Gawain in Wace, Lazamon, and Alliterative Morte Arturo: A Cultural Comparison :: Essays Papers

Gawain in Wace, Lazamon, and Alliterative Morte Arturo: A Cultural Comparison Martin B. Shichtman, in his essay on Wace and Layamon, describes history as "the transcribing of the illusions of an age" (1987, 106). He states that for many scholars in the Middle Ages, translating histories was not so much a matter of setting down, word for word, what were considered to be "hard facts," but of expounding on the truths behind the material, as they were relevant to the time and audience for which they were written. This often involved the omission of some material from the primary source, the addition of new material to it, and the reinterpretation of events and attitudes expressed in the work. The figure of Gawain throughout Arthurian literature is an interesting one; he appears in more texts as a secondary character than any other knight named, and often gains glory even at the expense of the main hero (Busby 1980, 5). The first characteristic which separates him from the other knights is his relationship to Arthur: it is usually stated that he is Arthur's sister's son, a kinship that is found from William of Malmesbury's Gesta Regum Anglorum (c. 1125) and Geoffrey of Monmouth's Historia Regum Britanniae (c. 1136) onward (Busby 1980, 31). However, it is notable that Gawain often seems more like a type than an individual; in Old French literature he is never the subject of a biographical romance, as are most of the other knights, he never has one particular lady's name associated with him, and he is frequently used as a constant against which other knights are judged, the perfect embodiment of good qualities, more a symbol of perfection than an actual person (Busby 1980, 7 ). Because of this, he makes an especially good study when looking at what an author considered to be "perfection" within his society. In the various ways in which Gawain is portrayed, he often serves as a focal point from which to observe some of the cultural changes and ulterior motives present in the legends of which he is a part. The basic story of Arthur (and Gawain) found in Geoffrey's Historia was later translated and reworked many times: by Wace in the Norman French Roman de Brut, in an Anglo-Norman fragment, by Layamon in the Early Middle English Brut, and in the Middle English Alliterative Revival piece the Morte Arthure (the AMA), among others.

Male Circumcision: A Social And Medical Misconception Essay -- essays

Male Circumcision: A Social and Medical Misconception University of Johns Hopkins Introduction Male circumcision is defined as a surgical procedure in which the prepuce of the penis is separated from the glands and excised. (Mosby, 1986) Dating as far back as 2800 BC, circumcision has been performed as a part of religious ceremony, as a puberty or premarital rite, as a disciplinary measure, as a reprieve against the toxic effects of vaginal blood, and as a mark of slavery. (Milos & Macris, 1992) In the United States, advocacy of circumcision was perpetuated amid the Victorian belief that circumcision served as a remedy against the ills of masturbation and systemic disease. (Lund, 1990) The scientific community further reinforced these beliefs by reporting the incidence of hygiene-related urogenital disorders to be higher in uncircumcised men. Circumcision is now a societal norm in the United States. Routine circumcision is the most widely practiced pediatric surgery and an estimated one to one-and-a-half million newborns, or 80 to 90 percent of the population, are circumcised. (Lund, 1990) Despite these statistics, circumcision still remains a topic of great debate. The medical community is examining the need for a surgical procedure that is historically based on religious and cultural doctrine and not of medical necessity. Possible complications of circumcision include hemorrhage, infection, surgical trauma, and pain. (Gelbaum, 1992) Unless absolute medical indications exist, why should male infants be exposed to these risks? In essence, our society has perpetuated an unnecessary surgical procedure that permanently alters a normal, healthy body part. This paper examines the literature surrounding the debate over circumcision, delineates the flaws that exist in the research, and discusses the nurse's role in the circumcision debate. Review of Literature Many studies performed worldwide suggest a relationship between lack of circumcision and urinary tract infection (UTI). In 1982, Ginsberg and McCracken described a case series of infants five days to eight months of age hospitalized with UTI. (Thompson, 1990) Of the total infant population hospitalized with UTI, sixty-two were males and only three were circumcised. (Thompson, 1990) Based on this information, the researchers speculated that, "the uncircumcised male has an increased susceptibili... ...a cultural and religious ritual and has been maintained over the decades despite the risks associated with this nonessential, surgical procedure. The current literature does not reveal a need for circumcision in the neonate. However, circumcision in the male neonate will continue to be a topic of wide debate until the risks can be shown, without a doubt, to outweigh the benefits. Circumcision has truly become a social norm in our country that the medical community attempts to justify with weak and inaccurate research. According to the ANA, it is not the role of the nurse to decide for the parent on the need for circumcision in the infant. Rather, it is the nurse's role to present all of the information in an unbiased manner and remain an advocate of the rights of the patient. Nurse's need to realistically analyze the data available and decide if they truly are an advocate, or are merely following in the steps of their colleagues. References American Nurses Association (1991). Standards of clinical nursing practice. Washington, D.C.: American Nurses Association. Gelbaum, I. (1992). Circumcision to educate not indoctrinate-a mandate for certified nurse-midwives. Journal of Nurse- Male Circumcision: A Social And Medical Misconception Essay -- essays Male Circumcision: A Social and Medical Misconception University of Johns Hopkins Introduction Male circumcision is defined as a surgical procedure in which the prepuce of the penis is separated from the glands and excised. (Mosby, 1986) Dating as far back as 2800 BC, circumcision has been performed as a part of religious ceremony, as a puberty or premarital rite, as a disciplinary measure, as a reprieve against the toxic effects of vaginal blood, and as a mark of slavery. (Milos & Macris, 1992) In the United States, advocacy of circumcision was perpetuated amid the Victorian belief that circumcision served as a remedy against the ills of masturbation and systemic disease. (Lund, 1990) The scientific community further reinforced these beliefs by reporting the incidence of hygiene-related urogenital disorders to be higher in uncircumcised men. Circumcision is now a societal norm in the United States. Routine circumcision is the most widely practiced pediatric surgery and an estimated one to one-and-a-half million newborns, or 80 to 90 percent of the population, are circumcised. (Lund, 1990) Despite these statistics, circumcision still remains a topic of great debate. The medical community is examining the need for a surgical procedure that is historically based on religious and cultural doctrine and not of medical necessity. Possible complications of circumcision include hemorrhage, infection, surgical trauma, and pain. (Gelbaum, 1992) Unless absolute medical indications exist, why should male infants be exposed to these risks? In essence, our society has perpetuated an unnecessary surgical procedure that permanently alters a normal, healthy body part. This paper examines the literature surrounding the debate over circumcision, delineates the flaws that exist in the research, and discusses the nurse's role in the circumcision debate. Review of Literature Many studies performed worldwide suggest a relationship between lack of circumcision and urinary tract infection (UTI). In 1982, Ginsberg and McCracken described a case series of infants five days to eight months of age hospitalized with UTI. (Thompson, 1990) Of the total infant population hospitalized with UTI, sixty-two were males and only three were circumcised. (Thompson, 1990) Based on this information, the researchers speculated that, "the uncircumcised male has an increased susceptibili... ...a cultural and religious ritual and has been maintained over the decades despite the risks associated with this nonessential, surgical procedure. The current literature does not reveal a need for circumcision in the neonate. However, circumcision in the male neonate will continue to be a topic of wide debate until the risks can be shown, without a doubt, to outweigh the benefits. Circumcision has truly become a social norm in our country that the medical community attempts to justify with weak and inaccurate research. According to the ANA, it is not the role of the nurse to decide for the parent on the need for circumcision in the infant. Rather, it is the nurse's role to present all of the information in an unbiased manner and remain an advocate of the rights of the patient. Nurse's need to realistically analyze the data available and decide if they truly are an advocate, or are merely following in the steps of their colleagues. References American Nurses Association (1991). Standards of clinical nursing practice. Washington, D.C.: American Nurses Association. Gelbaum, I. (1992). Circumcision to educate not indoctrinate-a mandate for certified nurse-midwives. Journal of Nurse-

Engage in personal development in health, social care or children’s and young people’s setting Essay

My duties and responsibilities as a foster carer are many, i must have child A best interests at heart at all times, i provide a safe and stimulating environment for child A to develop to the best of her ability, to keep her safe from harm and abuse. I must make sure all her appointments e,g doctors dentist and language and speech are attended and up to date and recorded. That child A is taught about personal hygiene and why it is so important to do this daily , where ever she may be living. Be a positive role model for her, show her i am there for her to depend on and what i say i mean and do, help her with her school work giving positive praise for the smallest of tasks. To give her new experiences help her to develop her social skills, give her ways to show how she’s feeling, talk and listen to her about what’s going on, show her that her that she is important , that her views and feelings matter, keep her well informed of what’s happening on her behalf , doing all this and keeping confidentiality. For me to carry this out to the best of my ability i attend regular training for me to develop the skills i need , also attend meetings with appropriate people e,g social workers, key workers, guardians, teachers and any other professional that has an influence on child A’s life. I also attend a support group that has talks about different issues that may occur and a chance to talk to other foster carers and social workers about any concerns i may have in a confidential setting. I also keep records, daily logs which are kept locked away for confidential reasons, on how child A is doing, and her positive behaviour also any concerns I may have. I also take child A to contact on a few occasions during the week, having a positive relationship with the people child A sees is a positive experience for her. 1.2 This QCF is based on The National Occupational Standards that you are expected to meet in every unit. Explain the expectations about your own work role as expressed in relevant standards ie Code of Practice, National Minimum Standards, National Occupational Standards. Health and safety at work act 1974 all electrical equipment working correctly, all gas appliances safe to use, these are to be checked yearly by qualified people. No hazards that can cause slips trips or falls. That all hazardous substances are locked away. All outdoor areas are safe from harm. All vehicles that are used are road worthy. That household hygiene is paramount at all times. That pet are well behaved. That general safety is maintained at all times. Childrens act 2004 , every child matters :- 5 core outcomes, Be healthy:-promote physical, emotional, mental health. Stay safe :- keep them safe from maltreatment , neglect, violence and sexual exploitation , accidental injury and death, bullying and discrimination. Enjoy and achieve :- support leaning, attendance at school, stretching abilities. Make a positive contribution: – encourage making choices , being involved, promoting good behaviour. Achieve economic well-being :- encourage further education, better lifestyles. Care council for Wales, code of practise for social care workers :- As a foster carer i must protect the rights of child A promote her interests , gain her trust and build her confidence, promote her independence, but keeping her safe at all times. Respect her rights and choices as long as they cause no harm to herself or others. Be accountable for my work, take responsibility for my actions and maintain and improve child A’s knowledge and skills, do any relevant training for me to be able to carry out my role effectively. 2.1 Explain giving three reasons why reflective practice is important in continuously improving the quality of service provided I feel reflective practise is very important within my role as things change all the time, i have to be able to adapt to any given situation and deal with it at that time, by looking back at what you did, will help you to see if you could have dealt with the situation differently, if it occurs again or a similar situation. The environment, age and development, life experiences, training are all factors. Reflective practise helps to improve my quality of care, increases my confidence learning and through experiences, no-one is right all of the time. 2.3 Describe how your own values, belief systems and experiences may affect your working practise. As a adult i cannot remember being told â€Å"i love you† being hugged or any signs of affection being given, but i do know i was loved. I have brought into my family hugs whenever wanted or needed or just a hug for no reason, i tell my daughter and child A i love them every day, and i do. (if this is what the child wants). 4.1 Identify 3 sources of support available to you for planning and reviewing your own development. I receive support and encouragement from my QCF assessor, my key worker and the children i work with, within my role and family life.

Peer Relationships

Having arrived at the gateway to adulthood, the teenage years are an exciting time of freedom, no responsibilities, and supposedly the best time of your life; unfortunately it is not always a cake walk. Whether it is maintaining good grades or keeping up with what the plans are for the weekend, there is a serious amount of pressure throughout high school and it becomes easy to get lost in the madness. Studies show that the qualities of peer relationships at this time are key contributors to mental health now and throughout life.Positive relationships are beneficial to young adults because it helps in gaining a sense of what good social interactions are and produces equal or greater relationships in the future. On the flip side, poor peer relationships can have negative effects on adulthood mental health and social relations. Unforgiving social cliques and high societal expectations are a few causes of the shrinking of teen self-esteem and disruption of stable mental well-being. When students start high school they quickly find their place on the social ladder.Some students find themselves at to top, some find a place in the middle they’re comfortable with, and others are sometimes cast out and pushed to the bottom by the rest. Social status and cliques rank unnecessarily high in importance amongst adolescents; teens are consistently pressured to maintain their high social standing. This chronic stress leads to their disengagement from classroom activities (McGrath & Noble, 2010). Even pupils that seem to be at the top of their social ladder develop conflict among one another, disrupting school performance.These students become more focused on the trifling drama and maintaining social stature and find the importance of school beginning to decline. Research conducted by Helen McGrath and Toni Noble shows that, young adults that have poor relationships with their peers, show lower levels of school achievement and higher levels of school avoidance. Once teen agers’ attention is elsewhere in the classroom, they begin to fall behind on school work due to the fact that they are more focused on their life outside of school.Bad study habits can develop if they are engrossed in their social life and they can carry those bad study habits with them through high school to college. Pupils with high social standing are not the only ones affected by negative peer relationships; it influences students at the bottom of the social ladder as well. The so called â€Å"bottom† of the social ladder is made up of persons that have often times been rejected by their peers for one reason or another; they may dress different, act a certain way, or lack some sort of attribute that society believes is necessary.Students that are excluded from their peers still seek the same social fulfillment as others; in a way this causes them to be more desperate for that fulfillment. Being bullied by social exclusion may appear less visibly harmful than verbal or physical forms of bullying but may be more detrimental to children’s participation in learning activities and have more impact on their academic outcomes, states McGrath and Noble.Social exclusion and bullying can go even further than classroom disengagement; as a result of bullying, people can lose their ability to love and trust, denying them the chance to experience a quality relationship later in their life. They might find themselves as a submissive partner or they may want to be completely alone. Aside from its long-term effects, some consequences of bullying can be seen and felt immediately. When one calls another a harsh name, the victim might cry, just like a bruise might appear after a punch to the arm. However, some effects of bullying are not always obvious to the naked eye.The results of bullying might grow and appear over time, damaging a person in profound ways for the long term. Victims often develop eating disorders, begin to self-injure, or require exten sive counseling. Social bullying can also leave people without a supportive group of friends that they can lean on and spend time with. Isolation amongst peers has negative repercussions towards young adult mental health because at this age, according to Kingsly Nyarko of the University of Ghana’s psychology department, being accepted by peers has important implications for adjustment both during adolescence and into adulthood.Friends are supporters and motivators, they help you feel better when you’re sad and can talk you through any problems you are facing. When that support is missing from a person’s life, they have no one to talk to, making them feel alone and excluded. This can damage an adolescent’s ability to maintain healthy friendships and possess adequate social skills. Being teased, rejected or socially excluded by other pupils on an ongoing basis has been identified as the single most common characteristic of children who are at high risk for developing emotional and behavioral disorders (McGrath & Noble, 2010).Isolation makes adolescents feel as if there is something wrong with them, thus lowering self-esteem and creating disorders such as anorexia, depression, anxiety and bipolar disorders. Some individuals recover from loneliness by using their own strategies, or by letting time do the healing. Others require outside professional help. The most obvious approach is to help people develop satisfying personal relationships. This can be done by improving how they interact with others through social skills training or forms of psychotherapy aimed at changing dysfunctional interpersonal dispositions (e. g. fear of rejection). It can also be done by improving opportunities for interactions through programs aimed at removing barriers for social interaction (e. g. , providing transportation) or at bringing people together (e. g. , discussion groups). Major depressive disorders in early adulthood range from 10%-17% (Maughan & C ollishaw & Stringaris, 2012). One of the biggest issues for teens is fitting in. Society tells young adults that they need to act a certain way or look a certain way, and when a teen doesn’t feel they follow that socially acceptable conduct, they often become repressed within themselves.They want to be accepted and there is a fear of being alone and not being wanted. Popularity is a huge social factor for any teen, especially in High School. Everyone wants to be part of the â€Å"in crowd† and if you cannot be a part of them, you want to dress like them or act like them. Pressures like this do tend to be worse for girls; about twice as likely to be affected as men (Maughan et al. , 2012). Girls feel the need to please others and seek approval while boys learn that it is ok to be themselves and do their own thing.Boys tend to be able to deal better with these social issues then girls do. They are able to put events behind them, and not depend upon others for reassuring them of their self-worth. One example is when an adolescent boy and girl are equally interested in each other; the boys seem to be able to cope with love's losses better than girls do. They put it behind them and move on, while girls focus on the breakup and keep talking about it, stirring the emotional pot. These depressive episodes are not just short term; 50-70% are likely to develop a further episode within five years (Maughan et al. 2012). However, sometimes depression can be avoided all together. Having a good home life and a high self-esteem would be primary for people not to be depressed. Although in some cases you are predisposition to have depression, little things do help. Talking about your problems and not bottling them up helps immensely to avoid emotional breakdowns and blowups. Avoiding extreme â€Å"stressers,† like putting yourself in a situation you cannot get out of, also helps. Avoidance of cigarettes and alcohol also helps with staying healthy and happy. Despite the vast amount of negative effects peer relationships have on young adults there are a substantial amount of positive effects as well. When healthy peer relationships are established early on, they positively affect every aspect of everyday life; one facet being school attendance and performance. The link between pupil engagement, achievement and well-being appears to is bi-directional, i. e. the more pupils are actively engaged and achieving in learning, the greater their sense of well-being and vice versa (McGrath ; Noble, 2010).When students are treated well by other pupils it makes them more enthused about participation in school activities. Positive peer relationships are also linked to higher levels of school attendance and pupil engagement with learning and a reduction in the likelihood of dropping out in secondary school (McGrath ; Noble, 2008). When students find their school environment to be supportive and caring, they are less likely to become involved in substa nce abuse, violence, and other problem behaviors.They are more likely to develop positive attitudes toward themselves and pro-social attitudes and behaviors toward others; supportive schools foster these positive outcomes by promoting students’ sense of â€Å"connectedness†, â€Å"belongingness†, or â€Å"community† during the school day. Additionally, this time during adolescence is imperative because, the development of strong interpersonal skills and relationships during emerging adulthood is an essential component of effective career and role functioning throughout the adult life span.Comments by others, particularly parents and peers, reflect appraisals of the individual that some adolescents may incorporate as part of their identity and feelings about themselves (Nyarko, 2012). Negative experiences in early adulthood are often particularly damaging to self-esteem. In early years, personality and sense of self is being formed, and harmful experiences can leave one feeling that they are not valued or important.Even though one is close to adulthood, there has still been too little amount of time to build any resilience, so these negative views can become the ones that teens believe about themselves. The way one may view them self can be tainted by society’s ideas of ‘beauty’; this is where helpful friendships are essential. When a teen’s self-esteem is disintegrating they need constructive re-affirmation to keep a positive attitude; this can be accomplished through strong friendships.Frequently, the friendships we make during our youth fade or dwindle as we grow up and move on to new places in life. Yet when our childhood and school-year friends stay with us into adulthood, they are often the most important friends we have. Our common history and the length of time that our connection has continued becomes the glue that keeps us together, even if we’ve changed significantly from when we first met . Our most valuable friends are the ones with whom we feel the deepest connection and greatest trust.It is with these friends that we share our fears, secrets, desires and problems and dreams. There are many unexpected benefits from this type of relationship, including such things as lessening stress, limiting depression, lowering blood pressure, keeping our minds agile, and lessening the debilitating effects of old age. Research has even shown that people with close friendships are more likely to exercise regularly, avoid excessive alcohol and even be more inclined to quit smoking. Positive peer relationships in early adulthood have positive effects on self-esteem.Chen, Cohen, Johson, and Kasen (2008) summary article on Psychiatric disorders during adolescence and relationships with peers found that, during adolescence, friends are providers of companionship, social and emotional support, and intimate self-disclosure and reflection. Group activities such as sports are an effective way to gain self-esteem boosting encouragement and relationships. Being involved in a team allows teens to build relationships and social skills that will help them further in life. Other group activities such as school extracurriculars have similar constructive effects on teen contentment.Peer relationships play an important role in pshyco-social development and well-being throughout life (Chen et al. , 2008). Young adults’ body image often times can be influenced by their relationship with peers. For some it is viewed as the lowest point in their life; others claim it to be the highlight of their years. No matter what personal opinion individuals express, it is evident that early adulthood is a key turning point in life. The experiences at this time, positive or negative, set the very foundation for later adulthood.

Motifs in Bless Me, Ultima Essay

The novel Bless Me, Ultima by Rudolfo Anaya describes the maturation of a boy named Antonio, who witnesses more than his fair share of deaths at a young age. He struggles with the injustices of these deaths and thus begins to question his once-solid religious beliefs. During the conflict Antonio experiences many vivid dreams, which are considered motifs in the work. The dream motif is a catalyst for the theme of the importance of independent thinking to maturation, because through his subconscious Antonio finds the understanding he craves by facing his fears and questioning his future. In many of Tony’s dreams he encounters his fears. One of these fears is that his three older brothers will go to hell, because they gamble and spend their time at Rosie’s, which is considered the whore house. In his dreams, Tony tries to protect their innocence: â€Å"Do not enter [Rosie’s], I cried. It is written on the waters of the river that you shall lose your souls to hell if you enter† (70). He is terrified that they will go to hell and be punished for eternity. Tony’s begging is to no avail; his brothers enter anyway. His troubled thoughts then turn to his own innocence: â€Å"Oh, where is the innocence I must never lose† (71). He struggles with the concept of maturing and losing the innocence he feels he needs to become a priest. As the novel progresses, however, Tony loses his innocence because of the many deaths he sees. He realizes that this is a given part of maturation, and that he can still hold integrity without innocence. Another struggle of Tony’s is the fact that he is caught in the middle of his parents’ dreams. His mother wants him to become a farmer-priest, and his father wants him to become a vaquero. In his sleep he struggles with which dream he will follow, and often see his parents arguing about it: â€Å"Oh please tell me which is the water that runs through my veins, I moaned†¦ my mother crooned softly, it is the water the Church chooses to make holy and place in its front. It is the water of your baptism†¦ Lies, lies, my father laughed, through your body runs the salt water of the oceans. It is that water which makes you Marez and not Luna† (120). Tony cannot understand which parent’s blood runs in his veins, and becomes more confused when they argue over it. However, in his dreams Tony most often sees himself as a priest: â€Å"I swung the dark robe of the priest over my shoulders then lifted my hands in the air† (26). It seems like this is the profession he will most likely choose. Throughout the novel Antonio yearns for understanding. He wants to know why God allows evil o triumph over good, and why the innocent sometimes die. In waking he cannot find the answers, but in dreams they come to him. When he questions in his sleep where his innocence is, Ultima appears in the dream and tells him, â€Å"There in the land of the dancing plains and rolling hills, there in the land which is the eagle’s by day and the owl’s by night is innocence. There where the lonely wind of the llano sang to the lovers’ feat of your birth, there in those hills is your innocence† (71). This shows Tony that he can always find innocence in nature. When Tony cannot decide which parent’s water runs in his veins, Ultima tells him, â€Å"The waters are one, Antonio† (121). He realizes that Luna blood and Marez blood mix in his veins. The answers in his dreams allow Tony to lessen his questioning in his waking world. Antonio’s dreams allow him to face his fears and think them through, which helps to eventually resolve them. Letting go of certain problems, such as his loss of innocence, helps him to mature. He discovers through his dreams that he does not have the blood of a Luna or a Marez; he has the blood of both. He also realizes that it is more likely that he will become a priest than a vaquero. With this understanding he settles on his future and makes his own decisions rather than being torn between those of his mother and father. When he learns to make his own decisions he matures into a man. Tony’s dreams guide him towards the theme of the importance of independent thinking to maturation.

Project on Motivation of Nurses Essay

The most traumatic and stressful moments of an individual’s life are when he or she is taken ill. Nurses are synonymous with care and attention in times of need such as these. In a world mostly driven my personal ambition and corporate profit, nurses with their commitment to patient welfare and selfless service, provide a contrasting study. A nurse acts as a savior in distress and is often called upon to make great personal sacrifices in the discharge of her duties. The profession of nursing, is therefore, not merely a ‘job’ and the potentially powerfully insights about commitment to work that they could provide encouraged us to choose them as our subjects of study. As part of the Phase I of the project, we interviewed four nurses who were diverse in the amount of experience each had, the hierarchy in which they were working in the hospital and the backgrounds from which each of them came. This was done to study the commitment of employees towards an organization and understand the various factors which cause the same we have selected a study of nursing staff in hospitals. From the interviews, many broad themes emerged, all of which point correlate positively with their high commitment level to the organization. These points logically lead us to our hypothesis as to what keeps them committed to their place of work.   However, there were some key themes which we noted across all four of our respondents. All the nurses were very excited by the kind of recognition that the hospital was willing to give them. They seemed to treat this as a reward for their hard work and dedication and were motivated by it. All nurses were also impressed by their working relationship with their superiors (Head Nurse/Doctor) in the hospital who treated them as members of a family and with much respect. Nurses were also willing to stay on with the hospital because it provided them with opportunities for personal development. Accordingly our hypotheses are as follows: * There is a positive correlation between the amount of recognition that the nurses receive for their work and their commitment to the organization * There is a positive correlation between the positive relationship between the doctors/supervisors and the nurses and the commitment of the nurses to the organization * There is a positive correlation between the opportunity for learning and personal development that the organization provides and the commitment of the nurses to the organization RESEARCH METHODOLOGY Based on our earlier survey of 4 respondents, we determined that the following three variables play a key role in determining the commitment of nurses to their respective hospitals: * Recognition * Relationship with superiors * Learning and Development We have then tried to identify whether these three variables actually affect commitment levels of nurses at various nursing organizations. For the same, we carried out a survey of 30 nurses with diverse backgrounds (a detailed description of the respondents is covered in the following section) and questioned them on a scale of 5 to 1 (5: Strongly Agree, 1: Strongly Disagree) on 24 questions. Since our hypothesis determines 3 variables as affecting commitment, we tested the existence of each these three independent variables by framing four questions for each variables. Similarly, we determined commitment levels of the nurses through a set of 12 questions. By using a 5-point scale, we have captured not only the  existence, but the extent of existence of these variables. Since we found the responses to be reliable, we determined the correlation between the three independent variables and the dependent variable ‘commitment’ to see whether our hypothesis of is correct. Hospitals chosen for the survey We surveyed nurses from 4 different hospitals to ensure diversity. The organizations range from a large hospital located in a city like Bangalore, to mid-sized hospitals located in Tier-2 cities like Ajmer and Allahabad and a focused surgical-specialty hospital located in a smaller town like Varanasi. This selection lends diversity to our respondents through differences in location, specialization of hospitals, daily footfall (reflecting magnitude of work for the nurses), number of departments etc. Refer Appendix 1 for a description of the hospitals used for out survey. General Profile of the Nurses We have ensured diversity in our respondents while choosing nurses at all of the survey hospitals. The diversity ranges age, number of years worked at the organization and departments worked in. QUESTIONS IN THE SURVEY The questions in the survey were aimed at understanding the extent to which each of our three independent variables and our dependent variable ‘commitment’ was present in these organizations. We captured the different parameters relating to these variables by framing questions addressing various facets of these variables. Refer to Appendix 2 for detailed discussion on questions used for the survey. ANALYSIS OF RESULTS OF THE SURVEY Reliability of scales Reliability is used to check the consistency of the question set under consideration. In this survey we are testing if the 3 hypothesis that we have come up with are explaining the commitment of employees towards organization. Reliability in a survey is measured by lot of ways and here we are checking internal consistency reliability which indicates reliability within the survey for the responses of similar type of questions. Reliability of dependent variable * Affective Commitment: In affective commitment the questions that are all trying to test for one feature- Attachment to Organization. The questions are direct and straight forward bringing out the required feature thus making it a set of good reliability. We have obtained a reliability scale of 0.6 for this set which is the highest amongst the 3 different commitments scales that we have obtained. * Continuance Commitment: In this set we are trying to test the commitment by knowing the dependence of the person on the organization and how much of a change it would mean to him to switch jobs. The reliability that we obtained for this set is 0.53 which is a high value for a one time survey result. This is a good indication of question set focusing on the same core question. * Normative Commitment: This question set mainly tries to identify the belongingness the person has towards the organization. The question set is clear in conveying the same objective but this attribute is not so direct and easy to understand from an individual’s perspective. Hence the survey respondents’ answers in this set have a lower value reliability of 0.39. Reliability of independent variables For first and third variables (recognition and learning & development), the reliability is low at 0.46 and 0.47 respectively while for the second variable (relationship with superiors), the reliability is relatively high at 0.66. Recognition and Learning & Development It’s easy to see why responses to questions around Recognition and learning and development score so low in reliability. They are quite different from each other and same person can have very different responses to each of them, if they interpret the different questions to indicate different things. In comparison the questions related to relationships were fairly interrelated and are able to fetch more consistent responses. Overall reliability of all the responses is still lower than 0.7 which can be attributed to the fact that no pilot study was done, which could have been used as input for framing questions in a better way as to improve reliability of responses. Relationship with superiors We obtained highest reliability for responses for this hypothesis. Reliability for this was found to be 0.66, which is near acceptable range. The reason for higher reliability in this question set (Appendix 2) is attributable for ease of understanding the questions. Every person has a fair idea about relationships and these questions although quite different from each other give a fairly good direction the responder in terms of what is being asked. So they maintain consistency and hence higher comparative reliability. Correlation between predictor and dependent variables a) Affective Commitment – According to our expectation before the actual test results we came up with all 3 predictors are going to affect the Affective commitment. Recognition was one factor because the appreciation helps the employee (nurse) develop a connect with the organization. Also opportunities for personal development and training opportunities to assist this makes employees feel good which is essential to improve the commitment levels. Good relationships with superiors definitely help people develop an emotional bond with the organization. b) Continuance Commitment Continuance commitment describes how the employee feel about staying longer in the organization and for this one of the most important reasons is economic considerations which are to some extent explained by rewards and recognition. The recognition obtained will motivate them to work better and stay longer in an organization. Also constant opportunities for growing and training will help them stay committed to organization. c) Normative Commitment This form of commitment mainly explains the sense of giving back to the organization and the predictor which we identified was most important was the relationships with supervisor (Head nurse/Doctor). Training and developments reflect investment done by organization on employees, so employees feel an obligation to stay committed to organization to pay it  back, which increases their normative commitment. Actual results: Statistical Significance of correlations With the acceptable alpha level being 0.05 for social science research and no. of responders being 30, (Dof = 28) gives critical value of correlation as 0.361. When compared with the results we obtained we notice that out of 9 correlations, 3 are not significant (value less than 0.361) and 6 are significant (Value higher than 0.361). When it’s significant we reject null hypothesis of no relationship and accept alternative hypothesis of existence of relationship. Hypothesis 1: From the results it’s apparent that hypothesis 1 is partially supported as only one correlation is significant out of 3. That is with affective commitment. So we can interpret that Recognition affects affective commitment but not the other two types of commitments. Hypothesis 2: For second hypothesis 2 out of 3 correlations are significant so it’s also partially supported. Relationship with doctors is not related to continuance commitment but related to affective and normative commitment. Hypothesis 3: Hypothesis 3 is completely supported as all the correlations are significant i.e. higher than 0.361. It means learning and development is related to all the dependent variables and affects all three dimensions of commitment i.e. Affective, Continuance, & Normative which are considered here. Plausible explanation of variations between correlations Recognition: Recognition showed the highest correlation with affective commitment, while significant correlations were not established with the continuance and normative commitment. When nurses are recognized by the organization they tend to develop an emotional connect with the organization. They feel happier working in the hospital and a sense of belonging is nurtured within them. The appreciation received for the work translates into an attachment with the organization. This explains the  correlation with affective commitment. The recognition is mostly in the form of awards and words of praise not monetary in nature. Therefore a significant continuance commitment has not been established. Similarly, recognition for work does not lead to a feeling of obligation towards the organization. Rather, the positivity generated by the appreciation of work manifests itself as an emotional attachment towards the organization, which is reflected in the correlation with affective commitment. Relationship with superiors: This independent variable showed highest correlation with normative commitment and lower correlations with affective commitment, while correlation with continuance commitment was insignificant. The nurses tend to view the exceptionally good relationships with the doctors as being facilitated by the hospital. They therefore feel indebted to the hospital for providing them with an excellent working environment, which would be missing at other places. The moral obligation that they feel towards their hospital for the respect and dignity with which doctors and supervisors treat them is translated into a high correlation for normative commitment. Learning and development: It is seen from the results of the survey that learning and development has a high correlation with Affective Commitment to the organization and comparatively low correlation with continuance and normative Commitment. Intuitively we expected high correlation between learning and development a nd normative commitment to the organization. This is because employees would feel an obligation towards an organization that invests time and resources to train its employees and ensure their personal development. However, we realize these may not necessarily hold true once we take into account the atypical nature of the nursing profession. Nurses feel sense of duty towards their patients and ethical and moral obligation to serve the sick to the best of their capacity. In fact, nurses who have been trained well, dealt with varied patient cases and experience a great deal of learning would perhaps experience higher motivation to the society. Hence perhaps they would experience low moral responsibility to staying back in the organization. We believe existence of a caring and people centric management could be the reason for the high correlation between affective commitment and learning and development. An organization that has caring and people friendly management would earn emotional loyalty from its employees due to care and good treatment given to employees. Such an  organization would also take efforts to ensure that its human resources constantly learn and develop so as to contribute to the success of the organization.

Ba Finance

By 1985 Arthur had already sold his dairy herd to focus on cereal production when a fortuitous meeting with Lucy Bellingham at a business conference led him to reconsider the future of the family farm. Bellingham is a designer of bespoke fitted kitchens who had a business plan but little capital. The plan was to manufacture top quality fitted kitchen furniture and establish design studios/showrooms in high income areas. Having recently sold his dairy herd, Arthur had enough capital to fund the new business and also a number of large barns and outbuildings suitable for manufacturing the kitchen units subject to refitting and planning consent being obtained. Lucy’s business plan was so convincing that Arthur decided to get out of farming altogether (by leasing his arable land to a local co-operative) and focus on developing the new business. From this small beginning grew the now publicly quoted company of Bellingham plc. Initially, showrooms were established in Beaconsfield and then Kensington. Demand for their kitchens was brisk and â€Å"Bellingham Bespoke Kitchens† expanded rapidly but remained a partnership. The firms clients are mainly celebrities from the entertainment world and the cost of a Bellingham Bespoke Kitchen is now ? 40,000 – ? 150,000 or more. The firm was restructured as a limited company in 1990 and subsequently experienced rapid growth until 1999. In that year the then directors decided that the business had reached the limit of development in it’s present form. Future development required large-scale expansion of production facilities in order to provide the range of materials, furniture, quality and prompt delivery required by their discerning clients. This in turn needed an injection of capital that the directors were unable to generate themselves. The conviction that there was much money to be made from â€Å"quality fitted kitchens† † had been vindicated. They investigated a number of possibilities deciding eventually to expand production facilities by purchasing a modern production unit on an industrial estate in Aylesbury. The expansion was funded by a stock market floatation and raising the necessary capital in the name of Bellingham plc. As the market grew and to keep abreast of new production technology, the directors agreed to reverse the maxim so dear to the heart of the founders, Arthur and Lucy; â€Å"neither a (long-term) borrower nor lender be. † They financed updating of equipment and premises by means of issuing debentures. It is now October 2012 and the present directors of Bellingham plc believe that the long-term success of the company lies in future international diversification and expansion. They consider that the most beneficial action they could take is to investigate the acquisition of a subsidiary in the USA. The newly-appointed finance director, Bill Moneypenny, agrees with this opinion but insists that the company must first appraise its own current position and if necessary, make changes to strengthen its existing financial situation before embarking on new plans. He is particularly concerned that the company should preserve adequate liquidity and finance its assets in a beneficial manner. He is also concerned that too much emphasis has been placed on â€Å"pandering to the whims of the rich and famous† and not enough on running an efficient business operation. Lucy and Arthur still retain 30% of Bellingham’s equity and other long-standing directors own a further 20%; a change of control is unlikely to be welcome. During the last two years, the company has updated it’s design, production and showroom assets and, in what has been a difficult year, has been able to maintain sales and profit growth (see Bellingham’s accounts in appendix 1). There has been a great deal of uncertainty about world economic growth and stock markets have been extremely volatile resulting low returns. However the firm’s ordinary shares have made good progress during the year. Ordinary share dividends have achieved substantial growth over the last two years although this rate of increase is not expected to continue. Ordinary dividends have grown at an average rate of 14% per annum over the past 10 years and this rate is a more realistic growth rate for future dividends. The present market prices for Bellingham’s shares and debentures are: ?1 Ordinary shares? 7. 02 ex div ?0. 50p, 6% Pref shares? . 55 ex div 7% Debentures 2016? 100. 51 ex interest Any new venture would be expected to achieve a return on capital employed in line with that experienced recently by Bellingham plc. The finance director favours a payback period of 5 years. Bellingham would therefore need to agree a realistic acquisition price for such a new venture and its future cash flows in order to determine whether these criteria could be met. Although a number of investment projects are being considered, the main proposal currently being investigated offers an expansion into the US prime-property market which is forecast to grow faster than the UK market. Bellingham’s finance director has already calculated the trends in the financial ratios of American Creations, an unquoted US company, from its unaudited annual accounts (see appendix 2) and has concluded that the proposal is now worthy of further investigation. American Creations is a family-owned venture requiring further capital to repair it’s balance sheet after making losses on a property development in Nevada from which it has now withdrawn. Profits have suffered in the last two years due to write-offs associated with this development. The existing owners feel that the firm’s future lies in establishing wider international links and the retirement of senior family members, leaving the younger members active in the management of the firm. They are therefore considering selling a controlling interest of 60% to a suitable company. The firm has been established for 23 years, and is well respected in business circles. The average age of its fixed tangible assets is 3 years. The directors have indicated that they may accept part payment in Bellingham shares subject to negotiation. The firm’s nominal share capital is $2. m, and the directors have indicated that they value the firm at five times the year 2010 net profit. They consider this to be the firm’s â€Å"normal† level of profit excluding the â€Å"extraordinary† effects of the Nevada development. As the firm is at present family owned and run, there is no available price/earnings ratio. P/E ratios for the only two publicly-owned c ompanies in the same business sector, Harvey Wilkinson Designs plc and Cucci Lifestyle plc, are currently 10 and 8 times respectively although both of these firms, unlike Bellingham, operate internationally. Wilkinson has grown at a similar rate to Bellingham. The dividend yields of these companies have been as follows: WilkinsonCucci Year to 31 December 2011 8. 1% 7. 25% 2010 7. 2% 6. 9% 2009 5. 3% 5. 95% American Creations has its own manufacturing facilities and operates throughout the USA and Caribbean with design offices in New York, Miami, Los Angeles and Colorado Springs. Their main business, which is thriving, involves complete home furnishing and interior design for wealthy clients. In addition, the firm has a real estate office in each location and is thus able to offer a complete property service. The value of properties handled by the real estate offices is typically $5m – $20m. Bellingham is interested not only in extending its operations internationally but particularly in the possibility of diversifying into the real estate business. Whilst well aware of the existence of a number of competitors, the directors feel that there is a ready market in the US for their established name in terms of design flair, service and products. After discussions with the directors of American Creations, Bill Moneypenny has produced the following forecast. Under average economic growth conditions, the American Creations operating forecasts (in $*1000) for the next five years are based on the following: Income:from Sales: $7500 in 2013, rising by 12% per annum for the foreseeable future. from real estate sales commissions: $2850 in 2013 increasing by 15% per annum for the foreseeable future. Manufacturing variable costs: Labour: $1250 in 2013, expected to increasing by 8% per annum. Materials: $3800 in 2013, expected to increasing by 5% per annum. Fixed costs excluding depreciation: Manufacturing O/H: $2065 in 2013, increasing by 5% per annum. General O/H: $1850 in 2013, increasing by 2% per annum. Depreciation:Factory, machinery vehicles: $500 per year. Office/Design Studio fixtures: $200 per year. The beta of Bellingham plc is believed to be 1. 65 , the risk-free rate of return is 5. 5% and the return for the last year on the FT All-share index is 2%. UK corporation tax is currently 32% payable 9 months after the end of the accounting year in question (you may assume for the purpose of this case that accounting profit and taxable profit are identical. ) Bellingham’s directors estimate that the after-tax profits of American Creations could be allocated as follows: 70% as retained earnings and 30% as dividends. This has been the pattern under the under the present ownership. There would be no restriction on the transfer of the appropriate share of these dividends to the UK. The US corporation tax rate applicable is 20% payable in the year in which the profit arises. There is no double taxation of profits of US origin in the UK. (For the purpose of this case, ignore the possibility of any withholding taxes and the effects of foreign exchange risk. It is considered possible that, as the US economy develops further, even higher wages than those forecast may be demanded by the workforce. Required: Evaluate the American Creations proposal on behalf of Bellingham plc, supporting your arguments with relevant theory and calculations and indicating any non-financial matters you feel should be taken into consideration. Your report should consider the following areas: 1. An analysis of Bellingham’s current position using relevant financial ratios. You should show the calculation of the ratios and provide interpretation of the results. . Calculation of Bellingham’s cost of capital, using alternative methods and arriving at the most appropriate figure. 3. An investment appraisal of the American Creations proposal assuming the valuation suggested in the case, using a variety of methods and evaluation of the results. 4. A sensitivity analysis of the proposal and interpretation of the results. 5. Calculation and discussion of alternative valuations for acquiring the share in American Creations and how these would impact on the investment appraisal. 6. A discussion of the various available methods of financing the acquisition and consideration of which is the most appropriate. Your calculations and arguments should be supported by relevant theory, with evidence of wide reading around the subject. You should provide a complete bibliography with appropriate referencing in your report. Submission requirements: Your answer should take the form of a written report of approximately 2500 words excluding appendices and the reference list. Deviations from the word count exceeding plus or minus 10% will attract a penalty of 5%. The hand-in deadline for submission is 23. 0 on 25th November 2012. Submissions up to 24 hours late will attract a 10% penalty whilst those beyond 24 hours but less than 1 week late will be capped at 40%. Reports submitted more than one week late will attract a mark of zero. Submit one electronic copy via Studynet. This is an individual assignment and the report submitted should be entirely your own work. Appendix 1:B ellingham plc| | | | | | | Abridged Trading, Profit Loss Account for the year ended 30th June 2012:| All amounts are in thousands of pounds sterling| | | | | | | | | | | | | | | | | | | 2012| | 2011| | 2010| | Sales| 9606| | 7564| | 6100| | Production Cost| 4034| | 3101| | 2240| | Gross Profit| 5572| | 4463| | 3860| | | | | | | | | Selling Expenses| 1467| | 1250| | 1080| | Installation Expenses| 1689| | 1300| | 980| | Administration Expenses| 960| | 630| | 597| | Operating Profit| 1456| | 1283| | 1203| | Debenture Interest| 53| | 53| | 53| | Profit Before Tax| 1403| | 1230| | 1150| | Corporation Tax| 449| | 394| | 368| | Profit After Tax| 954| | 836| | 782| | Dividends| 341| | 280| | 220| | Retained earnings| 613| | 556| | 562| | Balance Sheet at 30th June 2012:| | | | | | | | | | | | | Fixed Assets (net):| | | | | | | Land Buildings| 2300| | 2400| | 2500| | Plant Machinery| 1700| | 1186| | 552| | Fixtures Fittings| 700| | 600| | 402| | Motor Vehicles| 185| | 140| | 105| | Office equiptment| 250| | 185| | 100| | | 5135| | 4511| | 3659| | Current Assets:| | | | | | | Stocks: Raw Materials| 216| | 208| | 182| | Work in Progress| 200| | 205| | 190| | Finished Goods| 150| | 128| | 97| | Debtors| 1775| | 950| | 595| | Bank/Cash| 230| | 136| | 104| | | 2571| | 1627| | 1168| | Current Liabilities:| | | | | | | Trade Creditors| 1190| | 788| | 270| | Corporation Tax| 449| | 394| | 368| | Final Dividend| 171| | 140| | 110| | | 1810| | 1322| | 748| | | | | | | | | Net Current Assets| 761| | 305| | 420| | Net Assets| 5896| | 4816| | 4079| | | | | | | | | Long-term Liabilities:| | | | | | | 9% Debentures 2016| 750| | 750| | 750| | | | | | | | | | 5146| | 4066| | 3329| | | | | | | | | Shares reserves| | | | | | | ?1 ordinary shares| 1000| | 1000| | 1000| | 6% Preference shares of 50p ea,| 500| | 500| | 500| | Retained pr for yr| 613| | 556| | 562| | Profit loss| 3033| | 2010| | 1267| | Shareholders funds| 5146| | 4066| | 3329| | Ba Finance By 1985 Arthur had already sold his dairy herd to focus on cereal production when a fortuitous meeting with Lucy Bellingham at a business conference led him to reconsider the future of the family farm. Bellingham is a designer of bespoke fitted kitchens who had a business plan but little capital. The plan was to manufacture top quality fitted kitchen furniture and establish design studios/showrooms in high income areas. Having recently sold his dairy herd, Arthur had enough capital to fund the new business and also a number of large barns and outbuildings suitable for manufacturing the kitchen units subject to refitting and planning consent being obtained. Lucy’s business plan was so convincing that Arthur decided to get out of farming altogether (by leasing his arable land to a local co-operative) and focus on developing the new business. From this small beginning grew the now publicly quoted company of Bellingham plc. Initially, showrooms were established in Beaconsfield and then Kensington. Demand for their kitchens was brisk and â€Å"Bellingham Bespoke Kitchens† expanded rapidly but remained a partnership. The firms clients are mainly celebrities from the entertainment world and the cost of a Bellingham Bespoke Kitchen is now ? 40,000 – ? 150,000 or more. The firm was restructured as a limited company in 1990 and subsequently experienced rapid growth until 1999. In that year the then directors decided that the business had reached the limit of development in it’s present form. Future development required large-scale expansion of production facilities in order to provide the range of materials, furniture, quality and prompt delivery required by their discerning clients. This in turn needed an injection of capital that the directors were unable to generate themselves. The conviction that there was much money to be made from â€Å"quality fitted kitchens† † had been vindicated. They investigated a number of possibilities deciding eventually to expand production facilities by purchasing a modern production unit on an industrial estate in Aylesbury. The expansion was funded by a stock market floatation and raising the necessary capital in the name of Bellingham plc. As the market grew and to keep abreast of new production technology, the directors agreed to reverse the maxim so dear to the heart of the founders, Arthur and Lucy; â€Å"neither a (long-term) borrower nor lender be. † They financed updating of equipment and premises by means of issuing debentures. It is now October 2012 and the present directors of Bellingham plc believe that the long-term success of the company lies in future international diversification and expansion. They consider that the most beneficial action they could take is to investigate the acquisition of a subsidiary in the USA. The newly-appointed finance director, Bill Moneypenny, agrees with this opinion but insists that the company must first appraise its own current position and if necessary, make changes to strengthen its existing financial situation before embarking on new plans. He is particularly concerned that the company should preserve adequate liquidity and finance its assets in a beneficial manner. He is also concerned that too much emphasis has been placed on â€Å"pandering to the whims of the rich and famous† and not enough on running an efficient business operation. Lucy and Arthur still retain 30% of Bellingham’s equity and other long-standing directors own a further 20%; a change of control is unlikely to be welcome. During the last two years, the company has updated it’s design, production and showroom assets and, in what has been a difficult year, has been able to maintain sales and profit growth (see Bellingham’s accounts in appendix 1). There has been a great deal of uncertainty about world economic growth and stock markets have been extremely volatile resulting low returns. However the firm’s ordinary shares have made good progress during the year. Ordinary share dividends have achieved substantial growth over the last two years although this rate of increase is not expected to continue. Ordinary dividends have grown at an average rate of 14% per annum over the past 10 years and this rate is a more realistic growth rate for future dividends. The present market prices for Bellingham’s shares and debentures are: ?1 Ordinary shares? 7. 02 ex div ?0. 50p, 6% Pref shares? . 55 ex div 7% Debentures 2016? 100. 51 ex interest Any new venture would be expected to achieve a return on capital employed in line with that experienced recently by Bellingham plc. The finance director favours a payback period of 5 years. Bellingham would therefore need to agree a realistic acquisition price for such a new venture and its future cash flows in order to determine whether these criteria could be met. Although a number of investment projects are being considered, the main proposal currently being investigated offers an expansion into the US prime-property market which is forecast to grow faster than the UK market. Bellingham’s finance director has already calculated the trends in the financial ratios of American Creations, an unquoted US company, from its unaudited annual accounts (see appendix 2) and has concluded that the proposal is now worthy of further investigation. American Creations is a family-owned venture requiring further capital to repair it’s balance sheet after making losses on a property development in Nevada from which it has now withdrawn. Profits have suffered in the last two years due to write-offs associated with this development. The existing owners feel that the firm’s future lies in establishing wider international links and the retirement of senior family members, leaving the younger members active in the management of the firm. They are therefore considering selling a controlling interest of 60% to a suitable company. The firm has been established for 23 years, and is well respected in business circles. The average age of its fixed tangible assets is 3 years. The directors have indicated that they may accept part payment in Bellingham shares subject to negotiation. The firm’s nominal share capital is $2. m, and the directors have indicated that they value the firm at five times the year 2010 net profit. They consider this to be the firm’s â€Å"normal† level of profit excluding the â€Å"extraordinary† effects of the Nevada development. As the firm is at present family owned and run, there is no available price/earnings ratio. P/E ratios for the only two publicly-owned c ompanies in the same business sector, Harvey Wilkinson Designs plc and Cucci Lifestyle plc, are currently 10 and 8 times respectively although both of these firms, unlike Bellingham, operate internationally. Wilkinson has grown at a similar rate to Bellingham. The dividend yields of these companies have been as follows: WilkinsonCucci Year to 31 December 2011 8. 1% 7. 25% 2010 7. 2% 6. 9% 2009 5. 3% 5. 95% American Creations has its own manufacturing facilities and operates throughout the USA and Caribbean with design offices in New York, Miami, Los Angeles and Colorado Springs. Their main business, which is thriving, involves complete home furnishing and interior design for wealthy clients. In addition, the firm has a real estate office in each location and is thus able to offer a complete property service. The value of properties handled by the real estate offices is typically $5m – $20m. Bellingham is interested not only in extending its operations internationally but particularly in the possibility of diversifying into the real estate business. Whilst well aware of the existence of a number of competitors, the directors feel that there is a ready market in the US for their established name in terms of design flair, service and products. After discussions with the directors of American Creations, Bill Moneypenny has produced the following forecast. Under average economic growth conditions, the American Creations operating forecasts (in $*1000) for the next five years are based on the following: Income:from Sales: $7500 in 2013, rising by 12% per annum for the foreseeable future. from real estate sales commissions: $2850 in 2013 increasing by 15% per annum for the foreseeable future. Manufacturing variable costs: Labour: $1250 in 2013, expected to increasing by 8% per annum. Materials: $3800 in 2013, expected to increasing by 5% per annum. Fixed costs excluding depreciation: Manufacturing O/H: $2065 in 2013, increasing by 5% per annum. General O/H: $1850 in 2013, increasing by 2% per annum. Depreciation:Factory, machinery vehicles: $500 per year. Office/Design Studio fixtures: $200 per year. The beta of Bellingham plc is believed to be 1. 65 , the risk-free rate of return is 5. 5% and the return for the last year on the FT All-share index is 2%. UK corporation tax is currently 32% payable 9 months after the end of the accounting year in question (you may assume for the purpose of this case that accounting profit and taxable profit are identical. ) Bellingham’s directors estimate that the after-tax profits of American Creations could be allocated as follows: 70% as retained earnings and 30% as dividends. This has been the pattern under the under the present ownership. There would be no restriction on the transfer of the appropriate share of these dividends to the UK. The US corporation tax rate applicable is 20% payable in the year in which the profit arises. There is no double taxation of profits of US origin in the UK. (For the purpose of this case, ignore the possibility of any withholding taxes and the effects of foreign exchange risk. It is considered possible that, as the US economy develops further, even higher wages than those forecast may be demanded by the workforce. Required: Evaluate the American Creations proposal on behalf of Bellingham plc, supporting your arguments with relevant theory and calculations and indicating any non-financial matters you feel should be taken into consideration. Your report should consider the following areas: 1. An analysis of Bellingham’s current position using relevant financial ratios. You should show the calculation of the ratios and provide interpretation of the results. . Calculation of Bellingham’s cost of capital, using alternative methods and arriving at the most appropriate figure. 3. An investment appraisal of the American Creations proposal assuming the valuation suggested in the case, using a variety of methods and evaluation of the results. 4. A sensitivity analysis of the proposal and interpretation of the results. 5. Calculation and discussion of alternative valuations for acquiring the share in American Creations and how these would impact on the investment appraisal. 6. A discussion of the various available methods of financing the acquisition and consideration of which is the most appropriate. Your calculations and arguments should be supported by relevant theory, with evidence of wide reading around the subject. You should provide a complete bibliography with appropriate referencing in your report. Submission requirements: Your answer should take the form of a written report of approximately 2500 words excluding appendices and the reference list. Deviations from the word count exceeding plus or minus 10% will attract a penalty of 5%. The hand-in deadline for submission is 23. 0 on 25th November 2012. Submissions up to 24 hours late will attract a 10% penalty whilst those beyond 24 hours but less than 1 week late will be capped at 40%. Reports submitted more than one week late will attract a mark of zero. Submit one electronic copy via Studynet. This is an individual assignment and the report submitted should be entirely your own work. Appendix 1:B ellingham plc| | | | | | | Abridged Trading, Profit Loss Account for the year ended 30th June 2012:| All amounts are in thousands of pounds sterling| | | | | | | | | | | | | | | | | | | 2012| | 2011| | 2010| | Sales| 9606| | 7564| | 6100| | Production Cost| 4034| | 3101| | 2240| | Gross Profit| 5572| | 4463| | 3860| | | | | | | | | Selling Expenses| 1467| | 1250| | 1080| | Installation Expenses| 1689| | 1300| | 980| | Administration Expenses| 960| | 630| | 597| | Operating Profit| 1456| | 1283| | 1203| | Debenture Interest| 53| | 53| | 53| | Profit Before Tax| 1403| | 1230| | 1150| | Corporation Tax| 449| | 394| | 368| | Profit After Tax| 954| | 836| | 782| | Dividends| 341| | 280| | 220| | Retained earnings| 613| | 556| | 562| | Balance Sheet at 30th June 2012:| | | | | | | | | | | | | Fixed Assets (net):| | | | | | | Land Buildings| 2300| | 2400| | 2500| | Plant Machinery| 1700| | 1186| | 552| | Fixtures Fittings| 700| | 600| | 402| | Motor Vehicles| 185| | 140| | 105| | Office equiptment| 250| | 185| | 100| | | 5135| | 4511| | 3659| | Current Assets:| | | | | | | Stocks: Raw Materials| 216| | 208| | 182| | Work in Progress| 200| | 205| | 190| | Finished Goods| 150| | 128| | 97| | Debtors| 1775| | 950| | 595| | Bank/Cash| 230| | 136| | 104| | | 2571| | 1627| | 1168| | Current Liabilities:| | | | | | | Trade Creditors| 1190| | 788| | 270| | Corporation Tax| 449| | 394| | 368| | Final Dividend| 171| | 140| | 110| | | 1810| | 1322| | 748| | | | | | | | | Net Current Assets| 761| | 305| | 420| | Net Assets| 5896| | 4816| | 4079| | | | | | | | | Long-term Liabilities:| | | | | | | 9% Debentures 2016| 750| | 750| | 750| | | | | | | | | | 5146| | 4066| | 3329| | | | | | | | | Shares reserves| | | | | | | ?1 ordinary shares| 1000| | 1000| | 1000| | 6% Preference shares of 50p ea,| 500| | 500| | 500| | Retained pr for yr| 613| | 556| | 562| | Profit loss| 3033| | 2010| | 1267| | Shareholders funds| 5146| | 4066| | 3329| |