Developing a Counseling Plan Essay Example for Free

Developing a Counseling Plan Essay As a counselor one constantly strives to help clients become successful members of society. In order to become successful in society one must be mentally healthy, there are clients that are so unhealthy mentally and that have struggled so much throughout their childhood and through adolescents that as a counselor you work and push that much harder to help your client overcome those obstacles. In some cases ones counseling can prevent a negative life and provide for a safer society. This case depicts a client that falls under those circumstances. As a client, John Wayne Gacy will be introduced to Family Therapy to help him understand his family environment and help him to cope and or change the way he feels about his family life. The counseling plan will deal with John Wayne Gacy’s issues of his father being an alcoholic, his father abusing him and the rest of his family, him liking boys, as well as his anti-social ways at school. These will be addressed by looking at creating a genogram. When looking at the research it is favorable to use family therapy in order to facilitate change within the family environment by looking at problem solving abilities, looking at the positive rather than the negative, and accepting family members. Case Study My client is John Wayne Gacy, a 15 year old boy living in Chicago, Illinois. He is a white male and has been referred by a judge to undergo a psych evaluation, after his psych evaluation he began coming to see me. This is Gacy’s first time seeking help from a licensed counselor. Presenting Problems John’s presenting problems are his father is an abusive alcoholic, John is attracted to boys, and John is anti-social at school. These three things lead to much confusion in John’s life which led to him hearing voices. John wants to see if family therapy could change some of his issues and feels that by going to family therapy his home environment might change into a more supportive one. Family Background and Developmental History John Wayne Gacy, the son of Marion Elaine Robinson Gacy and John Wayne Gacy Sr. was born on March 17th 1942 in Chicago, Illinois. His parents were of Polish and Danish heritage (Bell). John was the middle child of three; he had an older sister Joanne and a younger sister Karen. John and his sisters were brought up Catholic and went to catholic school. The environment in which he was raised in was that of middle class, he had a part-time job after school and was involved with the boy scouts. John and his two sisters were raised by a father that was an alcoholic; he abused them and their mother. John was not popular in school and was often left out of the loop. John had a playground incident at age 11 which led to him having a blood clot and the clot caused him to have blackouts (Bell Bardsley). He could not play with the other kids because he had a heart condition which was another reason he was looked down upon by his father; he saw it as another shortcoming. John also discovered that he liked boys and often struggled with dealing with his sexuality (Bell). John’s father in a way resented him for this. He felt that it was a sign of weakness or another fault that John had. Current Living and Work Environment John is involved in many organizations within the community. He is a hard worker that often suffered from exhaustion and anxiety from the pressure he put on himself to succeed. John was a father and husband; and had a house in the suburbs. All of this came to a screeching halt when rumors of Gacy liking boys surfaced. Multiple charges and even a prison sentence were handed down to Gacy for the assault of a young boy. Physical Appearance, Mood, and Demeanor John was overweight and had heart and back problems; however, it did not stop him from his work or community activities. Gacy was sentenced to ten years in prison for assaulting a young boy. Gacy was in denial saying that the young boy willingly participated in the sexual acts in order to make extra money. He also did not take responsibility for his actions and tried to place blame on others. Gacy’s has an anti-social personality but is mentally competent. When he was in prison he followed rules and was not violent. Gacy took on different personalities as well as went through many different moods (Inside John Wayne Gacy’s Mind). Counseling Plan This counseling plan uses Family Therapy. â€Å"Families are systems of interconnected and interdependent individuals, none of whom can be understood in isolation from the system.†(Genopro) Basically family members feed off each other, positivity feeds positivity and vice versa. The best way to put together a treatment plan is to build your family genogram. Study your own behavior patterns and how they fit in with the rest of your family throughout generations. This will bring out options in which could be used in order to solve problems and figure out how one fits into the family and what ones role is within the family (Genopro). The genogram structure of family therapy will allow John and me to create a counseling plan very easily. Conceptualization of Client’s Presenting Problem and Developmental History John shows signs of multiple personality disorder as well as having an anti-social personality. John also hears voices. Family Therapy eludes to the fact that Family development and the environment that he was brought up in, along with family makeup could be a contributor to why John suffers from what he does (Capuzzi Gross, 2011). Family patterns or expectations are looked at in many ways from parental beliefs, personalities, and extended family influence. This allows each family to be unique in their own ways. This uniqueness can be very overwhelming and takes a toll on all members whether it is negative or positive (Pope). For example, John’s father puts a lot of pressure on him to be successful. John’s shortcomings were looked down upon by his father most likely do to the beliefs and personality that he formed based upon his parental upbringing. John admits that his father was abusive to his mom, sisters, and him as well. John took on many personalities and even called himself pogo the clown at times. John was attracted to boys and this is something that has haunted him his whole life and the reason he is in the predicament he is in. He hated being a disappointment to his father and he was always looking to please his father. John’s confusion with his sexuality ultimately lead to him killing those he sexually encountered because the voices he heard were telling him it would please his father. In session we will discuss with John  and his family ways in which the environment John is brought up in could be altered. Conceptualization of Human Nature According to Family Theory The goal of Family Therapy models is to take the problem presented by the individual dealing with their relationships with other people in the family setting and change the negative aspects (Franklin). The Family Therapy counselor believes the development of family life include family life cycle, family life spiral, and the family genogram (Capuzzi Gross, 2011) The family life spiral looks at how the members of the family go through the stages of development from young to old age. The family life spiral looks at generations and how they coincide with each other. The genogram charts development of generations. Counseling Goals The overall objective is for John Wayne Gacy to be able to find a way to cope with his anger towards his father and to be able to express how his father’s abuse towards the family affected him in a negative way. John said he wants to break down the barrier between him and his father because he loves him and ultimately wants to make him proud. To advocate for this John’s goal is to try and change the cognitive, affective, and behavioral aspects of his family system (Capuzzi Gross, 2011). In other words he wants to change the environment in the Gacy household completely around. The abuse needs to stop, the constant pressure needs to stop, and the pointing out of his weaknesses needs to be approached differently. Course of Treatment In order to get a complete understanding I believe the first action that needs to be taken is the nuclear family emotional system needs to be broken down, what this is looking at is the possible relationships with in a family and look at where problems could possibly come about. For John, 3 of the relationship patterns are touched upon in his situation. His father is abusive to his mother and siblings, in John’s fathers eyes there is an impairment of John because he likes boys, and lastly there is an emotional disturbance suffered by John because of his father’s view of him (Genpro). The second part that needs to be addressed is differentiation of self which is the dependency on others to give acceptance and approval. This is something John struggled with and never received from his father. He never felt like his father truly accepted him or approved of the life style that he lived (Genpro). John agreed to do 2 things a day to satisfy his needs, meaning if he wanted to work in the community do it because it made him feel good not because he wants or needs approval from his father. Treatment plan was developed and signed by John and we will meet on a weekly basis. Family Therapy Interventions Due to John stating that the pressure his father puts on him within the family system to be successful, the first intervention to be used will be the family interview. We will follow the five stages of the interview which are social, problem, interaction, goal setting, and ending (Capuzzi Gross, 2011). This interview will give me the tools necessary to properly assess the situation. The interview will also help John and his family understands how each other feels and come up with some interventions to help facilitate change. â€Å"the first obligation of a therapist is to change the presenting problem offered. If that is not accomplished, the therapy is a failure† (Capuzzi Gross, 2011). The first intervention needs to address the problem that John has presented, based upon the interview the interventions that will be implemented will be geared towards progressing with Johns presenting problem. Research Support The research that was obtained was very helpful in forming a counseling plan or treatment plan for this particular client. Family Therapy is known for helping individuals whose presenting problems deal with issues that stem from the family and the environment the individual was brought up in. Family therapy is the best way to look at â€Å"the patterns of communication and the relationships that connect people with one another and to their social and physical environments† (Capuzzi Gross, 2011, p. 287). In this case we will be looking at how John fits into his family and what his father’s expectations are of John. Interviewing as an intervention will be crucial in figuring out John place in the family and seeing how his and his father’s view of the roles conflict with each other. Family therapy allows for John  and his family to work on their problem solving with each other within the family, expressing their individuality with each other, discussing the positive and negative aspect of their family atmosphere as well as with each other on an individual basis, and lastly the acceptance of each other (Capuzzi Gross, 2011). Family therapy allows for clients to understand their environments as well as to understand their role within that environment. The counselor’s role within the session is to basically guide the discussion and conduct the interview. Family Therapy I feel is the best theory to use for a client such as John Wayne Gacy due to his confusion within his family, particularly when it comes to the relationship with his father and the expectation that his father has for him or at least how John see those expectations. Conclusion This counseling plan reviewed the use of Family Therapy for counseling John Wayne Gacy. Family Therapy is designed to be an extensive look at John Wayne Gacy’s family makeup. John Wayne Gacy’s presenting problems are his father abusing him and his family, his father being an alcoholic, he struggles with his sexuality, and he is anti-social. Family therapy is used to deal with these concerns, so for John, the counseling objective is to find a way to cope with his anger towards his father and to be able to express how his father’s abuse towards the family affected him in a negative way. The counseling plan addresses John’s concerns of worrying about his father’s abuse and constant push for perfection as well as his anti-social tendencies. Due the treatment plan and goals presented and the attitude of John to want to get better, I feel that Family Therapy will be successful for John Wayne Gacy as well as his family. References Bell, R., Bardsley, M. (n.d.). John wayne gacy jr. In R. BELL (Ed.), Retrieved from http://www.crimelibrary.com/serial_killers/notorious/gacy/gacy_1.html Bell, R. (n.d.). Retrieved from http://www.biography.com/people/john-wayne-gacy-10367544 Capuzzi, D., Gross, D. R. (Ed.). (2011). Counseling and psychotherapy: Theories and interventions (5th ed.). Alexandria, VA: American Counseling Association Franklin, C. (n.d.). Retrieved from http://www.utexas.edu/courses/franklin/62670/Week1.html GenoPro. Family systems theory. Retrieved from http://www.genopro.com/genogram/family-systems-theory/ Inside John Wayne Gacy’s Mind. Chicago: CBS. Retrieved from http://chicago.cbslocal.com/video/6658917-inside-john-wayne-gacys-mind/ Pope, J. (n.d.). Retrieved from http://www.webmd.com/balance/family-therapy-6301

The Nmc Code Of Conduct Nursing Essay

The Nmc Code Of Conduct Nursing Essay Nursing is a profession regulated by the Nursing and Midwifery Council (NMC 2008). The NMC is an organisation set up by the Parliament to protect the public by ensuring that nurses and midwives provide high standards of care to their patients. These healthcare professionals are also accountable for their own actions. The body sets standards for education, practice and conduct as well as providing advice for nurses and midwives. The NMC also considers allegations of misconduct or unfitness to practice. Using the case study given, it shall be the authors aim to demonstrate the understanding of the NMC Code of Conduct suggesting ways in which it can be applied to practice. In order to comply with the NMC Code of Conduct of confidentiality, the patient to be discussed in this assignment will be referred to as Mrs X. Furthermore the author will explore the four main principles of the code relating them to issues arising out of the case study. The author will also demonstrate the understan ding of ethical issues arising, analysing and discussing autonomy, non-maleficence, beneficence and justice. The case study refers to an 80 year old woman with a hip fracture, admitted to a hospital ward from a nursing home and urgently added to the operation list. She is bedridden, with severe heart problem and in early stages of Alzheimers disease and appeared to be coherent and lucid as recorded. She agreed to have a hip replacement operation after the consultant explained the procedure. On her way to theatre, she changes her mind and the consultant was informed. The consultant insists on proceeding, citing a busy week ahead and commenting that these elderly confused patients dont know their own mind. According to the NMC Code of Conduct, a healthcare professional has a duty to care and protect the interest of those in their care regardless of age, gender, culture, religious and political beliefs. Mrs X is 80 years old but the professionals still have a duty of care and must protect her interests. An interview was carried out by the medical staff and the patient appeared coherent and lucid but Mrs X has changed her mind on route to theatre. This author will critically examine the procedures that followed. The consultant explained the procedure to the patient who agreed to have the operation. Thompson et al (1994) stated that communication is one of the fundamental aspects in nursing The consultant was informed of the patients decision to change her mind on the operation and responds stating that We will have to proceed. As a nurse one could argue that the consultant should respect this decision as going against it would be breaching the NMC code. Mrs Xs decision to change her mind on the way to theatre, not wanting to go ahead with the operation should be respected. Hope et al (2008) stated that a patients autonomy can result in conflict, raise ethical dilemmas and may not be straight forward. Autonomy is defined as the right to choose or refuse treatment .Beauchamp and Childress (2009). The consultant could also argue that he is working in the best interest of the patient but does this override the patients right to make her own decision? Beauchamp and Childress (2009) stated that individuals views and rights must be respected as long as these individuals thoughts and action do not cause harm to other people. The NMC makes a point of highlighting the point of advocating for patients. In this instance, the nurse faces the ethical dilemma of standing up to the consultant and advocating for the patien t in order to uphold the code. Thompson (2003, cited in Buka, 2008) suggests that ethics is a study of how people behave, what they do, the reasons they give for their actions and the justification behind their decision. The need to maintain professional boundaries as well means that nurses have to raise their points in a manner that does not destabilise the team. Each and every member of the healthcare team must act as the patients advocate and remind or challenge colleagues should they fail to practice according to standards, Hindle and Coates (2011). If any medical team members working with the consultant on Mrs Xs case are not in agreement with his decision to proceed, they should challenge or remind him of the ethical code stipulating that the patients decision must be respected. When healthcare professionals are faced with dilemmas, patients should always come first. Childs et al (2009) states that when considering our actions we are bound by NMC codes, standards and guideline s, for students guidelines set by their training institution by local standards and guidelines within the clinical practice area and by the law of the country. It is unprofessional and unlawful to force treatment on anyone. Although the consultant explained the procedure, one could argue that making information available is different from effective communication. Consent was given the first time but the patient later changed her mind. An exploration for her reason to change her mind should have taken place and at least inform the patient that the operation was going ahead and the reasons for going ahead. The wording used by the consultant could be a concern. We will have to proceed. We have a very busy week ahead; these elderly confused patients dont know their own mind. Carry on as usual. One could interpret that the consultant is suggesting that when people get old, they automatically become confused; which could be stereotyping amounting to discrimination which is against the law. This could be taken to suggest that the consultant is of the assumption that the elderly are confused and dont know whats good for themselves and so should have decisions made for them. Patients are supposed to be treated with dignity, respect and as individuals considering their physical, psychological and social care with decisions made in partnership with clinicians, rather than by clinicians alone according to DOH (2010). Hendnrick (2004) defines consent as the permission given by patient voluntarily, without pressure, force or manipulation or undue influence. The NMC emphasises that healthcare professionals must seek consent from their patients otherwise they might be liable to be charged with assault or battery. The consent could either be in writing or verbal. In the event of a law suit, such documents and discussions can then be used in courts of law. Although Mrs X had given consent for the operation to proceed, health professionals should respect the withdrawal of consent. Proceeding with the planned operation against Mrs Xs wish amounts to violation of her rights and the nurse has a duty to highlight this aspect. The Mental Capacity Act (2005) was established to empower and to protect vulnerable people in making their own decisions. In particular, this was to safeguard those who lack capacity and those who have difficulties in making decisions because of illness, disability and those with mental health problems. The mental capacity act has four main principles of capacity: A person must be assumed to have capacity unless it is proved otherwise. Mrs X should be deemed to have capacity as she was interviewed and appeared coherent and lucid. Any act or decision taken on behalf of someone lacking capacity must be in the persons best interest. The consultant could argue he was working in the best interest of the patient. In the event that Mrs X lacks capacity, an advocate could be appointed to act on her behalf. An unwise decision is not to be taken as a lack of capacity. Even though Mrs X changed her mind and appears to have made an unwise decision, this should not be seen as lack of capacity. Until all practicable steps have been taken to help someone make a decision without success, they cannot be treated as lacking capacity. The consultant did not exhaust all efforts to help Mrs X in her decision making as no interaction took place after she changed her mind. The consultant took it upon himself to make the decision and dismissed Mrs X as an elderly confused patient who does not know her mind. The Mental Capacity Act (2005) has a test for capacity which states that a person lacks capacity if at the material time he is unable to make a decision for himself in relation to the matter because of an impairment of or a disturbance in the functioning of, the mind or brain. It does not matter whether the impairment or disturbance is temporal or permanent (Brammer, 2007). A person is unable to make a decision for himself if he is unable to understand the information relevant to the decision, to retain the information, to use or to weigh up that information as part of the process of making the decision, or to continue the decision (Brammer 2007). Section 3 of the act states that if the patient can retain information relevant to the decision for a short time only, this does not necessarily mean she cannot make a decision. When Mrs X changed her mind the consultant should have respected this decision because she was capable of retaining information for a while, had thought it through and decided she did not want to proceed. The Mental Health Act (1983) covers the reception, care and treatment of mentally disordered persons, the management of their property and other related matters. The act empowers authorities to detain those diagnosed with a mental disorder in hospital or police custody and have their disorder assessed or treated against their wishes, known as sectioning. Mrs X was diagnosed as having early signs of Alzheimers disease. This disease is a form of dementia, a neurologic disease characterized by loss of mental ability severe enough to interfere with normal activities of daily living. It usually occurs in old age, and is marked by a decline in cognitive functions such as remembering, reasoning, and planning. As Alzheimers disease is a progressive illness with no recovery, it is not applicable to use the Mental Health Act (1983) because whether or not treatment is given for the disease, this will not improve the decision making capacity of Mrs X. The General Medical Council clearly stipulates that healthcare professionals ought not to discriminate but should treat those in their care fairly based on their needs. The consultant is going against the GMCs code of conduct when he ignores the patients wish to discontinue with the operation. The GMC emphasises that patients have the right to change their minds on decisions.(ref) Nurses are required by the NMC Code of Conduct to express compassionate attitudes in their careers (Byrne and Byrne 1992). Nurses act as advocates for patients and as such can be described as special and unique to other health care professionals as they spend more time with the patients (Norman and Ryrie 2004). They are expected to develop a nurse-patient relationship which must be kept professional. It is also a nurses duty in accordance with NMC to educate the patient. Mrs X should have been educated and made aware of the advantages and disadvantages of the operation. The principle of non-maleficence is one which seeks to avoid intentional harm. Mrs X does not wish to undergo the procedure so to agree with her wish would be harmful although proceeding may harm any existing relationship between the healthcare professionals and the patient. What then happens if for instance the procedure does not go according to plan? Operations to correct hip fractures in the elderly are common and to abstain from conducting them would result in a lot of pain and discomfort not to mention the immobility issue. It is common knowledge that bedridden elderly patients if not moved regularly will develop pressure sores (Onslow 2005). The principle that requires action which benefits the patient is known as beneficence. To effect such an action sometimes medical professionals have to ignore the wishes of the patient if they can prove the patients incapacity to consent. While respecting the right of Mrs Xs treatment refusal, capacity test should be done to find out if she is capable of making her own decision. If Mrs X lacks capacity, then the medical staff should seek consent from the relatives or Independent advocates (Tingle and Cribb,. 2008). The ethical difficulties are compounded by such cases as the Canadian case of Malette v Schumann. The claimant came to hospital after being involved in a road accident. The doctor went ahead to perform blood transfusion despite the nurse having found a card in her pocket stating that she was a Jehovahs Witness and never to be given a blood transfusion. Later, on recovering the claimant won $20,000 of damages (Tingle and Cribb, 2008). The doctor was charged with battery. Mrs Xs wish not to proceed with the operation may be well founded and give grounds to litigation. The outcome of the operation also plays a major part in determining whether the decision to go ahead and operate is a good one or not. On tacking this assignment l learnt that establishing the patients consent is very vital for any action to be justifiable carried out. The consultant did manage to convince Mrs X to agree to undergo the procedure after talking her through it. He unfortunately could not accept her change of mind sighting her age as the problem. I felt that Mrs X hadnt been given enough time to ponder the idea of undergoing the procedure. She has been admitted to the hospital ward and urgently added to the list. I thought because she was in pain, she was not thinking straight and was pressured into giving consent. Looking back l now feel the consultant wanted the hip fracture operation to proceed as soon as possible as this would in turn ensure speed recovery. Looking at her age, I would like to think that the sooner she got operated on the quicker the recovery. He had the patients interest at heart. At the time l felt team work and better communication would have brought about better decision. The team members should have objected or aired their feelings against the consultants wish to proceed without consent. The positive was that if Mrs X was operated on, the pain would easy and she would then be mobile, which would be good for her heart. Taking the age issue into perspective the sooner she underwent the procedure the sooner she was expected to heal. The negative was that if anything went wrong, bearing in mind Mrs X had severe heart problem, the whole team would be in trouble. When Mrs X changed her mind about undergoing the procedure the issue should have been addressed properly since consent is fundamental in a patients care. A meeting between the medical care professionals to look into the reason of change of plan, if need be, a mental capacity test taken as is warranted under the Medical Health Capacity Act. In nursing the interests of the patients always come first. I think communication is vital in nursing. Communication is very important when dealing with patients in nursing. The consultant did not act as a professional when Mrs X changed her mind that she is not ready for the hip operation. I was not comfortable with his response as it sounded harsh, commanding and unprofessional when he was informed of Mrs X decision I have learnt that team is important in nursing and healthcare professionals should always respect the rights of their patients and consent is at the centre of every action. The author has explored the professional, legal and ethical implications of the case study provided. It has been identified that although the NMC provides guidance and regulates the nursing profession, the onus is on the practitioner to make decisions based on the guidelines. Although the nurses and doctors may be working together, it has also been noted the two professions are governed by two different bodies and therefore have different codes of ethics although some of the codes could be similar. The NMC code of conduct is often updated as the code sometimes conflicts with other policies and procedures from employment and the law. Nurses should ensure they are up to date with any changes and guidelines within this body (Beech 2007). Because of the trust accorded nurses by society (gained through recognition of nurses expertise) and the right given the profession to regulate practice (professional autonomy) individual clinicians and the profession must be both responsible and accoun table Hitchcock et al (2003). The basic ethical principles of beneficence, nonmaleficence, justice and autonomy which are among the ethical principles that influence decisions in health care ethics have been explored and applied to the case study. The Mental Capacity Act (2005) has also been discussed and identified as the main legal instrument relating to this case study. It is crucial that nurses understand how the law influences nursing practice, particularly in relation to anticipating lack of capacity Hindle and Coates (2011).

Dual Setting β-tricalcium Phosphate Composite Cement

Dual Setting ÃŽ ²-tricalcium Phosphate Composite Cement Dual Setting ÃŽ ²-tricalcium Phosphate Composite Cement Obtained by 3D Printing Abstract: Calcium phosphate cements (CPCs) could be employed as synthetic bone graft substitutes or in the manufacture of scaffolds for tissue engineering. The limitations of these systems are their low mechanical strength, which limits its use to places with small mechanical stresses; however, the use of polymeric additives such us acrylamide (AA) and ammonium polyacrylate (PA), reinforced the system through in situ polymerization and increase the mechanical properties of the final piece. Moreover, the fabrication of the cement scaffolds through rapid prototyping technologies at low temperatures such as 3D printing, will allows the fabrication of more complex forms and customization of implants. Thus, the objective of this work was the evaluation of the ÃŽ ±-tricalcium phosphate/AA/PA system in the fabrication of scaffolds by rapid prototyping technology. The results showed slight differences between the porosities of the printed pieces (61% for cylindrical test bodies and 59% for rectangular ); but water absorption was significantly different for each type of printed form. Mechanical strength (1.3MPa) and flexural stress (3.2MPa) were lower than expected due to the high porosity of the samples although the morphology of the final material showed the presence of homogeneous and interlinked network of hydroxyapatite crystals. Nevertheless, printed materials might be used as spongy graft substitutes or scaffolds for tissue engineering in low-mechanical solicitation. Calcium phosphate cements (CPCs) could be employed as synthetic bone graft substitutes or scaffolds for tissue engineering allowing the fabrication of more complex geometries and the customization of the implants mainly due to the possibility of be molded [1]. Moreover, the use of additive manufacturing technologies at low temperatures such as 3D printing permits the fabrication of pieces with enhanced performance over traditional techniques [2-3]. Usually, the obtained pieces have low mechanical strength, which limits its use to places with small mechanical stresses; however, the use of polymeric additives such as acrylamide (AA) and ammonium polyacrylate (PA), could reinforce the system through in situ polymerization and increase the mechanical properties of the final piece [4]. Some studies reports the use of calcium phosphate powders such as à ¯Ã‚ Ã‚ ¢-tricalcium phosphate, tetracalcium phosphate, and ÃŽ ²-tricalcium phosphate [ÃŽ ²-Ca3(PO4)2; ÃŽ ²-TCP] as row material in the manufacture of scaffolds by means of 3D printing technology [5-8]. However, none of the reported studies refer the use of dual setting ÃŽ ²-TCP-based cement hydraulic system as proposed by the authors. Thus, the aim of this work was the fabrication and characterization of a dual setting composite cement based on ÃŽ ²-tricalcium phosphate (ÃŽ ²-TCP)/AA/PA by 3D printing technology. A Z310 Plus Printer Prototyper was used to print the pieces. Previously shyntethized ÃŽ ²-TCP powder [9], was mixed with ammonium persulfate [(NH4)2S2O8] and placed in the printer chamber. Powder layer thickness was set to 0.0875mm and binder liquid/powder ratio was 0.31mL/g. The binder was composed by a solution of 5%wt Na2HPO4, 10%wt acrylamide (AA), 1% N,N methylenebisacrylamide and 0.5% N,N,N,N- tetramethylethylenediamide [4]. Pieces in the form of cylinders and rectangles for compressive and 4 point bending assays were prototyped. Phase composition of the samples was determined by X-Ray Diffraction (XRD) in a PHILLIPSà ¯Ã†â€™Ã¢â‚¬â„¢ diffractometer (X ´Pert MPD). Morphological differences were observed by Scanning Electron Microscopy (SEM) using a JEOL microscope (JSM-6060). Compressive strength (CS) and flexure stress (FS) were measured in servohydraulic Universal Testing Machine (Instron 3369) with a load measuring cell of 2kN and a loading rate of 1 mm/min. Figure 1 shows a photograph of the printed materials after removing powder excess. Minor differences were observed in relation to the original sample size. Figure 2 shows the XRD patterns of ÃŽ ²-TCP powder and prototyped cement after 7 days in water/37.5 °C. After setting and aging, some ÃŽ ²-TCP peaks (JCPDS 09-0348) could be identified in addition to the characteristics peaks of CDHA (JCPDS 46-0905). Mechanical properties, water absorption apparent porosity and density can be observed in Table 1. Values of both compressive strength, and flexure stress were very low. Slight differences between the values of apparent porosity of the samples were found as a function of the arraignment of prototyped piece; on the other hand, apparent density values were the same regardless of the format of the piece. Microstructural features of the prototyped material are shown in Figure 4. Typical petal-like plates distinctive of setting and hardening ÃŽ ±-TCP-based cements can be observed both on the surface and the fracture surface. However, the size of the crystals in the inside of the material is higher (à ¯Ã‚ Ã‚ ¾5à ¯Ã‚ Ã‚ ­) than those found in the surface and a greater homogeneity is observed. In addition, some unreacted ÃŽ ±-TCP grains and macropores from about 5 microns of diameter can be observed at the outward of materials. No evidence of the presence of the hydrogel formed during the in situ polymerization of acrylamide was observed. Usually, strength is difficult to reproduce for ÃŽ ²-TCP-based CPCs because of the variability of ÃŽ ²-TCP phosphate properties from different sources. Factors like mean particle size and distribution, specific surface area, wettability, and phase impurities markedly influence the properties of the resulting cement. Since the precipitation of CHDA is responsible for the adherence and interlocking of the crystalline grains, which results in hardening; the fall of the mechanical strength can be attributed to the low transformation of ÃŽ ²-TCP into CDHA (Eq 1) according to the results of XRD. The value of the apparent density was close to the theoretical density of ÃŽ ²-TCP (2.86g/cm3), confirming no transformation of this phase into CHDA. When polymerization is conducted in aqueous slurry of ceramic powder, the resulted crosslinked polyacrilamide hydrogel is able to bind the ceramic particles and provide strength to the resulting system [10]. However, the addition of acrylamide to the system apparently did not work as reinforcement of the ÃŽ ²-TCP-based cement as expected. Moreover, the presence of the hydrogel after polymerization could be prevented the solubilization of the ÃŽ ²-TCP particles and subsequently inhibited the precipitation of the CDHA; so the strength of materials decreases. Furthermore, the high porosity of the prototyped materials also negatively influences the mechanical strength obtained. Water absorption values were not significantly different from those found for samples of cement without additions hydrogel [11], which reinforces the idea that it could be possible that the in situ polymerization of the acrylamide have not occurred. SEM results showed the presence of large number of plate-like crystals of aged CDHA in both: surface and fracture surface. Differences in the sizes of the crystals are due to the mechanism of hydrolysis which is dependent on the diffusion of fluid through the layer formed and occurs from the inside to the outside of the material. However, even though the presence of this entanglement of CDHA is responsible for the mechanical strength, the existence of unreacted ÃŽ ²-tricalcium phosphate and the high porosity of the prototyped materials are critical factors in the final properties of the cement. In conclusion, it is possible to obtaining scaffolds of dual setting hydraulic cement by 3D printing. The mechanical properties thereof are low for applications where high mechanical stresses were required. Nevertheless, the obtained pieces were high porosity and could be used as scaffolds for cellular growth and cancellous bone replacement. Acknowledgment The authors acknowledge the financial support from CNPq-the National Science and Technology Development Council (Research Grant 190005/2013-0). 1

Hitler and His Reich :: World War II History

Hitler and His Reich Feeling that all was lost,Hitler shot himself on April 30, 1945. By orders formally given by him before his death, SS officers immersed Hitler's body in gasoline and burned it in the garden of the Chancellery. Soon after the suicide of Hitler, the Germ On Easter Sunday April 20, 1889, at an inn called the Gasth of Zum Pommer, the wife of an Austrian Customs official gave birth to a son, Adolf Hitler. He was the fourth child to the parents of Alois and Klara Hitler of Austria. Hitler was a good student. One of the teachers in his high school classified young Hitler as "notorious, cantankerous, willful, arrogant, and irascible. He has an obvious difficulty in fitting in at school." He did well enough to get by in some of his courses but had no time, for Adolf saw no real reason to stay in high school. He left school at age sixteen without a leaving certificate. In September 1907, Hitler left home taking with him all the money left to him by his father, who had died a few years earlier. The money was used for preliminary examination, the applicant was asked to submit drawings. Biblical drawings were most preferred. Hitler's drawings were returned saying they were "too wooden and too lifeless." He was rejected. He tried three months later and did not get pa Hitler moved into an apartment with his friend in Vienna. He pretended to be a student living off his relatives money. He read many books and sat in on the Austrian government sessions . Hitler speaks of his life in Vienna as "five years in which I had In 1913, Hitler moved to Munich. Life was not much better there until the First World War started in 1914. While many people were frightened and sad at the thought of a world war, Hitler was delighted. He held the rank of corporal, and in forty-seven b On October 13th 1918, a month before Germany surrendered to the Allies, his good luck ran out. When Hitler and his fellow dispatch runners were waiting in line for their food rations, British troops began lobbing high explosive shells nearby. Hitler soon regained use of his eyes, but as he was about to rejoin his regiment, he got the terrible news of Germany's surrender. "Once again, everything went black before my eyes, and I tottered and groped my way back to the place where we slept and bu As part of Hitler's job, he investigated a party called "the German Workers' Party.

Abraham Lincoln and Slavery during the Civil War Essay -- Slavery Essay

Abraham Lincoln once said, â€Å"I claim not to have controlled events, but confess plainly that events have controlled me† (â€Å"Letter to Albert G. Hodges† 281 as qtd. in R.J. Norton 1). In accordance with his quote, when President Lincoln issued the unprecedented Emancipation Proclamation on January 1, 1863, Lincoln freed slaves in the Southern states, but he and his actions were being controlled by Civil War. The Civil War was fought between 1861 and 1865 between the Northern states, or the Union, and the Southern states, or the Confederacy. On September 22, 1862, in the midst of the Civil War, President Abraham Lincoln put forth a Preliminary Emancipation Proclamation (Tackach 45). The document stated that after January 1, 1863, slaves belonging to all Southern states that were still in rebellion would be free (Tackach 45). However, the Emancipation Proclamation had no immediate effect; slavery was not legally prohibited until the Thirteenth Amendment was added t o the Constitution in 1865, about three years after the Emancipation Proclamation was decreed (Tackach 9-10). If the Emancipation Proclamation did not completely abolish slavery, what was the point of the document? Lincoln’s Emancipation Proclamation was not actually written for the purpose of freeing any slaves. Rather, it was a war tactic to militarily weaken the South, add soldiers to the Union cause, and please abolitionist Northerners.   Ã‚  Ã‚  Ã‚  Ã‚  From the start of the Civil War, Lincoln clarified that the goal of the war was not â€Å"`to put down slavery, but to put the flag back,’† and he refused to declare the war as a war over slavery (Brodie 155 as qtd. in Klingaman 75-76). In a letter to Horace Greeley, editor of the New York Tribune, in August 1862, Lincoln wrote: â€Å"My paramount object in this struggle is not either to save or destroy slavery. If I could save the Union without freeing [any] slave I would do it†¦Ã¢â‚¬  (Selected Speeches 343 as qtd. in Tackach 44). Lincoln also refused to declare that slavery was the Civil War’s main focus because many Whites in the North and in the much-valued Border States would not agree with a war to free slaves since they believed Blacks were inferior to Whites (Wheeler 225-226). The political and military advantages of the Border States made Lincoln reluctant to proclaim the Civil War to be a war about slavery (Wheeler 225-226). Even Jefferson Davis, president of the en... ...Nation: A History of the United States. New York: Houghton Mifflin Company, 1999. Lincoln, Abraham. Selected Speeches and Writings. New York: Vintage Books, 1992, - as quoted in - Tackach, James. The Emancipation Proclamation: Abolishing Slavery in the South. San Diego: Lucent Books, 1999. Lincoln, Abraham. â€Å"The Emancipation Proclamation.† Washington D.C.: 1863 -as quoted in- Klingaman, William K. Abraham Lincoln and the Road to Emancipation: 1861-1865. New York: Viking, 2001. McPherson, James M. Abraham Lincoln and the Second American Revolution. New York: Oxford University Press, 1990 - as quoted in - Klingaman, William K. Abraham Lincoln and the Road to Emancipation: 1861-1865. New York: Viking, 2001. Norton, Mary Beth et al. A People and a Nation: A History of the United States. New York: Houghton Mifflin Company, 1999. Tackach, James. The Emancipation Proclamation: Abolishing Slavery in the South. San Diego: Lucent Books, 1999. Wheeler, William Bruce and Susan D. Becker. Discovering the American Past: A Look at the Evidence. New York: Houghton Mifflin Company, 1998. â€Å"Writing the Emancipation Proclamation.† N/G. History Matters. 2 March 2005 . Abraham Lincoln and Slavery during the Civil War Essay -- Slavery Essay Abraham Lincoln once said, â€Å"I claim not to have controlled events, but confess plainly that events have controlled me† (â€Å"Letter to Albert G. Hodges† 281 as qtd. in R.J. Norton 1). In accordance with his quote, when President Lincoln issued the unprecedented Emancipation Proclamation on January 1, 1863, Lincoln freed slaves in the Southern states, but he and his actions were being controlled by Civil War. The Civil War was fought between 1861 and 1865 between the Northern states, or the Union, and the Southern states, or the Confederacy. On September 22, 1862, in the midst of the Civil War, President Abraham Lincoln put forth a Preliminary Emancipation Proclamation (Tackach 45). The document stated that after January 1, 1863, slaves belonging to all Southern states that were still in rebellion would be free (Tackach 45). However, the Emancipation Proclamation had no immediate effect; slavery was not legally prohibited until the Thirteenth Amendment was added t o the Constitution in 1865, about three years after the Emancipation Proclamation was decreed (Tackach 9-10). If the Emancipation Proclamation did not completely abolish slavery, what was the point of the document? Lincoln’s Emancipation Proclamation was not actually written for the purpose of freeing any slaves. Rather, it was a war tactic to militarily weaken the South, add soldiers to the Union cause, and please abolitionist Northerners.   Ã‚  Ã‚  Ã‚  Ã‚  From the start of the Civil War, Lincoln clarified that the goal of the war was not â€Å"`to put down slavery, but to put the flag back,’† and he refused to declare the war as a war over slavery (Brodie 155 as qtd. in Klingaman 75-76). In a letter to Horace Greeley, editor of the New York Tribune, in August 1862, Lincoln wrote: â€Å"My paramount object in this struggle is not either to save or destroy slavery. If I could save the Union without freeing [any] slave I would do it†¦Ã¢â‚¬  (Selected Speeches 343 as qtd. in Tackach 44). Lincoln also refused to declare that slavery was the Civil War’s main focus because many Whites in the North and in the much-valued Border States would not agree with a war to free slaves since they believed Blacks were inferior to Whites (Wheeler 225-226). The political and military advantages of the Border States made Lincoln reluctant to proclaim the Civil War to be a war about slavery (Wheeler 225-226). Even Jefferson Davis, president of the en... ...Nation: A History of the United States. New York: Houghton Mifflin Company, 1999. Lincoln, Abraham. Selected Speeches and Writings. New York: Vintage Books, 1992, - as quoted in - Tackach, James. The Emancipation Proclamation: Abolishing Slavery in the South. San Diego: Lucent Books, 1999. Lincoln, Abraham. â€Å"The Emancipation Proclamation.† Washington D.C.: 1863 -as quoted in- Klingaman, William K. Abraham Lincoln and the Road to Emancipation: 1861-1865. New York: Viking, 2001. McPherson, James M. Abraham Lincoln and the Second American Revolution. New York: Oxford University Press, 1990 - as quoted in - Klingaman, William K. Abraham Lincoln and the Road to Emancipation: 1861-1865. New York: Viking, 2001. Norton, Mary Beth et al. A People and a Nation: A History of the United States. New York: Houghton Mifflin Company, 1999. Tackach, James. The Emancipation Proclamation: Abolishing Slavery in the South. San Diego: Lucent Books, 1999. Wheeler, William Bruce and Susan D. Becker. Discovering the American Past: A Look at the Evidence. New York: Houghton Mifflin Company, 1998. â€Å"Writing the Emancipation Proclamation.† N/G. History Matters. 2 March 2005 .

Cost of Capital, Capital Budgeting and Financial Planning

Assignment| Cost of Capital, Capital Budgeting and Financial Planning| Chapter(s)| 9, 10, 12| Group Name| | Student Name(s)| | Date| | Instructions: HW Assignments will be uploaded to Kean Blackboard and must be accessed from there. You must work in groups where assigned (or independently if not assigned to groups) on homework assignments. Points are noted against each question. You are required to submit Home Work assignments electronically on Kean Blackboard using MS-Office or other text editor. You are required to complete your assignments as per the due date indicated by the Professor.Total Points in Assignment: 100 (Points scored will be scaled down to a maximum of 15 towards the final grade) Assignment: Part I: Cost of Capital During the last few years, Harry Davis Industries has been too constrained by the high cost of capital to make many capital investments. Recently, though, capital costs have been declining, and the company has decided to look seriously at a major expansio n program that has been proposed by the marketing department. Assume that you are an assistant to Leigh Jones, the financial vice-president. Your first task is to estimate Harry Davis’s cost of capital.Financial StatementsJones has provided you with the following data, which she believes may be relevant to your task: a) The firm's tax rate is 40%. b) The current price of Harry Davis’s 12% coupon, semiannual payment, noncallable bonds with 15 years remaining to maturity is $1,153. 72. Harry Davis does not use short-term interest-bearing debt on a permanent basis. New bonds would be privately placed with no flotation cost. c) The current price of the firm’s 10%, $100 par value, quarterly dividend, perpetual preferred stock is $116. 95. Harry Davis would incur flotation costs equal to 5% of the proceeds on a new issue. ) Harry Davis’s common stock is currently selling at $50 per share. Its last dividend (D0) was $3. 12, and dividends are expected to grow at a constant rate of 5. 8% in the foreseeable future. Harry Davis’s beta is 1. 2; the yield on T-bonds is 5. 6%; and the market risk premium is estimated to be 6%. For the over-own-bond-yield-plus-judgmental-risk-premium approach, the firm uses a 3. 2%judgmental risk premium. e) Harry Davis’s target capital structure is 30% long-term debt, 10% preferred stock, and 60%common equity. To help you structure the task, Leigh Jones has asked you to answer the following questions. . What sources of capital should be included when you estimate Harry Davis’s weighted average cost of capital (WACC)? Should the component costs be figured on a before-tax or an after-tax basis? Should the costs be historical (embedded) costs or new (marginal) costs? (5 points) Sources of capital to be included to estimate WACC are * Long term debt – to be considered after tax * Preferred stock – to be considered before tax ( preferred stock is not tax deductible) * Common equity à ¢â‚¬â€œ to be considered before tax When it comes to corporate financing, most firms incorporate tax effects in the cost of capital.For this reason, component costs should be calculated on an after-tax basis. In financial management the WACC is used primarily to make investment decisions and these decisions hinge on projects expected future returns versus the cost of new or marginal capital that will be used to finance these projects. Thus the relevant cost it marginal cost of new debt to be raised during the planning period 2. What is the market interest rate on Harry Davis’s debt, and what is the component cost of this debt for WACC purposes? (3 points) Pre -Tax cost of Debt is the YTM in the case of a Bond.The current price of Harry Davis’s 12% coupon, semiannual payment, noncallable bonds with 15 years remaining to maturity is $1,153. 72. We used the RATE function in Excel to calculate the YTM: n| 30| PV| -1153. 72| pmt| 60| FV| 1000| Rate (i)| 5%| =RATE(30,60,-115 3. 72,1000) = 5% Since this is a semiannual rate, we multiplied by 2 to find the annual rate, which is the pre-tax cost of debt. 5% x 2 = 10% = rd After tax component cost of debt = Interest Rate – Tax Savings = rd – rdT We calculated that the rd is 10%, and it is stated above that the tax rate is 40%. rd(1 – T) = 10. %(1 – 0. 40) = 10. 0%(0. 60) = 6. 0 = 6% component cost of debt, which is the after-tax cost of debt. 3. What is the firm's cost of preferred stock? (3 points) The current price of the firm’s 10%, $100 par value, quarterly dividend, perpetual preferred stock is $116. 95. Harry Davis would incur flotation costs equal to 5% of the proceeds on a new issue. The cost of preferred stock is simply the preferred dividend divided by the price the company will receive if it issues new preferred stock. No tax adjustment is necessary, as preferred dividends are not tax deductible.Dps is the Preferred dividend = . 10($100) = $10 Pps is the preferr ed stock price = $116. 95 F is the flotation cost as a percentage of proceeds = 5% rps = Dps / Pps(1-F) = $10 / 111. 10 = 0. 09 = 9% cost of preferred stock 4. Would you expect Harry Davis’s preferred stock to be more riskier or less riskier to investors than its debt? Compare the preferred stock yield to the yield to maturity on the debt and explain the risk/return trade-off between preferred stock and debt from an investor’s point of view. (3 points) Preferred stocks are riskier to investors than debt.Corporations own most preferred stock, because 70% of preferred dividends are non-taxable to corporations. Therefore, preferred stock often has a lower before-tax yield than the before-tax yield on debt. But, the after-tax costs to the issuer are higher on preferred stock than debt. This is consistent with the higher risks of preferred stock. 5. Harry Davis doesn’t plan to issue new shares of common stock. Using the CAPM approach, what is Harry Davis’s est imated cost of equity? (2 points) Harry Davis’s beta is 1. 2; the yield on T-bonds is 5. 6%; and the market risk premium is estimated to be 6%.Risk-free rate: 5. 6% Market risk premium: 6% Beta: 1. 2 rs = Risk-free rate + (Market risk premium) (Beta) rs = rRF + (RPM) bi rs = . 056 + (. 06)(1. 2) = 0. 128 = 12. 8% estimated cost of equity using CAPM approach 6. What is the estimated cost of equity using the discounted cash flow (DCF) approach? (2 points) Harry Davis’s common stock is currently selling at $50 per share. Its last dividend (D0) was $3. 12, and dividends are expected to grow at a constant rate of 5. 8% in the foreseeable future. P0 = $50 D0 = $3. 12 g = 5. 8% D1 = $3. 30 rs = D1/P0 + g D1= D0(1+g)= $3. 12(1+. 058) = $3. 30 s = ($3. 30/$50)+5. 8% = 6. 6% +5. 8% = 12. 4% estimated cost of equity using DCF approach 7. Suppose the firm has historically earned 15% on equity (ROE) and retained 62% of earnings, and investors expect this situation to continue in th e future. How could you use this information to estimate the future dividend growth rate, and what growth rate would you get? Is this consistent with the 5. 8% growth rate provided by Jones? (2 points) Payout rate = 100% – 62% = 38% ROE = 15% Growth from earnings retention model: g = (Retention rate)(ROE) g = (1 – Payout rate)(ROE) g = (1 – 0. 38)(15%) = 9. %. Using the Earnings Retention Model, the estimated future dividend growth rate is 9. 3%, which is almost twice the growth rate provided by Jones, and hence inconsistent. Note that the earning retention model assumes the retention and payout rate will remain constant, as will the ROE on new investments. Under these assumptions, the earnings growth and dividends growth rate will also be constant. 8. What is the cost of equity based on the bond-yield-plus-judgmental-risk-premium method? (2 points) For the over-own-bond-yield-plus-judgmental-risk-premium approach, the firm uses a 3. %judgmental risk premium. We calculated earlier that the company’s bond yield is 10%. rs= rd + Judgmental risk premium rs= 10. 0% + 3. 2% = 13. 2% cost of equity based on bond-yield-plus-judgmental-risk-premium method 9. What is your final estimate for the cost of equity, rs? (2 points) CAPMrs = 12. 8% DCF rs= 12. 4% Bond-yield-plus-judgmental-risk-premium risk rs = 13. 2% Average rs= 12. 8% Final estimate for the cost of equity, rs = 12. 8% 10. What is Harry Davis’s weighted average cost of capital (WACC)? (2 points) The firm's tax rate is 40%.Harry Davis’s target capital structure is 30% long-term debt, 10% preferred stock, and 60%common equity. We calculated earlier that the pre-tax cost of debt, rd is 10%, the cost of preferred stock, rps is 9% and the cost of equity, rs is 12. 8%. Wd = 30% rd = 10% T = 40% Wps = 10% rps = 9% Ws = 60% rs = 12. 8% WACC= wdrd(1 – T) + wpsrps + wsrs WACC= 0. 30(. 10)(1 ? 0. 40) + 0. 10(. 09) + 0. 60(. 128) = . 1038 = 10. 38% weighted average cost o f capital 11. What four common mistakes in estimating the WACC should Harry Davis avoid? (2 points) Four common mistakes that are to be avoided are 1.Using current cost of debt (instead of historical cost of debt) 2. Mixing current and historical measures to calculate MRP 3. Using book weights to estimate the weight for capital structure (instead of market weights) 4. Misidentifying the capital component sources Part II: Capital Budgeting You have just graduated from the MBA program of a large university, and one of your favorite courses was â€Å"Today’s Entrepreneurs. † In fact, you enjoyed it so much you have decided you want to â€Å"be your own boss. † While you were in the master’s program, your grandfather died and left you $1 million to do with as you please.You are not an inventor and you do not have a trade skill that you can market; however, you have decided that you would like to purchase at least one established franchise in the fast-foods ar ea, maybe two (if profitable). The problem is that you have never been one to stay with any project for too long, so you figure that your time frame is three years. After three years you will sell off your investment and go on to something else. You have narrowed your selection down to two choices; (1) Franchise L, Lisa’s Soups, Salads, ; Stuff and (2) Franchise S, Sam’s Fabulous Fried Chicken.The net cash flows shown below include the price you would receive for selling the franchise in Year 3 and the forecast of how each franchise will do over the three-year period. Franchise L’s cash flows will start off slowly but will increase rather quickly as people become more health conscious, while Franchise S’s cash flows will start off high but will trail off as other chicken competitors enter the marketplace and as people become more health conscious and avoid fried foods. Franchise L serves breakfast and lunch, while Franchise S serves only dinner, so it is possible for you to invest in both franchises.You see these franchises as perfect complements to one another: You could attract both the lunch and dinner crowds and the health conscious and not so health conscious crowds without the franchises directly competing against one another. Here are the net cash flows (in thousands of dollars): Depreciation, salvage values, net working capital requirements, and tax effects are all included in these cash flows. You also have made subjective risk assessments of each franchise, and concluded that both franchises have risk characteristics that require a return of 10%. You must now determine whether one or both of the franchises should be accepted. . What is the difference between independent and mutually exclusive projects? (2 points) Independent projects are those projects whose cash flows are not affected by other projects. If Costco is considering opening a new store in Los Angeles and another one in New York, they would be independent. Mutu ally exclusive projects are two different methods of attaining the same result. If one is accepted the other would be rejected. If Costco were considering relocating its corporate headquarters to Los Angeles or New York, only one of the 2 locations will be selected thus rejecting the alternate location.When projects are mutually exclusive, it means they do the same job or have the same purpose. 2. Define the term net present value (NPV). What is each franchise’s NPV? (4 points) Net Present Value is defined as the present value of project’s cash inflows minus the present value of its costs. It tells us how the project contributes to shareholder wealth. The larger the NPV the more value the project adds and thus the higher the stock price. NPV = CF0 + CF1/ (1+r)1 + CF2/(1+r)2 + CF3/(1+r)3†¦.. + CFN/(1+r)N r = 10% Franchise L CF0L = -100 CF1L = 10 CF2L = 60 CF3L = 80NPVL= CF0L + CF1L/ (1+r)1 + CF2L/(1+r)2 + CF3L/(1+r)3 = -100 +10/(1+. 10)1 + 60/(1. 10)2 + 80/(1. 10)3 = -100 + 9. 09 + 49. 59 + 60. 11 = $18. 79 Franchise S CF0S = -100 CF1S = 70 CF2S = 50 CF3S = 20 NPVS= CF0S + CF1S/ (1+r)1 + CF2S/(1+r)2 + CF3S/(1+r)3 = -100 +70/(1+. 10)1 + 50/(1. 10)2 + 20/(1. 10)3 = -100 + 63. 64 + 41. 32 + 15. 03 = $19. 99 3. What is the rationale behind the NPV method? According to NPV, which franchise or franchises should be accepted if they are independent? Mutually exclusive? How would the NPVs change if the cost of capital changed? (4 points)NPV is generally regarded as the best single screening criterion, primarily because it is directly related to the firm’s central goal of maximizing the stock’s intrinsic value. NPV tells us how the project contributes to shareholder wealth. The larger the NPV the more value the project adds and thus the higher the stock price. A negative NPV indicates sufficient cash is not being generated from the project to meet cost associated with the project. Zero NPV indicates that cash generated is only sufficient to cover costs. Positive NPV on the other hand indicates that the inflow of cash is larger than the outflow.NPV rules dictate that if projects are independent, both projects should be accepted as long as they have a positive NPV. In this case both Franchise S ; L have positive NPV’s and should be accepted. If projects are mutually exclusive, then the project with the larger NPV should be selected. In this case, Franchise S has a higher NPV indicating that the returns from investing in Franchise S is larger and thus Franchise S should be selected. 4. Define the term internal rate of return (IRR). What is each franchise’s IRR? (4 points) IRR is the discount rate that forces the PV of the inflow of a project to equal the initial cost.In other words it forces the NPV to be zero. IRR is an estimate of the projects rate of return and it is comparable to the YTM on a bond. NPV = CF0 + CF1/ (1+IRR)1 + CF2/(1+IRR)2 + CF3/(1+IRR)3†¦.. + CFN/(1+IRR)N = 0 Using Excel function IRR | Expected | | net cash flows | Year (t)| Franchise L| Franchise S| 0 | ($100)| ($100)| 1 | 10 | 70 | 2 | 60 | 50 | 3 | 80 | 20 | IRR| 18. 13%| 23. 56%| IRRL = 18. 13% IRRS = 23. 56% 5. What is the logic behind the IRR method? According to IRR, which franchises should be accepted if they are independent? Mutually exclusive? How would the IRRs change if cost of capital changed? 4 points) IRR is an estimate of a projects rate of return. If the return exceeds the cost of funds used to finance the project, then the difference is a bonus that goes to the firm’s stockholders and causes the stock price to rise. So if the WACC/hurdle rate(r) is less than the estimated return IRR, it indicates project will be profitable. As in NPV where zero is the threshold above which the project is considered profitable, r is the threshold above which IRR is considered profitable In the condition where Franchise S and L are independent, both franchises have positive IRR’s and thus both franchises should be accepted.However, when both franchises are mutually exclusive, the franchise with the larger IRR has to be selected, which in this case Franchise S. 6. Construct NPV profiles for Franchises L and S. At what discount rate do the profiles cross? From the NPV profile which franchise or franchises should be accepted if they are independent? Mutually exclusive? Explain. (6 points) NPV Profile for Franchise S ; LCost of Capital = 10%| | Year =| 0| 1| 2| 3| Project S| -100. 00| 70| 50| 20| Project L| -100. 00| 10| 60| 80| | | | | | | r| NPVS| NPVL| | | 0%| $40. 00| $50. 00| | | 5%| $29. 29| $33. 05| | 8. 68%| $22. 32| $22. 32| | | 10%| $19. 98| $18. 78| | | 15%| $11. 83| $6. 67| | | 18. 126%| $7. 23| $0. 00| | | 20%| $4. 63| -$3. 70| | | 23. 564%| $0. 00| -$10. 20| | On this plot the X Axis is the cost of capital and the Y axis is the NPV. IRR is the discount rate at which profile line crosses the X axis. Profiles crossover at an 8. 68% cost of capital. Based on the pl ot, the NPV for both Franchise S and Franchise L have NPV’s above the cost of capital indicating cash inflow is larger than the costs and thus both projects should be selected if they are independent of each other.On the other hand, if the projects are mutually exclusive, the project with the larger x-intercept (higher IRR), which is Franchise S, should be accepted. 7. What is the underlying cause of ranking conflicts between NPV and IRR? (3 points) Ranking conflicts occur when cost of Capital is higher than crossover rate which causes NPV and IRR to point in different directions. The two basic conditions that cause these conflicts are * Timing difference: When one project receives majority of the cash early while the other receives it later.This is the reason for conflict between Franchise S ; Franchise L * Project size (scale) difference: Significant difference in invested amount can cause a conflict When either timing or size differences occur, the firm will have different amounts of funds to invest in other projects depending on which of the two mutually exclusive projects it chooses. Given this situation, the rate of return at which differential cash flows can be reinvested is a critical issue. Therefore, whenever conflict exists between mutually exclusive projects, NPV method is better to use. 8.What is the â€Å"reinvestment rate assumption,† and how does it affect the NPV versus IRR conflict? (3 points) NPV calculation is based on the assumption that cash inflows can be reinvested at the projects risk adjusted WACC, whereas the IRR calculation is based on the assumption that cash inflows can be reinvested at the IRR itself. Since NPV assumes reinvestment at cost of capital which is more realistic and is typically lower than the IRR (cash flows generally cannot be reinvested at heir IRR), so NPV is the more reasonable method. NPV should be used to choose between mutually exclusive projects. . Define the term modified IRR (MIRR). Find the M IRRs for Franchises L and S. (4 points) IRR overstates the expected rate of return for accepted projects because cash flows cannot be reinvested at the IRR. The Modified IRR (MIRR) rectifies this problem by assuming reinvestment at the WACC or any other reasonable rate. Using excel function MIRR, we calculated the MIRR for Franchise L and S. WACC| 10%| | | | year| 1| 1| 2| 3| Franchise L| ($100)| 10| 60| 80| Franchise S| ($100)| 70| 50| 20| | | | | | MIRRL| 16. 50%| | | | MIRRS| 16. 89%| | | | 10.What are the MIRR’s advantages and disadvantages vis-a-vis the regular IRR? What are the MIRR’s advantages and disadvantages vis-a-vis the NPV? (4 points) MIRR has two significant advantages over IRR. First, MIRR assumes reinvestments at cost of capital rather than investment at IRR which is generally not correct. Thus, MIRR is usually a better indicator of profitability. In addition, the MIRR eliminates the multiple IRR problem because there can never be more than one MIRR, a nd it can be compared with the cost of capital when deciding on accepting or rejecting projects.MIRR does not always lead to the same decision as NPV in the case of mutually exclusive projects where difference in size and timing can give rise to conflicts. In these considerations, NPV is a better indicator as it selects the project that maximizes value. However, MIRR is superior to the regular IRR as an indicator of a project’s â€Å"true† rate of return. Part III: Forecasting Financial Statements Matthews Industries’ most recent financial statements are available in the attached Excel worksheet and also in the partial model file Ch12 P11 Build a Model. xls from the textbook’s web site.Matthews Industries’ financial planners must forecast the company’s financial results for the coming year. The forecast will be based on the forecasted financial statements method, and any additional funds needed will be obtained by using notes payable. Comple te the partial model and answer the following questions. 1. Assume that the firm’s 2010 profit margin, payout ratio, capital intensity ratio, and spontaneous liabilities to sales ratio remain constant. If sales grow by 10% in 2011, what is the required external capital the firm will need in 2011 as calculated by the AFN equation? 10 points) AFNMatthews =| Add'l Req'd Assets| ? | Spontaneous liabilities| ? | Add'n to RE| =| (A0*/S0)? S | ? | (L0*/S0)? S | ? | S1 ? M ? (1–POR)|   | | | | | |   | =| (A0*/S0)(gS0) | ? | (L0*/S0)(gS0) | ? | S1 ? M ? (1–POR)|   | | | | | |   | =| $660| ? | $74. 70| ? | $257. 73|   | | | | | |   | AFNMatthews =| $327. 27| million|   |   |   |   | The required external capital for 2011 as calculated by AFN is 327. 27 Million. 2. If 2010 ratios remain constant, what is Matthews’ self-supporting growth rate?How will the self-supporting growth rate change if each of the following changes occur: (1) the profit mar gin declines, (2) the payout ratio increases, or (3) the capital intensity ratio declines? (10 points) | PM(1 – POR)(S0)| $234. 30|   | Self-supporting g =| =| | = 4. 17%| | A0* – L0* – PM(1 – POR)S0| $5,615. 70|   | Mathew’s self-supporting growth is calculated to be 4. 17%. Effect on Self-Supporting growth when all ratios are kept constant except one ratio is changed as follows 1) When the profit margin declines, the self-supporting growth percentage drops.Assuming that everything else is constant and M falls to 2. 55%, self-supporting growth g would fall to 2. 96% 2) When Payout-ratio increases, self-supporting growth percentage drops. Assuming that everything else is constant and POR increases to 55%, self-supporting growth g would fall to 3. 39% 3) When capital intensity ratio (A0*/S0) declines, it does not change the self-supporting growth 3. Matthews’ management has reviewed its financial statements and arrived at two possible sce narios for 2011.The first scenario assumes a steady state while the second scenario, the target scenario, shows some improvement in ratios toward industry-average values. Forecasted values for the scenarios are shown in the partially completed file Ch12 P11 Build a Model. xls. If Matthews assumes that external financing is achieved through notes payable and financing feedbacks are not considered because the new notes payable are added at the end of the year, what are the firm’s forecasted AFN, EPS, DPS, and year-end stock price under each scenario? (14 points) Using the file Chapter 12P11 Build a Model. ls, forecasted values for scenarios are as follows: Forecasted Values| Steady State| Target State| AFN| $324. 40 Million| -332. 50 Million| EPS| $3. 16| $5. 66| DPS| $1. 42| $2. 41| Year-end Stock Price| $25. 27| $70. 79| See excel file submitted separately for detailed calculations on Part III. Scoring Sheet: Question #| Max Points| Points scored| Part I| | | 1| 5| | 2| 3| | 3| 3| | 4| 3| | 5| 2| | 6| 2| | 7| 2| | 8| 2| | 9| 2| | 10| 2| | 11| 2| | Part II| | | 1| 2| | 2| 4| | 3| 4| | 4| 4| | 5| 4| | 6| 6| | 7| 3| | 8| 3| | 9| 4| | 10| 4| | Part III| | | 1| 10| | 2| 10| | 3| 14| | TOTAL| 100| | | | | Points towards final grade| 15| |

Hamlet cigar Essay

The well known brand for cigars Hamlet is produced by Japanese Company. It was initially launched in the year 1964 in United Kingdoms. Their tagline spread a little happiness is well described in their art work. Art Work for Hamlet Cigar Art work for Hamlet Miniature Cigar’s urinal advertisement is very interesting. It has the background of a men’s washroom. A tall man’s back is placed on the extreme left who is urinating, while in the 80% of the remaining art work three vertically challenged people are standing. Being short heighten they can’t reach up to pee in the urinal. One standing in the right has his knees bent and the one standing in left has his knees crossed. They both have flinching expressions on their faces and they holding their stomach. Where as the third vertically challenged person standing in the middle looks content and is smoking and offering Hamlet Cigar from the packet to the person standing left to him. Though his legs are a little bent too which mean he also wants to take a leak but his expression are very cool and calm. The moral of the advertisement is Hamlet Miniatures Cigar can satisfy you even in the dire of situations. Top right of the green tiled bathroom wall has cigar’s cover pasted. Their tagline ‘Spread a little happiness’ is placed right next to hamlet miniature cigar cover. The fonts are big and in white making it prominent on green background due to the color contrast. This advertisement received 19 complaints. It was considered offensive and vulgar. It was more of a mockery to short people. The company in its defense claimed that it was portray of problems these people face in their daily lives (BBC, 2002). Never the less, the art work conveys the message very clearly to its target audiences.