Debt Financing Essay Example | Topics and Well Written Essays - 2500 words

Debt Financing - Essay Example The debt finance concept and its relevance will be explained in detail to understand its importance and develop the knowledge. Along with this, the cost of agency will be focused with the conflicts that rise during the structuring of debt finance. Subsequently, the benefits of debt financing over the agency conflicts will be discussed to know its relevance in financing in recent times. There are several arguments related to the firms’ debt financing that reflects whether the capital market is imperfect or not. There are other factors within the firms such as managers try to avoid high debt ratios to safeguard their interests in the firm (Myers, 1976). Every firm needs to borrow money for the business in short or long run and there are options such as equity, debt and others. It is important for the firms to decide the structure of finance that provides benefit. Conceptual Relevance Debt Financing Debt financing is one of the strategies which the firms employ for borrowing from the investors or lenders with a contract that the repayment will be made within a stipulated time period with certain interest (Reference for Business, 2011). The firms borrow money for raising funds for working capital or for the motive of capital expenditure through the financial instrument such as selling bonds, notes bills and others to institutional and individual investors and lenders. The institutional and individual investors and lenders become the creditors of the firms and promise that the amount and interest on the debt will be paid by the firms within the specified future date (Investopedia, 2011). The payment of debts and dividend are different. The interest and the principal amount/payments upon the debts are firm’s obligations, whereas the dividend payments are not obligations for the firms. The shareholders of the firms are not entitled legally for the dividends but the bondholders, bill holders and other financial debt instrument holders are entitled legally for the principal and interest amount from the firms (Lecture 3). According to the trade-off model the firms should issue debts as long as the marginal benefit is greater than the marginal cost. In the general financing structuring of the firms the high-tax rate firms should apply more debt than low-tax rate firms (Graham, 2008). Relationship among bankruptcy costs, agency costs and taxes is illustrated below: Source: (Pearson Education, 2004). Through the debt financing, the principal and interest that are paid are treated as expenses and thus get deducted from the business income taxes in certain cases. This allows reducing the cost through the debt financing option. Cost of Agency The agency cost is an increase of cost of debt. This happens when there are conflicts between the management and shareholders. Due to the increase in the agency-cost problems, the bondholders and other financial debt instrument holders impose certain restrictions on the firms through bond indentures. T he investors and lenders of the debt financing are aware of the fact that management is controlling their money and there are high probabilities of ‘principal-agent’ problems in the firms. Due to these two reasons the debt holders put certain restrictions or financial constrains upon the use of their money (Investopedia, 20

Meteorological Satellites Systems Essay Example | Topics and Well Written Essays - 2750 words

Meteorological Satellites Systems - Essay Example These characteristics formed the basis on which most of the theoreticians worked on to provide information about the atmosphere. However, these characteristics ware not enough to provide more precise information about the atmosphere yet such information was of great significance in predicting meteorological parameters and conditions. The introduction of computers and mathematical models resulted in an increased demand for observational data that was adequately sampled and reliable both in time and space. This was due to the fact that the atmosphere forecast models depended strongly on the initial atmosphere state that had been reached at through assumptions. Better data was needed as even after this initial information, there were still many areas that were left without atmospheric soundings that were conventional. Before the discovery of weather satellites, the weathermen work was almost impossible as they were handicapped with very limited information before them about the atmosphe res state at any time (Kidder and VonderHarr, 1995). Even after the world war period when observational networks were expanded by most of the meteorological services from different nations, the global vast land areas that were sparsely populated as well as the large areas covered by oceans remained virtually blank with regards to conventional meteorological observations. The introduction of metrological satellites was a major step towards overcoming all these deficiencies. Satellite imagery has since its discovery proved to be a vital information source in forecasting operations. The images serve various important functions in the metrological field including; a tool used for analysis mostly when dealing with data from the tropics, a vital aid during forecast conducted in short periods before rainfall, cloud, and floods, serves as an input to weather prediction  models mostly dealing with numbers so as to define initial conditions, and used to monitor forecast models.

Balance Essay Example | Topics and Well Written Essays - 750 words - 2

Balance - Essay Example For instance, it received wide recognition and application in Europe in the 1960s (Landa 84). This was nearly 60 years after the graphic design profession had been established. Despite receiving different reception in different eras globally, graphic design has become a universal communication and problem solving platform using visual space and images. The difference between art and design is that art strives to elucidate various ideas about the human condition whereas designed seeks to communicate information in the most effective manner (Mullet and Sano 9). Visual design and communication usually employ images and space that sometimes only have national understanding and appreciation while others often have international or global appreciation and effect. Therefore, this essay aims at analyzing how different graphic designs and graphic designers have managed to create balance in the visual communication aspects. The essay also seeks to reveal various areas and examples where numerical balance is represented all around the world as well as different forms of numerical representations. There are five principles of design namely rhythm, proportion, dominance, unity and most importantly, balance. Balance refers to the manner in which the design elements in a composition are arranged and how they relate to each other to depict the overall composition. Balance can be defined as a condition in which various elements are equivalent and similar or are in the correct proportions. Various elements in a composition have different weights because of differences in color, shape, size and positioning. If the composition is poorly balanced, the entire composition fails to appeal to the eyes of potential viewers. However, a graphic designer needs to ensure all aspects of the design elements are well positioned, and well aligned to create a successful design. Balance can either be symmetrical or asymmetrical. Generally, symmetrical balance refers to a scenarios in which

Critically analyse the role of public service broadcasting in Essay

Critically analyse the role of public service broadcasting in maintaining democracy in one nation-state with which you are familiar. (Best the UK) - Essay Example Most of the public radio and TV stations in the US for instance are licensed as non-commercial broadcasters, although they have some undertones of commercial advertising. This is contrary to the situation in other countries where public broadcasters can transmit commercials unabated (Blumler, 1992) The UK Broadcasting Research Unit in 1985 (quoted in Negrine, 2002) outlined the conditions that have to be fulfilled by public service broadcasting. Firstly, public service broadcasting should have a universal geographical presence accessible to all without any discrimination. Negrine (2002) argues that this is only attainable by setting up member stations across the country or having the broadcaster use sufficient transmitters capable of nationwide broadcasting. Similarly, public service broadcasting should cater for all interests and tastes as is the case of BBC, putting into considerations the plight of minority groups, Negrine further notes that public service broadcasting should demonstrate national identity and community meaning by airing local programmes from within the country other than importing shows from abroad. There is a strong tradition of public service broadcasting in United Kingdom. Study findings indicate that the British Broadcasting Corporation (BBC) was established in 1922 as cited in (Harrison & Woods, 2001). In addition to BBC, Harrison & Woods further note that there are other four more registered channels in the UK namely Channel 4 which is a state-owned commercial public service broadcaster, a Welsh language broadcaster in Wales named S4C and two other commercial analogue broadcasters, ITV and Five which have significant public service obligations that are imposed as part of their licence to broadcast. All the four television broadcasters in UK provide five nationwide analogue terrestrial television channels. Moreover, it is cited that there are two TV channels operated by BBC namely BBC 1 and BBC 2. Further

Dreyfus and Kelly's Take on Nihilism Essay Example | Topics and Well Written Essays - 750 words

Dreyfus and Kelly's Take on Nihilism - Essay Example However, this is not the case. Ultimately, what a nihilist believes and understands is the fact that no truth, reality, morality, or levels of any measurable norms can be inferred. As such, the nihilist is led to the understanding that the negation of objective meaning, purpose, or some type of value, is part and parcel of the worldview that such a philosophy espouses. In effect, the reader should come to the understanding that an individual that believed in nihilism would quickly denote that no objective reason or rational exists for any action or consequence; rather, the nihilistic approach would conclude that no moral good or objectivity can be derived from any situation – creating a litany of possible scenarios and outcomes. This can of course be denoted with regards to the means through which well-known philosophers such as Frederick Nietzsche, Soren Kierkegaard, Martin Heidegger, and a litany of others integrated with such an understanding of nihilism and the approach th at it portends. Naturally, one of the most famous of all of these philosophers that have thus far been discussed is Frederick Nietzsche. Although it was not Nietzsche that came up with the construct and philosophical approach of nihilism, is perhaps most famous for championing it in the face of considerable opposition and a climate of incredulity during his own era. The ultimate view of Dreyfus and Kelly revolves around an understanding that although Nihilism represents a unique and fascinating chapter of the philosophical development of modern mankind, it is somehow no longer applicable to the current universalism and broadly accepted mores and norms of our time. As compared to Wallace and Gilbert’s suggestions for coping with nihilist worries, the authors take a similar tact and promote an understanding that even though certain aspects of nihilist philosophy can be accepted, the more stringent aspects of it must be denied out of hand. Ultimately, it is the view of this auth or that the dismissive nature through which the authors integrate with nihilism neither does it service nor seeks to address the underlying root core for why an individual might be attracted to such a philosophical integration. In short, the reason for why the authors approach falls short is due to the fact that nihilism in and of itself seeks to address the failures of traditional philosophy and philosophical thought; something that the authors of the text fare no better at explaining. The nihilistic problem, as defined by Sean Kelly, is with regards to whether or not nihilism is in fact an emotional state of being or a philosophical framework of understanding. The differential that was not understood during the time in which nihilism was most employed, written about, and argued, is essential in seeking to define what level of integration nihilism deserves within the current era. Ultimately, Sean Kelly denotes that nihilism is in fact an emotional state of being a philosophical fra mework (Dreyfus & Kelly 250). Although this point as well argued, it is the view of this author that it is ultimately incapable of describing the complexity of the dynamics of philosophy

To what extent can growing poverty be blamed on the advance of Essay

To what extent can growing poverty be blamed on the advance of globalization - Essay Example Globalisation is defined by Pugel (2004:5) as the â€Å"process of an increased relationship between national economies through international trade, foreign direct investments by multinational firms, and international financial investments†. Increased inter-nation trade results in the increased need for the redistribution of pricing and goods in a way that will ensure market place equilibrium is arrived at. As a result, nations may undergo periods of unemployment, reduced prices of their nations’ natural resources, as well as poor standards of life. On the other hand, Pugel (2004) argues that some countries undergo periods of inflation, increased employment demand, as well as increased living standards; thus there will be both gains and losses as a result of wealth redistribution. In order to establish comparisons between poor and rich nations, definition and measurement of inequality is vital. Once determined, it is possible to evaluate and measure the effects of globa lisation on the nation’s status. According to Birdsall (2002), inequality is the disparity of people’s living standards and their income in different countries. In addition, the World Bank categorises those in developing nations living under a dollar per day and those in medium economies living under two dollars a day as poor (Eswar, Rajan and Arvind, 2007). In contrast, the trio posits that a person in the more developed economies of the US, Japan, and Europe trying to live on under a thousand dollars is relatively poor as the cost of life is these economies is far greater than this amount. There is a rising increase in the income gap between the rich and the poor with many regions worldwide recording figures of 25% or more people living on less than a dollar a day (Ikubolajeh, 2002). According to Pranab (2007), poor people with less income have limited and or less access to the global wealth. A 2003 research revealed that the richest fifth of the global population ga rnered 85% of the globe’s income whereas the poorest fifth managed only 1.4% of the globe’s income (Eswar, Rajan and Arvind, 2007). Comparing the GDP between poorest and richest nations across the globe over the past century results in a constantly increasing and or widening income gap; an indicator that the gap of income has augmented and has continued with the same trend. Apart from income, the standards of living can also be used to measure a country’s level of poverty. Sri Lanka shares impressive social indicators as those of developed nations, for instance, life expectancy, literacy rates, mortality rates and population growth rate in the country is same as that of developed nations. Despite this, the country has a low income. Poverty of a country can be measured by fourteen major indicators that have been further subdivided into four sections namely infrastructure for development, growth and poverty reduction, human development, and governance and investme nt climate (Pugel, 2004). A number of factors can be used to drive economic growth and development, for instance increased educational standards and economic policies such as openness to international trade. Inequality exists in terms of living conditions and standards of livin

Death and the Afterlife of Christianity and Buddhism Essay

Death and the Afterlife of Christianity and Buddhism - Essay Example When an individual dies, they are allowed another chance in a different life form to do well. This sequence continues from good to worse life forms. They believe that when an individual dies, they can be reincarnated in animals, spirits and even human life forms. This is totally different from Christians who believe that individuals are allowed only one chance. If they lead a righteous life they head to heaven where there is eternal happiness, if they do not, they head t hell where there is total suffering. This essay seeks to discuss the similarities and differences in the Christian and Buddhist beliefs about death and afterlife. This is on my background of Christianity as my main religion and the Buddhist influence from my grandparents. In Christianity, physical death is seen as an event which can be escaped through having life after death. The Christian traditions are set on the basis that when one leads a righteous life on Christ, they get a chance to have another life after deat h. Having a strong relationship with god is the only way out for any Christian seeking to have eternal life. In Christianity, therefore, physical death is depicted as a mere separation of one’s soul from the physical body. The christen bible stipulates that the dust returns where it came from, and the soul goes where it came from. ... They believe that one’s inequities make the relationship with God not clear hence they sufferer spiritual death. It is in line with this that Christians believe that when one becomes spiritually dead, they have no chance of entering the Kingdom of God. The sinners have no place in heaven, and when they die both physically and spiritually they do not ascend to heaven. Heaven is seen as a place where there is joy, happiness and eternal enjoyment. This is where the Christians who spent their lives in a rightful manner in earth get to enjoy the fruits of their labor. This means that, in their afterlife, only the righteous will experience joy and happiness. For those that do not lead righteous lives spiritually and physically will head to hell where there is eternal suffering. It is in this respect that Christians are in constant search for spiritual nourishment to get to heaven. They also lead their lives according to the way of God. They spent their lives righteously knowing that in the afterlife they would have eternal happiness and joy in paradise. In daily life of a Christian, it is appropriate to live rightfully and forgo the worldly pleasures (Duncan 25). The belief in the afterlife influences numerous activities that Christian engage in. the Christian traditions are dedicated to seeking high spiritual levels and beliefs in the commandments of God. Many people live their daily lives in the expectations of having a better life in the afterlife. The Christian scriptures attest that there is life after death through the story of Jesus Christ. Jesus did not only resurrect from death physically but also spiritually. Christians base their belief on this story since it is true evidence that there is life after death. The biblical texts record of joy and happiness to