simple, and in fact, almost selfexplanatory. It is based on the following propositions: †¢ Why would a company retain earnings? Only tenable reason is that the company has investment opportunities. If the company does not retain earnings, where does it finance those investment opportunities from? We may assume a debt issuance, but then as MM otherwise propounded irrelevance of the capital structure, they see a parity between debt and equity, and hence, it does not make a difference whether the new investments are funded by equity or debt. So, let us assume that the new growth plans are funded by equity. Shareholders price the equity shares of the company to take into account the earnings and the retentions of the company. If the company distributes dividends, the shareholders take into account that fact in pricing of the shares; if the company does not distribute dividends, that is also reflected in the pricing of the shares. If dividends are distributed, the financing needs of the company will be funded by issuing new shares. The issue price of these shares will compensate for the fact that the dividends have been distributed. That is to say, the market price of the share will remain unaffected by whether the dividends have been distributed or not. †¢ †¢ Let us take a one year time horizon to understand the indifference argument of MM. We use the following new notations: Po P1 D1 n m I X : Price of the equity share at point 0 : Price of the equity share at point 1, that is, end of period 1 : Dividend per share being paid in period 1 : existing number of issued shares : new shares to be issued : Investment needs of the company in year 1 : Profits of the firm year in 1 The relation between the price at the beginning of the year (Po), and that at he end of the year (P1) is the simple question of discounted value at the shareholders’ expected rate of return (KE). Hence, Po = (P1 +D1) / (1+(KE) (7) Equation (7) is quite easy to understand. Shareholders have got a cash return equal to D1 at the end of Year 1, and the share is still worth P1. Hence, discounted at the cost of equity, the discounte d value is the price at the beginning of the period. Alternatively, it may also be stated that the P1 = (P0 )* (1+(KE) – D1 (8) That is to say, if the company declares dividends, the price the end of year 1 comes down to the effect of the distribution. Equation (7) can be manipulated. By multiplying both sides by n, and adding a self-cancelling number m, we may write (7) as follows: nPo = [(n+m)P1 -mP1 +nD1)]/(1+(KE) (9) Note that we have multiplied both sides by n, and the added number m along with m is cancelled by deducting the same outside the brackets. mP1 represents the new share capital raised by the company to finance its investment needs. How much share capital would the company need to raise? Given the investment needs I and the profits X, the new capital issued will be given by the following: mP1 = I – (X – nD1) (10) Again, this is not difficult to understand, as the total amount of profit of the company is X, and the total amount distributed as dividends is nD1. Hence, the company is left with a funding gap as shown by equation (10). If the value of mP1 is substituted in Equation (9), we have the following: nPo = [(n+m)P1 – {I – (X – nD1)}+nD1)]/(1+(KE) (11) As nD1 would cancel out, we will be left with the following: nPo = [(n+m)P1 – I + X] /(1+(KE) (12) Since nPo is total value of the stock at point 0, it is seen from Equation (12) that dividend is not a factor in that valuation at all. How to cite Dividend Policy, Essay examples

Business Culture and Craft Cell Phone Innovations

Question: Describe about the Business Culture and Craft for Cell Phone Innovations. Answer: Introduction According to Cipresso et al., (2012), the innovations of cell phones have leaded the world to new verge of development. Not only did it affect the daily lives of people, the introduction of mobiles has greatly impacted the business world as well. For this particular project the effects and growth of mobiles phones have been taken into consideration. Moreover, the info smartness of the people is also included in the report. Effect of Mobile Phones on the World Today`s mobile phones have greatly affected the lives and flow of work in the world. With a vast range of capabilities, humans and business in the nation have worked in collaboration with each other to be able to design the new generation of mobile phones (Zhou, 2013). The use of the innovative technology in Canada and the rest of the world have provided the people with the following effects: Communication Flow: Irrespective of large geographical differences, mobiles have let citizens stay in touch with each other. Business Growth: The continuous communication, information flow, banking, and development of new operations have enabled growth of companies. Daily Functions: Ranging from morning alarms to late night work schedules, mobile phones have gained a large scope in lives of human beings. An increase in functions, habits and responsibilities of the human lives have consequently increased dependency on the innovation (Agar, 2013). Figure: Effect of mobile phones (Source: Agar, 2013) Mobile Phones and Info Smart Growth Concerning Canada, the rapidly developing country has considered cell phones to be an important aspect in the enhancing the economy. Industries like education, hospitality, health and business are highly dependent on mobile phones for information supply. As stated by CITIES (2013), the active internet access in the devices have let people to know about activities and happening in any art of the world. it is with the help of mobile phones that the management in industries build up new plans and implement beneficial strategies. Furthermore, a rapid spread of highly valued data also educates people. With an active and smooth use of the technology, there has been advancement in smartness quotient as well (Cocchia, 2014). The easy to access news, entertainment, and application development have actively contributed towards enhancing info smartness among the nation. Figure: Info smart growth in the world (Source: Agar, 2013) Conclusion Reviewing the several roles of mobile phones on the human world it can be inferred that the technology has greatly increased scopes. An innovation of new applications and communal based approach has not leaded the business industry to a new verge of expansion but also increased information smart levels of the people. Analyzing the report it can be concluded that, mobile phones have greatly affected growth and have also efficiently contributed towards developmental processes. References Agar, J. (2013).Constant touch: A global history of the mobile phone. Icon Books Ltd. Cipresso, P., Serino, S., Villani, D., Repetto, C., Sellitti, L., Albani, G., ... Riva, G. (2012). Is your phone so smart to affect your state? An exploratory study based on psychophysiological measures.Neurocomputing,84, 23-30. CITIES, S. (2013). Trace analysis and mining for smart cities: issues, methods, and applications.IEEE Communications Magazine,121. Cocchia, A. (2014). Smart and digital city: a systematic literature review. InSmart city(pp. 13-43). Springer International Publishing. Zhou, T. (2013). An empirical examination of continuance intention of mobile payment services.Decision Support Systems,54(2), 1085-1091.