Wild Revenge in Medea free essay sample

Revenge is a kind of wild justice. Throughout many texts, the notion of justice has been debated on whether it is an act that vindicates those who have been wronged or an excuse to pursue revenge. Through Medea, Medea’s actions have been judged and criticised whether her murders are an act of justice that she deserves or simply the idea of inflicting pain on those she loathes. Revenge is the predominant motivator for the psychological and corporeal action of the play. In the play, Medea is self absorbed into her misery, her determination of inflicting pain and suffering to Jason consumes her entire rationality and revenge is her only focus point in the play. She effectively draws the Chorus in, â€Å"to work revenge on Jason for his wrongs to me, say nothing. † Their complicity with Medea effectively proposes her to accomplish her revenge as she knows she has manipulated them. We will write a custom essay sample on Wild Revenge in Medea or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Medea continuously referring to revenge â€Å"I shall see my enemies punished as they deserve† which emphasises her firm intentions of achieving her revenge. This undoubtedly allows the audience to question the act of her revenge. It seemed in the beginning that Medea’s revenge could have been related to however, when she murders her children, the traditional role of motherhood instantly falls away. The chorus, having lost their sympathy question her morality, â€Å"why must this rage devour your heart, to spend itself in slaughter of children? †Her moral ambition is unstoppable and her barbaric nature destroys all her relationships. It is evident in Medea that her objective is to torment Jason through the murder of her children yet this type of revenge cannot be concluded as justice. However wrong Jason has offended her, the murder of her children cannot be forgiven. She refuses to be wavered by the Chorus to not murder her children as she is fully aware of the mental damage this act will distress Jason. Her pride and views of humiliation do not leave her even til the minute she kills her off springs. Medea’s belief on wild justice is beyond of what the society believes in. She believes that the act of violence is the only solution to solve her situation. Her act of revenge is supported by the Chorus who feel that â€Å"to punish Jason will be just. Significantly, this notion of support encourages Medea to believe she is correct in punishing Jason and continues to believe her operation of revenge is justice. Each murder that emerges within Medea conveys the true nature of her behaviour. The theme of violence is continually repeated thus it depicts how consumed she is by revenge. Furthermore, the disputed topic of the chorus supporting her, illustrates th e ‘justice’ a society has. When the gods are pleaded to and do not take action against Medea’s acts of infanticide, it questions our morals on what we powerless humans can do to change a difficult situation. This concept portrays a system which lacks in authority which leads to doubt that surrounds the idea of ‘wild justice. ’ The gods have a small role which plays in the part of revenge as a wild justice. It was always the goddess of love who obtained Medea’s help on Jason’s behalf. The Chorus had always believed that her actions were due her nature for loving Jason and sympathised her emotions as she was only a woman. â€Å"We were born women – useless for honest purposes, But in all kinds of evil skilled practitioners. This ideally would have additionally been a reason for Medea to pursue a reason of right for women, which could have been a valid reason for a wild justice. In addition, the extent of wild justice can be depicted in another form. Medea successfully uses deception to achieve her goals. This notion of deception is integrated deeply in Medea to allow the characters to expand their knowledge and attain what they believe is â€Å"justice. † Medea’s persona is conveyed to be intelligent and cunning but it is normally depicted that the heroine is young, beautiful and somewhat dumb. She easily manipulates characters to do her bidding. .. you are a father too, you should feel kindly towards them. † When Medea pleads Creon to let her stay she effectively uses his affection for his daughter and his parental role to gain a small yet important favour. The one day she is allowed to stay to â€Å"make provisions for her two sons† . This evidently proves her cunning intellect as part of her nature and easily persuades with her use of words. Her revenge against Glauce could be considered as sexual jealousy as Jason had pointed out, however, her pride and passion do not allow her to break the barrier that has been enforced between her mind and her morals. She is too consumed by revenge to allow justice to come through. All in all, revenge as a wild justice, is efficiently portrayed in Medea by using various forms. Each form discusses the actions of Medea and to what extent wild justice has affected the outcome of the play. This inevitably, controls the reader and their beliefs. Her journey of revenge brings out the theme of wild justice and leads to a deeper understanding of what moral responsibility is that is needed in our own lives.

What to do with a Bad Book

What to do with a Bad Book Weve all read them. The books not edited well enough. The books that probably shouldnt have been published. The books that made you scratch your head wondering what the author was thinking. â€Å"Life is too short to read books that Im not enjoying.† ~Melissa Marr â€Å"Be as careful of the books you read, as of the company you keep; for your habits and character will be as much influenced ~Paxton Hood Many of my friends say they cannot put a book down without reading it all the way through, in hopes the book redeems itself. Others say they read at least half the book, giving the author the chance to find the story. Sorry, I dont have the time. It frustrates readers when we spend our hard-earned spare time, as well as the money, only to feel weve wasted both. Thats why we often wait until someone we trust has vetted it, or it hits some best-seller list because we invest. Its why we read the sample pages on Amazon or Kindle. But I have a suggestion. If you indeed are a writer with goals to improve, if you hope one day to publish a story of your own, then next time a bad book falls into your lap, read it anyway. And as you go, mark it up. You dont care if you write in a bad book. You wont pass it on anyway. Note the bad dialogue, lack of internal monologue, poor flow, shallow characterization. Cross out the character that really didnt propel the story, and embellish the setting. Add scent where there is none, and chop out the words that stood in the way of a crisp point. Highlight, write, cross out, bend pages. The book is no good anyway, right? This is where you learn more about how to edit . . . and how to write. You take this piece of crap and you make it worthy. Its difficult to edit your own work, so why not hone your skills We learn from good writing, but we can learn from the bad if we take the time to understand the reasons the bad did not make the cut.

Tips for Writing an Art History Paper

Tips for Writing an Art History Paper You have been assigned an art history paper to write. You would like to finish your assignment on time with a minimum of stress, and your instructor fervently hopes to read an engaging, well-written paper. Here are some dos and donts to guide you, written by an art history professor who has graded thousands of these papers ranging from the superlative to the good, the bad and the phenomenally ugly. Choose a Topic You Love Look through an art history book, slowly and leisurely.Look through our list of art history topics for ideas. Good starting points are our lists of movements, artists bios, and image galleries.Pick a topic based on eye appeal and compelling personal interest. Fill Your Brain with Information Remember: a car works on gas, a brain works on info. Empty brain, empty writing.Research your topic using websites, books, and articles.Read the footnotes in the books and articles - they can lead to creative thinking. Be an Active Reader Ask yourself questions while you read and look up what you cant find or dont understand on the page.Take notes.Search the internet with the words, names, titles you learn.Write down interesting facts and thoughts that come to mind while you read. Writing Your Introduction Compose a thesis statement. Declare that you have noticed something about the art, building, artist, architect, critic, patron, or whatever your focus is for your analysis.Then, frame your thesis. Tell your reader about discovering information that can help us understand the work of art/building better. (For example, the French artist Paul Gauguin moved to Tahiti late in life. Your thesis analyzes his late paintings in terms of his Tahiti lifestyle. Youve read his biography, Noa, Noa and other sources for ideas to support your thesis.)If you are focusing on artworks, remember to put the artists name/artists names, the title(s) of the work(s) and the date (s) in the first paragraph. You can refer to the title(s) alone thereafter. Describe and Point Out What You Want the Reader to Notice If you are going to include the artists/architects biography, begin with a short summary. Unless your paper is a biography of the person, most of your paper should be about art, not life.Make sure your arguments are constructed in a parallel fashion: Establish a sequence of information.Consider the paragraph a unit of information. Each paragraph should discuss one topic within the quantity of information you plan to cover.Ideas for units of information or topics: appearance, medium and technique, narrative, iconography, history, artists biography, patronage, etc. - whatever will help you support your thesis.Iconography might require more than one paragraph, especially if your whole paper is about analyzing the iconography of a work of art.Write about the connections between what you described in these analyses and what you declared in the thesis statementFollow the same sequence of ideas for the second artwork, building, artist, architect, critic, patron, etc.Follow the same sequence for the third artwork, building, artist, architect, etc. When you have analyzed all the examples, synthesize: compare and contrast.Comparison: Dedicate one paragraph to discussing what is the same about the artworks, the building, the architects, the artists, the critics, the patrons, etc.Contrast: Dedicate one paragraph to discussing what is different about the artworks, the building, the architects, the artists, the critics, the patrons, etc. What Do You Want Your Reader to Learn from Your Essay? Reiterate the thesis.Remind your reader about your findings in a summary sentence or two.Persuade the reader that you have demonstrated that your thesis is soundly based on your findings.Optional: state that your analysis is important in terms of understanding a larger picture (but not too large). For examples, the artists other work from that period, the artists work all together, the artworks relationship to the movement or the artworks relationship to that moment in history. The connection should not open a new topic, but simply offer the reader food for thought and then declare this investigation is beyond the scope of your paper. (It demonstrates that you thought of it, but youre not going to go there.)DO NOT write that art history is wonderful and youve learned a lot. You are writing to your teacher, and s/he is tired of reading that sentence for the umpteenth time. Leave a good impression and avoid being trite. Editing Be sure to footnote/cite your sources in the body of the paper when you use information or an opinion from a book, article, website, etc.Make a list of your sources at the end of the paper. Follow your teachers instructions and/or visit a website on citation style or bibliography style. Ask the teacher which citation style s/he prefers.Check for the following:Titles for works of art should be in italics: The Birth of VenusFirst and last names begin with a capital letter. Exceptions include place and familial indicators including da, del, de, den and van, among others, unless the last name begins the sentence. (Van Gogh lived in Paris.)Months and days of the week begin with a capital letter.Language, nationalities and country names begin with a capital letter.Leonardo is not called da Vinci. Above All Do not wait until the last minute to begin your essay.Start your research after midterms.Start to write at least one week before the paper is due.Take the time to EDIT, EDIT, EDIT - be concise and clear.Ask your professor for help and advice as you write your paper - s/he will enjoy discussing the topic with you.

Is there a role for Trade Unions in the new employee relations Essay

Is there a role for Trade Unions in the new employee relations - Essay Example Current paper focuses on the examination of the role of trade unions in the new employee relations developed in businesses across Britain. The studies published on the above issue will be critically analysed; the studies will be identified using the following two criteria: a) studies published in Britain will be preferred by those published in other countries and b) recent studies - of the last 3 years - will be preferred - aiming to represent the actual interaction between the trade unions and new employee relations in firms across Britain. It is proved that the value of trade unions in supporting the rights of employees in Britain is quite high; however, in certain cases trade unions in Britain fail to respond to their role-mistakes in their strategies and their management style seem to be the main reason for this failure. On the other hand, the support of the state towards the unions has been limited - a fact that led to the further limitation of the importance of trade unions in representing employees in Britain. ... In fact, these unions have helped towards the improvement of the terms of employment in Britain - even under difficult political and social conditions. The development of trade unions in Britain has been extensively examined in the literature. Different approaches have been used in order to evaluate the role of trade unions in the specific country; all these approaches seem to have a common point of reference: the importance of trade unions for the improvement of employment in Britain is not doubted; however, it is assumed that the policies used by trade unions should be updated in order to meet the needs of current employee relations. 2.1 History of trade unions The history of trade unions is an issue that is often given less attention than required. In fact, most commonly, trade unions are related with their role - as intervening bodies in the resolution of employment disputes; the specific view is supported by Howell (2007, 5) who notes that 'trade unions often appear to exist only in order to solve collective action problems for employers having little independence existence or history'. Through a different approach is stated by Upchurch et al. (2009, 26) that 'trade unions in Britain have been less integrated into the post war body politik than in more corporatist countries like Germany'. The above view focuses on the relationship between trade unions and politics rather than on the importance of the history for the evaluation of the role of trade unions in British employment relations - like in the study of Howell (2007) mentioned above. In their first appearance trade unions were considered to be in opposition with law; for this reason, the participation of a person into these unions was punished. In accordance with the Combination Acts

Project paper on interpersonal communication theories and chosen book Essay

Project paper on interpersonal communication theories and chosen book - Essay Example Yet these two English speaking Caucasians can barely last seven days without confrontation amongst themselves and amongst their loved ones. Such is the downfall of language. People can understand the words, but it takes much more time and effort to understand the context in which people speak. This film essentially portrays the lives of two individuals in their unique journey to Japan. While it seems as though Bob is going through a mid-life crisis in conjunction with family problems waiting in the States, Charlotte appears to be having a crisis of her own at twenty years of age. She looks for sympathy in Bob Harris and receives something that borders on romance and heart-break. Not only an intense drama, but the film also portrays the life-styles of two different generations of marriage. Intimate relationships, especially marriages, are considered one of closest forms of relationships. Both participants are supposedly devoted enough to disclose very personal information to one another. Conversely, can that form of intimacy last? What if the discloser is no longer appreciated in a marriage? Bob Harris appeared to be going through such a scenario with his wife overseas. In a specific scene, Bob is speaking with his wife about some of the extraordinary people he has been meeting in Japan. To this end, Mrs. Harris mundanely expresses how happy she is that Bob is having fun. Of course, her voice and tone reveal that she could care less about Bob’s experience—even though he claims that Japan not fun, just â€Å"different.† Mrs. Harris’s lack of enthusiasm illustrates a marriage without intimacy. It is a marriage only held together by the devotion to their children. This film portrays very convincingly of the loss of such intimacies. Relationships can blossom so hastily only to fall just as quickly. A once exciting intimacy can degrade into jealousy

Facilities operations management in lloyds tsb

Facilities operations management in lloyds tsb What is Facilities Operations Management Operations management focuses on carefully managing the processes to produce and distribute products and services. Usually, small businesses dont talk about â€Å"operations management†, but they carry out the activities that management schools typically associate with the phrase â€Å"operations management.† Major, overall activities often include product creation, development, production and distribution. Related activities include managing purchases, inventory control, quality control, storage, logistics and evaluations. A great deal of focus is on efficiency and effectiveness of processes. Therefore, operations management often includes substantial measurement and analysis of internal processes. Ultimately, the nature of how operations management is carried out in an organization depends very much on the nature of products or services in the organization, for example, retail, manufacturing, wholesale, etc. Every organisation has an operations function, whether or not it is called ‘operations. The goal or purpose of most organisations involves the production of goods and/or services. Introduction Lloyds TSB Lloyds TSB is a famous and well-known name in United Kingdom especially in Scotland. Lloyds TSB itself was generate in 1995 when the Lloyds Bank and Trustee savings Banks was consent to merge the operations, that time it was the 2nd largest bank in the UK. People also riley for savings BANKS in Scottish heritage. So the Lloyds TSB brand was launched in July 1999. It has 185 branches in Scotland, 3000 branches in all over the UK and internationally 500 offices in 47 countries these all of them backed by the command of the Lloyds Banking Group. This bank has approximately 63,000 employees. (Source: http://www.lloydstsb.com/about_ltsb/lloyds_bank.asp [visited on 11-01-2010]) Responsibilities of facilities managers for staff engaged in facilities operations DAYS AND HOURS OF OPERATION. It shall be the responsibility of the Bank manager to comply with the terms of the permit or the bid announcement regarding the days and hours designated for the facility to be open for business. It is required that the Bank manager be present at least five days and a minimum of thirty (30) hours each week; however, it is not necessary for the manager to be present during all of the hours that the facility is open. Exceptions to this provision must be approved in writing by the appropriate Business Enterprises Supervisor. In the absence of the manager, it is essential that a qualified employee be on duty to ensure that all customers needs are being met and that the facility is otherwise being operated in compliance with all rules and regulations which govern its operation. Managers responsibilties in Operational Aspects In Lloyds TSB Focuses on the line manager as a key stakeholder in the human resource Management process and operational management. Considers the general trend towards devolvement of human resource activities and operational activities to line specialists. Examines issues involved in devolving training, development to the line and operations management with specific emphasis on the potential difficulties. Recent empirical evidence is represented. Concludes that the shape of things to come, at least for the foreseeable future, will be a sharing of responsibilities between the specialist and the line. (Source: Noreen Heraty, Michael Morley) Explain using example responsibility the facilities manager hastowardscustomers using the facility Administrative services managersplan, coordinate, and direct a broad range of services that allow organizations to operate efficiently. They might, for example, coordinate space allocation, facilities maintenance and operations, and major property and equipment procurement. They also may oversee centralized operations that meet the needs of multiple departments, such as information and data processing, mail, materials scheduling and distribution, printing and reproduction, records management, telecommunications management, security, recycling, wellness, and transportation services. Administrative services managers also ensure that contracts, insurance requirements, and government regulations and safety standards are followed and up to date. They may examine energy consumption patterns, technology usage, and personal property needs to plan for their long-term maintenance, modernization, and replacement. Imapct of FACILITY Opeartions on the Bank the part of the treasury organisation that administers and supports the trading activities of the treasury front office. The back offices main functions are to process, confirm, verify, settle, reconcile and record financial market transactions. The back office is also responsible for ensuring that the organisations treasury management policy and controls are followed as well as ensuring general compliance with rules and regulations. In a more general sense, the term refers to all administrative functions that support an organisation and includes areas such as payroll and expenses, accounts payable, accounts receivable and accounting. Bank Relationship Management Represents one of the most important activities of the treasury function as banks are an important corporate resource and are significant financial stakeholders in an organisation/company. Bank relationship management has two main functions: To select and appoint banks according to the companys funding, cash management and risk management requirements. To maintain a consistent dialogue with bank counterparties and to inform them of corporate developments so as to ensure that business is being effected in a manner that is satisfactory to both parties, and that these banks are receptive to the companys needs at all times. Assess the Saturatory Regulations To Facility Operations Statutory regulation exists to protect the publicagainst the risk of poor practice. It works by settingagreed standards of practice and competenceby registering those who are competent to practise and restricting the use of specified protected titles to those who are registered. The Government legislation protects seven titles:Clinical Psychologist,Health Psychologist,Counselling Psychologist,Educational Psychologist,Occupational Psychologist,Sport and Exercise Psychologist, and Forensic Psychologist. To operational managers need to tell to his staff about rules and regulations e.g., definitions, permit requirements e.g., general, inspection or investigation, references, permit requirements, exceptions to the standard; about enforcing regulations e.g., probation, consultation, inspections etc; about enforcing actions e.g. general, violation classification etc; about enforcing action e.g. general, inservice training, health statics etc; about reporting procedure e.g. emergency call number, medical call numbers etc; about fire presentations e.g. arrangements for fire departments response, inspection, evacuation plan, fire response training etc; about facility accommodation, mobile units, severability and general etc etc. Health and Safety rules The fscility operational manager is obliged to comply with the Health and Safety at Work Act, Carry out a thorough risk assessment. Draw up a health and safety policy (in writing if the employ are five or more people). Ensure your workplace meets minimum standards of comfort and cleanliness. Record injuries, accidents and diseases in an accident book. Health and Safety Documentation Required The Lloyds TSB Bank have more than five and that includes the owners and any part-time staff thats why the bank need written healthand safety documentation. The Law requires that you have a written healthand safety policy statement. Linked to this statement will be the arrangements that exist with the bank for dealing with healthand safety. Healthy and Safety Policies   Ã‚  Ã‚  Health Safety Policy StatementsGeneral statement, and policy examples, including contractors   Ã‚  Ã‚  Standard Health Safety and Risk Assessment formsAnnual audit, risk assessment forms plans   Ã‚  Ã‚  Environmental FormsPolicy, assessment checklist action plan and waste disposal note   Ã‚  Ã‚  First Aid, Accidents and DiseaseAccident, investigation, treatment and Riddor report forms   Ã‚  Ã‚  Fire SafetyRisk Assessment forms, policy and procedures and records   Ã‚  Ã‚  Smoke Free, Drugs and Alcohol PoliciesUp-to-date policies governing smoking, drugs and alcohol.   Ã‚  Ã‚  Safe DrivingSave Driving Policy, Guidance for Employees who Drive for Work and Vehicle Checklist   Ã‚  Ã‚  Display Screen EquipmentQuestionnaire, identification eyesight records and risk assessment   Ã‚  Ã‚  Chemical and Hazardous Substances COSHHSafety data, risk assessment and action plan forms   Ã‚  Ã‚  Personal Protection Equipment PPERisk survey and acknowledgement of use   Ã‚  Ã‚  Manual HandlingAssessment checklist control forms, employee assessments and action plan   Ã‚  Ã‚  Equipment MachineryMaintenance records, and risk assessment forms   Ã‚  Ã‚  Hot WorkRisk assessment, action plan and permit forms   Ã‚  Ã‚  Asbestos Containing MaterialsInspection, assessment, action plan, register, control and disposal forms   Ã‚  Ã‚  Disability Discrimination ActAccess audits, checklist, control and action plan forms   Ã‚  Ã‚  Maternity Health SafetyExpectant mother letter and risk assessment form Adding more confidence for maintaining communication to international and national business The key financial functions of international and national banking online, allowing your accounts to monitor, operate and control the transaction aspects of your international and national banking more closely and more effectively than before. Services are offered as individual modules, allowing you to select only those you need. Our international and national services specialists understand that at any rate, clients can keep in touch with transaction, e-commerce is playing an increasingly major role. We can offer you a more efficient way of accessing our range of trade services products via Online Services, designed to improve speed and accuracy for your accounts. Online Trade Services will enable you to manage four main trade service activities online: Import and Export Letters of Credit. Guarantees. Import and Export Collections. Standby Letters of Credit Issued and Received. Controle and Procedure Autorization, autority limits, cash flow forecast, confirmation, counterparty exposure credit, dealing procedure, Electronic Funds Transfer System, execution, Financial Risk Sensitivity Analysis, mandates, recording, reporting, settlement, system log, treasurey control, treasurey management policies, unatorize transaction, and valuation of derivatives do controle and procedure operate by facilities operation manager in the Lloyds TSB Bank. In the capital markets asset back securities, accredited values, accretion, accretion bond, accrual bond,accured interest, advance refunding, agency transaction, agreement among underwriters, all or none, allotment, analyst, arbitrage,ask price, equity ratio, auction market, back to back market, bear transaction, best mid, block trade and bond insurance etc etc are being handled in the Lloyds TSB Bank by the operational facility managers. Facility Managers support to effective Building Management The support of administrative facility management through information technology is identified asComputer Aided Facility Management(CAFM), Facilities Management Systems, or Computerized Maintenance Management Systems. Because computer has become the part of our social and as well as in job activities including banking. Administrative services managersplan, coordinate, and direct a broad range of services that allow Banks to operate efficiently. They might, for example, coordinate space allocation, facilities maintenance and operations, and major property and equipment procurement. They also may oversee centralized operations that meet the needs of multiple departments, such as information and data processing, mail, materials scheduling and distribution, printing and reproduction, records management, telecommunications management, security, recycling, wellness, and transportation services. Administrative services managers also ensure that contracts, insurance requirements, and government regulations and safety standards are followed and up to date. They may examine energy consumption patterns, technology usage, and personal property needs to plan for their long-term maintenance, modernization, and replacement. The resposibilty of facility managers is to trained the banking staff, ensure the smooth accounts and mortageges operations; describe to the jobs to their employees etc. Quality and Effectiveness of Facilities Operations Senior executives and facilities managers can speak the same languageLean language! Savvy facility managers are being recognized as contributors to overall quality and profitability, and an integral part of core service delivery and manufacturing operations. managers who initiate disciplined processes are in a position to spend their budgets instead of defend them, and have the data available to confirm facilities impact on mainstream operations. It is up to facility managers to think, plan, act, and communicate in an entrepreneurial fashion. Implementing defined strategies and structures to increase quality and productivity in facility operations and maintenance, and add value to the enterprise, takes a significant, long-term commitment. Quality and Effectiveness of Facilities Operations Analysis Operations management focuses on carefully managing the processes to produce and distribute products and services. In the operations management major, overall activities often include product creation, development, production and distribution. So Costs can be substantial to store and move inventory. Innovative methods, such as Just-in-Time inventory control, can save costs and move products and services to customers more quickly. A management consulting firm specializing in facility management, real estate, operations, and administrative planning and management. For consulting assignments we match our team and services to client requirements in order to ascertain innovative solutions for our clients facility and administrative needs. We conduct a study, perform an analysis, and present an assessment with action plans, options, schedules and budget. Determining the current status provides a benchmark from which future achievements can be measured. Conclusion Facilities management operations is one of the fastest growing professions in the UK. Facilities managers are responsible formany of the buildings and services which support businesses and other types of organisation. Operations Management deals with the design and management of products, processes, services and supply chains. It considers the acquisition, development, and utilization of resources that firms need to deliver the goods and services their clients want.

Taxation Fte

8/3/2011 The  Economics  of  Taxation Lecture  11:  Taxation  and  Business  Valuation:  FTE  approach International  Accounting International Accounting and Taxation Master  of Science  (MSc) University  of Liechtenstein,  Vaduz Dr. Tanja  Kirn D T j Ki Chair for Tax  Management  and the Laws  of International  and Liechtenstein  Taxation Institute  for Financial  Services University  of Liechtenstein,  Vaduz The  Economics  of  Taxation Taxation  and  Business  Valuation:  FTE  approach Exercise Suppose  Lucent  Technologies  has  an  equity  cost  of  capital  of  10%,  market   capitalization  of  $10.   billion,  and  an  enterprise  value  of  $14. 4  billion. Suppose   p $ , p $ pp Lucent’s  debt  cost  of  capital  is  6. 1%  and  its  marginal  tax  rate  is  35%. a. What  is  Lucent’s  WACC? b. If  Lucent  maintain s  a  constant  debt? equity  ratio,  what  is  the  value  of  a  project  with   average  risk  and  the  following  expected  free  cash  flows? c. If  Lucent  maintains  its  debt? equity  ratio,  what  is  the  debt  capacity  of  the  project  in   part  (b)? part (b)? d. What  is  the  free  cash  flow  to  equity  for  this  project? e. What  is  its  NPV  computed  using  the  FTE  method? How  does  it  compare  with  the   NPV  based  on  the  WACC  method?  ©Ã‚  2011  Dr. Tanja  Kirn  Ã¢â‚¬â€œ University  of  Liechtenstein  Ã¢â‚¬â€œ Vaduz 2 1 8/3/2011 The  Economics  of  Taxation Taxation  and  Business  Valuation:  FTE  approach Exercise In  year  1,  AMC  will  earn  $2000  before  interest  and  taxes. The  market  expects  these   earnings  to  grow  at  a  rate  of  3%  per  year. The  firm  will  make  no  net  investments  (i. e. ,   g g %p y ( , capital  expenditures  will  equal  depreciation)  or  changes  to  net  working  capital. Assume  that  the  corporate  tax  rate  equals  40%. Right  now,  the  firm  has  $5000  in  risk? free  debt. It  plans  to  keep  a  constant  ratio  of  debt  to  equity  every  year,  so  that  on   average  the  debt  will  also  grow  by  3%  per  year. Suppose  the  risk? free  rate  equals  5%,   and  the  expected  return  on  the  market  equals  11%. The  asset  beta  for  this  industry  is   1. 11.  ©Ã‚  2011  Dr. Tanja  Kirn  Ã¢â‚¬â€œ University  of  Liechtenstein  Ã¢â‚¬â€œ Vaduz 3 The  Economics  of  Taxation Taxation  and  Business  Valuation:  FTE  approach Questions a. If  AMC  were  an  all? equity  (unlevered)  firm,  what  would  its  market  value  be? b. Assuming  the  debt  is  fairly  priced,  what  is  the  amount  of  interest  AMC  will  pay  next  year? If  AMC’s   debt  is  expected  to  grow  by  3%  per  year,  at  what  rate  are  its  interest  payments  expected  to  grow? c. Even  though  AMC’s  debt  is  riskless  (the  firm  will  not  default),  the  future  growth  of  AMC’s  debt  is   uncertain,  so  the  exact  amount  of  the  future  interest  payments  is  risky. Assuming  the  future  interest