Nature is such a beautiful place Essay Example for Free

Nature is such a wonderful spot Essay Life is getting hard and costly as the years are cruising by. The costs on food, and other utility costs are going up. Individuals have school, work and a family to pay special mind to and don't have the opportunity to appreciate the straightforward things in life that earth brings to the table which is nature. In the exposition of â€Å"An access to the Woods† Wendell Berry. He confesses to living such a quick glue of life that is difficult to return to the ground and appreciate what is before him. Individuals pass by things so rapidly and don’t focus that they neglect to value them. When an individual eases back down, they could perceive what encompasses them. Nature is a decent method to get yourself since it is anything but difficult to escape from the impact society has. Nature has away of removing the things that are focusing on us and allowing endlessly to get revived. â€Å" Toward the evening I left off being occupied busy working, and traveled sixty or seventy miles 60 minutes, scarcely mindful of the nation I was going through, on the grounds that on the turnpike one doesn't need to be. The scene has been quelled so one may roll over it as seventy miles for each hour with no concession at all to one’s whereabouts. One should be flying. In spite of the fact that one is Kentucky one isn't encountering Kentucky. One is encountering the parkway, which may be in almost any slope nation east of the Mississippi.† (Berry, 88) During berry’s time in the forested areas, he composes â€Å"A man enters and leaves the world exposed. What's more, it is just nakedor almost with the goal that he can enter and leave the wild. On the off chance that he strolls, that is; and on the off chance that he doesn’t walk it can barely be said that he has entered. He can bring just what he can convey the little that it takes to substitute for a couple of hours or a couple of days an animal’s hide and teeth and paws and working impulses. Furthermore, correlation with the typical voyager with his reliance on machines and parkways and eatery and motelson the economy and the legislature, in shortthe man who strolls into the wild is exposed for sure. He deserts his work, his family, his obligations, his comfortseven, in the event that he comes alone, his words. Heâ immerses himself in what he isn't. It a sort of death.† (Berry, 90) We resulted in these present circumstances world stripped, and that is the way we ought to enter and leave the wild. On the off chance that we walk utilizing our feet and investigate the wild that’s how we can say that we entered the wild. The little that we bring to endure, it is gone in a couple of hours or days. A creature utilizes its hide, teeth and creature impulses to endure versus a voyager that requirements machines, expressways and eateries and inns. To be in the wild one needs to abandon the work, the family unit, obligations and comforts and even his words. One has escape its customary range of familiarity, and utilize your own capacities to endure the wild. It resembles facing a challenge of death. Wendell Berry own experience where he is up and left development. The work setting to enter a nature situation gave to acting naturally effective on nature. Berry cherished and regarded nature, he needed to build up his thankfulness further, as he needed it to advance and comprehend for it. He needed to know how nature functioned, and learn it’s explanation behind being. Berry’s objective was met through this demonstration and it was satisfying experience to escape from balance and become natural. Berry understands the reason for the excursion, yet the association with nature can't supplant to association with man. In the article of â€Å" Why I went to the woods† by Henry David Thoreau. Thoreau attempted to create his own harvests, to live from the work of his own hands, and to dispose of all the muddling things that occupied him from life’s genuine significance by living in the forested areas. †Thoreau needed opportunity to peruse, compose, and think. He needed to set aside a few minutes for nature. What's more, he needed to test himself, to see exactly the amount he could improve his life, to decide how much time he could spare to do what he truly needed to do with each moment of everyday†( Thoreau, 700) Thoreau specifies that he needs to carry on with a purposely life. To live purposely intends to fare thee well and consider everything that you do throughout everyday life, and not to do anything only for its hell. Everything that we do must have a reason and an importance, and that is certifiably not an exercise in futility. â€Å"slow down as opposed to accelerate, to saver a couple of things completely instead of test numerous things momentary, and have the opportunity to choose what, over the long haul of his shortâ life, matters most and why.† (Thoreau, 700) â€Å" I went to the forested areas since I wished to live purposely, to front just the fundamentals unavoidable truth, and check whether I was unable to realize what it needed to educate, and not, when I came to bite the dust, find that I had not live I didn't wish to live what was not life, living is so dear; nor did I wish to proactive acquiescence, except if it was very important. I needed to live profound and suck out all the marrow of life, to live so sturdily and Spartan-like as to put to defeat every one of that was not life, to cut an expansive area and shave close, to drive life into a corner and decrease it to its most minimal terms, and on the off chance that it end up being mean, why at that point to get its entire and certified unpleasantness and distribute its ugliness to the world, or in the event that it were radiant, to know it by experience, and have the option to give a genuine record of it in my next excursion.† ( Thoreau, 701) By living in the forested areas he will be carrying on with a straightforward life away from human progress and to see his quality and shortcoming. By not being acquainted with that kind of way of life he may bite the dust. At the point when all expectation is gone he understands there are numerous things he have not attempted. The most straightforward things in life could be and mean significantly more. Life is v aluable.

China Essay -- essays research papers

Shiven Patel The topography of China and Japan is very extraordinary. They are both situated in Eastern Asia, yet China is separated of the territory, while Japan is a gathering of islands off in the North Pacific. China, the world’s fourth biggest nation, is significantly bigger than Japan. China has an all out zone of 9,596,960 square kilometers while Japan is just 377,8356 square kilometers. Obviously Japan has twofold the coastline of China for it is an island chain. China has an eastern coastline along the East China Sea, Korea Bay, Yellow Sea, and South China Sea. China’s principle geographic viewpoints are the Yangtze River and the Himalayan Mountains. Deserts and high levels describe the west, with fields, deltas, and slopes in the east. There is a shifted atmosphere from tropical to subarctic, the fundamental climate peril is the storm. Japan’s islands are pinnacles of submerged volcanoes, for example, Mount Fuji. There are no significant streams, simply rough land a nd a sporadic coastline. There are valleys and levels along the coast. It is cold and dry in the north, warm and wetter in the south. Quakes and tropical storms plague Japan. The administrations of China and Japan are totally unique. The world’s biggest Communist gathering drives China. The president is a formal figure. Official forces are given to the State Council headed by the chief. The governing body, the chosen national People’s Congress, has little force. Japan is a protected government, yet like England, the sovereign is an image ...

Math 533 †Ams Free Essays

Points I will be going over information gave about our clients based oftener area, Income size, family unit size, years at current area, and the acknowledge balance they convey for our organization. Utilizing factual investigation we can get familiar with our clients and ideally utilize this data to offer better types of assistance to our clients later on to save them clients forever. In my investigation I will go over the accompanying: * Customer Location * Customer Income * Store Credit Balance * Credit Balance Compared to Income Level Household Size Compared to Household Location * Household Size Compared to Income Level Where the client lives, their Income level and the offset they hold with the organization are acceptable Indicators of client reliability. We will compose a custom paper test on Math 533 †Ams or on the other hand any comparative subject just for you Request Now Stretching out credit to our clients is a decent confidence method of us indicating the client that we need their business and are eager to set aside some effort to take care of their buys. Before I completely examine the numbers I would expect that the more prominent the salary level the more they are charging. They have the money related meaner to pay the regularly scheduled installments and can keep a high parity. Client area is significant in light of the fact that it can help reveal to us how regularly you visit the store. Somebody in a urban territory may shop 4+ times each month, where somebody in a rustic zone may just shop once every month. However, the individual shopping 4+ times each month may be spending not exactly the individual living in the provincial region who can just come once per month in light of separation Issues. Credit balance contrasted with Income level gives us how much higher Income clients are spending. Contrasting the family size with the area can give us a vibe for where the families are living damaged to the single parent or single individual family units are. You can utilize this sort of data to showcase and publicize exceptional deals as essential. At last family size contrasted with the salary level will give us how much huge families are spending and how regularly. This can likewise be valuable to showcase enormous deals. Client Location The above portrayal is a pie outline which shows are clients’ segment areas. Of the 50 clients utilized in our testing the best quantities of our customers are In the Urban district, with the rustic locale being the least frequented. Of the example we presumed that: eve In a urban region live in a rural territory * 26% live in a rustic zone This is as I would see it a normal result. The capacity to go to our store is a lot more noteworthy for those living in rural and urban regions since it is nearer to their nearness. While occupants in the country networks do visit our stores they do as such on a less successive premise. Further examination may have the option to show that country occupants might shop less every now and again, however spend more per trip than somebody in the urban region. Client Income This straightforward visual chart shows the salary level in the $1,000 Step by step instructions to refer to Math 533 †Ams, Papers

Islamic accounting - Free Essay Example

Question 01 What distinguishes Islamic accounting and conventional accounting? Briefly discuss the additional objectives of Islamic accounting. Answer 01 It could be stated that both Islamic accounting as well as conventional accounting are both in the business of providing information to end customers. The main differences lie in the following factors: Objective of providing information Islamic accounting enables users to ensure that Islamic organizations abide by the principles of the Shariah in all of its dealings and enables the assessment of whether the objectives of the organization are being met. Type of information The type of information which Islamic accounting identifies, measures is different. Conventional accounting concentrates on identifying economic events and transactions, while Islamic accounting must identify socio-economic and religious events and transactions. Islamic accounting is more holistic in its approach as both financial and non-financial measures regarding the economic, social, environmental and religious events and transactions are measured and reported. Different statements Islamic accounting requires totally different statements altogether from that of conventional accounting. This is to de-emphasize the focus on profits by the income statement provided by conventional accounting. Users of reports Islamic accounting recognizes that all including the society are the users of the reports. The reason being that society as a whole can make corporations accountable for their actions and ensure that they comply with Shariah principles and do not harm others while making money ethically and achieve a equitable allocation and distribution of wealth among members of society especially the stakeholders of the concerned corporation. The importance of establishing objectives Accounting scholars and practitioners alike have found that the process of developing financial accounting standards without establishing objectives leads to inconsistent standards which may not be suitable for the environment in which they are expected to be applied. Agreement on the objectives of financial accounting for Islamic banks would achieve many benefits: The objectives will be used as a guide by the Financial Accounting Standards Board for Islamic Banks and Financial Institutions when developing financial accounting standards. This should assure consistency in developing standards. The objectives will assist Islamic banks, in the absence of accepted accounting standards, in making choices among alternative accounting treatments. The objectives will be available as a guide and a regulator of subjective judgment made by management when preparing the financial statements and other financial reports. The objectives, when properly defined, should increase users confidence and understanding of accounting information and, in turn, their confidence in Islamic banks. Establishing objectives should lead to the development of accounting standards which are likely to be consistent with each other. This should increase users confidence in the financial reports of Islamic banks. Financial accounting is mainly concerned with providing information to assist users in making decisions. Those who deal with Islamic banks are concerned, in the first place, with obeying and satisfying Allah in their financial and other dealings. It is natural, therefore, that there should be differences between objectives established for other banks and those to be established for Islamic banks. Those differences stem mainly from differences in the objectives of those who need accounting information and, therefore, in the information they need. This does not mean, however, that we should reject all the results of contemporary accounting thought in non-Islamic countries. This is so because there are common objectives between Muslim and non-Muslim users of accounting information. In addition to the above, there are other reasons why different objectives of financial accounting should be established for Islamic banks. Those are: Islamic banks must comply with the principles and rules of Shariah in all their financial and other dealings. The functions of Islamic banks are significantly different from those of traditional banks who have adopted the Western model of banking. The relationship between Islamic banks and the parties that deal with them differs from the relationship of those who deal with traditional banks. Two approaches to establishing objectives have emerged through the discussion which took place at different meetings of the committees established by the Board. These are: Establish objectives based on the principles of Islam and its teachings and then consider these established objectives in relation to contemporary accounting thought. Start with objectives established in contemporary accounting thought, test them against Islamic Shariah, accept those that are consistent with Shariah and reject those that are not. In order to test each approach and select an appropriate one, various efforts were put in by various Shariah scholars. Subsequent to all their efforts it was decided that the second approach be chosen to establish objectives of financial accounting for Islamic banks and financial institutions. The main categories of users of external financial reports for Islamic banks whose information needs are addressed in this statement include: Current and saving account holders. Equity holders. Holders of investment accounts. Other depositors. Others who transact business with the Islamic bank, who are not equity or account holders. Regulatory agencies. Zakah agencies. It is possible to summarize the common information needs of users as follows: Information which can assist in evaluating the banks compliance with the principles of Shariah in all of its financial and other dealings. Information which can assist in evaluating the banks ability in: Using the economic resources available to it in a manner that safeguards these resources while increasing their value, at reasonable rates. Carrying out its social responsibilities and in particular those that have been specified by Islam, including the good use of available resources, the protection of the rights of others and the prevention of corruption on earth. Providing for the economic needs of those who deal with the bank. Maintaining liquidity at appropriate levels. Information which can assist those employed by the bank in evaluating their relationship and future with the Islamic bank, including the banks ability to safeguard and develop their rights and develop their managerial and productive skills and capabilities. It is assumed that the types of information described above represent the minimum required to satisfy the common information needs of external users of financial reports. In conclusion, the following could be stated as the objectives of Islamic accounting: To determine the rights and obligations of all interested parties, including those rights and obligations resulting from incomplete transactions and other events, in accordance with the principles of Islamic Shariah and its concepts of fairness, charity and compliance with Islamic business values. To contribute to the safeguarding of the Islamic banks assets, its rights and the rights of others in an adequate manner. To contribute to the enhancement of the managerial and productive capabilities of the Islamic bank and encourage compliance with its established goals and policies and, above all, compliance with Islamic Shariah in all transactions and events. To provide, through financial reports, useful information to users of these reports, to enable them to make legitimate decisions in their dealings with Islamic banks. Question 02 Discuss the Shariah audit issues and their importance in relation to financial statements of Islamic banks. Answer 02 There are various issues in a Shariah audit that could face an Islamic financial institution. The following discussion pertains to those issues and their high relevance to the financial statements of such institutions. First and foremost, any Islamic bank that is found to have breached any of their fiduciary duties or have contravened the covenants of Shariah could be in a serious and potentially harmful situation by litigation from its investors and other third parties. Hence, to make certain Islamic banks comply properly with the requirements of Shariah principles as well as their performance of fiduciary duties and obligations, there should be very close cooperation between the Shariah Boards and the external auditors. This process will help to ensure compliance in all these respects. The term or rather the concept now commonly known as Shariah audit is now understood that the ensuring of Shariah compliance, fiduciary compliance and further the assigning of the formal resp onsibility to ensure all such compliances are in order. The Shariah audit of an Islamic financial institution is not necessarily limited to the performance by an external auditor. It could be performed by the Islamic financial institutions very own Shariah Board or by external auditors as well. If the Shariah audit is being done by the Shariah Board, they should be capable of doing the task. On one perspective, it should clearly be noted that when the Shariah audit is performed by the banks external auditors they will undoubtedly ensure adequate independence to be maintained. Further, these auditors would most definitely require knowledge, competence and expertise to cope with Shariah compliance issues and fiduciary compliance issues. On another perspective, if the Shariah audit is being carried out by the Shariah Board of the Islamic bank, they will have to ensure sufficiently or maximum independence in order to carry out a thorough and an effective audit. Like in the previou s situation, the Shariah Board will have to have knowledge, competence and expertise to cope with and solve issues relating to accounting issues and their implications. Some contemporary Islamic financial institutions have now a group of scholars known as Shariah internal auditors. These individuals are also members of the institutions Shariah Board. They on a continuous basis monitor Shariah and fiduciary compliance and report findings to the main Shariah Board. Therefore, based on the above two scenarios the Shariah Board as well the external auditors will require close liaising with each other on a continuous basis to ensure that all potential Shariah and fiduciary compliance issues, which the Islamic bank may be exposed to, are addressed and resolved on a timely and accurate basis. Finally, in order to ensure that all Islamic banks comply with all the covenants of the Shariah and perform their fiduciary duties and obligations as well towards their depositors, it is high ly important that there are proper rules and regulations established. These are important with regard to general and additional disclosure requirements in the Islamic banks financial statements, such as disclosure requirements of the: Accounting policies Disposal of non-Shariah compliance earnings Profit distribution policy Shariah advisors Zakat obligations Auditors are responsible for forming and expressing opinions on financial statements. It is also their responsibility for preparing and presenting financial statements in compliance with all Shariah rules and principles. The relevant legislation and regulations is that of the management of the financial institution. Hence, it should clearly be understood that the audit of the financial statements does not relieve the management of the financial institution of this responsibility. Thereby, indicating the importance of Shariah audit issues and their importance to the preparation of financial statements of Islamic banks. Question 03 Why is taxation an important issue for Islamic banking products? Answer 03 A common misperception created in the minds of most people nowadays is the perception of unfair taxation. Islamic banks, other than in Malaysia have developed in a relatively tax free milieu. Even countries such as Pakistan, general provisions were made to exempt from taxation for Islamic finance arranged on a cross border basis, but no specific provisions were made for within the country. It was the UK government that took a lead in the west in revising its taxation law to include specific provisions for Islamic products and services. The following is a discussion about a key taxation issue that arose in UK and how it was resolved. In fact had this issue not been properly resolved it would have derailed any plans to establish Islamic banks in the UK. The key issue relates to the tax treatment of Islamic deposit accounts that in theory paid a profit share to the depositor. Deposit accounts offered by the Islamic Bank of Britain were based on the principle of Mudharabah. Gener ally, any interest payments made by banks to its depositors is deductible from gross income before tax is calculated. However, in accordance with anti-avoidance rules in UK, any interest payments made on deposits that were linked to the profit made by a bank was not allowed to be deducted from gross income but was considered as distribution of profit after tax. In other words, these were considered as dividend payments. Example: Suppose a bank paid pound;100 on normal deposit accounts. This amount was deducted from its gross income, say pound;300. Hence, tax paid on the net amount of pound;200. If on the other hand, the pound;100 payment was linked to profit made by the bank, tax would be deducted on the gross income of pound;300 and the pound;100 was considered as distribution after tax. This of course results in much higher tax charge for the bank. The profit payment on the Islamic deposit accounts was at first considered to be linked to the profit made by the Islamic Bank of B ritain and therefore was not allowed to be deducted as an expense against gross income. This high incidence of tax charge made the Bank economically unviable. To overcome the above issue, the UK government established a special Inland Revenue task force to review the taxation of Islamic products so as to ensure that there was a level playing field with the conventional market. In the government paper, Regulatory Impact Assessment for Shariah Compliant Products that accompanied the Budget for 2005 it was stated that the key policy objective for taxation of Shariah compliant products is to ensure that such products are: ..taxed in a way that is neither more nor less advantageous than equivalent banking products. The intended effect of the proposals is to allow providers to offer Shariah compliant products without facing commercial disadvantage and to enable customers to take up these products without encountering uncertainty or disadvantage over tax treatment. The solution that emerged from the task force and included in the Finance Act 2005 was to define Islamic products as Alternative Financial Arrangements and to set out the key structures of the arrangements in the legislation. The profit payment on the deposits was termed as Profit Share Return. Islamic products are not specially mentioned in the Finance Act but only in the explanatory notes. Furthermore, the Act is concerned not with principles but the specific structures of the products. This was done to mitigate the risk of these structures being used to avoid taxation. In the explanatory notes it was clearly stated that the relevant legislative clauses relate to arrangements: that involves profits and losses on sales of assets or profit share agreements that are economically equivalent to conventional banking products, but are not interest or speculative returns. The measure ensures that such arrangements are taxed no more or less favourably than equivalent finance arrangements involving interest. In other words, profit payments made for Islamic deposits that conformed to those arrangements were deemed to be interest and hence treated for tax purposes as any interest payments. This ensured that Islamic deposits were taxed on the same basis as conventional deposits. In our above example, Islamic banks paid tax on the net pound;200 rather than the gross amount. For sake of clarity, in case of Islamic deposit the Finance Act defines the following arrangements that give rise to profit share return: The depositor deposits money with a financial institution. The money, together with money deposited with the institution by other persons, is used by the institution with a view to producing a profit. From time to time the institution makes or credits a payment to the depositor, in proportion to the amount deposited by him, out of any profit resulting from the use of the money. The payments made or credited by the institution equate, in substance, to the return on an investment of money at interest. Other than (d) above, the structure described is a Mudharabah. Similarly the Finance Act 2005 also defined an Islamic finance arrangement based on Murabahah principle and termed the equivalent profit amount charged to customers as Alternative Finance Return. Prior to 2005, the government had already resolved the issue of double incidence of Stamp Duty on property financed using Islamic structures. Normally whenever property is purchased, the buyer has to pay a Stamp Duty. In case of Islamic finance where banks buy the property and then sell to the customer, there were two Stamp Duties payable, first by the bank and then by the customer. In 2003, the government had amended the Stamp Duty rules to charge only one Stamp Duty on such finance arrangements. These rules were further refined in the Finance Act 2005. Since 2005, UK government has continued to add to the tax legislation for Islamic products. Islamic mortgages using Diminishing Musharakah arrangements, Islamic agency ac counts and recently in the Finance Bill 2006, Islamic bonds (Sukuks) have been covered. The other issue relating to tax was VAT. This has been more difficult to resolve since VAT is a European wide legislation and requires any major change at the European level. Despite this, the UK government has issued guidelines on the application of VAT to Islamic products. These guidelines have ensured that Islamic products are treated in the same way as conventional products. It is important to emphasize that the significant development outlined above in respect of taxation of Islamic products could not have been achieved had there not been commitment from Chancellor and his Treasury ministers. Importance has continued to be given to the success of Islamic finance in the UK and concerns that hinder a level playing field for the Islamic finance market are being carefully reviewed and resolved. The lead taken by UK authorities to tax Islamic products is now being considered by other author ities as possible solution to help the Islamic markets to flourish. References https://basiccollegeaccounting.com/basic-understanding-of-islamic-accounting-its-objectives-and-the-differences-between-convention-accounting/ https://www.aaoifi.com/objectives-acc.html https://www.bta.kz/files/about_fin_iconf_Session_10-taxation_2.pdf

One Who Flew Over the Cuckoos Nest Comparison to Hamlet

Madness, Power, Rebellion, and Conformity are some of the many themes that prevail in Ken Keseys One Flew Over the Cuckoos Nest and Hamlet both express similar messages of sanity vs. insanity, control, and compliance through their characters. There is a thin line between normal and abnormal as depicted in Keseys and Shakespeares work. One must ponder the question; is McMurphy mentally ill or is he just a schemer rebelling? The doctor commented, ...Dont overlook the possibility that this man might be feigning psychosis to escape the drudgery of the work farm...And what about that McMurphy? (Kesey 46). The doctor in the mental hospital is telling McMurphy that many other patients and himself included arent fully convinced of his insanity. Similarly, Hamlets madness is up for debate. The only difference is that Hamlet pretends to be mentally unsound, but throughout the play one could argue he descends into madness. Queen Gertrude expands her thoughts of her son calling him Mad as the se a and wind... (Shakespeare 4.1.7). Hamlet pleads to his mother that he is sane but he must convince King Claudius otherwise. She responded with certainty that her son is far gone. McMurphy and Hamlet are both characters whose state of mind whether sane or insane, greatly influence the people surrounding them. Power and control are overbearing characteristics for some individuals in the works of literature. Claudius killed his own blood blood brother to gain the crown, kingdom, and

Apex Investment Partners free essay sample

Apex Investment Partners was founded in 1987 by James A. Johnson and the First Analysis Corporation. In its eight-year life, the VC had raised three funds. The two first which are already closed had, together, a committed capital of around $70M. There were mainly concentrated in four areas: †¢ †¢ †¢ †¢ Telecommunication, information technology and software. Environmental and industrial productivity-related technologies. Consumer products and specialty retail. Health-care and related technologies. Usually, Apex sought to be the leading investor whatever the stage in order to have one of its representatives join the board of the financed companies. Furthermore, Apex pursues to balance its investments between start-up and already generating positive cash flows investments. Now (April 1995) in the process of raising its third fund of $75M committed capital target, the VC fund seeks for new opportunities on the market. In this context, they recently approached a firm which seems to have huge potential for rapid growth: AccessLine Technologies. We will write a custom essay sample on Apex Investment Partners or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Based in Washington, AccessLine is an emerging telecommunication company that developed a high differentiation service called â€Å"One Person, One Number†. Basically, the concept is to assign one single number (an AccessLine number) which allows an individual to manage all of their different telecommunications. Realizing that it was less risky and far more costeffective to license their technology, the company extensively use strategic alliances with well-establish operators to commercialize its technology. To pursue its fast expansion, the firm undertook, in July 1994, a $15. M private placement from five investors and welcomed to the board, as part of the transaction, a representative of the first financing round. To keep up with its ambitions and meet its growth expectations (subscribers increase by 200% per year between 1995 and 1999), AccessLine wish to obtain an additional financing of approximately $16M. Even though Apex is convince in the firms’ potential and h ave already built a trustful relationship, the two parties have still two contentious that need to be resolved before any deal could proceed: †¢ †¢ The valuation of the company The term sheet conditions In order to give our own perspective on these contentious, we will construct, in this report, our own estimation of AccessLine value as well as the proposed deal for all claimants. Then, we will go through the eventual issues of the proposed term sheet on which Apex should focus its attention. Enterprise Value of AccessLine In the following section, we are going to value AccessLine conditional on a successful exit (here IPO). We chose to use the discounted cash method (absolute valuation) which consist in making projection of the cash flows of the firm from the year of exit until infinity and discount them to the present. The DCF approach is given by: = + + ? + + !? # = (1) $% Notice that one could prefer to impute what the market’s opinion of the firm will be at exit date to obtain the searched value. This is the so-called comparable analysis (relative valuation). Table 1 shows the estimated input parameters used in our DCF analysis. It’s important to keep in mind that, according to Michael Roberts findings, entrepreneurial firms have very little leverage. Thus, we will suppose that AccessLine is an all equity entrepreneurial firm and consequently will avoid interest expenses as well as tax shield. Moreover, notice that we will assume no excess cash. Table 1: Inputs parameters for the DCF Analysis Exit(T) Year until Graduation (S-T) Expected Inflation Industry Growth (avg, nominal) Extra Growth Revenue ($M) Operating Margin Tax Rate Operating Assets ($M) Stable Growth (nominal) Stable Growth (real) Discount rate (nominal) Discount rate (real) R(old) R(new) Depreciation % of book value of operating Assets 2. 0% 15. 7% 0. 0% 208. 0 32. 5% 30. 6% 54. 0 Graduation (S) 5 Incremental 11. 5% 9. 5% 1320. 1 39. 8% 30. 6% 1639. 9 3. 0% 1. 0% 11. 5% 9. 5% 22. % 9. 5% 1. 5% 317. 2 10. 0% Several additional assumptions were required when calculating the exit value for AccessLine. In a first step we have to postulate when the successful exit is going to happen. Normally this period is assumed to be between 3 and 7 years long. In our case, we make the assumption that a successful exit is going to happen in 1999. Since we are only concerned about the successful scenario, we go along with the p rojection of AccessLine, which is probably overoptimistic, and use its expected revenue of 208M at the time the exit happens. After the IPO, we presume the company will grow at a high rate for the next five years in the 75 percentile as proposed by Metrick, Andrew and Ayako Yasuda in their â€Å"Venture Capital and the Finance of innovation† book. We chose five years since the typical firm reaches maturity within five years after the IPO. Besides, we assume a tax rate of 30. 64% given by the industry average (Damodaran 2013). As a discount rate, we use simply the industry average. Alternatively, we could use the Betas of the comparable companies. This gives us an unlevered average beta of 0. 5*(1. 39+2. 03) since both companies are completely equity financed. The risk free rate was given by 7. 1%, if we assume a risk premium of 5. 79% (Damodaran for 1. 4. 13) we get a cost of capital of 16. 9% using the CAPM equation. Because we only have two comparable companies we opt to do our calculations with the industry wide average discount rate. The operating margin at the exit date is estimated in a way that we reach a Net Income of approximately 22% of revenues as projected by AccessLine for the year 1999. Holding everything else constant, we get an expected operating margin of 32. 5% at the time of the exit date. After that we assume that the margin converts in equal steps to the industry average at the graduation date. Concerning the operating assets, we expected them to remain constant relative to the revenue. In 1993, we observe operating assets of $2. 20M (Total – Other assets, net) and revenue of $8. 36M resulting in a percentage of approximately 26%. In consequence, this gives us operating assets of $54M in 1999. After that, we believe assets to change in a way that the return on assets converges to the return on assets for the graduation year. As we expect AccessLine to be a successful and mature company after 5 years, this value is assumed to be the industry average. We expect Inflation to be around 2% for the â€Å"foreseeable† future in the United States, which is in line with estimations of the IMF. We us the figure of the United States as an approximation since it seems the most relevant for AccessLine. Furthermore we assume the nominal growth rate to be equal to a conventional rate of 3%. Thus, at the time of the graduation value, the real growth rate reaches 1%. After having experienced extraordinary growth for 5 years, a lot of the competitive advantage due to having a new innovative product will disappear and thus the company will tend to perform similar to other companies in the same industry. Therefore, regarding the graduation value, all the inputs are assumed to be industry averages (We took the numbers from the statistics provided in the excel sheet). Note that this is only the case because we assume a successful scenario. We assume the return on old capital (i. e. return on the capital in place before graduation) is going to be equal to the industry average and return on new capital (meaning return for capital created by new investments after graduation) is going to be equal to the real cost of capital. This is justified, once again, by the fact that it will be difficult to have a competitive advantage after an extraordinary growth period. When taking all these assumption into consideration we obtain the following values: Table 2: Outputs parameters for the DCF Analysis ($M) Sum of the Cash Flows* PV (Sum of the CF) Graduation Value PV (Graduation Value) NPV of firm at exit (end of 1999) -493. 1 -551. 3 3865. 7 2240. 1 1688. 8 *CF=EBIT(1-tax) + Depreciation – Capex – NWC The last step in the valuation process of the firm at current time is to adjust the exit value with the probability of success and to actualize this product by the VC discount rate. We based our choice of the probability of success on the findings of John L. Nesheim. According to his research, compiled in the book â€Å"High Tech Start Up†, High Tech start-ups tend to have a probability of success of around 10%. However, as we believe AccessLine to be in a really good position, we decided to use 15%. For the VC discount rate, we opted for 15% as recommended in the lectures of professor Theodosios Dimopoulos (lecture 4, slide 13). In conclusion we get that: (() * ( * + , 1995 = $1688. 84 ? 15% = $131. 94924 1 + 15% 78/ : Proposed deal value for all claimants According to the term sheets, both investors have the right to get back their investment in preference. Furthermore, we assume that the Series A shareholders are making use of their warrants. Table 3: Shareholders’ key information Series A Series B Common Shares Liquidation Preference $17. 88M* $16M None % of Ownership 17%** 13% 70%*** *(2’220’726 + 333’110)*7; **Incl. warrants; ***53% Investors + 17% Employees/Directors/Management As we can see in figure 1, since there is no preference between series A and B (pari passu), both split equally the proceedings until the liquidation preference of the Series B holders of $16M is reached at W=32M. After that point everything goes to the Series A holders until they reach their own liquidation preference of $17. 88M. Subsequent, all the proceeds are distributed to the common shareholders (the green line). First we calculate the order of conversion, given by APP/#Shares. Series A has the lower value and thus converts first. Depending on the order we can determine the following conversion conditions: for A 0. 17*(W-16)gt;17. 88 and for B thus 0. 13Wgt;16 since A should already have converted. Figure 1: Exit Diagram 120 100 80 60 40 20 0 1 8 15 22 29 36 43 50 57 64 71 78 85 92 99 106 113 120 127 134 141 148 Series A value Series B value Common Table 4: Slopes (W=) PA PB Employees 0-32 0. 0. 5 0 32-34 1 0 0 34-121 0 0 1 121-124 0. 17 0 0. 83 gt;124 0. 17 0. 13 0. 7 We rounded the conversion points for convenience. Using the changes in the slopes, we determine the exit equations for all the involved parties: †¢ †¢ †¢ Exit Equation A=1/2*V+1/2*C(32)-C(34)+0. 17*C(121)+2. 5*BC(124)=24. 84M(Partial value for A) Exit Equation B=1/2*V-1/2*C(32)+0. 13*C(124)=19. 91M(Partial value for B) Exit Equation Common Shareholders = C(34)-0. 17*C(121)-0. 13*C(124)-2. 5*BC(124=87. 25M(Partial value common) To calculate the corresponding price we used: 1. 2. 3. 4. 5. The Value we determined for AccessLine of $132M A volatility of 90% as an approximation based on historical evidence presented by Metrick and Yasuda Since we expect the exit to happen at the end of 1999, we have an expected holding period of 4. 67 years The risk free rate used is the one given in the case study of 7. 1% The binary option is used because, after the Series B converts, Series A will get a jump. This path is explained by the fact that the Liquidation preference of Series B does not exist anymore at W=124 since the Series B shareholders have converted. To calculate the prices of the options, the Flex calculator on vcvtools. com is used. 6. Note: The calculator uses the Black and Scholes formula to calculate the option prices. This means that stock prices are assumed to follow a lognormal distribution and trading can take place at all time. Furthermore no taxes, transaction costs, and arbitrage opportunities are assumed. These are very strong and unrealistic assumptions, however we do not care that much since they still give us a useful approximation. Issues in the proposed term sheet We understand from the case that Apex is deeply concerned about the particulars they have been proposed in the term sheet. Their fear is mostly related to the alignments of interest between them and the management team. They believe the incentives of the managers to be too week to insure that they will pursue a mutually satisfactory outcome. Therefore, they would preconize the use of some mechanisms such as provision that required punitive interest if the firm did not go public and/or being giving rights of first refusal on future financing. In this section, we will identify some issues contained in the proposed term sheet on which Apex should have a particular consideration. For starters, Series B holders have no warrants attached to their shares unlike Series A holders that can use it until the 3 of June 1999. This is problematic for Apex since it allows current holders to lower the proportionate weight of Series B preferred stock. In the same vein, Series A holders can increase their % of ownership since they are allowed, unlike Series B holders, to buy Class A Common Stock from the current shareholders at a ratio of 0. 83 (option to buy common stock). Another important risk for Apex to consider is the lack of the Right of Co-sale in the Series B term Sheet. Indeed, this means that in the event that one or both key personalities of the firm (Mr. Kranzler and Mr. Fuller) sale their stock to exit the company, Apex won’t be able to lower their holdings even though the company won’t probably have the same dy namics (and thus valuation). This is even more dramatic when considering that Mr. Fuller is the full owner of patents and patents pending for the technology he invented on which the AccessLine System is based. Indeed, in a worst case scenario, Mr. Fuller could take is patent, recruit Mr. Kranzler and Mr. Epler which are long-standing business relations and start another company. Finally, even though they have the ability to vote on the compensation package increase of any insider who holds 5% or more of the company stock, Series B holders do not have the right to elect one director to the Board. Therefore, there is no guarantee that Apex will be able to have an official in the Board of Director when investing in Series B shares. This is probably the key issue for Apex as they clearly prefer to have influence on the Board. rd

Essay Sample For the ICSE

Essay Sample For the ICSEThe ICSE exam is often given as an option for students who are struggling with their ICSE English essay tests. This is because this type of examination is focused on reading and writing, which make it different from other types of exams in the same subject.Students will have to write three essays, but they can write more or less depending on their personal preference. They may write only one essay, they may write a test essay, or they may choose to write a practice essay. The test has no time limit, so it may be taken on when you have free time.The essay samples that you will need to prepare are in the books on the market. These books are available from many different schools that teach the exam. However, you should be wary about paying for such books. These books may not contain all the information that you need.You may also find that the books you buy online for the ICSE have incorrect information. You need to be sure that you can get the most up-to-date in formation before you spend money.The Internet is a good place to purchase books for the test, but it is best to visit book stores if you want to save money. There is a high price difference between these two places, so make sure that you compare prices between several different stores.Many times the books that the students have used on the course or for a previous examination will work just fine on the ICSE. You should always make sure that you have the most recent edition, since older editions may have some inconsistencies.The essay samples for the ICSE may help you in your preparation. They will give you the skills you need to write an essay in English. These are also good ways to familiarize yourself with the format of the exam.The essay samples are very simple and easy to understand. You will not have any difficulty in understanding them once you have learned the basic techniques that are involved in writing an essay. Make sure that you are writing the essay in the proper style, and you will find that this type of test is very easy to pass.