A Cristmas Carrol Essay

After visiting the Cornish tin mines in 1842 Charles Dickens wrote ‘A Christmas Carol’ during the industrial revolution. The industrial revolution made a big change in people’s life because this was the introduction into machines in the workplace. In the Victorian times there were lots of poor and rich people, but the rich didn’t talk to the poor and saw them as worthless slaves and did not talk to them. ‘A Christmas Carol was aimed to teach the rich in 1842 a lesson ‘people are more important than money. ‘ Dickens knew what it was like to be poor as he lived in poverty as a child. In ‘A Christmas Carol’ the main character is Ebenezer scrooge, he is the meanest, most self-centred man in London, dickens describes his personality â€Å"The cold within him froze his old features, nipped his pointed nose, made his eyes red, his thin lips blue† this gives the impression that scrooge has no warmth and will always be lonely. The key words that show this are â€Å"The cold within him. † This makes the reader feel scrooge is old, frozen and has no love at all. Dickens wanted scrooge to represent the worst of the rich in 1842, he wanted to change there ways. Scrooges looks reflect his personality, scrooge is unfriendly to everyone even his family and employees like his book-keeper Bob Cratchit. The way scrooge lives also reflects his personality Dickens shows this by using personification â€Å"They were a gloomy suite of rooms, in a lowering pile of building up a yard, where it had so little business to be, that one could scarcely help fancying it must have run there when it was a young house, playing at hide-and-seek with other houses, and forgotten the way out again. † This reflects the opposite of scrooge’s childhood and is stuck just like scrooge. The key words that show this are ‘forgotten the way out again’ this makes the reader feel that scrooge is lost and so is the house. The people in dickens time were very religious, they believed in heaven and hell, angles and ghosts. This would have shocked them. The ghost of scrooges old work partner Jacob Marly visits scrooge to warn him that he with have three spirits visit him. Scrooge is visited by the three ghosts of Christmas. The ghost of Christmas past, present and yet to come. The ghost of Christmas past visits scrooge first and shows him shadows of his childhood. Scrooge loves money more than people, he lost his girlfriend because of this â€Å"He carried his own low temperature always about with him; he iced his office in the dog days† this shows that scrooge wants to be isolated. The keywords that show this are â€Å"He carried his own low temperature always about with him† this makes the reader feel sorry for scrooge but also that he pushed her away and now he regrets it. Dickens wanted the reader to learn about childhood in the Victorian times and how the rich always seamed to look down on them.

College Is It Worth It Essay

Right now in our society university education is no longer an option or privilege, but rather a necessity. We are practically raised and conditioned to believe that one needs higher education in order to succeed in life. There is a saying that says â€Å"if you think education is expensive, try ignorance. † But as technology is constantly advancing and computers are running almost anything, is a college education really necessary? There are people who have never set foot in a college and are doing better than people who have their master’s degree. There are views from both sides that contain a valid argument. The main reason why people go to college is not because they want to but because they have to. Most 11th and 12th graders are pressured by their parents to go to college because it is â€Å"the right thing to do. â€Å"† In the essay that Caroline Bird wrote â€Å"College is a Waste of Time and Money†, she states that students go to college because † . . . Mother wanted them to go, or some other reason entirely irrelevant to the course of studies for which college is supposedly organized. † The student may have different ideas about what he or she wants to do in life, but because they think that their parents know what is best for them, they probably end up doing something they do not want to do, resulting in being miserable and resentful. Let’s face it, going to college is socially prestigious. Most people go to college only for the title of being called a college student. For some young people, it is a graceful way to get away from home and become independent without losing the financial support of their parents. They do not want to be looked down upon so they do what would look â€Å"best in the eyes of society†. It is practically beat into our heads that in order to be a respectable citizen of society, you should have some sort of university education. Being a college student is perhaps a more respectable role than being, for example, a clerk or a garbage man because of the negative connotations such jobs receive. Going to college and getting a degree does not necessarily guarantee that an individual is going to get a job right after graduation. It is hard out there for recent graduates to find a good job since there is so much competition due to the insanely increasing numbers of our population and a wildrace for the lions share in every field. Even if they do get a job, it is usually not in what they got their degree for. Many college students would feel that college is a waste of money because they do not learn what they want to. Instead they have to take classes that have close to nothing to do with their major but are only taking these classes in order to fulfill a general educational requirement. Upon graduation, some feel that they are at a disadvantage because more time could have been spent on learning more within their field of study and less on irrelevant materials. Now for the pros of having a professional college education. The major reason of going to college is, of course, to get a good job. College prepares us with academic knowledge in order to succeed in the future. According to Ernest Boyner higher education is essential for preparation for one’s future. He states that: In spatial terms, teaching and learning may begin in a classroom, but course work also spills over into the life of the campus and the community. Students engage in experimential learning and co-curricular activities that take abstract ideas and anchor them in real-life problems. As the competition to get a decent job is increasing, it is close to impossible to obtain a high paying job without at least a bachelor’s degree. Many jobs that only used to want their workers to have a high school diploma now require some college education due to their extremely complicated nature. Another way college is worth the money, however, is because it is one of the few institutions that often contains people of different ethnic and racial backgrounds. Such a situation allows one to develop their social and communicative skills because they are exposed to unfamiliar cultures. This is necessary for the fact that a person does not want to come across as ignorant towards a certain culture. This only, however, comes in handy when you are being educated abroad. College is like a stepping stone to becoming a responsible adult because for the first time most people are practically on their own (that would definitely include me). It is completely different from high school in that not only that school has to be dealt with, but you have to juggle your personal time and financial state as well. They go away to college and face circumstances that they would most likely come across when they finally do go on their own. Bills have to be paid, time has to be managed efficiently, and deadlines have to be met, just like in the â€Å"real world. † College is not only about getting a good job ‘but about acquiring knowledge and broadening one’s horizon. A lot of courses that are at school are not needed for a certain major but are just there for interested people who want to learn more about a certain subject. Bowen explains this by breaking it down into three aspects: †¦ the specific goals for the education function are derived. This function†¦ is intended to help students develop as persons in three respects: cognitive learning, by expanding their knowledge and intellectual powers; affective development, by enhancing their moral, religious, and emotional interests and sensibilities; and practical competence, by improving their performance in citizenship, work, family life, consumer choice, health, and other practical affairs. It is sometimes just as good to be an intelligent person and know about a lot of things instead of being someone who makes a lot of money. My admission into an arts college after a lifetime of struggle of being an a-grade science student, had led me to seriously consider the complexity of this topic and what i have learned is that college definitely has its pros and cons. But I think that college is what you make of it. It can be the best time of your life, but only if you want it to. You can take the pessimistic view about it and think that college is a waste of money, or it can be looked at as a challenging and exciting new frontier that basically will set the precedent for the rest of your life. No matter what i learn in this environment that has been setup on an organised platform to produce strong and self assured individuls that will help make this deteriorating world a better place to live in ,even if we do’nt do it conciously, what I know for sure is that the education I recieve in this college will always be of invaluable worth once i step out in the ruthless fish-eat-fish world.

Eassay Essay Example | Topics and Well Written Essays - 750 words

Eassay - Essay Example Thus, operating with autonomy and using generic information handling as well as logging systems familiarizes one with ECC roles. In relation to the information provided above, ECC is defined as a physical location associated with coordination of information as well as resources with the goal of supporting incident management activities. From this definition, one can deduce that ECC need to be located in appropriate location in addition to being organized into key functional disciplines. For the members to make right decisions therefore, they need to be informed about each discipline of ECC. A wide scope of knowledge makes the ECC members confident of the decisions they make regarding any emergency incident. In tandem with this assertion, all personnel of ECC need to undergo training in order to increase their ability in performing critical tasks as well as making critical decisions. The design of ECC plays a significant role in defining its role in the management of emergency incidents. The ECC staff needs to be knowledgeable in addition to having skills for performing the assigned tasks. Essential functions of ECC need to be identified in order to come up with specific arrangements for performing a specific function. Identification of a specific function also reduces cases of confusion in ECC operations. Additionally, delegations of authority need to be made in order to handle an emergency. In relation to this assertion, ECC operations need to be carried out within a given timeframe through the aid of a clear chain of command. Thus, coming up with a specific design of ECC in addition to allocating timeframe for essential functions of ECC will make the members of ECC make the right decisions at the right time. Additionally, the selection of essential functions will increase the members’ confidence in handling specific emergency incidents. Location of ECC in a given areas requires the

Assignment 1 (Mineral Resource Rent Tax (MRRT) Case Study

Assignment 1 (Mineral Resource Rent Tax (MRRT) - Case Study Example Introduction of RSPT would lead to reduction in the income tax but it was expected that such would not lead to the reduction in revenue, since the decrease in tax would encourage companies to undertake more projects which would lead to rise in the revenue. This increase in revenue would be utilized by the government of Australia for bringing about infrastructure development in the country. The Australian Government decided to provide the resource entities with a refundable credit for the royalties paid by them in the previous years, so that the mining companies receive an extra relaxation on their taxation policies and they are encouraged towards revenue generation. Introduction The Australian Government accepted the proposal of the Australia’s Future Tax System Review to introduce a tax charge on the resource rents and the super profits earned by the mining companies from the exploitation of the non-renewable resources of Australia. This new tax policy will be known as Resour ce Super Profits Tax (RSPT). The RSPT would provide the community of Australia with a share of income that will be derived from the extraction and sale of non-renewable resources of Australia in countries all over the world. ... The RSPT was replaced by the Minerals Resource Rent Tax (MRRT) in late June 2010 because of a resulting controversy in terms of RSPT. The objective of the government in the implementation of the MRRT policy was same as that of the RSPT, along with an additional objective to overcome the controversies and adverse affect faced on the implementation of the RSPT. The area of consideration of the MRRT was limited than the RSPT, which increased its relevance and brought efficiency. The MRRT policies received support from mining unions such as Forestry, Energy Union, Construction and Mining, Australian Greens, and from the Australian Council of trade Unions. The new policy led to the reduction in tax for the mining companies, thus fulfilling one of the objectives with which the policy was introduced. Answer 1. The main features of Resources Super Profit Tax are- The nominal tax rate of 40% on assessable resource profits is applicable. The tax is to be imposed on revenue earned after deducti ng the allowance for capital expenditure. The tax is to be imposed on profits above the normal rate of return, which is determined to be 6%, being the risk-free long term bond rate. To compensate for the higher risk that is involved in the mining ventures, losses on abandoned projects were to be refunded at the mirror rate of 40% of the loss suffered (Kreiser, et al., p.227). Features of Minerals resource rent tax (MRRT) are- The proposed MRRT will apply to the coal and iron ore projects in Australia from 1st July, 2012 at 30% rate. The projects will be entitled to an extraction allowance of 25% which shall reduce the taxable profits subject to the MRRT. MRRT liability will not apply to

Kangxi-Emperor and the Taiping Rebellion Essay Example | Topics and Well Written Essays - 500 words

Kangxi-Emperor and the Taiping Rebellion - Essay Example Kangxi was one of the best Emperors in those times because he never mobilized people into fighting. He gave out rules that were friendly to people and rules that would easily be followed without questions. Being a man with a Family, farming would be an important thing so as to provide food for the family, Kangxi told people to respect farming so as to have adequate food and clothing. He encouraged people to love schools and academics as that was one way of gaining knowledge and honoring the scholar. Hong Xiuquan after failing his second exam attempt, he gave up and continued to protestant missionaries. He never encouraged people to love education or anything related to it (Foster 158). Being a family man and living during the Hong Xiuquan times, it would be hard to encourage a person’s children into a school considering the War that was everywhere. The Army, which anyone would expect to bring peace, was the leader in destroying the Cities. The Taiping beliefs followed the Ten Commandments similar as the ones found in the bible but they separated men and women from living together. Women were given more power and even married couples lived in quarters segregated by sex. Following the Commandments was a better idea with the Taiping rules but separating married couples was not a good idea. People who are married are supposed to live happily together but the Taiping rules would never allow that (Foster 160). The Taiping rules were things that you should never do but there were no things to be done.

TMA 02 Essay Example | Topics and Well Written Essays - 1500 words

TMA 02 - Essay Example The Parliament is the supreme legislative body, hence, it can enact any law it chooses; and its enactments are absolutely binding on all. Because of this supremacy, Parliament can delegate legislative power to subordinates and the delegated or subordinate legislation laid down by such persons is also binding on the courts. Because it is sovereign, Parliament can delegate some of its legislative powers (by parent or enabling’ legislation) to Ministers of the Crown, local councils, etc. For example, the Secretary of State for Trade possesses delegated power to regulate the licensing of those involved in the consumer credit industry under the Consumer Credit Act 1974. Delegated or subordinate legislation has become increasingly important in recent years as a source of new law because of lack of Parliamentary time, technicality, urgency and elasticity. The types of delegated legislation include orders in Council, statutory instruments (affirmative and negative procedure), and by-laws of local authorities. While these are the principal sources, to elucidate a difficult point, writings of jurists are resorted to. Since 1972, laws made by the European Communities may be applicable in the UK pursuant to the European Communities Act 1972, ss. 2 and 3. Such laws may take the form of Regulations and Directives from the European Commission and Council of Ministers and decisions of the European Court of Justice, which UK courts are bound to take notice of. As a member state of the European Community, the UK has to a very limited extent subordinated its legal system to that of the EC. Nevertheless, EC law is undoubtedly a source of English law. This is particularly true of directly applicable EC law, such as Article 119 of the Treaty of Rome, which provides for equal pay for work of equal value, irrespective of sex. In a series of cases, this principle has been held to apply to the UK. Courts have been careful to construe this principle as existing over British

Thurgood Marshall Research Paper Example | Topics and Well Written Essays - 1750 words

Thurgood Marshall - Research Paper Example Thurgood’s mother, Norma Arica Marshall was a schoolteacher and also the first black woman to graduate from the Colombia Teacher’s College, New York. At the early age of six, he started his schooling in the Douglas High School. He was always known as a B grade average student in his entire school life. In the year 1925, he went to Lincoln University in Pennsylvania. Thurgood received his law education from the Howard University Law School in Washington D.C. (Pena, â€Å"Thurgood Marshall†). It was also said that by the age of 16, Thurgood had memorized most of the Constitutions of the US, which signified his potentialities to become an influential Justice of the US Supreme Court (United States Postal Service, â€Å"Thurgood Marshall†). THESIS STATEMENT The thesis intends to present a biographic study of the early life, initial career and later professional life of Thurgood, the first African-American Justice of the US Supreme Court. The focus of the thesis also emphasizes the contributions of the Justice in the formation of the Civil Rights as included in the US Constitution and his entire journey throughout. To be precise, a detailed study of his life including his family background and his beginning of the career as a judge has been covered in the thesis. NOMINATION OF THE JUSTICE OF THE SUPREME COURT Initially, after the completion of his studies in the Howard University Law School, he became the Chief Counsel of the National Association for the Advancement of Colored People (NAACP). Later, in 1954, he was appointed in the US Court of Appeals for the Second Circuit by John F. Kennedy. Also in the year 1965, he was engaged in the Office of the US Solicitor General being elected by the President Lyndon Johnson. It is worth mentioning in this context that Thurgood Marshall had already won 14 cases out of 19 on behalf of the government in the Supreme Court, before his nomination in the Supreme Court in the year 1967 (Friedman 1-4). It was President Lyndon Johnson who had nominated Thurgood for the designation of Justice in the US Supreme Court. Thurgood was nominated to succeed Associate Justice Tom C. Clark after his retirement. He was appointed to the US Court of Appeals in the early 1961, but due to many controversies raised the Southern senators, his nomination to the Supreme Court judge was not confirmed. The controversial issues were majorly reported as related to racial inequality, wherein the debate involved the whites, commonly as opposers to the nomination of Thurgood and the non-whites, as defenders. Finally in the month of July 1967, Thurgood was again nominated for the Supreme Court. Thurgood was confirmed with 69 votes in his favor on August 30th in the year 1967. After two days of the event, Thurgood Marshall was handed over with the position by Chief Justice Earl Warren and thus, became the first African American judge of the Supreme Court (A&E Television Networks, â€Å"Thurgood Marshall appoin ted to Supreme Court†). President Johnson had once stated that Thurgood had already acquired his significant position in the history of the US and the country will be blessed by his services in the court, which after his 10th death anniversary also remains an undisputable truth. After his confirmation as a Justice in the US Supreme Court, he became one of the major supporters to the legitimate rights of labor, development of women in every dimension and racial

Case Study for Twitter Example | Topics and Well Written Essays - 2000 words

For Twitter - Case Study Example ts history, the need to develop and come up with sophisticated products that meet the demand of the clients has been a major challenge owing to complications in technology. Operating under technological platforms, Twitter as an organization has had to exploit various technological niches that could improve the services it provides for its customers. It is obvious that technology keeps on changing and advancing such that what was the norm yesterday is consistently modified to suit the current market needs. The same way, Twitter has struggled to keep up with these changes that ensure relevance in the industry. Among the many units affected by this in the organization is the human resource. The pace at which Twitter is taking to integrate itself into the updated technological world is raising eyebrows. With its vast resources, it is expected that it would be fast transforming itself day by day into a more sophisticated social network platform. This is not really the case from the scrutiny of its developmental milestone. Although it can be argued that in just a decade Twitter has achieved more than many social rival networks, this is still below what it could have maximally achieved. There is a great deal that could have been done (or could still be done) if technology is fully embraced and exploited. Evidently, Twitter has struggled to even reach where it is today. This is shown by the company’s failure to record desirable financial results over the years despite some upgrades (Porter, 2008. p.133-135). The human resource has to either be retrained or constantly updated on the trending technological systems especially in an organization that solely depends on technological efficiencies to deliver to its customers. Sending messages via Twitter, the follow feature as well as tweet and retweet among others are all technology-dependent processes that have to be continuously upgraded in regards to their efficiency and practicality in order for the company to generate

Information System Analysis of Developing Parking Systems Assignment

Information System Analysis of Developing Parking Systems - Assignment Example This paper illustrates that management information has been used to improve parking systems in most many corporations. The principles of Management Information Systems in relation to car parking is to develop efficient car park systems. There is a current parking problem at MUN and it is affecting the operations of the organization. The parking spaces are assigned to specific individuals and they cannot be used by any other individuals. Furthermore, if the individuals are not available his or her parking slot cannot be accessed. The organization is looking for an intelligent parking system that will be used to address the current parking crisis. Management will help develop a method to improve transportation in the enterprise. On the other hand, intelligent car parking has been successfully used to reduce congestion near car parking areas. The parking area will help students and staff members at MUN. It will increase the range of parking convenience and vehicle security in the instit ution. The individuals at the faculty will be able to share their parking in the institution. This will allow them to take advantage of the different peak periods. Students will be able to park once and do their activities efficiently. The parking area will control by a barrier at both the entrance and the exit. The barriers will have CCTVs installed on them that capture the occupants of the vehicle. Vehicles will be issued with parking tickets that allow shows the time of entrance. Individuals will use the ticket to pay for the parking online or manually. Wireless sensor networks are used globally to collect and monitor information for the purpose of decision making. They can be used in different environments to monitor information for car parking. The sensors are low cost and are deployed in a car park field whereby each parking lot has a sensor node. The sensor node monitors the activities of the car park slot and sends a message to a database. The database is accessible by the u pper layer management system that analyzes the information.

Thesis on Classroom Management Essay Example for Free

Thesis on Classroom Management Essay This chapter presents the methods and procedures that are use in securing and translating the data needed in the study. Research Design We, the researchers will utilize the descriptive method of research since it is a fact-finding methodology with adequate interpretations. Descriptive includes the process of analysis, classification, enumeration, measurement and evaluation. Survey is an organized endeavor to gather data and information regarding present or current conditions prevailing in the social institution. Locale of the Study This study will be conducted in some selected public secondary schools in Taguig and Pateros which are located in Ricardo Papa National High School Main and Annex, Pateros National High School, Upper Bicutan National High School, Maria Concepcion Cruz High School. Sampling Procedures This study involves a representative sample of 100 secondary school teachers from the five public secondary schools in Taguig and Pateros. The number of samples will be determine using the sampling proportional to size, hence the school having bigger number of teachers have more respondents, while those with few teachers have smaller number of respondents. Data Gathering Instrument The questionnaire checklist is use in gathering data and information on the educational qualification, teaching experience, in-service training and teaching competencies of teachers in the implementation of innovative programs particularly the SEDP Curriculum which serve as baseline data and information for the teachers in Taguig and Pateros. Validation of the Instrument The questionnaire is adopted from Beltrans thesis, hence, validation was no longer necessary, however, other parts of the tools which are modify are pretested, until the desire validity and reliability is establish. Methods of Collecting Data Before the administration of the questionnaire, a permit is first secure from the Schools Division Superintendent of Taguig and Pateros through the school principals. And we will personally administer and retrieve the questionnaires. We, the researchers will also going to conduct structured and unstructured interviews to supplement the data gather through the questionnaire. Sources of Data Data are obtained from the questionnaire checklist and interviews. The Secondary Education Curriculum served as rich sources of data and information. Statistical Treatment of Data To determine the differential of the teaching competencies to implement the SEDP the teachers were grouped according to their educational qualification, teaching experienced and relevant in-service using the following scheme. Teachers who finished the baccalaureate degree required in the secondary level and who earned 3 to 9 units in the masters program were considered Moderately Qualified, those with 12 to 21 units, Highly Qualified. Teachers whose teaching experiences ranged from1 to 7 years, 8 to 15 years and 16 years and above were considered Less experience, More experience and Most experience, respective. Teachers who accumulated in-service training which ranged from 8 to 72 hours; 73 to 144 hours; and 145 and above of relevant in-service training attended were considered as: Less prepared, Moderately prepared, and Highly prepared, respectively. The responses in each category were multiplied by the weight and the products were added and the sum was divided by the total number of responses to obtain the weighted mean.

Analysis of Hollensen and the Primark store

Analysis of Hollensen and the Primark store According to Hollensen (2007) ,  « global marketing consists of finding and satisfying global customers needs better than the competition, and of coordinating marketing activities within the constraint of the global environment  ». In that essay , it comes to think about: In what way Primarks strategy could correspond to the needs of French customers. In other terms, is there an opportunity to Primark to setting up itself in France seeing the French environment. Irish clothing retailer founded in 1969 under the name of Penneys (still in Ireland) , Primark represented in 2008 3,9% of the global clothing retail value in United Kingdom. and counted 21827 employees. With a revenue which have reached 2,314m  £ in 2009, Primark count today 206 stores split among England as a majority with 144 stores ,Ireland Spain, Portugal, Germany , Netherland and more recently in Belgium. Retail part of the Associated British food group in which it represent in 2009, 25,5% of the entire revenue of the group, Primark enjoy the stability and the power that ABF group bring to the retailer. With a strategy of good quality for cheap price, Primark is after 40 years of experience recognised the second largest retailer in Uk with a growth in 2009-2010 higher than it competitors. With a gloomy economic climate which encourages people to look after the opportunity to buy cheaper, some leaders of the French fashion market as Zara, Kiabi and HM keep watching close this giant that is surrounding France and that nothing seems to stop. In today competitive market, satisfying the customers is seen as the only source of the firm profits. Precisely targeting our market seems to be the key success factor. In segmenting a market, factors such as geography ,demography, psychographic and behavioural would be relevant to analyse . Today, Primarks strategy is to propose an entire concept through all these stores.Allowing to realise economy of scale in the production and marketing, Primark is able to propose low prices. In the target market analysis, it is relevant to analyse if the target market of Primark in the UK would be suitable and have an opportunity of growth in France.(because changing the target market would bring to much costs for Primark). This essay will focus on the clothing part of Primark seeing the fact that Primarks core competencies is clothes retailing, that home market is a completely different market in France as well as baby clothes and required a particular analysis for each of them. Moreover, French clothing market could represent a growth opportunity as we will see below. In 2008, French population from 15 to 35 represented an important part with 38,7% of the total population. In terms of clothing expenditure, in 2009 men consumption in clothing for the 15-25 reached 3,9millliardsà ¢Ã¢â‚¬Å¡Ã‚ ¬ nearly the same than women. However, in a general way, French men clothes expenditure is 15% less than women with an average of 360à ¢Ã¢â‚¬Å¡Ã‚ ¬ for the year 2009. After gloomy 2009 year with a decrease of the consumption on clothing, 2010 represent the stop of the degradation of the clothing consumption with a tiny increase of O,2%With a young population in expansion, a target market still buying clothes and a general consumption of clothing which restart, there is an opportunity of growth for Primark in France. If we look at the Internationalisation motives of Hollensen (2007), one of the proactive reason which pushes a company to internationalize is the managerial urge that he defines by a reflection of general entrepreneurial motivation of a desire for continuous growth and market expansions. In the recent year, Primark showed the desire of conquest the western Europe by entering in new country such as recently Belgium. According to Bason John, financial director if AB foods, the performances of our new shops in the Iberian peninsula gives us the impulsion to continue our development in the European continent. Then, the first motive which could bring Primark in France could be the desire to become an European player of the fashion through it expansion all over Europe. One of the others proactive motives present by Hollensen is a foreign market opportunities and market information. Analytical tool such as PESTLE which allowed to get this information. Both part of the European union, UK and France benefit from the common European Union policy which facilitates exchange and trade. However, through state aid and by encouraging mergers between French firms to prevent takeovers by foreign firms, French government act against EU policy and still maintain a kind of protectionism. However, France benefits from a Political stability and the political side of France should not represent a threat for Primark. With an increasing unemployment rate and a decreasing consumption the last years, it seems that the crisis could represent an ally for Primark. While a study about the purchasing power shows that 49% that the under 35years old thinks that their purchasing power has strongly decreased the consumption habits of French goes forward the last opportunity to buy cheaper. As a study of clothing in France explain, the success of the sales periods shows that the sales drop mainly due to purchase power constraints but not as a fashion rejection. With its strategy  « sales price » all the year round, the change in French consumer habits could represent an opportunity . However, the consumer expenditure on clothing is a lot more higher in UK than in France with an expenditure for 2009 of 37805mnà ¢Ã¢â‚¬Å¡Ã‚ ¬ decreasing in comparison with 2008 in France against 40472mn £ in UK ( à ¢Ã¢â‚¬ °Ã‹â€  46542à ¢Ã¢â‚¬Å¡Ã‚ ¬) increasing in comparison with 2008 While expenditure in UK continue to growth when it decrease in France , it could make Primark think that the clothing consumption habits between UK and France are different and then could represent a threat to Primark implementation. Finally for the consumption, according to the clothing in France report 2009, by 2013, clothing sales are forecasted to reach 26,980à ¢Ã¢â‚¬Å¡Ã‚ ¬millions, a 2,1 % rise in constant value compared to 2008 which let hope for Primark a bright future. In spite of the fact that Primark is an Irish company, from a market research and data point of view it is more relevant to analyse the accessibility of the French market through the comparison with the English implementation which is more important than the Irish one (144 shops in England instead of 38 in Ireland However, from a financial side , it is more relevant to deal with the Irish headquarter company where the money is going because Ireland is in eurozone. Alhtough as a report of associated british food explain, in a uncertain economic environment, price and exchange rate volatilities could be the major threats to the groups profitability By dealing with Ireland, Primark escape that kind of risks. In France, fashion remains an important part of the culture. Then , according to a study , French people are still attached to the brand and the luxury in the fashion sector and would prefer after use the sales period ( 41%) , buy cheapest brand (33%) Then, even if that trend does not automatically represent Primark target market (under 35)which can not necessarily afford luxury brand, French culture in the fashion sector could represent a threat for Primark. France has to face to the ageing of it population. Until 2050, 1/3 of the population will be ageing more than 60 years old. While some of Primarks competitors such as Kiabi (which proposes a fashion for the whole family), could begin a  « senior marketing  » by proposing clothing for senior, Primark could not enjoy this opportunity risking to break its strategy and positioning and lost its target. In an article about the factors of primarks success, Susan Segal-Horn says The focus part of Primarks strategy is the specific customer segment it focuses With a clear positioning , Primark answers to a special target market needs. Its ageing of population represents an indirect threat for Primark because it does not concern its target but it could benefice to its competitors which could gain a competitive advantage. In spite of the fact that the technological aspect is not the most relevant in the implementation of Primark in France, it is important to notice that the evolution and increase of the new technology influence the consumers to purchase more technological product such as mobile phones, internet, or IT equipment to the detriment of others goods such as clothes. In Primarks case ,legal and environmental factors are linked. According to a study, fashion industry remain one of the most exploitive in the word, both to people and environment However, consumers are more and more aware of the environmental aspect of goods. Often critics for this workers conditions, Primark is now part of Ethical Trading initiative which guarantees the protection of workers and environment. Analysis an environment , it also analysis the competitive environment to be able to gain a competitive advantage. According to an article about the success of Primark, primark has got teams of buyers in UK and Ireland travel internationally both to identify fashion trends and to seek out the most competitive suppliers Then, by always looking to reduce its costs Primark prefers to spread its production through a lot of small suppliers which made the power of suppliers low. Highly competitive, the clothing retail industry is already full of players. Moreover, the costs to get in the market is very high which make the threat of new entrants low. This highly competitive market make the power of buyers very high. Indeed, consumers trends in now to look after cheap prices. By having multi choice, they can easily switch from a shop to another. Still due to the multiplayers market, the power of substitutes product is high. Indeed, the competition is more based on the price strategy but the product range that propose all the shop follow the same fashion trend. Then , the products are quite similar from a shop to another. Source: clothing in France, Euromonitor international, October 2009 As we can see with that figures, clothing industry in France does not have a big driver players but still have some strong brands such as Vivarte which groups 24 brands such as LA HALLE, DEFIMODE.. which are, according to their price strategy similar to Primark and could represent potential competitor. However, brand such as ZARA, HM very popular and perceived as trend setters among the French population will represent the biggest competitor for Primark. But those brand proposing price still higher than Primark, Kiabi, by it price strategy similar to Primark could represent a big competitor from a price strategy side. Add to that direct competition, the increasing of the online shopping. According to the IFM group, online clothing sales increased by 31% in value between July 2007 and June 2008 To get a well understanding of the opportunity that Primark has in France, a SWOT analysis will be helpful: According to clothing in France report,  « In terms of market share, the leader have the ability to adapt quickly to market demand by offering many different collection By proposing a fast fashion strategy, Primark has the opportunity to become an important player in France. However, it will have to face to a high competitive industry with some players already well established and some consumers habits. When a company is considering all possible channel strategies when entering in a new market, there are three major modes: Export, Intermediary (or contractual mode) Hierarchical (or direct investment activities). According to Hollensen ( 2007), the choice of the entry mode can not be stated categorically and depend on many internal and external conditions. By analysing some of the Hollensens factors, we will analyse which way should take Primark to its entry in the French market. As a manager from Primark says in the corporate video its quality travel, its value for money travel. Primark is exporting a whole strategy, business and know-how. Franchising , one of the intermediate modes allowing to use an entire business in compensation of money could bring the opportunity to Primark to control the major part of it setting up in France. However, by having strong financial resources, Primark is able to choose an entry mode market which could guarantee it a total control of it business and escape the risk link to an international franchise (quality control, jurisdiction) . A hierarchical model, even highly risky and not flexible, seems to be in the setting up of Primark in France the most relevant. According to Hollensen(2007),  «hierarchical mode is the entry mode where the firm completely owns and control the foreign entry mode and organization. Conscious that few hierarchical modes are possible, the wholly owned subsidiary seems to be the most adapted for Primark setting up in France. Through a total control of it operating companies and by controlling the know how, the decision making, the companys trade secret, the wholly owned subsidiary allowed to Primark which have for objectives to become a European player to be implemented more easily a coordinate strategy. Moreover by choosing a Greenfield investment, which is defined as direct investment in new facilities or existing facilities instead of an acquisition which acquires an existing firm, Primark would be able to keep its production logistics strategy. Although Primark production strategy is the base of cost saving, main factors of its success. By dealing directly with manufacturers mainly in Asia and by ordering in huge volume, Primark is able to sell at very low price notably thanks to the cheap labour cost and by realising economy of scale. Setting up in a very high competitive market, Primark has to adopte a strategy which will allowed it to gain a competitive advantage. According to Michael porter (1985), there are three basics competitive advantage that a firm can possess: Low cost, differentiation, Focus. According to Johnson the low price strategy, seeks to achieve a lower price than competitors whilst maintaining similar perceived product or service benefits to those offered by the competitors. According to Lynch the low cost leader in an industry has built and maintain plant, equipment, labour costs and working practices that deliver the lowest costs in an industry. By always looking for the most competitive suppliers all around the world and by spreading its production in developing economies which offered low cost labour, Primark is able to control it cost and at the end to propose cheap price to its consumers. According to a menswear controller in UK in an interview We do bring extraordinary value to our customers but we do it by bringing extraordinary volume to our factory In proposing the same product everywhere, Primark is able to order huge quantity which allow to realise economy of scale. As the Associated British food report in 2009 summarises Primark offers low price because it purchases very large volumes and has low marks up, minimal advertising and low overheads. The entire Primark concept is built around the control of its logistics, cost and strategy development which allows it to follow a cost leadership strategy when it comes to it setting up in France. By following its strategy, Primark would launch a Price war within the French market obliging its competitors to reduce their margins as HM and ZARA already start to do so However , as one of the article highlighted : it takes a lot of money to look this cheap.and the control of the cost is very hard to manage which explain the choice of the wholly owned subsidiary as market entry mode. IMPLEMENTATION Developed by McCarthys around the four major Ps (Product, Price, Place Promotion),the traditional marketing mix has received criticisms. Including three others Ps (people, physical evidence, Process) suggested by Booms and Bitners, the 7Ps framework is today the reference to analyse the implementation of a strategy. In favour of the globalization, Levitt argues that, the needs of consumers are more and more homogenized creating a single global market pushing towards a global strategy (standardisation instead of adaptation to the local market). Then, implementation is all about whether adapt or standardize. If we look at the factors favouring standardisation such as the convergence of tastes and consumers needs, the economies of scale in RD, production and marketing, then Primark would definitely go towards a standardisation of its strategy when it is setting up in France. Primarks product strategy is to propose the same collection everywhere, with the same clothes in each of its stores which allows them to order in huge quantity and at the end to propose low price. The other part of Primarks product strategy is to put new product on the shelf every week. A season is defined by Primark not as summer, winter or spring but as six week window When Primark will setting up in France, the concept and the product will be the same than in Germany, in Spainà ¢Ã¢â€š ¬Ã‚ ¦ However there is existing differences between French and English clothing style. Indeed as an article about the French style clothing explain, Bold and bright colored clothes, loud prints or lots of embellishments are something French women avoid wearing In a general way, the French fashion looks more classical and simple than the English fashion. According to my shopper experience, Primarks clothing lines are for some of them flowery, with a lot of prints and really colourful. Moreover the size of the dress that English girls are wearing are very short in comparison with what I am used to seeing. An adaptation of the product could be judicious for the setting up in France. However, any adaptation bring costs which could increase the price and do not correspond to Primarks low costs strategy. Primarks product will follow a standardisation strategy in a first time and could like in Spain adapt some clothing lines as the director of the Spanish Primarks explains when he says the taste of the Spanish customers are similar from the British one, in spite of the fact that some clothing collections has been adapted with for example more colour for the Spanish market. When it comes to the pricing strategy, some authors proposed a International pricing framework which take in account the factors influencing the Pricing strategyIn a general way, as we saw fashion industry are highly competitive and the degree of comparability of Primarks product in the French market is high as Primarks strategy is to propose the same product than its competitors but at a lower Price. If we only take in account that factors Primark would have to tend towards a low Price strategy. However the most influencing factors for the pricing strategy in France is the corporate and marketing objectives of Primark. Indeed Primarks strategy is to make their customers primarks addict pushing them to come back every week;(Primark corporate video, 2010) by notably proposing a fast moving product strategy. The target market would be the under 35 which are characterised by a limited income. In order to attract that target and make them come back, Primark has to put a low Price strategy. As we saw in the second part, Primarks strategy is focus on the control of its costs. In notably realising economy of scale and by improving their skills ( what Doole and Lowe called learning curve) Primark has honed its business model into a science which allowed Primark to Proposed very low Price. When it comes to the setting up of Primarks in France, Primark will use an aggressive strategy such as market penetration Price that Hollensen (2007) defined as the use of the low prices used by a firm to rapidly increase sales by stimulating growth and increasing market share, but at the same time discouraging competition. which will allow Primark to launch a Price war in the French clothing market. Finally, it is important to notice that Primarks price strategy is allowed by its communication strategy nearly inexistent with the quasi absence of advertising as an article highlighted when it says Primark is a high street retailer which has a family of brands and focuses much more on buying, logistics and supply chain management than branding According to Hollensen(2007), standardisation in the communication requires that the firms product has a unique selling proposition that is clearly understood by customers. As we already see, Primarks strategy is to sell a unique concept all over its stores which allow it to standardise it communication (even quasi inexistent). When it comes to communication ,while its competitors such as HM or mango spend a lot on advertising , associating their brand name with famous fashion designers, artists or top model, Primark will follow the same way of communication as Zara which does not advertise at all and relies on word of mouth and its natural prestige. Indeed Primarks communication is mainly made through its simple and understandable look good, pay less slogan which remain the same in every country even with different languages , through its blue Logo , through the visibility of its brand ( for example in the Primarks bag that people will carry in the street), the agencement of it stores and the people on it. Primarks communication is made through the last three Ps of the marketing mix which are People, Process and Physical evidence and not through the usual communication tools such as advertising, personal selling more expensive. However as an article from the Irish times, Primarks strategy is reaching the highest number of potential customers at the lowest cost. Defining by Hollensen (2007) as a Online word of Mouth marketing technique that seeks to exploits existing social networks to produce exponential increases in brand awareness, the Viral marketing is one of the tool for Primark in France. Indeed while Primark is not setting up in France, the social network facebook already gets more than 20 groups asking for Primark In France such as for example For the opening of a Primark in France or We want Primark in France Matching its young targets, often heavy users of internet, enjoying from the expansion of its social network, and corresponding to its strategy of word of mouth to attract the maximum of customers, Internet through the internet viral seems to be a real potential way of communication if France as well as for the company as it is very cheap. According to a study about retailing in France , Apart from Price, proximity and convenience were among the majors needs of French consumers. While Primark is looking for highway and huge surfaces, industrial zone (characterised by cheaper rent but high frequentation) or Big malls (which regroup a lots of shop and are often situated in highway) seems to be the best place for Primark. Moreover a part of Primarks target is the teenagers which are characterised by a low mobility and go shopping in easy accessible place.(E.g.: The teenager do not have driving licenses and often go to big shopping centers where a lot of shops are together and with an easiest access than the industrial zone). However in order to define what could be the distribution strategy for Primark in France, it is important to look at the precedent implementation of Primark in Europe. Except in Spain with five stores in Madrid and England with one store in Oxford street (London) Primark do not setting up in the capital. If we look at the German, Belgium and Netherland implementation, Primark has a stores in Frankfurt (richest city in Germany) in Rotterdam ( second city in Netherlands)and in Liege (third most populated city in Belgium). In Portugal it has a stores in Rio Tonto and Amadora (Lisbon metropolitan area). We can see that Primarks implementation in Europe and notably in the recent implementation it also made through test city by not implementing it stores in the capital (often more expensive than the others city) but in important city in the country or in the capital region which could be less expensive and then reduce the costs. Seeing the precedent implementation in Europe and seeing the needs of French consumers and especially the target young target market, a selective coverage in some test area could be relevant and then turn towards an intensive distribution (which correspond better to a low price and high turnover strategy), if the test is concluding like in Spain which has now 18 shops. If we look at the Analysis of the first part through the use of Pestle and Porter five forces model, France market in spite of its high competitiveness seems to be ready to welcome Primark. However those models give a snapshot of an industry at a certain point and the fashion industry is fast moving and change very quickly. Moreover the habits of expenditure in that sector are highly affected by the external environment. As no one can predict what will happen, the setting up of Primark in France seems to be an opportunity but the external environment if suddenly changed (like the crisis in 2009 which slow down the expenditure in most of the sector), could make the setting up of Primark more difficult. When Porter propose three distinct generic strategy, a company dreams would be to mix both of them. Indeed when Primark main strategy is cost leadership, it also could be saying that it looks after differentiation notably by not advertising and through its high fast moving product strategy (higher than it competitors). However the in-between strategy is highly risky and not affordable The mix marketing has to be seen as a basic for the implementation of Primark seeing the current French environment. However a marketing plan has to be flexible during the setting up and during the development of a company in a country according to the reaction and expectations of new customers and in order to match them. This high level of flexibility for a marketing mix can not necessarily be affordable by Primark as every change generate new cost. According to the financial director in Primark in a corporate video, there is still a lot of places where were not and where wed love to be sources. Neighbors of UK, France could be one of those place. Now surrounding France, Primarks success story is it following a country test strategy before its conquest of France ?

Essay --

For as long as we can remember, many people have been experiencing hardships and worries, with little to no income being one of the largest. In the U.S there are a few programs that can help populations facing these difficulties obtain imperitive things they need. One of these benificial programs is WIC. WIC stands for Women, Infants and Children; and is a special supplemental nutrition program that targets nutritionally at risk mothers infants and children, due to low income. The program helps aid families in the effort to provide nutritious foods, information and counseling on healthy eating, and to provide referrels to other healthcare and government benifit programs like welfare and social services. (Food and Nutrition service, 2013) The history of WIC dates back to the 1960s when many americans were suffering from malnutrition due to low income. In 1969 the nations concern with malnutrition, especially in mothers and children had greatly increased and the USDA established a commodity supplemental food program that would benifit pregnant women, infants and children. the legistlation formerly authorized the special supplemental food program as a 2 year pilot program in 1972 by an ammendement to the Child Nutrition act of 1966, and in 1975 WIC was established as a permanent program. (Oliveira, Racine, Olmsted, & Ghelfi, 2002) The purpose of the WIC, as stated before is to improve the health of nutritionally at risk women infants and children through adequate nutritional help. According the the USDA Wic has improved birth outcomes with longer pregnancies, higher birth weights, lower infant mortalities, and more mothers receiving prenatal care. Also the improvement of savi... ...e volunteer opportuities consist of answering phones, filing chats, greeting wic participants, and reading and conducting activities for children while their parents are occupied. The requirements include being able to read and write, ability to work well with others, enjoy working with families and children receiving wic and sensitivity to cultural diversity. (Wic office, 2014). The benifits of volunteers are lower administration costs, stretching resoures, and increasing the quality and quantity of the services that re provides to participants. Furthermore the community greatly benifits from Wic in that participants are healthier with the nutritional assistance and healthcare referrels that the program supplies. There are also a large amount of savings in healthcare costs as a result of prenatal and postpardum care for mothers which makes for healthier babies.

Billy Joel :: Free Essays

William Martin Joel, born May 9, 1949, in The Bronx, NY, grew up in a comfortable Long Island suburb, Levittown, during the years following World War II. His German-born father, Howard Joel, who was imprisoned by the Nazis at Dachau during the war, moved to America after his release, to begin a new life in New York. That new life included adopting a new faith for his son--although Joel Sr. was Jewish, young Billy was raised in a predominately Catholic neighborhood and frequently attended mass and confession. Joel's father secured work as an engineer with General Electric while his mother, Rosalind, set to work raising Billy and his sister Judy. Both of Joel's parents provided early musical influences: his father was a classically trained, self-disciplined pianist, and his mother had once sung in the chorus for Gilbert and Sullivan. Though he scored well on tests, his teachers refused to graduate him from high school due to his many absences from skipping school. It was also during these years that Joel discovered the power of music. In 1962, Joel saw a live performance for the first time when he went with friends to hear James Brown at Harlem's Apollo Theater. Other early influences included Otis Redding, Sam and Dave, Elvis Presley, and the Beatles. Joel was deeply affected by the British invasion, so much so that he modeled his own budding style after the Beatles' Paul McCartney, "I idolized The Beatles, especially Paul - nobody could come up with the melodies he could". On February 21st, 1964, Joel joined his first band, the Echos (in 1965 known as the Lost Souls, in 1966 The Memerald Loard), on the organ and vocals and began composing simplistic songs. "The first gig I did was when I was 15, in 1964. I played in a band at Holy Family Church in Hicksville. Billy Joel :: Free Essays William Martin Joel, born May 9, 1949, in The Bronx, NY, grew up in a comfortable Long Island suburb, Levittown, during the years following World War II. His German-born father, Howard Joel, who was imprisoned by the Nazis at Dachau during the war, moved to America after his release, to begin a new life in New York. That new life included adopting a new faith for his son--although Joel Sr. was Jewish, young Billy was raised in a predominately Catholic neighborhood and frequently attended mass and confession. Joel's father secured work as an engineer with General Electric while his mother, Rosalind, set to work raising Billy and his sister Judy. Both of Joel's parents provided early musical influences: his father was a classically trained, self-disciplined pianist, and his mother had once sung in the chorus for Gilbert and Sullivan. Though he scored well on tests, his teachers refused to graduate him from high school due to his many absences from skipping school. It was also during these years that Joel discovered the power of music. In 1962, Joel saw a live performance for the first time when he went with friends to hear James Brown at Harlem's Apollo Theater. Other early influences included Otis Redding, Sam and Dave, Elvis Presley, and the Beatles. Joel was deeply affected by the British invasion, so much so that he modeled his own budding style after the Beatles' Paul McCartney, "I idolized The Beatles, especially Paul - nobody could come up with the melodies he could". On February 21st, 1964, Joel joined his first band, the Echos (in 1965 known as the Lost Souls, in 1966 The Memerald Loard), on the organ and vocals and began composing simplistic songs. "The first gig I did was when I was 15, in 1964. I played in a band at Holy Family Church in Hicksville.

Animal Farm, by George Orwell :: Animal Farm Essays

George Orwell’s novel Animal Farm takes place on a farm in England. Napoleon is the main character in this book and his character is a symbol for greed. Napoleon is a large Berkshire boar who receives great power when he arranges for the expulsion of Snowball. Napoleon changes in a negative way as the plot progresses. At first, Napoleon wants to better his life and the lives of all the other animals, but that soon changes. Power tends to corrupt some people, such as Napoleon who uses his power to change rules, control others, and shows favoritism. Napoleon uses power to change rules. The animals design The Seven Commandments of Animalism as rules which apply to all equally. Napoleon arranges to change The Seven Commandments to justify his wrong doing. After series of changes, only one commandment remains: â€Å"All animals are created equal, but some are more equal than others.† By having the power to make changes, he can make everything suit himself. At first there was the idea of a Utopia, heaven on Earth, but Napoleon changes that too. The Utopia changes to a dictatorship under Napoleon’s influence. Napoleon has the power to control others. He first gains the animals’ trust to become their leader and then plots to physically control them. He secretly trains guard dogs and makes them his secret police. Napoleon’s main concern is no longer all of the animals. Dogs kill three pigs for making confessions. These killings instill a mass fear among the other animals. Squealer assists Napoleon by speaking convincingly on his behalf and making him seem more â€Å"king-like†. Squealer aids Napoleon in his quest for absolute control or power. The animals are most afraid at the sight of Napoleon carrying a whip. Napoleon shows favoritism. His main concern is not all of the animals. Napoleon wants only to improve the worth of his and the other pigs’ lives. There is a caste system with two groups: the workers and the rulers. In this new system, the pigs are in the ruling class, and the other animals are the workers. The rulers were the pigs because they are better; therefore the workers are the other farm animals. Napoleon uses the barley crop to make whisky for himself and the pigs. The pigs wear clothes, learn to read, sleep in beds, eat on fancy dishes, wear ribbons on Sunday, and had to do less work.

Determinants of Intelligence Test Scores

Determinants of intelligence test scores Heredity Is the passing of traits to offspring (from its parent or ancestors)? This is the process by which an offspring  cell  or  organism  acquires or becomes predisposed to the characteristics of its parent cell or organism. Through heredity, variations exhibited by individuals can accumulate and cause some  species  to evolve. The study of heredity in  biology  is called  genetics, which includes the field of  epigenetic. Social Refers to a characteristic of living  organisms  as applied to populations of humans and other animals.It always refers to the interaction of organisms with other organisms and to their collective co-existence, irrespective of whether they are aware of it or not, and irrespective of whether the interaction is  voluntary  or  involuntary. Education In its broadest, general sense is the means through which the aims and habits of a group of people sustain from one generation to the next. [1]  Generally, it occurs through any experience  that has a formative effect on the way one thinks, feels, or acts.In its narrow, technical sense, education is the formal process by which society deliberately transmits its accumulated  knowledge,  skills,  customs  and  values  from one generation to another, e. g. instruction in schools. A right to education has been created and recognized by some jurisdictions: Since 1952, Article 2 of the first Protocol to the  European Convention on Human Rights  obliges all signatory parties to guarantee the right to education. At the global level, the  Nations’ International  of 1966 guarantees this right under its Article 13.Maturation Maturation is the process of learning to cope and react in an emotionally appropriate way. It does not necessarily happen along with aging or physical growth, but is a part of growth and development. A situation a person must deal with at a young age prepares them for the next a nd so on into adulthood. Maturation does not stop when physical growth ends – it continues through adulthood. An adult who loses a parent, for instance, learns to cope with a new emotional situation that will affect the way he or she deals with ituations that follow. physical factor A factor in the  a biotic  environment that influences the growth and development of organisms or biological  communities. Personality psychology Is a branch of  psychology  that studies personality and individual differences. Its areas of focus include: * Constructing a coherent picture of the  individual  and his or her major psychological processes * Investigating individual differences—how people are unique * Investigating  human nature—how people are alike Personality† can be defined as a dynamic and organized set of characteristics possessed by a person that uniquely influences his or her  cognitions,  emotions,  motivations, andbehaviors  in vario us situations. The word â€Å"personality† originates from the  Latin  persona, which means  mask. Significantly, in the  theatre  of the ancient Latin-speaking world, themask  was not used as a plot device to  disguise  the identity of a character, but rather was a convention employed to represent or  typify  that character.Personality may also refer to the patterns of thoughts, feelings and behaviors consistently exhibited by an individual over time that strongly influence our expectations, self-perceptions, values and attitudes, and predicts our reactions to people, problems and stress. In a phrase, personality is not just who we are,  Gordon Allport  (1937) described two major ways to study personality: the nomothetic and the  idiographic. Nomothetic psychology  seeks general laws that can be applied to many different people, such as the principle of  self-actualization, or the trait ofextraversion.Idiographic psychology  is an attempt to u nderstand the unique aspects of a particular individual. The study of personality has a broad and varied history in psychology, with an abundance of theoretical traditions. The major theories include dispositional (trait) perspective, psychodynamic, humanistic, biological, behaviorist and social learning perspective. There is no consensus on the definition of â€Å"personality† in psychology. Most researchers and psychologists do not explicitly identify themselves with a certain perspective and often take an eclectic approach.Some research is empirically driven such as dimensional models based on  multivariate statistics  such as  factor analysis, whereas other research emphasizes theory development such as  psychodynamics. There is also a substantial emphasis on the applied field of personality testing. In psychological education and training, the study of the nature of personality and its psychological development is usually reviewed as a prerequisite to courses in abnormal or clinical psychology. Abilities associatedSpatial visualization ability  or  Visual-spatial ability  is the ability to mentally manipulate  2-dimensional  and  3-dimensional  figures. It is typically measured with simple  cognitive tests  and is predictive of user performance with some kinds of  user interfaces. Verbal fluency tests  are a kind of  psychological test  in which participants have to say as many words as possible from a category in a given time (usually 60 seconds). This category can be  semantic, such as animals or fruits, or  phonemic, such as words that begin with letter  p. 1]  The semantic fluency test is sometimes described as the category fluency test or simply as ‘freelisting'. The COWAT (Controlled oral word association test) is the most employed phonetic variant. [2][3]  Although the most common performance measure is the total number of words, other analyses such as number of repetitions, number and length of clusters of words from the same semantic or phonetic subcategory, or number of switches to other categories can be carried out. 4][5] Verbal comprehension  is the ability to understand the  meaning  of  verbal stimuli. This may involve  listening comprehension,  reading comprehension  as well as  sentence comprehension  . Inductive reasoning, also known as  induction, is a kind of  reasoning  that constructs or evaluates general  propositions  that are derived from specific examples. Inductive reasoning contrasts with  deductive reasoning, in which specific examples are derived from general propositions.

Shen Fu

Shen Fu The book Shen Fu’s Six Records of a Floating Life is both an autobiography and love story of a man named Shen Fu, who was educated toward the path to grow up to be a scholar, but he kept on failing the exams. He went on to earn his living as secretary for a magistrate and also selling off his wife’s artwork. His wife is the girl that he fell had fallen in love with as a young child. Together, they had a very weird and odd relationship (at least compared to our modern day idea of a relationship).I think that Shen Fu really wanted the big job as the magistrate, but it also seemed like he didn’t really want to work very hard for the position. Perhaps he was a tad on the lazy side of things. He grew up in a rather scholarly middle class family and he spent much of his life trying to pass the exam. The only problem was that he kept failing it over and over again, and did never actually get around to passing it. Shen Fu seemed to focus a lot of his attention on status, and I think that it was mostly due to his family and his social class that he was born into.It seems to me that the higher status you had back then, the more you focused on status and put being born of high class up on a pedestal. Shen Fu his whole life was seeking this â€Å"Floating Life† which basically means that you’re economically secure, and that life is a more of a â€Å"dream† rather than actual reality. I thought he was always seeking this because he was always trying to figure out how to make a good deal more money, or to get a desirable scholarly position. Shen Fu, in my opinion, was rather greedy and materialistic, and was generally out for himself.Although, to be fair, he did provide for his family by taking on many different kinds of jobs, loans, and even by attempting to sell his wife’s artwork. This book is actually better known being a love story. Though it is much different then what we think a love story should traditionally c onsist of. Shen Fu was known for spending a lot of time with Prostitutes, and his wife seemed ok with it, she even went and found him a concubine. Shen Fu basically viewed his wife as his equal, rather than looking down on her as a woman, this was a very rare view for a man to have considering the time and place this took story took course.Most traditional loves stories would make this story appear crazy, this is mostly because the more traditional thought of love is between two people sharing and expressing mutual feelings for each other. Love is generally not thought of as the wife going out and searching for a good Concubine for her husband to sleep with. However, I think the more romantic and warming part of the story was that Shen Fu and his wife, Yun, enjoyed reading, drinking, and writing poetry together. I actually think that they genuinely enjoyed each other’s company.Another reason why this story could be view as a bit of a romance, was because Shen Fu was really co mmitted to supporting his family by working and taking on many jobs and responsibilities. His dedication to his wife was pretty romantic in and of itself. I didn’t think that Shen Fu was a filial son because there was a lot of conflict between his family. Think that a lot of the conflict was because he went down in class and never did become a magistrate like he and his family had hoped he would.It seems like his family viewed at him as if he didn’t try hard enough and was a somewhat of a failure to them. I would consider Shen Fu in the lower to middle class, because, he never got the job as a magistrate and didn’t have enough money to adequately support his family, so he has to sell off his wife’s artwork. I would probably put him in the lower class, but the fact that he came from a middle class family and had a concubine might put him a little on the higher side of classes. I think that this story of Shen Fu’s life does indeed exemplify the typic al lifestyle during the Qing Dynasty.Shen Fu and his wife both viewed each other as equals, which back then was really different from the norm. How he focused mush of his attention on status was a really big thing during the Qing era, and how he aspired to have a floating life style. I think it also showed how that even though he had a wife, he went out drinking with prostitutes and with his Concubine, which seems like it was pretty common back then. Overall, I thought that it was actually a pretty interesting book. It definitely wasn’t what I was expecting, and It gave a good example of how life was for his class during the Qing era.

Managing Financial Resources and Decisions

Executive summary This report is to propose an appropriate capital structure for Xpresso Delight Limted’s business expansion with the minimum amount of capital as US$ 30 million. In order to achieve that goal, firstly, it is going to identify the sources of finance available for the business as debt financing which include loans, debentures and bonds; and equity financing, which includes common shares, preference shares and retained profit.It is also to discuss advantages & disadvantages of each source, as well as to assess the implications of these different sources related to risk, legal, financial and dilution of control and bankruptcy. Based on those analyses, it is to select the appropriate sources of finance for the project including retained profit, common and preference shares and loans. What’s more, the costs involved with each source will be assessed and compared in order to form the best alternative of capital structure.There are three options of capital stru cture proposed: †¢ 50% debt financing; and 50% equity including 80% common share and 20% preference shares †¢ 25% debt financing; and 75% equity financing including 80% common shares and 20% preference shares †¢ 10% debt financing; and 90% equity financing including 80% common shares and 20% preference shares Besides, this report is also to mention and explain the importance of financial planning for Xpresso Limited. CONTENTS Page 1.Cover Sheet †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦ 1 2. Executive Summary †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦4 3. Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ â⠂¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦.. 7 4. Main Body†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦ 8 4. 1 Available various sources of finance†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 8 4. 1. 1. Debt financing†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 8 4. 1. 1. 1. Loans†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦8 4. 1. 1. 2. Debentures†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦8 4. 1. 1. 3. Bonds†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 9 4. 1. 2. Equity financing†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦. 9 4. 1. 2. 1. Issued share capital†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦9 4. 1. 2. 2.Retained profit & other reserves†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 10 4. 2. Assessment of the implications of sources†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦10 4. 2. 1. Debt financing†¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦. 10 4. 2. 1. 1. Debentures†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 11 4. 2. 1. 2. Bonds†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 12 4. 2. 2. Equity financing†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦.. 12 4. 2. 2. 1. Issued shares†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦12 4. 2. 2. 1. 1. Common shares†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 12 4. 2. 2. 1. 2. Preference shares†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 13 4. 2. 2. 2. Retained profit†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦13 4. 3. Selection of appropriate sources & The assessment and comparison for costs†¦. 4 4. 3. 1. Appropriate sources of finance†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦14 4. 3. 2. Costs of sources†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦14 4. 3. 2. 1. Retained profit†¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 14 4. 3. 2. 2. Issued shares†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦14 4. 3. 2. 3. Loans†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 15 4. 3. 3. Options of capital structure†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 15 4. 3. 3. 1. First structure†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 15 4. 3. 3. 2. Second structure†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦. †¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 16 4. 3. 3. 3. Third structure†¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦16 4. 4. The financial planning †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦17 4. 4. 1. Definition†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦17 4. 4. 2. Importance for Xpresso Limited†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 17 4. 4. 3. Shortage & surplus of capital: †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 17 5. Conclusion . †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 19 6. Appendix †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 20 7. References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦21 3. INTRODUCTION: Xpresso Delight Limited is a publicly listed company in Australia Stock Exchange with the headquarter is based in Hanoi, Vietnam. Xpresso Delight Limited is majority owned (51% stake) by Chief Executive Officer (CEO), Mr.Nguyen Dong Khoa. The company has 30 cafes concentrated mainly in big cities in Vietnam like Hanoi, Ho Chi Minh City, Hai Phong, Da Nang, Can Tho and so on. With many advantages such as the growing affluence of coffee culture, the incre asing expatriates population in Vietnam, and even the government’s pro-business policies; Xpresso limited believes that there is an immense market potential in the emerging Vietnam, which encourages it to embark on an ambitious plan of expanding, opening at least 20 cafes each year for the next five years in the various parts of the country.The company issues two kinds of share including ordinary shares (par value US$ 1 per share), which are currently traded at US$ 2. 50 per share; and preference shares, which are currently traded at US$ 52 per share in Australia Stock Exchange. Its corporate tax rate is 25% at present but is expected to go down. With strong earnings growth projected at a constant 15% per annum in the future, Xpresso Delight Limited is expected to pay out US$ 0. 30 per share as ordinary dividend in the next financial year while a constant preference dividend is US$ 5 per share per year.The average flotation cost for the new issue of ordinary shares and prefer ence shares are 17% and 10% of the gross proceeds respectively. For new issue of ordinary shares and preference shares, Xpresso Delight Limited’s issue price will be set at their respective current market price as traded in the Australia Stock Exchange. Xpresso Delight Limited’s before-tax cost of debt is 15%. 4. MAIN BODY: 1. Available various sources of finance: In the case of Xpresso Limited, as a large company with stable profit growth looking for capital to expand, it is only necessary for long-term financing to be taken into account.Therefore, there are two principal sources of finance available to Xpresso Limited including debt and equity financing. 4. 1. 1. Debt financing: In regards to debt financing, the simplest meaning is borrowing money on credit with a promise to repay the amount borrowed, plus interest18. There are many types of debt financing, including borrowing from banks in terms of loans; or borrowing from investors in terms of debentures, bonds 4. 4. 1. 1. 1. Loans: A loan is a financial transaction in which one party – the lender – agrees to give another party – the borrower an amount of money which must be paid back in full16.With a good finance profile and the support of Vietnam government pro-business policies, it is easier for Xpresso Limited to borrow from commercial banks such as Vietcombank, VietinBank and so on. For example, the supportive interest rate of loans in Vietnam at present is fluctuating between 5 and 6 percent per year14, therefore if Xpresso Limited. borrows US$ 10,000, the interest it has to pay back will be between US$ 500 and US$ 600. 4. 1. 1. 2. Debentures: It is a channel for Xpresso to mobilize capital from investors setting out the terms of loans, backed by its reputation but not collateral12.Investors can be individuals, Vietnam and foreign financial institutions such as VinaCapital, BankInvest and so on; and even Vietnam commercial banks are the main investors in organizatio nal debentures. Because of its high standing in the market, investors and other creditors are willing to purchase once Xpresso Limited issues debentures. As in the Vietnam present market , the common interest rate of debentures issued by enterprises is 12. 5 percent per year11, if Xpresso issues debentures of US$ 10 million for 5 years, it has to pay investors the total interest of US$ 6. 5 million. 4. 1. 1. 3. Bonds: Bonds are large debts which are usually paid off over a period of 10 to 35 years1. Simply explaining, in bond financing, Xpresso mobilizes capital from investors instead of banks by selling bonds to them with a promise to pay back with interest, according to specified schedules8. As an example, if Xpresso issues bonds at an interest rate of 6%, the interest over 20 years would be about US$ 0. 73 for each dollar borrowed. 4. 1. 2. Equity financing:In terms of equity financing, equity capital generally is composed of funds that are raised by Xpresso in exchange for an ow nership interest in the company17. Since it is owner’s equity, the company does not have to worry about any liability to repay interest or loans for other parties. There are two major sources of equity financing including issued share capital and retained profit & other reserves12. 4. 1. 2. 1. Issued share capital: Issued share capital is capital that is subscribed by shareholders when they purchase shares Xpresso Limited issues, including common and preference shares4.Common shares are shares issued to the general public in the stock market, while preference shares are shares issued to some special people (for example, banks or specific institutions)2. 4. 1. 2. 2. Retained profit & other reserves: Retained profit is simply profit that has been kept within Xpresso Limited rather than paid out to shareholders as dividends 2. 2. Assessment of the implications of sources of finance to Xpresso Delight Limited related to risk, legal, financial and dilution of control and bankruptc y: 4. 2. 1. Debt financing:As being categorized in debt financing, those various types including loans, debentures and bonds have some implications to Xpresso in similarity, which are going to be discussed below. There are many advantages of Xpresso Limited for using debt financing. There is no dilution of control since the creditors have no authority in running the company but just involve in the money they invest; and they usually do not participate in the superior earnings of the company either as the cost of debts is limited 13. The most important advantage is tax relief on interest as it is considered one kind of expenses3.For example, if Xpresso Limited borrows US$ 10,000 at the interest rate of 5%, it will have to pay the interest of US$ 500 but will be reduced US$ 500 in the tax-incurred income. What’s more, in time of inflation, debts may be paid back with â€Å"cheaper pesos†13 since the money becomes worth less. To the existing shareholders, one advantage is when Xpresso Limited unfortunately goes broke, they may lose their investment but other personal possessions are safe 2. However, using debt financing also has disadvantages. Obviously, debts add risk to the company12.There is a risk of not having enough money to pay by the maturity date or if the earnings of Xpresso Limited fluctuate 12; either of which easily makes the company become bankruptcy. To add more, the legal of debt financing in Vietnam is relatively complicated 2, and certain managerial prerogatives are usually given up in the bond’s indenture contract (for example, specific ratios must be kept above a certain level during the term of the loan)13. Besides, debentures and bonds also have their own characteristics. 4. 2. 1. 1. Debentures:One advantage of using debenture financing is that Xpresso Limited does not have to give collateral9. However, it also has disadvantages as it must compete with government loan stocks (gilts), what are the dominant type of debentu res in Vietnam market, so the company must generally offer a higher rate of interest than the one on gilts to attract investors4. The legal issue of debentures that Xpresso Limited has to concern is that if a bond defaults, investors are entitled to the liquidation proceeds of property bought with the money they invest (by purchasing debentures)5. . 2. 1. 2. Bonds: Bonds have fixed interest and are issued for long-term1. One advantage of using bond is that substantial flexibility in the financial structure is enhanced by debt through the inclusion of call provisions in the bond indenture13. In case of financial distress, bondholders have greater claims of the issuer’s income than shareholders6. 4. 2. 2. Equity financing: 4. 2. 2. 1. Issued shares: The legal aspect involved is that shareholders are also owners of the company4.Therefore, the business ownership is diluted and it is possible to lose the control of the business for investors. However, there is also an advantage th at there is large potential membership to provide capital and to share risks of loss, bankruptcy and so on. There is a part of profit of the company distributed to shareholders as dividends. One significant advantage of using issued share capital is that Xpresso may withhold the dividend if profits are insufficient. One disadvantage is that cash dividends are not tax deductible. 13) Besides, each type of shares also has its own characteristics. 4. 2. 2. 1. 1. Common shares: The advantages of using common shares are that common dividend is based on profits when so that Xpresso Limited is free from worrying about not having enough money to pay; there is no fixed maturity date for repayment of the capital; and the sale of common shares is frequently more attractive to investors than debts as its value grows with the success of the firm11. However, there are disadvantages as well. Shareholders ave right to vote, therefore the shareholders’ control and share in earnings are usuall y diluted13. If Xpresso decides to issue common shares, the stake of CEO (51% at present) will be reduced as the number of shares increases. In terms of finance, issuance of common shares requires higher underwriting costs; and the average cost of capital may increase above the optimal level when too much equity is issued13. 4. 2. 2. 1. 2. Preference shares: Legally, like common share, preference shares represent a part of ownership or equity of Xpresso Limited4.What’s more, in case of financial distress, claims of preference shareholders must be satisfied before common shareholders receive anything13. There is no default risk since non-payment of dividends does not necessarily mean bankruptcy. Preference dividend is fixed so that the company can plan to pay. Preference shareholders have no voting rights except in case of financial distress, which means there is no dilution of control. Call features and provision of sinking may be included so Xpresso may replace the issue if interest rates decline.There is one disadvantage that preference shares involve cumulative feature, which means in case Xpresso Limited does not have money to pay dividends in a particular year, the dividend keeps getting added to the next years’ dividend until the it is able to pay. (13) 4. 2. 2. 2. Retained profit: There are advantages to using retained profit as a form of finance due to the absence of brokerage costs (for example, merchant banks’ fees), its simplicity and flexibility, and all gains from investment will still ultimately belong to existing shareholders13.Besides, there are disadvantages as shareholders’ expectation of dividends may present a problem or insufficient earnings may be available4. 4. 3. Selection of appropriate sources of finance for a business project & assessment and comparison for various cost involved for each sources: 4. 3. 1. Appropriate sources of finance: As discussed above, it is proposed that Xpresso Delight Limited should use equity financing in forms of retained profit, issued share capital and debt financing in forms of loans in the capital structure.The main source that should be included is retained earning since it is the solidest source and has the least risk to the firm3. Issued shares and loans are the next choices as they bring many opportunities and a relatively reasonable number of risks as well as liabilities. 4. 3. 2. Costs of sources: 4. 3. 2. 1. Retained profit: Costs of retained earnings include fixed expenses such as wages, rent, materials, electricity and so on; tax cost; dividends (dividends are a cost of retained earnings as well as a cost of share capital); certain costs if invested in the short term as not needed immediately; and also opportunity costs4. . 3. 2. 2. Issued shares: Costs of the issued share capital include flotation costs, dividends (cash dividend and scrip dividends- dividends in the form of new shares); cost of providing shareholders or owners with information about the performance of the business such as the cost of glossy financial reports, Annual General Meetings, audit fees and the administrative costs of company with legal and Stock Exchange requirements for disclosure of information to shareholders; and also certain costs associated with investing them if not needed immediately4. 4. 3. 2. 3. Loans:Loans have interest as the main cost. The rate of interest may either be fixed or variable but in the case of Xpresso Limited it is fixed. There are also other costs including an initial arrangement fee to cover lender’s administrative costs on setting up the loan (checking references, setting up data on a computer system and so on); factors charge commission for advancing funds; non-financial costs involved in the relationship between the company and creditors (for example, Xpresso will be required to provide the creditor with regular information about the performance of the business)4.That kind of non-financial cost may create the uncomfortable feeling of being watched for the owner. Opportunity cost is also included in this case as well. For instance, instead of paying interest of US$ 10,000 a year the business could do something else with that US$ 10,000 that might help generate income. 4. 3. 3. Options of capital structure: There are three alternative capital structures that could be taken into account. Based on the comparison between their advantages and disadvantages, the most appropriate structure would be chosen. . 3. 3. 1. First structure: For the first structure, it is to use 50% debt financing; and 50% equity including 80% common share and 20% preference shares. That means US$ 15 million of debts, and US$ 15 million of equity including US$ 12 million of common shares and US$ 3 million of preference shares. The costs of sources are: Rf = US$ 0. 167 million Rc = US$ 1. 84 million Rd = US$ 1. 69 million The total cost is: 0. 167 + 1. 84 + 1. 69 = 3. 697 (US$ million) 4. 3. 3. 2. Second structure:The s econd structure is to use 25% debt financing; and 75% equity financing including 80% common shares and 20% preference shares. That means US$ 7. 5 million of debts, US$ 22. 5 million of equity including US$ 18 million of common shares and US$ 4. 5 million of preference shares. The costs of sources are: Rf = US$ 0. 25 million Rc = US$ 2. 81 million Rd = US$ 0. 84 million The total cost is: 0. 25 + 2. 81 + 0. 84 = 3. 9 (US$ million) 4. 3. 3. 3. Third structure: The third structure includes 10% debt financing; and 90% equity financing including 80% common shares and 20% preference shares.That means US$ 3 million of debts, and US$ 27 million of equity including US$ 21. 6 million of common shares and US$ 5. 4 million of preference shares. The costs of sources are: Rf = US$ 0. 3 million Rc= US$ 3. 32 million Rd = US$ 0. 34 million The total cost is: 0. 3 + 3. 32 + 0. 34 = 3. 96 (US$ million) As comparing the costs and the advantages & disadvantages of the three structures, it is to be said that the second structure is the best capital structure to apply for Xpresso Limited.Because although it does not has the lowest cost, the proportions of sources of finance included are the most appropriate option as the percentage of debts used (25%) is not too high for adding risks to the company but also ensures for the financial leverage (the tax relief) to be used. In addition, the cost of finance in this structure is still relatively low. 4. 4. The financial planning: 4. 4. 1. Definition: In general, financial planning is the process of developing strategies to help you manage your financial affairs so you can build wealth, enjoy life and achieve financial security5. . 4. 2. Importance for Xpresso Limited: Financial planning involves achieving a balance between the requirements to minimize the risk of not having cash to pay creditors and the requirements to maximize the earnings made by using assets4. It plays a very important role in helping Xpresso co-ordinate and organize the internal system, set up detailed plans for using resources, as well as for paying debts and liabilities, develop strategies, and finally prepare for any potential incidents in the future7. For Xpresso, every transaction has to be well-planned to run the business efficiently. . 4. 3. Shortage & surplus of capital: Capital surplus- the amounts of directly contributed equity capital in excess of the par value13 – has a large impact on Xpresso Limited as it can be used to distribute as bonus dividends to shareholders, to reinvest as owner’s equity and it also helps to reduce the cost of capital mobilizing9. It helps gain more prestige for Xpresso but also gives more pressure on the management as they have a duty to use it effectively. Capital is one factor of production, therefore its shortage makes difficulties for Xpresso to operate and develop efficiently4.Even it can lead to bankruptcy if capital shortage is too large. 5. CONCLUSION: It can be said that each and ev ery source of finance has both advantages and disadvantages. The aim is to make use of the advantages and also to avoid the disadvantages of all sources. The best capital structure is to combine the appropriate sources to make the best use for the company. To conclude, the capital structure proposed is to use 25% debt financing and 75% equity financing including 80% common shares and 20% preference shares in estimated US$ 30 million of capital.The cost of finance is US$ 3. 9 million. The structure has a relatively cost of finance and also ensures to make use of all advantages as well as minimizes all disadvantages of sources of finance used for expansion. As preparing a detailed and well-organized financial planning, there is a high rate of success for the expansion and other further developments of Xpresso Delight Limited Company. Appendix 1. Formula of cost debts: + Before-tax cost: Rdt = debts x 15% + After-tax cost: Rd = Rdt x (1 – t) Rd : After-tax cost Rdt : Before-tax cost t : Corporate tax rate (t = 25%) . Formula of cost of issuing shares: 1. Cost of issuing common shares: Rc = Dc / Pc (1 – ec) + g Dc : dividend per share (Dc= US$ 0. 3) Pc : value per share (Pc= US$ 1) ec : flotation cost for ordinary share (ec= 17%) g: rate of earnings growth (g= 15%) 2. Cost of issuing preference shares: Rf = Df / Pf (1 – ef) Df : dividend per share (Df = US$ 5) Pf : value per share (Pf = US$ 1) ef : flotation cost for preference (ef= 10%) Reference: 1. City & County of San Francisco (2002) Bond Financing Basics. San Francisco: Controller’s office 2.Communist party of Vietnam (2005) Procedure of borrowing from Vietnam bank for agriculture and rural development [online]. Updated 20 June 2005 [accessed 29 November 2009]. Available from: http://www. cpv. org. vn/cpv/Modules/News/NewsDetail. aspx? co_id=30592&cn_id=223635 3. Edexcel HNC&HND business (2004) Business environment, London: BPP professional Education 4. Edexcel HNC&HND business (2 004) Managing financial resources and decisions, London: BPP professional Education 5. Financial News (1996) [online]. eFinancialNews Ltd [cited 26 October 2009] .Available from Internet: http://www. efinancialnews. com/&sc=TWTAM000GS 6. Financial planning defined (2005) [online] Financial Planning Association [cited 25 October 2009]. Available from Internet: http://www. fpa. asn. au/FPA_Content. aspx? Doc_id=1056 7. Hong, P. (2007) Capital surplus- to distribute or not?. Saga [online]. Accession No. 362/GP-BC, 10 October, [cited 1 December 2009]. Available from: http://www. saga. vn/Luatkinhdoanh/Luattrongnuoc/6794. saga 8. Hong, S. (2009) Organizational debentures attractive to foreign Managing Financial Resources and Decisions Executive summary This report is to propose an appropriate capital structure for Xpresso Delight Limted’s business expansion with the minimum amount of capital as US$ 30 million. In order to achieve that goal, firstly, it is going to identify the sources of finance available for the business as debt financing which include loans, debentures and bonds; and equity financing, which includes common shares, preference shares and retained profit.It is also to discuss advantages & disadvantages of each source, as well as to assess the implications of these different sources related to risk, legal, financial and dilution of control and bankruptcy. Based on those analyses, it is to select the appropriate sources of finance for the project including retained profit, common and preference shares and loans. What’s more, the costs involved with each source will be assessed and compared in order to form the best alternative of capital structure.There are three options of capital stru cture proposed: †¢ 50% debt financing; and 50% equity including 80% common share and 20% preference shares †¢ 25% debt financing; and 75% equity financing including 80% common shares and 20% preference shares †¢ 10% debt financing; and 90% equity financing including 80% common shares and 20% preference shares Besides, this report is also to mention and explain the importance of financial planning for Xpresso Limited. CONTENTS Page 1.Cover Sheet †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦ 1 2. Executive Summary †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦4 3. Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ â⠂¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦.. 7 4. Main Body†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦ 8 4. 1 Available various sources of finance†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 8 4. 1. 1. Debt financing†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 8 4. 1. 1. 1. Loans†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦8 4. 1. 1. 2. Debentures†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦8 4. 1. 1. 3. Bonds†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 9 4. 1. 2. Equity financing†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦. 9 4. 1. 2. 1. Issued share capital†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦9 4. 1. 2. 2.Retained profit & other reserves†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 10 4. 2. Assessment of the implications of sources†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦10 4. 2. 1. Debt financing†¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦. 10 4. 2. 1. 1. Debentures†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 11 4. 2. 1. 2. Bonds†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 12 4. 2. 2. Equity financing†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦.. 12 4. 2. 2. 1. Issued shares†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦12 4. 2. 2. 1. 1. Common shares†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 12 4. 2. 2. 1. 2. Preference shares†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 13 4. 2. 2. 2. Retained profit†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦13 4. 3. Selection of appropriate sources & The assessment and comparison for costs†¦. 4 4. 3. 1. Appropriate sources of finance†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦14 4. 3. 2. Costs of sources†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦14 4. 3. 2. 1. Retained profit†¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 14 4. 3. 2. 2. Issued shares†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦14 4. 3. 2. 3. Loans†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 15 4. 3. 3. Options of capital structure†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 15 4. 3. 3. 1. First structure†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 15 4. 3. 3. 2. Second structure†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦. †¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 16 4. 3. 3. 3. Third structure†¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦16 4. 4. The financial planning †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦17 4. 4. 1. Definition†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦17 4. 4. 2. Importance for Xpresso Limited†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 17 4. 4. 3. Shortage & surplus of capital: †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 17 5. Conclusion . †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 19 6. Appendix †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 20 7. References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦21 3. INTRODUCTION: Xpresso Delight Limited is a publicly listed company in Australia Stock Exchange with the headquarter is based in Hanoi, Vietnam. Xpresso Delight Limited is majority owned (51% stake) by Chief Executive Officer (CEO), Mr.Nguyen Dong Khoa. The company has 30 cafes concentrated mainly in big cities in Vietnam like Hanoi, Ho Chi Minh City, Hai Phong, Da Nang, Can Tho and so on. With many advantages such as the growing affluence of coffee culture, the incre asing expatriates population in Vietnam, and even the government’s pro-business policies; Xpresso limited believes that there is an immense market potential in the emerging Vietnam, which encourages it to embark on an ambitious plan of expanding, opening at least 20 cafes each year for the next five years in the various parts of the country.The company issues two kinds of share including ordinary shares (par value US$ 1 per share), which are currently traded at US$ 2. 50 per share; and preference shares, which are currently traded at US$ 52 per share in Australia Stock Exchange. Its corporate tax rate is 25% at present but is expected to go down. With strong earnings growth projected at a constant 15% per annum in the future, Xpresso Delight Limited is expected to pay out US$ 0. 30 per share as ordinary dividend in the next financial year while a constant preference dividend is US$ 5 per share per year.The average flotation cost for the new issue of ordinary shares and prefer ence shares are 17% and 10% of the gross proceeds respectively. For new issue of ordinary shares and preference shares, Xpresso Delight Limited’s issue price will be set at their respective current market price as traded in the Australia Stock Exchange. Xpresso Delight Limited’s before-tax cost of debt is 15%. 4. MAIN BODY: 1. Available various sources of finance: In the case of Xpresso Limited, as a large company with stable profit growth looking for capital to expand, it is only necessary for long-term financing to be taken into account.Therefore, there are two principal sources of finance available to Xpresso Limited including debt and equity financing. 4. 1. 1. Debt financing: In regards to debt financing, the simplest meaning is borrowing money on credit with a promise to repay the amount borrowed, plus interest18. There are many types of debt financing, including borrowing from banks in terms of loans; or borrowing from investors in terms of debentures, bonds 4. 4. 1. 1. 1. Loans: A loan is a financial transaction in which one party – the lender – agrees to give another party – the borrower an amount of money which must be paid back in full16.With a good finance profile and the support of Vietnam government pro-business policies, it is easier for Xpresso Limited to borrow from commercial banks such as Vietcombank, VietinBank and so on. For example, the supportive interest rate of loans in Vietnam at present is fluctuating between 5 and 6 percent per year14, therefore if Xpresso Limited. borrows US$ 10,000, the interest it has to pay back will be between US$ 500 and US$ 600. 4. 1. 1. 2. Debentures: It is a channel for Xpresso to mobilize capital from investors setting out the terms of loans, backed by its reputation but not collateral12.Investors can be individuals, Vietnam and foreign financial institutions such as VinaCapital, BankInvest and so on; and even Vietnam commercial banks are the main investors in organizatio nal debentures. Because of its high standing in the market, investors and other creditors are willing to purchase once Xpresso Limited issues debentures. As in the Vietnam present market , the common interest rate of debentures issued by enterprises is 12. 5 percent per year11, if Xpresso issues debentures of US$ 10 million for 5 years, it has to pay investors the total interest of US$ 6. 5 million. 4. 1. 1. 3. Bonds: Bonds are large debts which are usually paid off over a period of 10 to 35 years1. Simply explaining, in bond financing, Xpresso mobilizes capital from investors instead of banks by selling bonds to them with a promise to pay back with interest, according to specified schedules8. As an example, if Xpresso issues bonds at an interest rate of 6%, the interest over 20 years would be about US$ 0. 73 for each dollar borrowed. 4. 1. 2. Equity financing:In terms of equity financing, equity capital generally is composed of funds that are raised by Xpresso in exchange for an ow nership interest in the company17. Since it is owner’s equity, the company does not have to worry about any liability to repay interest or loans for other parties. There are two major sources of equity financing including issued share capital and retained profit & other reserves12. 4. 1. 2. 1. Issued share capital: Issued share capital is capital that is subscribed by shareholders when they purchase shares Xpresso Limited issues, including common and preference shares4.Common shares are shares issued to the general public in the stock market, while preference shares are shares issued to some special people (for example, banks or specific institutions)2. 4. 1. 2. 2. Retained profit & other reserves: Retained profit is simply profit that has been kept within Xpresso Limited rather than paid out to shareholders as dividends 2. 2. Assessment of the implications of sources of finance to Xpresso Delight Limited related to risk, legal, financial and dilution of control and bankruptc y: 4. 2. 1. Debt financing:As being categorized in debt financing, those various types including loans, debentures and bonds have some implications to Xpresso in similarity, which are going to be discussed below. There are many advantages of Xpresso Limited for using debt financing. There is no dilution of control since the creditors have no authority in running the company but just involve in the money they invest; and they usually do not participate in the superior earnings of the company either as the cost of debts is limited 13. The most important advantage is tax relief on interest as it is considered one kind of expenses3.For example, if Xpresso Limited borrows US$ 10,000 at the interest rate of 5%, it will have to pay the interest of US$ 500 but will be reduced US$ 500 in the tax-incurred income. What’s more, in time of inflation, debts may be paid back with â€Å"cheaper pesos†13 since the money becomes worth less. To the existing shareholders, one advantage is when Xpresso Limited unfortunately goes broke, they may lose their investment but other personal possessions are safe 2. However, using debt financing also has disadvantages. Obviously, debts add risk to the company12.There is a risk of not having enough money to pay by the maturity date or if the earnings of Xpresso Limited fluctuate 12; either of which easily makes the company become bankruptcy. To add more, the legal of debt financing in Vietnam is relatively complicated 2, and certain managerial prerogatives are usually given up in the bond’s indenture contract (for example, specific ratios must be kept above a certain level during the term of the loan)13. Besides, debentures and bonds also have their own characteristics. 4. 2. 1. 1. Debentures:One advantage of using debenture financing is that Xpresso Limited does not have to give collateral9. However, it also has disadvantages as it must compete with government loan stocks (gilts), what are the dominant type of debentu res in Vietnam market, so the company must generally offer a higher rate of interest than the one on gilts to attract investors4. The legal issue of debentures that Xpresso Limited has to concern is that if a bond defaults, investors are entitled to the liquidation proceeds of property bought with the money they invest (by purchasing debentures)5. . 2. 1. 2. Bonds: Bonds have fixed interest and are issued for long-term1. One advantage of using bond is that substantial flexibility in the financial structure is enhanced by debt through the inclusion of call provisions in the bond indenture13. In case of financial distress, bondholders have greater claims of the issuer’s income than shareholders6. 4. 2. 2. Equity financing: 4. 2. 2. 1. Issued shares: The legal aspect involved is that shareholders are also owners of the company4.Therefore, the business ownership is diluted and it is possible to lose the control of the business for investors. However, there is also an advantage th at there is large potential membership to provide capital and to share risks of loss, bankruptcy and so on. There is a part of profit of the company distributed to shareholders as dividends. One significant advantage of using issued share capital is that Xpresso may withhold the dividend if profits are insufficient. One disadvantage is that cash dividends are not tax deductible. 13) Besides, each type of shares also has its own characteristics. 4. 2. 2. 1. 1. Common shares: The advantages of using common shares are that common dividend is based on profits when so that Xpresso Limited is free from worrying about not having enough money to pay; there is no fixed maturity date for repayment of the capital; and the sale of common shares is frequently more attractive to investors than debts as its value grows with the success of the firm11. However, there are disadvantages as well. Shareholders ave right to vote, therefore the shareholders’ control and share in earnings are usuall y diluted13. If Xpresso decides to issue common shares, the stake of CEO (51% at present) will be reduced as the number of shares increases. In terms of finance, issuance of common shares requires higher underwriting costs; and the average cost of capital may increase above the optimal level when too much equity is issued13. 4. 2. 2. 1. 2. Preference shares: Legally, like common share, preference shares represent a part of ownership or equity of Xpresso Limited4.What’s more, in case of financial distress, claims of preference shareholders must be satisfied before common shareholders receive anything13. There is no default risk since non-payment of dividends does not necessarily mean bankruptcy. Preference dividend is fixed so that the company can plan to pay. Preference shareholders have no voting rights except in case of financial distress, which means there is no dilution of control. Call features and provision of sinking may be included so Xpresso may replace the issue if interest rates decline.There is one disadvantage that preference shares involve cumulative feature, which means in case Xpresso Limited does not have money to pay dividends in a particular year, the dividend keeps getting added to the next years’ dividend until the it is able to pay. (13) 4. 2. 2. 2. Retained profit: There are advantages to using retained profit as a form of finance due to the absence of brokerage costs (for example, merchant banks’ fees), its simplicity and flexibility, and all gains from investment will still ultimately belong to existing shareholders13.Besides, there are disadvantages as shareholders’ expectation of dividends may present a problem or insufficient earnings may be available4. 4. 3. Selection of appropriate sources of finance for a business project & assessment and comparison for various cost involved for each sources: 4. 3. 1. Appropriate sources of finance: As discussed above, it is proposed that Xpresso Delight Limited should use equity financing in forms of retained profit, issued share capital and debt financing in forms of loans in the capital structure.The main source that should be included is retained earning since it is the solidest source and has the least risk to the firm3. Issued shares and loans are the next choices as they bring many opportunities and a relatively reasonable number of risks as well as liabilities. 4. 3. 2. Costs of sources: 4. 3. 2. 1. Retained profit: Costs of retained earnings include fixed expenses such as wages, rent, materials, electricity and so on; tax cost; dividends (dividends are a cost of retained earnings as well as a cost of share capital); certain costs if invested in the short term as not needed immediately; and also opportunity costs4. . 3. 2. 2. Issued shares: Costs of the issued share capital include flotation costs, dividends (cash dividend and scrip dividends- dividends in the form of new shares); cost of providing shareholders or owners with information about the performance of the business such as the cost of glossy financial reports, Annual General Meetings, audit fees and the administrative costs of company with legal and Stock Exchange requirements for disclosure of information to shareholders; and also certain costs associated with investing them if not needed immediately4. 4. 3. 2. 3. Loans:Loans have interest as the main cost. The rate of interest may either be fixed or variable but in the case of Xpresso Limited it is fixed. There are also other costs including an initial arrangement fee to cover lender’s administrative costs on setting up the loan (checking references, setting up data on a computer system and so on); factors charge commission for advancing funds; non-financial costs involved in the relationship between the company and creditors (for example, Xpresso will be required to provide the creditor with regular information about the performance of the business)4.That kind of non-financial cost may create the uncomfortable feeling of being watched for the owner. Opportunity cost is also included in this case as well. For instance, instead of paying interest of US$ 10,000 a year the business could do something else with that US$ 10,000 that might help generate income. 4. 3. 3. Options of capital structure: There are three alternative capital structures that could be taken into account. Based on the comparison between their advantages and disadvantages, the most appropriate structure would be chosen. . 3. 3. 1. First structure: For the first structure, it is to use 50% debt financing; and 50% equity including 80% common share and 20% preference shares. That means US$ 15 million of debts, and US$ 15 million of equity including US$ 12 million of common shares and US$ 3 million of preference shares. The costs of sources are: Rf = US$ 0. 167 million Rc = US$ 1. 84 million Rd = US$ 1. 69 million The total cost is: 0. 167 + 1. 84 + 1. 69 = 3. 697 (US$ million) 4. 3. 3. 2. Second structure:The s econd structure is to use 25% debt financing; and 75% equity financing including 80% common shares and 20% preference shares. That means US$ 7. 5 million of debts, US$ 22. 5 million of equity including US$ 18 million of common shares and US$ 4. 5 million of preference shares. The costs of sources are: Rf = US$ 0. 25 million Rc = US$ 2. 81 million Rd = US$ 0. 84 million The total cost is: 0. 25 + 2. 81 + 0. 84 = 3. 9 (US$ million) 4. 3. 3. 3. Third structure: The third structure includes 10% debt financing; and 90% equity financing including 80% common shares and 20% preference shares.That means US$ 3 million of debts, and US$ 27 million of equity including US$ 21. 6 million of common shares and US$ 5. 4 million of preference shares. The costs of sources are: Rf = US$ 0. 3 million Rc= US$ 3. 32 million Rd = US$ 0. 34 million The total cost is: 0. 3 + 3. 32 + 0. 34 = 3. 96 (US$ million) As comparing the costs and the advantages & disadvantages of the three structures, it is to be said that the second structure is the best capital structure to apply for Xpresso Limited.Because although it does not has the lowest cost, the proportions of sources of finance included are the most appropriate option as the percentage of debts used (25%) is not too high for adding risks to the company but also ensures for the financial leverage (the tax relief) to be used. In addition, the cost of finance in this structure is still relatively low. 4. 4. The financial planning: 4. 4. 1. Definition: In general, financial planning is the process of developing strategies to help you manage your financial affairs so you can build wealth, enjoy life and achieve financial security5. . 4. 2. Importance for Xpresso Limited: Financial planning involves achieving a balance between the requirements to minimize the risk of not having cash to pay creditors and the requirements to maximize the earnings made by using assets4. It plays a very important role in helping Xpresso co-ordinate and organize the internal system, set up detailed plans for using resources, as well as for paying debts and liabilities, develop strategies, and finally prepare for any potential incidents in the future7. For Xpresso, every transaction has to be well-planned to run the business efficiently. . 4. 3. Shortage & surplus of capital: Capital surplus- the amounts of directly contributed equity capital in excess of the par value13 – has a large impact on Xpresso Limited as it can be used to distribute as bonus dividends to shareholders, to reinvest as owner’s equity and it also helps to reduce the cost of capital mobilizing9. It helps gain more prestige for Xpresso but also gives more pressure on the management as they have a duty to use it effectively. Capital is one factor of production, therefore its shortage makes difficulties for Xpresso to operate and develop efficiently4.Even it can lead to bankruptcy if capital shortage is too large. 5. CONCLUSION: It can be said that each and ev ery source of finance has both advantages and disadvantages. The aim is to make use of the advantages and also to avoid the disadvantages of all sources. The best capital structure is to combine the appropriate sources to make the best use for the company. To conclude, the capital structure proposed is to use 25% debt financing and 75% equity financing including 80% common shares and 20% preference shares in estimated US$ 30 million of capital.The cost of finance is US$ 3. 9 million. The structure has a relatively cost of finance and also ensures to make use of all advantages as well as minimizes all disadvantages of sources of finance used for expansion. As preparing a detailed and well-organized financial planning, there is a high rate of success for the expansion and other further developments of Xpresso Delight Limited Company. Appendix 1. Formula of cost debts: + Before-tax cost: Rdt = debts x 15% + After-tax cost: Rd = Rdt x (1 – t) Rd : After-tax cost Rdt : Before-tax cost t : Corporate tax rate (t = 25%) . Formula of cost of issuing shares: 1. Cost of issuing common shares: Rc = Dc / Pc (1 – ec) + g Dc : dividend per share (Dc= US$ 0. 3) Pc : value per share (Pc= US$ 1) ec : flotation cost for ordinary share (ec= 17%) g: rate of earnings growth (g= 15%) 2. Cost of issuing preference shares: Rf = Df / Pf (1 – ef) Df : dividend per share (Df = US$ 5) Pf : value per share (Pf = US$ 1) ef : flotation cost for preference (ef= 10%) Reference: 1. City & County of San Francisco (2002) Bond Financing Basics. San Francisco: Controller’s office 2.Communist party of Vietnam (2005) Procedure of borrowing from Vietnam bank for agriculture and rural development [online]. Updated 20 June 2005 [accessed 29 November 2009]. Available from: http://www. cpv. org. vn/cpv/Modules/News/NewsDetail. aspx? co_id=30592&cn_id=223635 3. Edexcel HNC&HND business (2004) Business environment, London: BPP professional Education 4. Edexcel HNC&HND business (2 004) Managing financial resources and decisions, London: BPP professional Education 5. Financial News (1996) [online]. eFinancialNews Ltd [cited 26 October 2009] .Available from Internet: http://www. efinancialnews. com/&sc=TWTAM000GS 6. Financial planning defined (2005) [online] Financial Planning Association [cited 25 October 2009]. Available from Internet: http://www. fpa. asn. au/FPA_Content. aspx? Doc_id=1056 7. Hong, P. (2007) Capital surplus- to distribute or not?. Saga [online]. Accession No. 362/GP-BC, 10 October, [cited 1 December 2009]. Available from: http://www. saga. vn/Luatkinhdoanh/Luattrongnuoc/6794. saga 8. Hong, S. (2009) Organizational debentures attractive to foreign