Introduction to Financial Management Essay Example | Topics and Well Written Essays - 500 words - 1

Introduction to Financial Management - Essay Example Do 16 (1 + g) ^2 where Do is the opening amount of dividend, g is the growth rate and â€Å"2† is the period. For this type of growth, to determine the growth level at time t, the value can be determined once by introducing a power, which is t as follows Dt = 16 (1 + g) ^t (Titman, Keown & Martin, n.d., pp. 3-13). The time t for the dividend growth is one year, therefore, the t = 1. Market capitalization rate indicates the rate of return on investment. Therefore, the price of the stock = 24 (1 +0.09) ^1/(1 + 0.15) ^1 = 22.75 pence (Titman, Keown & Martin, n.d., pp. 3-13). The return on equity = Net income/equity. Mannington’s ROE = 20%. Let net income be x. Therefore, 20% = x/(200,000,000 * 50) = x/10,000,000,000. X = (20% * 10,000,000,000) = 2,000,000,000. Mannington company declared 60% of the profits (net profit) as dividends. On that note, the total dividend to be paid = (60% * 2,000,000,000) = 1,200,000,000. The company’s dividend per share = (1,200,000,000/200,000,000) = 6pence per share. Given the company’s expected rate of return, at this point it is possible to obtain the value of the shares using the formula Vs = D/rs where Vs is share value, D is the dividend and rs is the expected return. Therefore, Vs = (6/0.13) = 46.15pence (Titman, Keown & Martin, n.d., pp. 3-13). Using the formula for constant dividend growth, RCs = D/Vcs + g where rcs is the return, D is the dividend, Vcs is the share price and g is the growth. Therefore, return = (20/2.35) + 0.06 = 8.571% (Titman, Keown & Martin, n.d., pp. 3-13). The director’s view that the retained earnings would be cheaper than the preference share is valid. To justify the validity, the only cost that accompanies the use of retained earnings is the failure to pay dividends to the shareholders. Thus retained earnings have no flotation cost, they are tax free and does not lead to loss of control of a company. Preference shares on the

Child hood obesity in elementary school age Research Paper

Child hood obesity in elementary school age - Research Paper Example Obesity has been termed as an epidemic owing to the rise in the statistics of the people suffering from this health condition. Childhood obesity is a major issue of concern in the United States because of the increase in the number of children who have started becoming obese. This has led to a rise in the risk of various pathological conditions in these children. Over the last three decades, the graph of obesity has shown an upward trend and childhood obesity statistics have soared more than twice in these years. This rise has led to show the link between obesity and life hampering health conditions including diabetes, cancer as well as cardiac diseases. Not only this, psychological and social issues are also prevalent amongst these children. This problem needs to be tackled and measures need to be taken to overcome this epidemic of obesity. Promotion of a healthy lifestyle with the collaborative efforts of the state, media and educational institutions can prove to be beneficial in t he prevention of obesity. Childhood obesity has thus reached to alarming levels in the United States and effective preventive measures are needed as childhood obesity is associated with a large number of diseases. Obesity is a condition where an individual has an increased amount of body fat and hence an increased body weight. Obesity results when a person consumes an excessive amount of calories in comparison to the amount of calories that are burnt or utilized. Obesity amongst children has greatly risen in the United States and a report by the Institute of Medicine put forward that up to 9 million children and adolescents above the age of 6 years had increased weight and obesity in the United States. ... Obesity results when a person consumes an excessive amount of calories in comparison to the amount of calories that are burnt or utilized. Thus, there is increased accumulation of fat in the body (CDC 2013). Obesity amongst children has greatly risen in the United States and a report by the Institute of Medicine put forward that up to 9 million children and adolescents above the age of 6 years had increased weight and obesity in the United States. This has been accompanied with a surge in the healthcare expenditure for the management of obesity related pathologies that result in these individuals (Witeing, 2008, pg. 545). Obesity results due to a large number of causes which include the influence of the media and physical inactivity. Racial characteristics and societal influences are also known to play a role in the causation of obesity. A higher incidence of obesity is seen amongst the children belonging to the African American, Mexican American and Native American groups. Societal factors also play a part in leading to obesity. This can be seen as in certain localities in the United States, supermarkets and outlets providing fresh foods are not in close vicinity in comparison to the fast food restaurants and other unhealthy alternatives. Thus, this promotes unhealthy eating habits amongst the individuals. Also in certain areas, open spaces for walking and physical activity are not present. This along with a rise in crime rate in certain areas and increased traffic prevents the parents from allowing their children from going out and hence the children are indulged in indoor activities like watching television and playing video games. Physical activity education has also decreased in the schools and this accompanied with increased