hindhuism and buddhism :: essays research papers

Similarities 1. Both emphasize the illusory nature of the world and the role of karma in keeping men bound to this world and the cycle of births and deaths. 2. Both believe in the transmigration of souls and the cycle of births and deaths for each soul. 3. Both emphasize compassion and non violence towards all living beings. 4. Both believe in the existence of several hells and heavens or higher and lower worlds. 5. Both believe in the existence of gods or deities on different planes. 6. Both believe in certain spiritual practices like meditation, concentration, cultivation of certain bhavas or states of mind. 7. Both believe in detachment, renunciation of worldly life as a precondition to enter to spiritual life. Both consider desire as the chief cause of suffering. 8. The Advaita philosophy of Hinduism is closer to Buddhism in many respects. 9. Buddhism and Hinduism have their own versions of Tantra. 10. Both originated and evolved on the Indian soil. The founder of Buddhism was a Hindu who became the Buddha. Buddhism is the greatest gift of India to mankind. Differences 1. Hinduism is not founded by any particular prophet. Buddhism was founded by the Buddha. 2. Hinduism believes in the efficacy and supremacy of the Vedas. The Buddhist do no believe in the Vedas. 3. Buddhism does not believe in the existence of souls as well in the first cause, whom we generally call God. Hinduism believe in the existence of Atman , that is the individual soul and Brahman, the Supreme Creator. 4. Hinduism accepts the Buddha as an incarnation of Mahavishnu, one of the gods of Hindu trinity. The Buddhist do not accept this. 5. The original Buddhism as taught by the Buddha is known as Theravada Buddhism or Hinayana Buddhism. Followers of this do not worship images of the Buddha nor believe in the Bodhisattvas. The Mahayana sect considers the Buddha as the Supreme Soul or the Highest Being, akin to the Brahman of Hinduism and worship him in the form of images and icons. 6. The Buddhists consider the world to be full of sorrow and regard ending the sorrow as the chief aim of human life. The Hindus consider that there are four chief aims (arthas) in life which every being should pursue.

The Relevance of Sophocles to Today’s World :: Biography Biographies Essays

The Relevance of Sophocles to Today’s World A play is meant to entertain. A play that amuses the audience is considered a comedy, and a play that saddens is classified as a tragedy. Sophocles wrote tragedies about ordinary people and their interaction with fate. All of Sophocles’ major characters posses a heroic flaw. A heroic flaw is a trait that brings both good and bad events upon the character (Magill 3). Sophocles’ use of heroic flaws, the irony between a prophecy and a characters attempt to avoid it, his definition of what makes someone great, and his view of laws are the reasons why his plays are still read almost two thousand years after they were written. Sophocles was born in Colonus, Greece in 496 b.c.e. At the time of his birth, there was a legend about an exiled Theban king, Oedipus. It was said that Oedipus disappeared somewhere around Colonus, and because of this he protected the area (Magill 1). This tale was the source of three of Sophocles’ greatest plays: Oedipus the King, Oedipus at Colonus, and Antigone (Romilly 2). Sophocles’ involvement in theatre started at a young age. He sang in a chorus celebrating an Athenian naval battle. As an adult, Sophocles was credited with playing the lyre, a musical instrument, and he also played the lead role in one of his plays. However as he aged, he stopped appearing on stage because of his weakened voice. This ended the Greek custom of playwrights playing the lead role in their own plays (Magill 1). Sophocles won his first award for his plays at the festival of Dionysius in 648b.c.e. The other contender for this award was Aeschylus, an older and more experienced Greek playwright. A legend about this first victory states that because of high tensions over the competition, ten Athenian generals presented Sophocles the award instead of the customary ten government officials. Sophocles went on to win this award twenty more times, more frequently than any other playwright. When he did not win, he came in second. He never came in last place (Magill 2). A position in the government was a symbol of a person’s status in society. When Sophocles’ plays were at the peak of their popularity, he served as the head of the treasury and as a general for the city of Athens (Magill 2). Sophocles’ power, popularity, and the greed of his eldest son provide an insight into how he viewed himself.

AT&T Case study Essay

1. Review AT&T’s past financial policies and financing choices. Were these appropriate for the nature of the business? AT&T Corp., one of the largest companies in the United States, has had a long and storied history. Initially, AT&T operated as a monopoly, but in 1982, Justice Department, broke up the company into individual companies. Prior to divesture (in 1981), AT&T was the largest private company in the world and despite many challenges, AT&T remained an archetypical â€Å"widow-and-orphans† stock for a long time. The term â€Å"widows and orphans† was used to describe stocks with a relatively high degree of safety and dividend income and numbers from exhibit 1speak for themselves. By 1982 the company increased all its key financial indicators. Revenues and operating earnings increased 12% and 6% respectively comparing to year 1981. In ten years, the company raised its revenues, net income, cash and assets more than 2 times. It`s worth to mention that AT&T was able to reduce its total outstanding debt by $ 725 mil and at year-end, the company`s debt ratio stood 42.3% down from 46.7% in 1980. In addition, AT&T neither cancelled nor lowered dividends, and only increased dividend per share by 10% annually. Aforementioned facts suggest that company`s financial policies and financing choices were appropriate for the nature of the business and that AT&T was one stable, reliable and profitable companies in the world by 1982. 2. In what fundamental ways will AT&T’s business change in the near future? Throughout most of the 20th century, AT&T held a monopoly on phone service in the United States. In 1982, through an agreement between AT&T and the U.S. Department of Justice, AT&T agreed to divest itself of its local telephone operations but retain some of its businesses. The principal provision of the antitrust settlement was that the corporation would be split into seven completely independent regional corporations. Each regional company would continue to provide local telephone and other telecommunication services in addition to ability to sell telephone equipment. The remaining or new AT&T would focus on long distance, R&D and manufacturing arms. 3. In view of AT&T’s changing strategic and economic environment, what debt policy would you recommend? What other financial policies are appropriate for the â€Å"new† AT&T? What are likely to be the consequences of these financial policies? The new â€Å"AT&T† was no more monopoly and the company`s management group faced new challenges. First of all, I think that when AT&T was monopoly, managers were averse to risk and led more financially conservative policy. After divestiture, it was clear that the external environment changed and effective actions needed to be taken to beat off intense competition. Moreover, there were several serious questions about future profitability of the new AT&T divisions (especially Western Electric) and it was not clear whether they would be able finance their operations in competitive markets. Taking into consideration above stated facts, at that phase I would recommend to shift gears from debt financing and switch toward equity financing. In addition to the change in financial policy, I would also recommend considering a new acquisition strategy to reach more diversified portfolio and to broaden the company’s scope in other areas.

The Indigo Spell Chapter One

THIS WASN'T THE FIRST TIME I'd been pulled out of bed for a crucial mission. It was, however, the first time I'd been subjected to such a personal line of questioning. â€Å"Are you a virgin?† â€Å"Huh?† I rubbed my sleepy eyes, just in case this was all some sort of bizarre dream that would disappear. An urgent phone call had dragged me out of bed five minutes ago, and I was having a little trouble adjusting. My history teacher, Ms. Terwilliger, leaned closer and repeated the question in a stage whisper: â€Å"I said, are you a virgin?† â€Å"Um, yes. . .† I was fully awake now and glanced uneasily around my dorm's lobby, making sure no one was around to witness this crazy exchange. I didn't have to worry. Aside from a bored-looking desk attendant on the far side of the room, the lobby was empty, probably because no sane person would be up at this time of night. When Ms. Terwilliger's call had woken me, she'd demanded I meet her here for a â€Å"life-or-death† matter. Getting interrogated about my personal life wasn't quite what I'd expected. She stepped back and sighed in relief. â€Å"Yes, of course. Of course you're a virgin.† I narrowed my eyes, unsure if I should be offended or not. â€Å"Of course? What's that supposed to mean? What's going on?† She immediately snapped back to attention and pushed her wire-rimmed glasses up the bridge of her nose. They were always slipping down. â€Å"No time to explain. We have to go.† She grabbed hold of my arm, but I resisted and stayed where I was. â€Å"Ma'am, it's three in the morning!† And then, just so she'd understand the severity of the situation: â€Å"On a school night.† â€Å"Never mind that.† She turned in the direction of the desk attendant and called across the room, â€Å"I'm taking Sydney Melrose with me. Mrs. Weathers can argue with me about the curfew tomorrow.† The attendant looked startled, but she was just some college student who'd been hired to sit there overnight. She was no match for the formidable Ms. Terwilliger, with her tall, gangly stature and birdlike face. The real authority keeping girls in my dorm was the security guard outside, but he simply nodded in a friendly way when Ms. Terwilliger dragged me past. It made me wonder just how many girls she'd abducted in the middle of the night. â€Å"I'm in my pajamas,† I told her. It was the last protest I could offer as we reached her car, which was parked in a fire lane. She drove a red Volkswagen Beetle with flowers painted on the sides. Somehow, this didn't surprise me in the least. â€Å"You'll be fine,† she said, fishing car keys out of her massive velvet purse. Around us, the desert night was cool and silent. Tall palm trees created dark, spiderlike shapes against the sky. Beyond them, a full moon and smattering of stars glittered. I wrapped my arms around myself, touching the soft fabric of my microfleece robe. Underneath it, I had on full-length striped pajamas paired with fluffy beige slippers. The ensemble worked well in my cozy dorm room but wasn't exactly practical for a Palm Springs night. But then, going out in pajamas wasn't really practical in any place. She unlocked the car, and I stepped gingerly inside, having to dodge empty paper coffee cups and old issues of Utne Reader. My neat sensibilities cringed at that kind of mess, but it was the least of my worries right now. â€Å"Ms. Terwilliger,† I said, once we were driving through the suburban streets. â€Å"What's going on?† Now that we were out of the dorm, I hoped she'd start talking sense. I hadn't forgotten her â€Å"life-or-death† comment and was beginning to grow nervous. Her eyes were on the road ahead of us, and lines of worry marked her angular face. â€Å"I need you to cast a spell.† I froze as I tried to process her words. Not long ago, this proclamation would've sent me into protests and fits of revulsion. Not that I was comfortable with it now. Magic still freaked me out. Ms. Terwilliger taught at my private high school, Amberwood Prep, by day and was a witch at night. She said I, too, possessed a natural affinity for magic and had managed to teach me some spells, despite my best efforts to resist. I actually had a few good reasons for wanting to avoid anything arcane. Aside from inborn beliefs about magic being wrong, I simply didn't want to get caught up in any more supernatural affairs than I had to. I already spent my days as part of a secret society that kept vampires secret from the human world. That and my schoolwork were enough to keep anyone busy. Nonetheless, her magical training had gotten me out of some dangerous situations recently, and I was no longer so quick to dismiss it. So, her suggesting I perform magic wasn't the weirdest thing going on here. â€Å"Why would you need me for that?† I asked. There were few cars out, but occasionally, passing headlights would cast a ghostly light over us. â€Å"You're a million times more powerful. I can't cast a fraction of the things you can.† â€Å"Power is one thing,† she admitted. â€Å"But there are other limitations and factors at work here. I can't cast this particular spell.† I crossed my arms and slouched back in the seat. If I kept focusing on the practical aspects, I could ignore how worried I was growing. â€Å"And it couldn't have waited until morning?† â€Å"No,† she said gravely. â€Å"It could not.† Something about the tone of her voice sent chills down my spine, and I fell silent as we continued our drive. We were headed outside of the city and suburbs, into the wilds of the true desert. The farther we drove from civilization, the darker it became. Once we were off the freeway, there were no streetlights or houses in sight. Spiky desert shrubs created dark shapes along the side of the road that put me in mind of crouching animals, ready to pounce. There's no one out here, I thought. And no one back at Amberwood knows you're here either. I shifted uneasily as I recalled her virgin question. Was I going to be a sacrifice in some unholy ritual? I wished that I'd thought to bring my cell phone – not that I could have told my organization, the Alchemists, that I was spending so much time with a magic user. And not just any magic user – one who was teaching me to become one too. Better to risk being sacrificed than face the Alchemists' wrath. Twenty minutes later, Ms. Terwilliger finally pulled to a stop along the side of a dusty one-lane road that seemed to be a direct route to nowhere. She got out of the car and motioned for me to do the same. It was colder here than it had been back at Amberwood. Looking up into the night sky, I caught my breath. Free of the city lights, the stars were now out in full force. I could see the Milky Way and a dozen constellations usually hidden to the naked eye. â€Å"Stargaze later,† she said curtly. â€Å"We need to hurry, before the moon progresses much further.† A moonlight ritual, a barren desert, virgin sacrifice . . . what had I just foolishly walked into? The way Ms. Terwilliger pushed me into magic always annoyed me, but I never thought she posed a threat. Now I berated myself for being so naive. She tossed a duffel bag over one shoulder and headed off into a desolate stretch of land, dotted with rocks and scraggly vegetation. Even with the brilliant celestial display there wasn't much light out here, yet she walked purposefully, as though she knew exactly where she was going. I dutifully followed, wincing as I crossed the rocky ground. My fuzzy slippers had never been intended for this sort of terrain. â€Å"Here,† she said when we reached a small clearing. She carefully set down the duffel bag and knelt to rifle through it. â€Å"This'll do.† The desert that was so mercilessly hot in the day became cold at night, but I was still sweating. Probably my own anxiety had more to do with that than the temperature or heavy pajamas. I retied my robe more tightly making a perfect knot. I found that kind of detail and routine soothing. Ms. Terwilliger produced a large oval mirror with a scalloped silver frame. She set it down in the middle of the clearing, glanced up at the sky, and then shifted the mirror over a little. â€Å"Come here, Miss Melbourne.† She pointed to a spot opposite her, on the other side of the mirror. â€Å"Sit there and make yourself comfortable.† At Amberwood, I went by the name of Sydney Melrose, rather than my true one, Sydney Sage. Ms. Terwilliger had gotten my made-up name wrong on the first day of class, and it, unfortunately, stuck. I followed her directions, not that I could really get all that comfortable out here. I was pretty sure I could hear some large animal scuffling out in the brush and added â€Å"coyotes† to my mental list of dangers I faced out here, right below â€Å"magic use† and â€Å"lack of coffee.† â€Å"Now then. Let's get started.† Ms. Terwilliger peered at me with eyes that were dark and frightening in the desert night. â€Å"Are you wearing anything metal? You need to take it off.† â€Å"No, I – oh. Wait.† I reached around my neck and unfastened a delicate gold chain that held a small cross. I'd had the necklace for years but had recently given it to someone else, for comfort. He'd given it back to me recently, by way of our mutual friend Jill Mastrano Dragomir. Even now, I could picture the angry look on her face as she'd stormed up to me at school and thrust the cross into my hand without a word. I stared at the cross now as it gleamed in the moonlight. A queasy feeling welled up in the pit of my stomach as I thought about Adrian, the guy I'd given it to. I'd done so before he professed his love for me, something that had caught me totally off guard a few weeks ago. But maybe I shouldn't have been so surprised. The more I looked back – and I did so all the time – the more I began to recall telltale signs that should have tipped me off to his feelings. I'd just been too blind to notice at the time. Of course, it wouldn't have mattered if I'd seen it coming or not. Adrian was totally unsuitable for me, and it had nothing to do with his many vices or potential descent into insanity. Adrian was a vampire. True, he was a Moroi – one of the good, living vampires – but it made no difference. Humans and vampires couldn't be together. This was one point the Moroi and Alchemists stood firmly together on. It was still amazing to me that Adrian had voiced those feelings to me. It was amazing that he could even have them or that he'd had the nerve to kiss me, even if it was a kiss that had left me dizzy and breathless. I'd had to reject him, of course. My training would allow nothing less. Our situation here in Palm Springs forced the two of us to constantly be together in social situations, and it had been rough since his declaration. For me, it wasn't just the awkwardness of our new relationship. I . . . well, I missed him. Before this debacle, he and I had been friends and spent a lot of time together. I'd gotten used to his smirky smile and the quick banter that always flowed between us. Until those things were gone, I hadn't realized how much I relied on them. How much I needed them. I felt empty inside . . . which was ridiculous, of course. Why should I care so much about one vampire? Sometimes it made me angry. Why had he ruined such a good thing between us? Why had he made me miss him so much? And what had he expected me to do? He had to have known it was impossible for us to be together. I couldn't have feelings for him. I couldn't. If we'd lived among the Keepers – a group of uncivilized vampires, humans, and dhampirs – maybe he and I could have . . . no. Even if I had feelings for him – and I firmly told myself I didn't – it was wrong for us to even consider such a relationship. Now Adrian spoke to me as little as possible. And always, always, he watched me with a haunted look in his green eyes, one that made my heart ache and – â€Å"Ah! What is that?† I squirmed as Ms. Terwilliger dumped a bowl full of dried leaves and flowers over my head. I'd been so fixated on the cross and my memories that I hadn't seen her coming. â€Å"Rosemary,† she said matter-of-factly â€Å"Hyssop. Anise. Don't do that.† I'd reached up to pull some of the leaves out of my hair. â€Å"You need that for the spell.† â€Å"Right,† I said, getting back to business. I set the cross carefully on the ground, trying to clear my mind of green, green eyes. â€Å"The spell that only I can do. Why is that again?† â€Å"Because it has to be done by a virgin,† she explained. I tried not to grimace. Her words implied that she was not a virgin, and even if that made sense for a forty-year-old woman, it still wasn't a thought I wanted to spend a lot of time on. â€Å"That, and the person we're looking for has shielded herself from me. But you? You she won't expect.† I looked down at the shining mirror and understood. â€Å"This is a scrying spell. Why aren't we doing the one I did before?† Not that I was eager to repeat that spell. I'd used it to find someone, and it had involved me staring into a bowl of water for hours. Still, now that I knew how to do it, I knew I could perform it again. Besides, I didn't like the idea of walking into a spell I knew nothing about. Words and herbs were one thing, but what else might she ask of me? Endanger my soul? Give up my blood? â€Å"That spell only works for someone you know,† she explained. â€Å"This one will help you find someone you've never met before.† I frowned. As much as I didn't like magic, I did like problem solving – and the puzzles magic often presented intrigued me. â€Å"How will I know who to look for, then?† Ms. Terwilliger handed me a photograph. My eyes had adjusted to the darkness, and I looked into the face of a pretty young woman. There was a striking resemblance between her and my teacher, though it wasn't initially obvious. Rather than Ms. Terwilliger's dull brown hair, this woman's was dark, nearly black. She was also much more glamorous, dressed in a black satin evening gown that was a far cry from Ms. Terwilliger's usual hippie attire. Despite those ostensible differences, the two women shared the same high cheekbones and aquiline eyes. I glanced back up. â€Å"She's related to you.† â€Å"She's my older sister,† Ms. Terwilliger confirmed, her voice remarkably flat. Older? I would've guessed this woman was at least ten years younger. â€Å"Is she missing?† I asked. When I'd scried before, it had been to find a kidnapped friend. Ms. Terwilliger's lips twitched. â€Å"Not in the way you're thinking.† From the never-ending duffel bag, she produced a small leather book and opened it to a marked page. Squinting at where she indicated, I could make out handwritten Latin words describing the mirror and herbal concoction she'd dumped on me. Following that were directions on how to use the spell. No bloodletting, thankfully. â€Å"It sounds too simple,† I said suspiciously. I'd learned that spells that only had a few steps and components usually required a lot of mental energy. I'd passed out from the other scrying spell. She nodded, guessing my thoughts. â€Å"It takes a lot of focus – more than the last one. But, as much as you don't want to hear this, your strength has grown enough that you'll probably have an easier time than before.† I scowled. She was right. I didn't want to hear that. Or did I? Part of me knew I should refuse to go along with this madness. Another part of me worried she'd abandon me in the desert if I didn't help. And still another part was insanely curious to see how this would all work. Taking a deep breath, I recited the book's incantation and then set the picture in the middle of the mirror. I repeated the incantation and removed the picture. Leaning forward, I stared into the shining surface, trying to clear my mind and let myself become one with the darkness and moonlight. A hum of energy coursed through me, much more quickly than I expected. Nothing changed in the mirror right away, though. Only my reflection peered back at me, the poor lighting dulling my blond hair, which looked terrible both from sleeping on it and having a bunch of dried plants hanging in its strands. The energy continued to build in me, growing surprisingly warm and exhilarating. I closed my eyes and sank into it. I felt like I was floating in the moonlight, like I was the moonlight. I could've stayed that way forever. â€Å"Do you see anything?† Ms. Terwilliger's voice was an unwelcome interruption to my blissful state, but I obediently opened my eyes and looked into the mirror. My reflection was gone. A silvery gray mist hung in front of a building, but I knew the mist wasn't physical. It was magically produced, a mental barrier to keep me from seeing the image that lay beyond it. Strengthening my will, I pushed my mind passed that barrier, and after a few moments, the mist shattered. â€Å"I see a building.† My voice echoed oddly in the night. â€Å"An old Victorian house. Dark red, with a traditional covered porch. There are hydrangea bushes in front of it. There's a sign too, but I can't read it.† â€Å"Can you tell where the house is?† My teacher's voice seemed very far away. â€Å"Look around it.† I tried to pull back, to extend my vision beyond the house. It took a few moments, but slowly, the image panned out as though I were watching a movie, revealing a neighborhood of similar houses, all Victorian with wide porches and creeping vines. They were a beautiful, perfect piece of history set in the modern world. â€Å"Nothing exact,† I told her. â€Å"Just some quaint residential street.† â€Å"Go back further. See the larger picture.† I did, and it was like I drifted up into the sky, looking down upon the neighborhood the way some soaring bird would. The houses extended into more neighborhoods, which eventually gave way to industrial and commercial areas. I continued moving back. The businesses became more and more densely packed. More streets crisscrossed between them. The buildings grew taller and taller, eventually materializing into a familiar skyline. â€Å"Los Angeles,† I said. â€Å"The house is on the outskirts of Los Angeles.† I heard a sharp intake of breath, followed by: â€Å"Thank you, Miss Melbourne. That will be all.† A hand suddenly waved across my field of vision, shattering the city image. Also shattered was that state of euphoria. I was no longer floating, no longer made of light. I came crashing down to reality, down to the rocky desert landscape and my stuffy pajamas. I felt exhausted and shaky, like I might faint. Ms. Terwilliger handed me a thermos full of orange juice, which I drank greedily. As the nutrients hit my system and strengthened me, I began to feel a little better. Intense magic use depleted blood sugar. â€Å"Does that help?† I asked, once I'd downed the thermos. A nagging voice inside me started to chastise about how many calories were in orange juice, but I ignored it. â€Å"Was that what you wanted to know?† Ms. Terwilliger gave me a smile that didn't extend to her eyes. â€Å"It helps, yes. Was it what I wanted?† She stared off into the distance. â€Å"No, not exactly. I was hoping you'd name some other city. Some city far, far away.† I picked up my cross and refastened it around my neck. The familiar object brought on a sense of normality after what I'd just done. It also made me feel guilty, looking back on the euphoric high the magic had given me. Humans weren't supposed to wield magic – and they certainly weren't supposed to enjoy it. Running my fingers over the cross's surface, I found myself thinking of Adrian again. Had he ever worn it? Or had he just kept it around for luck? Had his fingers traced the cross's shape like mine often did? Ms. Terwilliger began gathering her things. When she stood up, I followed suit. â€Å"What does it mean exactly, ma'am?† I asked. â€Å"That I saw Los Angeles?† I followed her back toward the car, and she didn't answer right away. When she did, her voice was uncharacteristically grim. â€Å"It means that she's much closer than I would like. It also means, whether you want to or not, you're going to have to work on improving your magical skills very, very quickly.† I came to a halt. Suddenly, I felt angry. Enough was enough. I was exhausted and ached all over. She'd dragged me out here in the middle of the night and now had the presumption to make a statement like that when she knew how I felt about magic? Worse, her words frightened me. What did I have to do with this? This was her spell, her cause. Yet, she'd given the directive with such force, such certainty, that it almost seemed as though I was the reason we'd come out here to this wasteland. â€Å"Ma'am – † I began. Ms. Terwilliger spun around and leaned toward me so that there were only a few inches between us. I gulped, swallowing whatever outraged words I'd been about to utter. I'd never seen her look like this. She wasn't scary, not exactly, but there was an intensity I'd never seen before, far different from the usual scattered teacher I knew. She also looked . . . frightened. Life or death. â€Å"Sydney,† she said, in a rare use of my first name. â€Å"Let me assure you that this is not some trick on my part. You will improve upon your skills, whether you like it or not. And it's not because I'm cruel, not because I'm trying to fulfill some selfish desire. It's not even because I hate seeing you waste your ability.† â€Å"Then why?† I asked in a small voice. â€Å"Why do I need to learn more?† The wind whispered around us, blowing some of the dried leaves and flowers from my hair. The shadows we cast took on an ominous feel, and the moonlight and starlight that had seemed so divine earlier now felt cold and harsh. â€Å"Because,† Ms. Terwilliger said. â€Å"It's for your own protection.†

Analysis Of The Three Financial Models

IntroductionBankruptcy refers to the state of an individual who is unable to pay his or her debts and against whom a bankruptcy order has been made by a court. Such orders deprive bankrupts of their property, which is then used to pay their debts. Bankruptcy proceedings are started by a petition, which may be presented to the court by (1) a creditor or creditors; (2) a person affected by a voluntary arrangement to pay debts set up by the debtor under the Insolvency Act 1986; (3) the Director of Public Prosecutions; or (4) the debtor. (Smullen and Hand, 2003).If we assume that a corporation is a separate legal entity thus qualifying as a legal person, we can adopt the above definition to define bankruptcy in the context of the corporation or corporate bankruptcy as the state of a corporation that is unable to pay its debts and against which bankruptcy order has been made by a court. (Smullen and Hand, 2003).Analysis of the models for predicting bankruptcy.There are three main approach es to predicting bankruptcy which include: accounting analytical approach, option theoretical approach and the statistical approach. Becchetti and Sierra (2002: p. 2100).   Under the statistical approach corporate failure risk is analyzed through four widely known methods which make use of balance sheet ratios: linear or quadratic discriminate analysis, logistic regression analysis, probit regression analysis and neural network analysis.For the purposes of this paper we will limit our analysis to three basic financial models, which include the Z-Score model, the discriminant model and the Black-Scholes-Merton Probability. We also describe the application of these models in corporations.1. The Z-Score Bankruptcy Prediction ModelThe Z-score prediction model was developed by Altman in 1968. (Grice and Ingram, 2001: p. 53). The Z-score model applies multivariate discriminant analysis (MDA) and employs financial ratios as input variables to predict financial distress. (Tzeng et al, 200 7: p. 297). According to Grice and Ingram (2001: p. 53), Altman (1968) used a sample of 33 non-bankrupt manufacturing firms from 1946-1965. Grice and Ingram (2001) assert that despite the fact that the z-score model exhibit high accuracy rates using both estimation and hold-out samples, (95% and 84%), its generalizability to industries and periods outside of those in the original sample has received little attention.This model has be widely used in a variety of industries to evaluate financial conditions of firms and it is continuously being used in many business situations including bankruptcy prediction and other financial stress conditions. Grice and Ingram (2001) carried out a test on the z-score model based three basic tests which include the model’s ability to predict bankruptcy today as opposed to periods in which it was developed, the usefulness of the model in predicting bankruptcy in non-manufacturing as well as manufacturing firms and its ability to predict bankrup tcy in financial stress conditions other than bankruptcy.Their findings show that although the model is useful in predicting bankruptcy as well as other financial conditions, the models accuracy is significantly lower in recent periods than that reported in the original work by Altman (1968).Grice and Ingram (2001) also find significant differences in the model’s coefficients from those reported by Altman. Based on these findings, Grice and Ingram (2001) suggest that better accuracy can be achieved by re-estimating the model coefficients using estimation from periods close to test periods. In addition Grice and Altman (2001) find that the including non-manufacturing firms in the sample, further weakens the accuracy of the model.1.1 Application of the Z-Score modelCommercial banks use the model as part of the periodic loan review process; investment bankers use the model in security and portfolio analysis. It has been employed as a management decision tool and as an analysis t ool by auditors to assess their clients’ abilities to continue as going concerns (Grice and Ingram, 2001: p. 53).2. The Black-Scholes-Merton Model.According to Reisz and Perlich (2007) following from Black and Scholes (1973) and Merton (1974), the common stock of a firm can be seen as a standard call option on the underlying assets of the firm. It is assumed that shareholders have sold the corporation to creditors, and hold the option of buying it back by paying face value (plus interest) of their debt obligations. (Reisz and Perlich, 2007: p. 2). On the other hand, using put/call parity, we can see shareholders as holding the firm’s assets (bought after borrowing money from creditors) as well as a put option with exercise price equal to the face value equal to value of debt.(Reisz and Perlich, 2007: p. 2). In the event where the where the firm value is below the exercise price, that is, where the price of the firm is below the face value of the debt at maturity, share holders can freely work walk away without repaying their debt obligations. (Reisz and Perlich, 2007: p. 2). This is similar to selling the firm to the bondholers at the face value of the debt. (Reisz and Perlich, 2007: p. 2). Reisz and Perlich, (2007: p. 2) asserts that such an equity-based valuation model can lead to better bankruptcy predictions.In a study by Hillegeist et al. (2004), it was found that the probabilities of bankruptcy backed out from the a Black-Scholes-Merton structural model are up to 14 times more informative that ones inferred from accounting-based statistics such as the Altman (1968) Z-score. (Reisz and Perlich, 2007: p. 2). However despite the merits of this Black-Scholes-Merton model, it does not provide any rationale for observed managerial (bounded) risk choices. (Reisz and Perlich, 2007: p. 3). In addition, probabilities of default (PDs) coming from this framework are miscalibrated. (Reisz and Perlich, 2007: p. 3).3. The Mutiple Discriminant ModelMultiple discriminant analysis (MDA) is a statistical technique employed in the classification of an observation into one of several a priori groupings, dependent upon the observation’s individual characteristics. It is primarily useful in the classification and/or prediction in problems where the dependent variable appears in qualitative form for example, male or female, bankrupt or non-bankrupt. Therefore the first step is to establish explicit group classifications. The number of original groupings may be two or more.The MDA model is advantageous in that it considers the entire profile of characteristics common to the relevant firms, as well as the interaction of these properties. Conversely, a univariate study can only consider the measurement used for grouping assignments one at a time. Another important advantage of the MDA model is the reduction of the analyst’s space dimensionality.   When analysing a comprehensive list of financial ratios in assessing a firm’ s bankruptcy potential, there is reason to believe that some of the measurements will have a high degree of collinearity or correlation with each other. (Altman, 1968).3.1 Application of Multiple Discriminant ModelFollowing its first application in the 1930s, the MDA model has been used in many studies and disciplines. In its earlier days it was used only in Biology and behavioural sciences. Today, the model has been applied successfully in financial problems such as credit evaluation and investment classification. For example, Walter made use of the model to classify high and low price earnings ratio firms, and Smith applied the model in the classification of firms into standard investment categories.BIBLIOGRAPHYA market-based framework for bankruptcy prediction. Alexander S. Reisz and Claudia Perlich. Journal of Financial Stability, 2007, Pages 1-47.  A real-valued genetic algorithm to optimize the parameters of support vector machine for predicting bankruptcy. Chih-Hung Wu Gwo- Hshiung Tzeng Yeong-Jia Goo   Wen-Chang Fang. Expert Systems with Applications Volume 32, 2007 Pages 397–408  Ã¢â‚¬Å"Bankruptcy†Ã‚  Ã‚  A Dictionary of Finance and Banking. John Smullen and Nicholas Hand. Oxford University Press 2005. Oxford Reference Online. Oxford University Press.   Ã‚  http://www.oxfordreference.com/views/ENTRY.html?subview=Main&entry=t20.e278Bankruptcy risk and productive efficiency in manufacturing firms. Leonardo Becchetti and Jaime Sierra Journal of Banking & Finance,  Volume 27, Issue 11,  November 2003,  Pages 2099-2120Tests of the generalizability of Altman’s bankruptcy prediction model. John Stephen Grice and Robert W. Ingram. Journal of Business Research Volume 54, 2001 Pages 53-61.Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy. Edward I Altman. Journal of Finance, Volume 27, Issue 4, September 1968, Pages 589-689.

Pecan Tree Essay

1. Hi, my name is John Doe. I am here to inform you on the historical background of pecan trees. First I will explain the characteristics of pecan trees and then move into who founded the tree first and how the tree benefited them. Lastly, I will bring you up to date on how the tree has been domesticated and the benefits that it brings today. 2. The pecan tree starts off small and eventually gets bigger over time like pretty much everything else in the world. The best chance for this tree to survive is to plant it in alluvial or other words (riverbed) soil that is deep and well drained.However, pecan trees can grow on any soil that allows water penetration to a depth of four or five feet 3. The Pecan tree’s growth rate is roughly 2 feet per year. The trees will begin producing a few nuts three to four years after being planted significant production can be achieved in six to eight years. And good production will begin around the ninth or tenth year. 4. The pecan, Carya illinoi nensis, is a member of the plant family Juglandaceae. This family includes the walnuts and the hickories. The pecan is a large tree, often growing to 100 feet high or more and has a stately appearance.It has been proclaimed the state tree of Texas. 5. Pecan trees may live and bear edible nuts for more than 300 years. The crown of the pecan tree is roughly rounded or oval in shape, which can have a spread up to 75 feet wide. 6. For those of you who do not know what a pecan tree leaves looks like, they are green in color during the spring and summer, and when fall hits they start to turn a yellowish color. The leaves will eventually fall completely off the tree during winter season because these trees are considered to be deciduous trees, meaning they are seasonal, unlike evergreens which stay green all year long. . Here is a picture of the bark of a pecan tree. The bark of a pecan tree is grayish in color and has a rough appearance to it, which is relatively thin. The picture also sh ows the base of the tree which can reach up to six feet in diameter. 8. A pecan, like the fruit of all other members of the hickory genus, is not truly a nut, but is technically a drupe, a fruit with a single stone or pit, surrounded by a husk. The husks are produced from the exocarp tissue of the flower, while the part known as the nut develops from the endocarp and contains the seed 9. The outer husk is 3–4 mm (0. 2–0. 16 in) thick, starts out green and turns brown at maturity, which ranges from (1. 0–2. 4 in) long and (0. 59–1. 2 in) broad, and over time it will split off into four sections to release the thin-shelled nut. [2][4][5][ 10. Pecans come in a variety of sizes – mammoth, extra-large, large, medium, small and midget. They also come in several forms including whole pecans, pecan halves, pieces, granules and meal. There are over 1,000 varieties of pecans. Many are named for Native American Indian tribes, including Cheyenne, Mohawk, Sioux , Choctaw and Shawnee. 1. Pecans are native to a number of states in southern and Midwestern United States and to scattered locations in Mexico, but are most common in Texas, Oklahoma, and Louisiana. They have been growing over their present range in the U. S. for at least 8000 years and, based on archaeological and ethnohistoric data, were an important source of food for people who inhabited certain areas within this range in prehistoric and early historic times 12. Before European settlement, pecans were widely consumed and traded by Native Americans.As a food source, pecans are a natural choice for preagricultural society. They can provide two to five times more calories per unit weight than wild game, and require no preparation. 13. many years after the discovery of the pecan tree by the Native Americans the United States has become the world’s leader in pecan production. While exact numbers for world production are unknown, it is estimated that the U. S. produces 75 perc ent of the world’s pecans 14. Pecans are produced on about a million acres worldwide.Since the exact number for worldwide production is unknown there is a estimation of about 200 to 300 million pounds produced each year However, unlike most cultivated crops, the domestication of the pecan tree did not started until the late 1800’s 15. And since then there have been new inventions called harvesters that issues a burst of powerful high frequency vibrations that, for 10-15 seconds, it shakes all the pecans out of the entire tree creating a noisily intense crackling hail of pecan nuts, a dense shower, followed by an eerie silence that will leave any observer stunned 16.Also, the trees are planted in rows to make for an easier harvest. Also, before a shelled pecan is ready to be sold, it must first be cleaned, sized, sterilized, cracked and finally, shelled. 17. 6Unlike other horticultural crops, the native pecan is very important commercially. Most of these species are con centrated in the Northern Hemisphere of the New World, but can be found on every continent except for Antarctica 18. The Pecan Trees and the nuts have not changed a whole lot, since the Natives irst discovered them, but the way they are harvested has changed drastically. Unlike, the Native trees that were kept natural and could only produce what its genes allowed it too. Now there is grafting of trees to make the tree produce better 19. Not to mention the sprays that is used to keep disease down and the attack of bugs on the tree or the nuts themselves. I hope you know a little more about pecan trees and there origin and how much they have been domesticated to meet our needs. And to think all of this is being done to harvest a tiny pecan nut

Corporate Governance in China Essay Example | Topics and Well Written Essays - 1500 words

Corporate Governance in China - Essay Example In china, corporate governance has received much attention in the recent years and there have been debates on how china can develop an effective corporate governance system that can improve the number of listed companies in the country. The issue of corporate governance finds its roots and effect in the stock market which is responsible for listing companies. Before a company is listed in the stock market, it usually undergoes a rigorous process of scrutiny on issue of corporate governance. (Berle and Mean 2003, p. 286) This paper will look closely at the corporate governance in china and relate the practices to one of the company, Sainsbury PLC to see how it can adopt such measure and to look at the extent in which it has been able to integrate such measures in its operation. It will first start by looking at the corporate governance in china and later look at Sainsbury PLC and how the aspect of corporate governance can be implemented in the company. Let us first look at the corporate governance landscape in china. The mandate to improve corporate governance in china has been one of the aims of the government for along time. It started with the making of the stock market which came into being after the opening of the economy about one and a half decade ago. The need to improve the corporate governance landscape has been one of the mandates that the government has taken in developing a financial market that serves the country and the business community alike. In recent past, china has made great strides towards the issue of corporate governance which has been through the relationship of the government and the players in the private sector. Government agencies that have been handling this issue have given various laws, rules, regulation and standard that are aimed at putting in place a firm foundation and a framework for corporate governance in the country. (Kim and Giles 2003, P. 51) In order to understand practice of corporate governance in china, we have to accept that china has been undergoing through a transition process which has seen the development of market-oriented economy from a planned economy although this pace of transition has varied with various sectors. But the biggest challenge that the country has been facing has been on the ground that it has taken to development of the concept when most of the important functioning financial market structures like a well defined legal system, regulatory agencies and others have not been put in place or have not been functioning to the required standards. (Clarke 2003, p. 53) Reports coming from survey on Corporate governance (CG ) in the country shows that there have been marked willingness by many companies in china and many businessmen to develop accepted standard of CG not only for the domestic market but also they have been casting their sights higher than the domestic market. They have shown willingness to improve CG practices like shareholder rights, environmental control, improved level of transparency, empowering of boards, and other practices which are aimed at improving the business landscape of the country. There has been a general recognition that improved CG makes an organization more attractive to the investors and more profitable. Let us look at some of CG practices in china and the recent efforts by