Thanks my old friend Essay Example | Topics and Well Written Essays - 1000 words

Thanks my old friend - Essay Example But I later learnt that patience is one of the best things required in attaining great things in life especially friendship. It was not until I had a chance to perform to my new friends in high school that I realized that I had a wonderful lesson. My high school friends were very supportive when they realized my great talent in playing piano. They applauded my great coordination skills that i meticulously used any time I played the piano. They said that I had a great skill that could take me to great places especially my outstanding ability of matching up my fingers, brain and the music. Certainly all these were due to my grand relationship with the piano. I believe piano contributed to my extraordinary performance in academic work. The piano training was the hardest lesson I ever had thus making other academic lessons easy to learn to comprehend. Music lessons have contributed to my larger vocabulary command because of the languages that most artists use in their performance. My abi lity to remember things has always increased perhaps because of the many songs I memorize. Additionally, piano lessons have made me gain wonderful discipline in the way i deal with any issue in life. Because of the challenging piano lessons I underwent, I have attained great discipline skills and patience which I have constantly applied in my academics as well as tackling daily life issues. I have been able to clearly listen to different kinds of sounds because of the constant use of different tones in music and I believe this has led to improvement of my hearing skills. I have great opportunities of performing in various functions such as birthday parties, high school and even... Piano lessons have made me gain wonderful discipline in the way I deal with any issue in life. Because of the challenging piano lessons I underwent, I have attained great discipline skills and patience which I have constantly applied in my academics as well as tackling daily life issues. I have been able to clearly listen to different kinds of sounds because of the constant use of different tones in music and I believe this has led to the improvement of my hearing skills. I have great opportunities of performing in various functions such as birthday parties, high school and even in the church. This has actually elevated my social status and made me feel great. Indeed my piano has introduced me to many things such as having new friends. I have been able to travel to many places in the name of performance and it has really been encouraging. I have enjoyed my relationship with the computer. It has been splendid and special. The piano and music have been there for me anytime I needed the m and our affiliation will certainly go far. Since nature gives us the chance to choose our friends, I think I made the best choice because I have never regretted. The piano has never stopped revealing to me some secrets of music anytime I perform and it has always remained loyal to me even when I almost lose hope in life. The piano has wonderfully cheered me up especially when I am upset thus making me feel special and improving my life. It has genuinely made me feel happy by supporting and entertaining me every time my spirit is down.

Law of property Essay Example | Topics and Well Written Essays - 1500 words - 2

Law of property - Essay Example The unity of interest element requires parties to a joint tenancy to have the same type of interest and equal share in the property5. If the unity of interest requirement negated, this results in severance of the joint tenancy into a tenancy in common6.With regard to the unity of title requirement, this stipulates that the parties’ proprietary interests in the property must derive from the same legal title and at the same time. Commonly this will require evidence through deed or will7. Unity of time can often be problematic and academic discourse has significantly criticised this requirement particularly due to the requirement that property rights must vest in each joint tenant simultaneously8. In applying these principles to the current scenario, Albert used the proceeds of the sale of Sunrise Lodge to purchase Greengables. It is evident that Barbara’s mortgage payments to Sunrise Lodge accounted for 30% of the overall purchase costs and as such, the proceeds of the sale of Sunrise Lodge were held on trust for Barbara under constructive trust9. With regard to Greengables, Albert, Barbara and Charles bought the Property together in 1997 with the conveyance expressed as being in the joint names of all three parties. On this basis, it would appear that at the time of purchase, the four unities requirement for the existence of a joint tenancy have been complied with. Accordingly, at the time of purchase, Albert, Barbara and Charles held the Property as joint tenants in equal shares. However, the legal joint tenancy can be rebutted if the factual reality of the ownership arrangement falls within the equitable presumption of a tenancy in common10. The conditions for the equitable presumption of a tenancy in common were extrapolated in the case of Robertson v Fraser11, where Lord Hatherley highlighted that any

Intrinsic Water Use Efficiency: Carbon Isotopic Composition

Intrinsic Water Use Efficiency: Carbon Isotopic Composition Determination of intrinsic water use efficiency of different Mediterranean forest species by carbon isotopic composition Abstract An experiment will be conducted to study the C-13 composition in the tissues of Pinus halepensis, Quercus ilex and Arbutus unedo under different water availability conditions. C-13 composition will be determined using elemental analyser. An ANOVA will be conducted to analyze the composition of C-13 within the plant tissue of plants in different water availability conditions. We will compare the C-13 compositions in the plant tissues of the species within same year with relation to water availability. The relationship between the C-13 composition in the plant tissue and water use efficiency (WUEi), different strategies to couple water stress will also be discussed. Introduction The Mediterranean landscape has low precipitation and humidity, and high sun intensity with less productive soil (FAO, 2010). Previous studies show that changes are occurring in the amount, intensity, frequency and type of precipitation with climate change. Mediterranean Forests are generally composed of broadleaf and pine species. All the species have different water requirements. It is needed to determine the intrinsic water use efficiency of main species (Pinus halepensis, Arbutus unedoandQuercus ilex) of the landscape for better compositional management of the landscapes keeping in view the water demands of the species. Literature review The Mediterranean region has limited and unevenly distributed water resources with only 1.2% of total renewable water resources (FAO, 2010). The basin has high sun light and low humidity. The freshwater resources are expected to decrease upto 20-30% in 1950 due to global warming. The mediterranean region is most vulnerable to the climate change (Milano et al., 2012). The region is rich in biodiversity. Quercus (broad leaf) is well-represented genus, with a great range of species including Q. ilex (FAO, 2010). Oak is also a heritage plant in Portugal (Galmà ©s et al., 2007). Pinus halepensis and Arbutus unedo are the two other prominent species of the Mediterranean region (Molina et al., 2012). P. halepensis has water saver behavior and Q. ilex behaves like water spender (Baquedano et al., 2006). Water stress affects the vegetation production by a reduction of the leaf area, the stomatal conductance and the CO2 uptake and hence of the photosynthesis, and by a slowdown of root elevati on and development (Verstraeten et al., 2006). Under water stress conditions, plants exhibit several short to long-term adaptive responses. Reduced stomatal conductance (gs) and transpiration (E) due to closing of stomata (gs) is the first functional adaptations to water shortage (Galmà ©s et al., 2007). The adaptive responses are related with carbon splitting and create changes in vegetative and fruit growth (Chalmers and Ende, 1975: Hsiao, 1973). The intensity and duration of water stress, whether imposed via irrigation or resulting from natural drought, may affect leaf gas exchange and nutrient uptake (Boyer, 1996 and Flexas and Medrano, 2002). Oak tree minimizes water potential of the leave to extract water from a region of higher water potential that is soil (Guehl and Aussenac, 1987; Lo Gullo and Salleo, 1988). Plant takes carbon (C-12 and C-13) during photosynthesis. In normal water conditions, Plants prefer carbon 12 during photosynthesis (Farquhar et al., 1989). This is called carbon-12 discrimination (Craig, 1957). The discrimination takes place in two levels. Firstly, it takes place during gas exchange through stomata. Secondly, the discrimination is by RuBisCO enzyme (Farquhar et al., 1989). In stressed conditions, plants tend to minimize water loss through closing stomata. This will also decrease the gaseous exchange through stomata. In this condition, there is not adequate carbon dioxide in the leave tissue for photosynthesis. So plants have no more preference for carbon-12. They take both carbon-12 and carbon-13 (Ferrio, 2003). Problem statement Mediterranean ecosystems are strongly limited by a long and intense drought period that coincides with the hottest period. Moreover, in the next decades, the Mediterranean region of the Iberian Peninsula is predicted to face a 20% decrease in precipitation, and an increase of 2–3 °C in temperature (MARM, 2009), all of which will lead to higher water stress. Plant growth in the region is strictly limited by drought in recent scenario (Rey and Alcà ¡ntara, 2000, Quero etal., 2008andGonzà ¡lez-Rodrà ­guez etal., 2011). The field simulations suggest that in future, this will become even more problematic (Matà ­as etal., 2012) due to climate change (Milano et al., 2012). The pressure on freshwater resources will also increase because of tourism, tanning, food and textile industry and agriculture sector. Possible future changes in water resources availability in this densely populated region may have dramatic societal and environmental effects (Gracia-Ruiz et al., 2011). With shortage of water, we have to face desertification, erosion and food security problem. Both broad and narrow leaf species are inhabited here (FAO, 2010). All species of the landscape vary in their water requirement. Some species consumes more water than the others. So we have to identify the species with lower water requirement and better strategies to cope the water scarcity problem. It is needed to determine the intrinsic water use efficiency of main species (Pinus halepensis, Arbutus unedoandQuercus ilex) of the landscape for better compositional management of the landscapes keeping in view the water demands of the species. Research Questions: Which one is the best suited species among P. halepensis, A. unedoandQ. ilex for the water scarced Mediterranean landscape? Specific Objectives: To analyze the intrinsic water use efficiencies of P. halepensis, A. unedoandQ. ilex over space. To analyze the intrinsic water use efficiencies of P. halepensis, A. unedoandQ. ilex over time to determine the best species for the future landscape composition to minimize the water consumption. To determine variability in water requirements of the P. halepensis, A. unedoandQ. ilex Hypothesis: Intrinsic water use efficiency of P. halepensis, A. unedoandQ. ilex is same and they consume same amount of water. There is no variability in the water requirement of P. halepensis, A. unedoandQ. ilex over space. Limitation The time to analyze the temporal and spatial changes is short. Materials and Methodology Plant samples of three species will be collected from botanical garden, arboretum of University of Lleida, Spain. The water supply will be artificially varied. Carbon-13 composition of collected samples will be analyzed by Europa Scientific 20-20 IRMS coupled to a Europa Scientific elemental analyser. Plant C-13 analyses are currently used for a diverse range of applications including environmental (Ferrio, 2003) and ecophysiological studies (Arens et al., 2000; Kohn, 2010). The data will be analyzed by ANOVA. References Arens NC, Jahren AH, Amundson R. 2000.Can C3 plants faithfully record the carbon isotopic composition of atmospheric carbon dioxide? Paleobiology 26:137–164. Boyer J. (1996). Advances in drought tolerance in plants. Adv. Agron., 56 (1996), pp. 187–218 Chalmers D.J., and Ende B.V.D. (1975). A Reappraisal of the Growth and Development of Peach Fruit. Australian Journal of Plant Physiology 2(4) 623 – 634 Craig H. 1957. Isotopic standards for carbon and oxygen and correction factors for mass-spectrometric analysis of carbon dioxide. Geochimica et Cosmochimica Acta 12: 133–149. FAO (2010).Aquastat–Systà ¨me d’information de la FAO sur l’eau et l’agriculture Farquhar G.D., Ehleringer J.R., Hubick K.T., 1989. Carbon isotope discrimination and photosynthesis. Annual Review of Plant Physiology and Plant Molecular Biology 40, 503-537 Ferrio J.P., Voltas J., Araus J.L. (2003). Use of carbon isotope composition in monitoring environmental changes. Management of Environmental Quality 14, 82-98. Flexas J., Medrano H. (2002). Drought-inhibition of photosynthesis in C3 plants: Stomatal and non-stomatal limitations revisited. Ann. Bot., 89 (2), pp. 183–189. Galmà ©s j., Medrano H., Flexas J. (2007). Photosynthetic limitations in response to water stress and recovery in Mediterranean plants with different growth forms. New Phytol. 175 (1), pp. 81–93 Guehl JM, Aussenac G (1987). Photosynthesis decrease and stomatal control of gas exchange in Abies alba Mill. in response to vapour pressure difference. Plant Physiol 83:316–322 Hsiao T.C. (1973). Plant responses to water stress. Annu. Rev. Plant. Physiol., 24 (1) (1973), pp. 519–570 J.L. Quero, L. Gà ³mez-Aparicio, R. Zamora, F.T. Maestre (2008). Shifts in the regeneration niche of an endangered tree (Acer opalus ssp. granatense) during ontogeny: using an ecological concept for application. Basic Appl. Ecol., 9, pp. 635–644 J.M. Garcia-Ruiz, J.I. Lopez-Moreno, S.M. Vicente Serrano, T. Lasanta-Martinez, S. Begueria (2011). Mediterranean water resources in a global change scenario. Earth-Science Reviews, 105, pp. 121–139 Kohn MJ. 2010. Carbon isotope compositions of terrestrial C3 plants as indicators of (paleo) ecology and (paleo) climate. Proceedings of the National Academy of Sciences, USA 107: 19691–19695 Matà ­as L., Quero J.L., Zamora R., Castro J., (2012). Evidence for plant traits driving specific drought resistance. A community field experiment. Environ. Exp. Bot., 81, pp. 55–61 Lo Gullo MA, Salleo S (1988). Different strategies of drought resistance in three Mediterranean sclerophyllous trees growing in the same environmental conditions. New Phytologist 108:267–276 M. Milano, D. Ruelland, S. Fernandez, A. Dezetter, J. Fabre, E. Servat (2012). Facing climatic and anthropogenic changes in the Mediterranean basin: What will be the medium-term impact on water stress? Comptes Rendus Geoscience. 344(9), pp. 432-440 P.J. Rey, J.M. Alcà ¡ntara (2000). Recruitment dynamics of a fleshy-fruited plant (Olea europaea): connecting patterns of seed dispersal to seedling establishment. J.Ecol., 88, pp. 622–633 Quinta Comunicacià ³n Nacional de Espaà ±a (2009). Convencià ³n Marco de las Naciones Unidas sobre el Cambio Climà ¡tico Diciembre, Ministerio de Medio Ambiente y Medio Rural y Marino. V. Gonzà ¡lez-Rodrà ­guez, R. Villar, R. Casado, E. Suà ¡rez-Bonnet, J.L. Quero, R. Navarro Cerrillo (2011) Spatio-temporal heterogeneity effects on seedling growth and establishment in four Quercus species. Ann. For. Sci., 68, pp. 1217–1232 Baquedano F. J., Castillo F.J. (2006).Comparative ecophysiological effects of drought on seedlings of the Mediterranean water-saver Pinus halepensis and water-spenders Quercus coccifera and Quercus ilex. Trees. 20:689–700.

Cloning :: essays research papers fc

Cloning is a big issue now. Many arguments are going on about cloning humans being immoral. But what is cloning? Cloning is one or more offspring from a single ancestor; the genetic composition from the ancestor is identical to the offspring. No sex is involved in the production of clones, and since sex is the normal means by which new genetic material is introduced during procreation, clones have no choice having the same genes as their only parent. A clone of cells refers to the descendants of a single parent cell. Tumours are actually clones too. They are derived from one cell that no longer obeys the normal rules of growth control. Corals are another example of clones. Identical twins are even clones that are produced by splitting of a single embryo. So to keep it simple, members of a clone are genetically identical. Here is a diagram of how cloning is scientifically done.   Ã‚  Ã‚  Ã‚  Ã‚  The benefits of cloning might include, building a mass army of look-alikes or recreating Einstein or Elvis. You could clone livestock for steady supplies of food. There is no guarantee that the first cloned human will be normal. The fetus might get some disorder or disability that can’t be detectable by ultrasound. They might be born disabled. Disorders may show up later in their life. Such problems have been seen in other cloned mammals, such as reproductive problems. There is no reason to that this won’t happen in a humans’ case. Large scale cloning could eliminate genetic originality. It is diversity that causes evolution and adaptation. It prevents an entire species from disappearing because of a disease. The people out there who are childless because of a rare hereditary disease would be able to produce offspring that were genetically theirs. However, if the cloned sheep â€Å"Dolly† were anything to go by then less than one in a hundred success rate would cause many problems. More importantly, it is quite possible that cloned individuals will turn out to be at risk. We do not yet know the long-term effects of making an old adult cell nucleus to begin a new life again in an egg. Cloning :: essays research papers fc Cloning is a big issue now. Many arguments are going on about cloning humans being immoral. But what is cloning? Cloning is one or more offspring from a single ancestor; the genetic composition from the ancestor is identical to the offspring. No sex is involved in the production of clones, and since sex is the normal means by which new genetic material is introduced during procreation, clones have no choice having the same genes as their only parent. A clone of cells refers to the descendants of a single parent cell. Tumours are actually clones too. They are derived from one cell that no longer obeys the normal rules of growth control. Corals are another example of clones. Identical twins are even clones that are produced by splitting of a single embryo. So to keep it simple, members of a clone are genetically identical. Here is a diagram of how cloning is scientifically done.   Ã‚  Ã‚  Ã‚  Ã‚  The benefits of cloning might include, building a mass army of look-alikes or recreating Einstein or Elvis. You could clone livestock for steady supplies of food. There is no guarantee that the first cloned human will be normal. The fetus might get some disorder or disability that can’t be detectable by ultrasound. They might be born disabled. Disorders may show up later in their life. Such problems have been seen in other cloned mammals, such as reproductive problems. There is no reason to that this won’t happen in a humans’ case. Large scale cloning could eliminate genetic originality. It is diversity that causes evolution and adaptation. It prevents an entire species from disappearing because of a disease. The people out there who are childless because of a rare hereditary disease would be able to produce offspring that were genetically theirs. However, if the cloned sheep â€Å"Dolly† were anything to go by then less than one in a hundred success rate would cause many problems. More importantly, it is quite possible that cloned individuals will turn out to be at risk. We do not yet know the long-term effects of making an old adult cell nucleus to begin a new life again in an egg.

Assess the functionalist explanations of social inequality Essay

Asses the Functionalist explanations of Social Inequality. (40) Social Inequality refers to any difference between groups or individuals in society which results in one having inferior life chances than the other. Functionalists believe these inequalities are the result of the meritocracy we live in. This is a system based on the idea that social stratification is necessary and desirable for the society. Functionalists argue that inequalities have a purpose; they are functional for society. Functionalism is a structural theory based on the notion that society is based on shared values. This consensus means that society will be in a state of equilibrium and there is harmony, as a result of which there will be social solidarity. Inequalities, functionalists argue, exist in all societies and are inevitable and necessary. Durkheim argued that industrial societies are complex. Within these complex societies social inequality and social difference were an inevitable and important part of maintaining social order and preventing a state of ‘anomie’ or chaos. He believed that society needs specialists to undertake the various jobs and roles required to make it run smoothly. This harmony could be achieved by a division of labour whereby people have different jobs based on their talents. Some of the jobs would have higher status than others and greater rewards and power, for example jobs such as lawyers, doctors and barristers. People would accept this as long as they could see that the system was fair. Conflict might occur but it could be controlled by socialisation. Socialisation was the process whereby shared values could be passed from one generation to the next. Disharmony might arise when people felt the system was not fair, for example, when large bonuses are paid to bankers during a recession. Parsons developed on Durkheim’s ideas and stated that in industrialised society’s stratification, and therefore inequality, exists on the basis of which roles are agreed to be the most important, and therefore the most functional for society. The agreement occurs because people are socialised into the shared norms and values of society, initially by the family, and subsequently by education and other agents of socialisation. The value consensus that results is what holds society together and it gives it social order. Sharing a common identity gives people a sense of purpose and a commitment to the maintenance of society. These values also give people common goals such as to work hard. People have a number of roles that women are most naturally suited for and  the instrumental roles of men. These roles are ascribed rather than achieved. Two other functionalists, Davis and Moore, have built on the ideas of Parsons and Durkhiem. They argue that society needs the most talented people to perform the most skilled jobs and therefore has to pay them accordingly and give them high status. There is a meritocracy and the most able will, through the examination system, be allocated to the most important jobs. Their class position w ill reflect this role allocation. There is an expectation that the most talented will be prepared to make sacrifices early on to be educated and trained, and for this they will be rewarded later. The examination system will ‘sift and sort’ people into appropriate jobs. This means that the system is legitimated. The stratification that results will ensure those at the top work to maintain their position and those lower down try to better themselves. However people do not all start from the same point, therefore a true meritocracy is not possible. Society is not harmonious. Functionalists present an over rosy picture of social inequality being a positive force for the society. There is evidence of conflict between social groups in the form of strike as well as disaffection amongst, for e.g. young people who cannot get work. Differences between men and women are socially constructed. Their identity is formed by the expectations the society holds against their gender, therefore they will behave the way the society expects them to. There is not a consensus with regard to which are the most important jobs; for e.g. bankers are paid very well but most people would proba bly argue that nurses are more important to society. Some groups start with more power and status and are therefore are able to ensure they and their children get access to the education that will mean they then get a higher status jobs. Life chances are affected by status and wealth and the poor have less access to opportunity to gain access and wealth. Tumin argued that going to universities is not really a sacrifice, although many people in the UK would probably argue it will be as fees go up. The work of the functionalists is not supported by empirical evidence, particularly with regard to the idea that there is a value consensus. Marxism is based on the macro theory which, like functionalism, is concerned with the structure of society. Marxism explains inequalities in societies such as the UK by examining the ways in which the bourgeoisie exploit and oppress the working class or  proletariat. Inequalities are a result of the economic arrangements people make to meet their basic needs. Bowles and Gintis used Marxist ideas to explain how the education system reproduced the ideas of the ruling class and legitimated inequalities. They argue students’ experience of schooling is an alienating one. School specifically prepares students for their future as workers in a capitalist system. They argue that school does not prepare everyone in the same way it prepares them according to their future position in society. Bowles and Gintis believe that schools are not meritocratic and that claiming they are is part of the ruling class ideology persuading people that inequalities are fair. Neo Marxists have developed on the ideas of Marxism. They argue that the infrastructure and the social relations that arise from it are important in understanding inequalities, but so too is the role of ideas and culture. They particularly focus on a number of areas to explain inequalities. Areas such as the role of the media; the dominance of the ruling class; the nature of the class str ucture; and the relationship between cultural, social, and economic capital. Weber argued that stratification is not just based on the economic relationships people enter into, as Marx argued, but the standing or status a person had and the political influence or power a person might have as a result of membership of a political party or trade union. Class, status and party are all linked to power. However, he accepted that class is the most important determinant of the three in relation to the acquisition of life chances and inequality. Postmodernists argued that the world was becoming increasingly characterised by uncertainty and diversity which cannot be explained by the old grand narratives, that is, the traditional sociological theories. The service sector is now bigger than the primary and secondary sectors. People do not see themselves in class terms; they construct their identities via the media and what they consume. For postmodernists the key to inequalities lies in the development of the post industrial world and the fact that the production of kno wledge has taken precedence over manufacturing.

Sources of Capital: Owner’s Equity

Owner’s Equity as a Source of Capital Sources of capital come in two forms: debt and equity. Obtaining permanent capital through equity is the capital supplied by the entity’s owners. It is the owner’s share in the financing of all the assets. Richard Scott, United States accounting professor wrote, â€Å"one of the most deep-seated, and incontrovertible concepts embraced by accounting theory today is that of owner’s equity. † Through analysis of the case, we found this to be true. There are different financing costs both a company and its investors face when considering equity financing. It is strangely fascinating that often times, equity financing becomes more costly than debt financing. The analysis of opportunity for both sides of the transaction, financier and debtor, requires multiple formulas and calculations. Options for financing vary in pre-tax earnings and return on investment. For this reason, the options should be thoroughly analyzed to find the best yield for both parties, company and investor. Innovative Engineering Company was founded as a partnership, and within five years became a thriving business bringing with it both success and the need for new permanent capital. The two partners, Gale and Yeaton, estimated the capital need at $1. 2 million. Initially, the partners found interested investors, but none willing to risk their personal assets by participating in a partnership. Though incorporation is more costly and subject to numerous regulations, it provides limited liability to its investors and the ability to raise capital through bonds and stock. The partners planned to form a corporation to secure investors. Under incorporation, owner’s equity becomes stockholder’s equity. The two types of equity are purchased equity, consisting of preferred stock, common stock, and paid in capital, and that of earned equity, also referred to as retained earnings. The later represents profits earned by the company and retained in the business. Owner’s equity is shown on the balance sheet and within the statement of owner’s equity in a company’s financial statements, and is most commonly influenced by income and dividends. Four proposals were developed to attempt to meet the needs of investors in the Innovative Engineering case and the two original partners struggled to maintain ownership control. Proposal A includes a $1. million long-term loan, giving Arbor Capital Corporation 10% common stock. Proposal B includes $200,000 debt, $900,000 preferred stock, and $100,000 common stock. Proposal C includes $600,000 debt, $600,000 equity with 40% common stock. Proposal D includes $300,000 debt, $900,000 equity with 50% common stock. Calculating the impli cations of each proposal is necessary to seek further investors and find the best option for both sides of the transaction. Gale and Yeaton assumed an interest cost of debt at 8% and a dividend rate for preferred stock at 10%. They also assumed pessimistic, best guess, and optimistic variables. The applicable tax rate is 34%. The return on common shareholder’s equity earned under each of the three income assumptions is as follows: Proposal A: Debt = $1,100,000 Taxes= 34% Payment on Debt = $1,100,000(. 08) = $88,000 Common Stock = $1,000,000 Pessimistic NI – Interest Expense+ Tax Savings/Common Stock = $100,000 – 88,000+34,000 = 46,000/1,000,000 = 4. 6% Best Guess $300,000-88,000+102,000 = 314,000/1,000,000 = 31. 4% Optimistic $500,000 – 88,000+170,000 = 514,000/1,000,000 = 51. 4% Proposal B: Debt = $200,000 Payment on Debt = $200,000(. 08) = $16,000 Preferred Stock = $900,000 Dividend Payment for Preferred Stock = $900,000(. 0) = $90,000 Common Stock = $100,000 Common Shareholder’s equity = 1,000,000 Taxes = 34% Pessimistic NI-Interest Expense-Preferred Div+ Tax Savings/Common Stock $100,000-16,000-90,000+34000 = 28,000/1,000,000 = 2. 8% Best Guess $300,000-16,000-90,000+ 102,000= 296,000/1,000,000 = 29. 6% Optimistic $500,000-16,000-90,00 0+170,000 = 564,000/1,000,000 = 56. 4% Proposal C: Debt = $600,000 Payment on Debt = $48,000 Common Stock = $1,500,000 Taxes = 34% Pessimistic NI-Interest Expense+Tax Savings/Common Stock $100,000-48,000+34,000 = 86,000/1,500,000 = 5. 7% Best Guess $300,000-48,000+102,000 = 354,000/1,500,000 =23. 6% Optimistic 500,000-48,000+170,000 = 622,000/1,500,000 = 41. 47% Proposal D: Debt = $300,000 Common Stock = $1,800,000 Taxes = 34% Pessimistic NI-Debt+Tax Savings/Common Stock $100,000-24,000+34,000 = 110,000/1,800,000 = 6. 1% Best Guess $300,000-24,000+102,000 = 378000/1,800,000= 21% Optimistic $500,000-24,000+170,000 = 646,000/1,800,000 = 35. 89% From this, we see proposal D is the optimal investment strategy for Arbor Capital Corporation. The three income assumptions provide higher returns at a more constant rate than the other proposals. For Innovative Engineering Company, proposals A and B are more ideal for meeting their control needs. For a further analysis of earnings, the pre-tax earnings and return on investment are calculated as follows: Pre-Tax = 100,000 / (1-. 34) = 151,515. 15 Proposal A: Debt = $1,100,000 Common Stock = $100,000 Interest = $88,000 Dividend = $21,200 Pre-Tax Earnings = $109,200 (sum – common stock and debt) Return on Investment = 9% (pre-tax earnings / $1,200,000) Proposal B: Debt = $200,000 Preferred Stock = $900,000 Common Stock = $100,000 Interest = $16,000 Preferred Dividend =$90,000 Common Dividend =$10,000 Pre-Tax Earnings = -$64,000 Return on Investment = -5% Proposal C: Debt = $600,000 Common Stock = $600,000 Interest = $48,000 Common Dividend = $240,000 Pre-Tax Earnings = $288,000 Return on Investment = 24% Proposal D: Debt =$300,000 Common Stock = $900,000 Interest = $24,000 Common Dividend = $450,000 Pre-Tax Earnings = $474,000 Return on Investment = 40% Again, proposal D shows the most promise for Arbor Capital Corporation, with larger pre-tax earnings and a greater return on investment. Innovative Engineering Company is in a good position and has options. They should not consider proposal B. Proposal A will give them greater control over the company but comes with large debt financing and is risky. They should consider other investors and should look at options such as warrants. They should further research their options for a large loan. We have found debt financing can be cheaper than equity financing and should be considered. We are certain Innovative Engineering Company could find more attractive financing than proposal D. They should have more options, because their need is success driven versus a start-up company. From outside research we have found there is a natural definition of market efficiency relating capital stock and investment flow. Obviously, equity finance should not be used if it becomes more expensive than debt financing. The company can create value by managing these sources of capital, finding an optimal balance of both. Works Cited Anthony, R. N. , Hawkins, D. F. & Merchant, K. A. (2007). Accounting Text & Cases (12th ed. ). Boston: McGraw-Hill Irwin. Frieden, Roy (2010). â€Å"Asymmetric information and economics. † Physica A. Volume 389 Issue 2. Scott, Richard (1979). â€Å"Owner’s Equity, The Anachronistic Element. † The Accounting Review. Volume 4.