Capital Market Theory Rsm 332 – Week 2

CAPITAL MARKET THEORY RSM 332 – Week 2 Week 1 – Introduction – Financial Accounting (Review) Week 2 – Financial Markets and Net Present Value Week 3 – Present Value Concepts Week 4 – Bond Valuation and Term Structure Theory Week 5 – Valuation of Stocks Week 6 – Risk and Return – Problem Set #1 Due Week 7* – Midterm (Tuesday*) Week 8 – Portfolio Theory Week 9 – Capital Asset Pricing Model Week 10 – Arbitrage Pricing Theory Week 11 – Operation and Efficiency of Capital Markets Week 12 – Course Review – Problem Set #2 Due Contact: otto. [email  protected] utoronto. ca CAPITAL MARKET THEORY RSM 332 – Week 2AGENDA 1. 2. 3. 4. 5. Announcements Financial Markets and Net Present Value Survey Results Optional Material (e. g. Cases, Practical Knowledge, News, etc. ) Suggestions/Practice for Exam(s) Contact: otto. [email  protected] utoronto. ca Extended Office Hours Friday , October 19th (11:00am-3:00pm) †¢ Room 6 – TZ6 (Tanz Neuroscience Bldg – 6 Queen’s Park Crescent West) TBD – Saturday, October 20th †¢ Depends if there is enough demand Thursday, October 25th (5:00pm-7:00pm and 7:00pm-9:00pm) †¢ During regular timeslot †¢ Cover optional material (e. g. cases, practical knowledge, etc. ) Contact: otto. [email  protected] utoronto. ca Exams Midterm (Tuesday, October 23rd – 8:00pm-10:00pm): †¢ EX 100 (Examination Facility – 255 McCaul Street) †¢ 2 Hours Final (TBA): †¢ 2 Hours Preparation: †¢ Problem Sets 1 & 2 †¢ Crib Sheet (Start Early and 1-Sided) †¢ Calculator (Silent) Contact: otto. [email  protected] utoronto. ca Tutorials †¢ Starting – September 19/20/21 †¢ Wednesday (6:00pm-8:00pm) †¢ TZ6 (Tanz Neuroscience Bldg – 6 Queen’s Park Crescent West) †¢ Thursday (11:00am-1:00pm) †¢ RW 110 (Ramsay Wright Laborat ories – 25 Harbord Street) †¢ Friday (5:00pm-7:00pm) †¢ RW 110 (Ramsay Wright Laboratories – 25 Harbord Street) Review: †¢ Midterms and Finals (2008-2011) Xiaofei Zhao (xiaofei. [email  protected] utoronto. ca) †¢ http://332ta. raykan. com †¢ Contact: otto. [email  protected] utoronto. ca Outside of Lecture Office Hours (Drop-In): †¢ Wednesdays: 4:00pm-6:00pm †¢ 105 St. George Street – Rotman (North Building) Room 413 or 417 Office Hours (Other Days/Times): †¢ Extended Hours †¢ By Appointment Contact: otto. [email  protected] utoronto. ca Corporate Finance: What is Going On? 3) Firm’s Financial (5) Investors (4) (Financial Institutions, (1) Individuals, Other Firms) (1) (2) (3) (4) (5) Cash raised from investors by selling financial assets Cash invested in real assets (some are intangible) Cash generated by operations Cash reinvested in the firm (retained earnings) Cash repaid to investors (interest, divi dends, etc. ) Operations (2) Decision Maker Reference: Alex MacKay Financial Markets: What is Going On? Firms (Users of Capital) Initial Public Offering (IPO) Secondary Offerings (SEO) Borrowing (Loans, Bonds)Dividends, $ Repurchases, Interest Payments $ Market Mechanisms or Market Makers (Stock Exchanges, Banks, Investment Funds, †¦) $ $ Firms Issue Stock Certificates and Bonds $ $$$ Invested in Stocks and Bonds Investors (Providers of Capital) Investment Banks help firms make transactions Brokers/Dealers help investors make transactions Reference: Alex MacKay Financial Theory and Corporate Policy Chapter 1 (Copeland, Weston and Shastri) Course Reserve FINANCIAL MARKETS AND NET PRESENT VALUE Consumption Plan and Investment RuleConsider 1 period problems Assumptions: †¢ No uncertainty †¢ One period (two dates), consumptions occur on date 0 and date 1 †¢ A consumer is endowed with initial wealth (Y0) on date 0, and will receive income (Y1) on date 1 †¢ Simple interest rate (r) Date 0 Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Date 1 Consumption Plan and Investment Rule 4 CASES †¢ Case I: †¢ Case II: No Capital Market, No Production Opportunities With Capital Market, No Production Opportunities †¢ Case III: No Capital Market, With Production Opportunities †¢ Case IV: With Capital Market, With Production OpportunitiesReference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Consumption and Investment without Capital Markets C1 U2 U1 U0 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 Slope of the Tangent (-ve) = (Marginal Rate of Substitution) (MRS) MRS = ? C1 ? C0 U1 U(C0, C1) MRS = ? U / ? C0 ?U / ? C1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Poli cy) 4 th Edition 2004 Consumption and Investment without Capital MarketsC1 Production/Investment Opportunity Set C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 Rate at which a dollar of consumption today (C0) is transformed by productive investment into a dollar of consumption (C1) tomorrow. C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 Marginal Rate of Transformation (MRT) MRT = ? C1 ? C0 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 U1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 Y1 U1 Resource Bundle: (Y0, Y1) Y0Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment without Capital Markets C1 Increase investment until MRT = MRS U1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 U2 U1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital MarketsC1 MRT = MRS U2 U1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 U2 U1 (Increase Investment) Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1 Slope = -(1+r) Borrowing and Lending opportunities (Capital Market Line) (at market interest rate r) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets C1 Interest plus Principal (Invest/Lending) Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1 Interest plus Princip al (Borrowed Amount – Principal) Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1 U1 C0Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets C1 Y1 U1 Endowment: (Y0, Y1) Y0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1 (Invest) Y1 U1 Y0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1Market rate of return > Subjective Time Preference (1+r) > (1+rtime preference) Y1 U1 Y0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1 U1 (Consume Less) Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1 U1 (Invest) Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0Edition 2004 Consumption and Investment with Capital Markets C1 U2 Y1 U1 Y0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1 Market Interest Rate = Subjective Time Preference U2 Y1 U1 Y0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 U1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] toronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 C0 Reference: Copeland, W eston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 U3 = (production and capital market) U2 = (with production alone) U1 = (initial endowment) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption Plan and Investment RuleConsider 1 period problems Assumptions: †¢ No uncertainty †¢ One period (two dates), consumptions occur on date 0 and date 1 †¢ A consumer is endowed with initial wealth (Y0) on date 0, and will receive income (Y1) on date 1 †¢ Simple interest rate (r) Date 0 Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Date 1 Consumption Plan and Investment Rule 4 CASES †¢ Case I: †¢ Case II: No Capital Market, No Production Opportunities With Capital Market, No Production Opportuni ties †¢ Case III: No Capital Market, With Production Opportunities †¢ Case IV: With Capital Market, With Production Opportunities Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Consumption Plan and Investment Rule CASE I – No Capital Market, No Production Opportunities †¢ Consumer can consume Y0 on date 0, and Y1 on date 1 Date 0 Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Date 1 Consumption Plan and Investment Rule CASE II – With Capital Market, No Production Opportunities The set of consumption plans is broadened 1. 2. Consumer can save from Y0, invests in financial assets, and consumes more on date 1 Borrow against Y1, consume more on date 0, pay back loan with interest on date 1 from Y1, and consume less on date 1 Date 0 Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Date 1 Consumption Plan and Investment Rule CASE II – With Capital Market, No Production Opportunitie s †¢ Denote C0 and C1 as date 0 and date 1 consumption respectively †¢ Constraint on them is: C1 = (Y0 – C0) (1+r) + Y1 Consumption Budget Line (Constraint) C0 + C1 = Y0 + Y1 1+ r 1+ r Y Date 0 Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Date 1 In general, the consumer will be better off with capital markets Consumption Plan and Investment Rule CASE II – With Capital Market, No Production Opportunities Present Value †¢ For any cash flow, C0, C1, define its present value as: PV = C0 + C1 + r †¢ Budget constraint can be restated as: †¢ The present value of consumption equals the present value of income Date 0 Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Date 1 Consumption Plan and Investment Rule CASE II – With Capital Market, No Production Opportunities Example: †¢ Assume an investor has a wealth of $1. 5M on date 0, and will have an income of $0. 55M on date 1 †¢ The intere st rate is 10%. †¢ The present value of total income is: $2M = $1. 5M + $0. 55M (1+ 0. 10) Date 0 Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Date 1 Consumption Plan and Investment RuleCASE III – No Capital Market, With Production Opportunities Physical Investment †¢ Suppose the consumer is also an entrepreneur who identifies a physical investment opportunity †¢ Initial investment requires $0. 5M on date 0 †¢ Return of $0. 85M on date 1 †¢ Should this consumer/investor take this project? †¢ Without a capital market, it depends on her/his utility function Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Consumption Plan and Investment Rule CASE IV – With Capital Market, With Production Opportunities †¢ By investing $0. 5M in a financial asset, receive $0. 55M in return (i. . 10% return) †¢ By investing $0. 5M in a physical asset, receive $0. 85M in return (i. e. 70% return) †¢ Consumer/Investor should take this project †¢ Interest rate is also called the opportunity cost of capital †¢ i. e. Return foregone by investing in a project rather than in comparable investment alternatives Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Consumption Plan and Investment Rule CASE IV – With Capital Market, With Production Opportunities Net Present Value (NPV) †¢ Is the project’s net contribution to wealth (i. e. present value minus initial investment) NPV = C0 + C1 1+ r In the above example, the NPV of the project is: NPV = -$0. 5M + $0. 85M = $0. 2727M (1 + 0. 10) Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Consumption Plan and Investment Rule CASE IV – With Capital Market, With Production Opportunities NPV Rule †¢ States that: †¢ If a project has a positive NPV, we should accept it †¢ If a project has a negative NPV, we should reject it Equivalent Rules †¢ NPV Rule – Accept positive NPV projects †¢ Rate-of-Return Rule – Invest in projects which offer a rate higher than the cost of capital Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca A Separation Theorem You are at a Honda (HMC) shareholders’ meeting †¢ Three shareholders are quite vocal about what the company should do Shareholder #1 – Old Lady †¢ Wants money right now †¢ Wants HMC to invest in sports cars which will yield a quick profit Shareholder #2 – Representative of a Little Boy’s Trust Fund †¢ Wants money a long way in the future †¢ Wants HMC to invest in building electric cars Shareholder #3 – Young Professional †¢ Wants money at some specified time in future (i. e. 10 years) †¢ Wants HMC to build smaller cars because of an expected oil crisis Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca A Separation TheoremWhat do you think Honda manag ers should do? Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca A Separation Theorem What do you think Honda managers should do? MAXIMIZE VALUE Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca A Separation Theorem In general, each shareholder may want: †¢ Maximum wealth †¢ Ability to transfer wealth across time into consumption †¢ Choose risk characteristics of consumption plan Each shareholder, however, can: †¢ Achieve own consumption plan through investments in financial assets †¢ Achieve risk characteristics of plan by investing in more or less risky securitiesEQUITY (CAPITAL GAINS, DIVIDENDS) Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca A Separation Theorem In general, each shareholder may want: †¢ Maximum wealth †¢ Ability to transfer wealth across time into consumption †¢ Choose risk characteristics of consumption plan Each shareholder, however, can: †¢ Achieve own consumption plan through investments in financial assets †¢ Achieve risk characteristics of plan by investing in more or less risky securities EQUITY (CAPITAL GAINS, DIVIDENDS) DEBT (INTEREST) TAX AGENCY COSTS Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca A Separation Theorem In general, each shareholder may want: †¢ Maximum wealth †¢ Ability to transfer wealth across time into consumption †¢ Choose risk characteristics of consumption plan Each shareholder, however, can: WHAT TYPE OF INCOME DO YOU PREFER? †¢ Achieve own consumption plan through investments in financial assets †¢ Achieve risk characteristics of plan by investing in more or less risky securities EQUITY (CAPITAL GAINS, DIVIDENDS) DEBT (INTEREST) TAX AGENCY COSTS Reference: Raymond Kan Contact: otto. [email  protected] utoronto. caConsumption and Investment with Capital Markets (With Production Set) C1 U3 = (production and capital market) U2 = (with producti on alone) U1 = (initial endowment) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 Choose the optimal production decision by taking on projects until the marginal rate of return on investment equals the objective market rate) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 (Choose the optimal consumption pattern by borrowing or lending along the capital market line to equate your subjective time preference with the market rate of return) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] toronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 (Production/Investment Decision) (Consumption Decision) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 (Production/Investment Decision) (Consumption Decision) (Fisher Separation Theorem) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004Consumption and Investment with Capital Markets (With Production Set) C1 (Fisher Separation Theorem) Given perfect and complete capital markets, the production decision is governed solely by an objective market criterion (represented by maximizing attained wealth ) without regard to individuals’ subjective preferences that enter into consumption decisions C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 (Production/Investment Decision) (Consumption Decision) Fisher Separation Theorem) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 (Production/Investment Decision) (Consumption Decision) (Fisher Separation Theorem) MRS = MRT = 1+r C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 ALL INDIVIDUALS USE THE SAME TIME VALUE OF MONEY (i. e. ame market interest rate) IN MAKING THEIR PRODUCTION/INVESTMENT DECISIONS (Fisher Separation Theorem) MRS = MRT = 1+r C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Example Ronald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). Contact: otto. [email  protected] utoronto. caReference: Don Brean Example Ronald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 1. 2. 3. Which investment should Ronal d invest in, AAA or BBB? How much should he invest? If Ronald makes investment describe his cash flows? (i. e. Consumption spending divided equally in present value terms) Contact: otto. [email  protected] utoronto. ca Reference: Don Brean ExampleRonald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 1. Which investment should Ronald invest in, AAA or BBB? Contact: otto. [email  protected] utoronto. ca Reference: Don Brean Example Ronald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today).Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 1. Which investment should Ronald invest in, AAA or BBB? Contact: otto. [email  protected] utoronto. ca Reference: Don Brean Example Ronald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 1. Which investment should Ronald invest in, AAA or BBB? 2. How much should he invest? Contact: otto. [email  protected] toronto. ca Reference: Don Brean Example Ronald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 3. If Ronald makes investment describe his cash flows? (i. e. Consumption spending divided equally i n present value terms) Contact: otto. [email  protected] utoronto. ca Reference: Don Brean Example Ronald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother.Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 3. If Ronald makes investment describe his cash flows? (i. e. Consumption spending divided equally in present value terms) PV of Wealth = PV of Consumption PV (C0) = PV (C1) (i. e. C0 = C1 / (1+r) ) NPVBBB Ronald’s PV of Wealth = $400 + $1,000 + $87. 27 = $1,487. 27 $1,487. 27 = C0 + C1 / (1+r) = C0 + [C0 (1+r)] / (1+r) C0 = $743. 64 and C1 = $818 Contact: otto. [email  protected] utoronto. ca Reference: Don Brean ExampleRonald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest r ate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 3. If Ronald makes investment describe his cash flows? (i. e. Consumption spending divided equally in present value terms) C0 = $743. 64 Investment in BBB Cash Flow Requirement (CF0) = ($743. 64 + $300) = $1,043. 64 Borrowing Requirement = CF0 – $400 = $643. 64 Contact: otto. [email  protected] utoronto. ca Reference: Don Brean ExampleRonald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 3. If Ronald makes investment describe his cash flows? (i. e. Consumption spending divided equally in present value terms) C1 = $818 Return from BBB Cash Inflow (next year) = $1,100 + $426 = $1,526 Cash Ou tflow (next year) = $818 + $643. 64 + $64. 36 = $1,526 Loan Repayment Interest on Loan @ 10% Contact: otto. [email  protected] utoronto. a Reference: Don Brean Example Ronald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). CONCLUDING THOUGHT Ronald’s optimal investment decision (i. e. $300 in BBB) is independent or separate from his decision as to how he inter-temporally allocates his consumption (i. e. C0 and C1) The independence of those two decisions is referred to as the Fisher Separation Theorem. Contact: otto. [email  protected] utoronto. ca Reference: Don Brean â€Å"GET TO KNOW YOU† SURVEY (Name: Optional) Question #1: †¢ What has occurred in your other courses that you were happy about and would like to be i ncorporated into this course ? †¢ What has occurred in your other courses that you were NOT happy about? Question #2: †¢ Anything specific you would like to learn? What are your learning goals in this course? †¢ Any specific requests from the instructor, TAs, program, other support staff, etc? Question #3: †¢ Are you thinking of pursuing further education in Finance, if not then what do you have in mind? And/or†¦ What job(s) are you interested in?Question #4: †¢ Tell me more about yourself (e. g. goals, program concentration, 2nd or 3rd year, etc†¦ ) Question #5: †¢ Any other comments, requests, suggestions, etc? TAKE ~3 MINUTES INDIVIDUALLY TO FILL OUT SURVEY TAKE ~ 5 MINUTES TO TALK TO 5 CLASSMATES WHOM YOU HAVEN’T MET YET (write down initials) SURVEY RESULTS (SUMMARY) †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Real world experiences, practica l (real-world) examples, cases†¦ Relevant news (where to find news), Current issues in the market Relate course material to real world Exam tips/techniques Applications and excel models used in the real world Interactive class, games, videos†¦Extended office hours (availability) to address questions Humour Practice questions and solutions; Past exams and solutions Capital markets (high-level overview) Typical jobs in finance, Leading finance organizations Additional tutorial time Stock picking, portfolio allocation/analysis, investment tools/strategies, trading tips Learning topics that can be applied in real life Relate designations/roles to course material and applications Better understanding of financial instruments (e. g. Mortgages, bonds, etc†¦ ) View of finance from other functional areas (e. g. Marketing) 13 Popular Case Studies (Failures) 1. 2. 3. 4. 5. . Barings (Bank) – Operational Risk (Trading Activities – From arbitrageur to speculator) Nat ional Australia Bank – Operational and Market Risks (Currency Trading) Bankgesellschaft Berlin (Bank) – Credit and Operational Risks (Loans to Property Developers) Taisei Fire and Marine Insurance Co – Insurance & Governance Risks (Uninsured exposure – Lack of understanding) Washington Mutual (Bank) – Credit, Regulatory and Governance Risks; Stress and Scenario Testing (Low lending standards and bad quality acquisitions) Fannie Mae and Freddie Mac – Credit, Market, Operational, Regulatory Governance and Moral Risk; Politicians vs.Financial Risk Management (Sub-prime loans) Long-Term Capital Management – LTCM (Hedge Fund) – Market & Model Risks (Short liquid vs. Long Illiquid Investments (e. g.Bonds) – Russia Defaulted) Bankers Trust (Bank) – Operational Risk (Misled clients on derivatives sold to them) Orange County – Market and Interest Rate Risks (Wrong way bet on interest rates – Borrowing Short a nd Investing Long – Interest Rates Increased) Northern Rock (UK Bank) – Portfolio, Capital Funding, Operational and Reputational Risks; Stress and Scenario Testing (Sub-prime mortgages – Bank Run) Metallgesellschaft AG (Energy Group) – Market Risks (Cash Flow Issues from Written Forwards) Worldcom (Telecom) – Operational Risks (Accounting Fraud – Massive cquisitions & Debt) China Aviation Oil (Singapore) – Market and Governance Risks (Misreported oil futures trading losses, Un-hedged open short positions, Oil Prices Increased) Source: PRMIA 7. 8. 9. 10. 11. 12. 13. SURVEY AND BREAK 13 POPULAR CASE STUDIES Midterm 2011 – Q3 Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part A – Assume that there is no capital market, which investment, A or B, will Jack choose? Justify your answer with calculations (6 marks) Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part A  œ Assume that there is no capital market, which investment, A or B, will Jack choose?Justify your answer with calculations (6 marks) †¢ If Jack does not invest, his utility is zero †¢ If Jack makes investment A (Utility is ? ) †¢ If Jack makes investment B (Utility is ? ) †¢ Y0 = $500 and Y1 = $0 †¢ Savings = Investment = Y – C Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part A – Assume that there is no capital market, which investment, A or B, will Jack choose? Justify your answer with calculations (6 marks) †¢ Investment A †¢ UA = (500-244)1/4 (400)1/2 = 80 Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Contact: otto. [email  protected] utoronto. caPart A – Assume that there is no capital market, which investment, A or B, will Jack choose? Justify your answer with calculations (6 marks) †¢ Investment B †¢ UB (I) = (500-I)1/4 (50(I)1/2)1/2 †¢ UB (I) = (5 0)1/2 [(500-I)I]1/4 †¢ Find I* by differentiating UB (I) wrt I (set to zero) †¢ dUB(I) = (50)1/2 (1/4) [(500-I)I]-3/4 (500-2I) dI I* = 250 Derivatives (Review) Reference: Martin J. Osborne http://www. economics. utoronto. ca/osborne/MathTutorial/CLCF. HTM Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part A – Assume that there is no capital market, which investment, A or B, will Jack choose?Justify your answer with calculations (6 marks) †¢ Investment B †¢ UB (250) = (50)1/2 [(500-I)I]1/4 †¢ UB (250) = 111. 80 †¢ UB > UA Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part A – Assume that there is no capital market, which investment, A or B, will Jack choose? Justify your answer with calculations (6 marks) †¢ Note: Two methods to calculate I* †¢ 1st method (take derivative of Utility Function) †¢ What’s the 2nd method? Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Alternatively – Investment B Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) (Assume a perfect capital market for borrowing and lending exists and the market interest rate is 20%) Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) †¢ Jack will choose the investment with the highest NPV †¢ Calculate NPVA and NPVB Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) †¢ NPVA = -$244 + ($400)/(1+0. 20) = $89. 33 Contact: otto. [email  p rotected] utoronto. ca Midterm 2011 – Q3 Contact: otto. [email  protected] utoronto. ca Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) †¢ To solve for NPVB †¢ Need to find optimal investment (I*) †¢ set MRT = -(1+r) = -1. 20 I* = $434. 03 †¢ MRT = – dF/dI = -25/(I1/2) = -1. 20 †¢ F = 50 ($434. 31/2) = $1041. 67 †¢ NPVB = -$434. 03 + ($1041. 67/1. 20) = $434. 03 Midterm 2011 – Q3 Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) †¢ To solve for optimal consumption plan (i. e. C0*and C1*) Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) †¢ To solve for optimal consumption plan (i. e. C0*and C1*) †¢ Total Wealth = $500 + $434. 03 = $934. 3 (set equal to C0 + C1/(1+r)) †¢ PV Wealth = PV Consumption †¢ C1 = 1120. 84 – 1. 2C0 Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Contact: otto. [email  protected] utoronto. ca Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) †¢ To solve for optimal consumption plan (i. e. C0*and C1*) †¢ Total Wealth = $500 + $434. 03 = $934. 03 (set equal to C0 + C1/(1+r)) †¢ U(C0, C1) = C01/4 (1120. 84 – 1. 2C0 )1/2 †¢ dU/dC0 = (1/4)C0-3/4 (1120. 84 – 1. 2C0)1/2 – 1. 2 x (1/2)C01/4(1120. 4 – 1. 2C0)-1/2 †¢ Setting it equal to zero: 1120. 84 – 1. 2C0 = 2. 4C0 C0* = $311. 34 †¢ C1* = 1120. 84 – 1. 2C0 = $747. 22 Midterm 2011 – Q3 Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) (Assume a perfect capital market for borrowing and lending exists and the market interest rate is 20%) †¢ Alternatively: To solve for optimal consumption plan (i. e. C0*and C1*) Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part B – Which investment, A or B will Jack choose?What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) †¢ Alternatively: To solve for optimal consumption plan (i. e. C0*and C1*) †¢ MRS = – (1+r), which leads to †¢ – (C1/2C0) = 1. 2 C1 = 2. 4 C0 †¢ Budget constraint: C0 + C1 / (1+r) = Total Wealth = $934. 03 C1 = 1120. 84 – 1. 2C0 C0* = $311. 34 C1* = $747. 22 Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part C – Jack can hire a worker to supervise one investment for him. As a result, he can now invest in both production opportunities if he wants.If he hires a worker, he has to pay wages in equal instalments (i. e. Same wage today and next period). What maximum wage per period would Jack be willing to pay? (4 marks) Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part C – Jack can hire a worker to supervise one investment for him. As a result, he can now invest in both production opportunities if he wants. If he hires a worker, he has to pay wages in equal instalments (i. e. Same wage today and next period). What maximum wage per period would Jack be willing to pay? (4 marks) †¢ NPVA = $89. 33 = W + (W/1. 20) †¢ W = $48. 3 (i. e. Maximum wage per period) Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part D – Jill earns an income of $250 today and $250 next period but has no access to any production opportunities. She can, however spend some money today to purchase investment opportunity B. Her utility function is: U(C0, C1) = C0 + 2C1 + min(C0, C1) What is the highest price that Jill is willing to pay? (4 marks) Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part D – Jill earns an income of $250 today and $250 next period but has no access to any production opportunities.She can, however spend some money today to purchase investment opportunity B. Her utility function is: U(C0, C1) = C0 + 2C1 + min(C0, C1) What is the highest price that Jill is willing to pay? (4 marks) †¢ With a perfect capital market, the Fisher Separation Theorem applies †¢ So the maximum amount she will pay is $434. 03 (i. e. NPVB) Contact: otto. [email  protected] utoronto. ca FINANCIAL MARKETS AND NET PRESENT VALUE (TO SUCCEED – PRACTICE, PRACTICE, PRACTICE) Week 3 – Quick Review (Self-Evaluation) of Week 2 â€Å"GET TO KNOW YOU† SURVEY (Name: Optional)Question #1: †¢ What has occurred in your other courses that you were happy about and would like to be incorporated int o this course ? †¢ What has occurred in your other courses that you were NOT happy about? Question #2: †¢ Anything specific you would like to learn? What are your learning goals in this course? †¢ Any specific requests from the instructor, TAs, program, other support staff, etc? Question #3: †¢ Are you thinking of pursuing further education in Finance, if not then what do you have in mind? And/or†¦ What job(s) are you interested in? Question #4: †¢ Tell me more about yourself (e. . goals, program concentration, 2nd or 3rd year, etc†¦ ) Question #5: †¢ Any other comments, requests, suggestions, etc? TAKE ~3 MINUTES INDIVIDUALLY TO FILL OUT SURVEY TAKE ~ 5 MINUTES TO TALK TO 5 CLASSMATES WHOM YOU HAVEN’T MET YET (write down initials) SURVEY RESULTS (SUMMARY) †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Real world experiences, practical (real-world) examples, cases†¦ Relevant news (where to find news), Current issues in the market Relate course material to real world Exam tips/techniques Applications and excel models used in the real world Interactive class, games, videos†¦Extended office hours (availability) to address questions Humour Practice questions and solutions; Past exams and solutions Capital markets (high-level overview) Typical jobs in finance, Leading finance organizations Additional tutorial time Stock picking, portfolio allocation/analysis, investment tools/strategies, trading tips Learning topics that can be applied in real life Relate designations/roles to course material and applications Better understanding of financial instruments (e. g. Mortgages, bonds, etc†¦ ) View of finance from other functional areas (e. g. Marketing) http://www. explorefinancialservices. om/Options http://www. explorefinancialservices. com/ Financial Markets: What is Going On? Firms (Users of Capital) Initial Public Off ering (IPO) Secondary Offerings (SEO) Borrowing (Loans, Bonds) Dividends, $ Repurchases, Interest Payments $ Market Mechanisms or Market Makers (Stock Exchanges, Banks, Investment Funds, †¦) $ $ Firms Issue Stock Certificates and Bonds $ $$$ Invested in Stocks and Bonds Investors (Providers of Capital) Investment Banks help firms make transactions Brokers/Dealers help investors make transactions Reference: Alex MacKay 113 Hedge Fund Strategies Dedicated ShortSource: AIMA Canada Further Reading Hedge Funds – Emerging Market Strategy †¢ Emerging Markets (American Depository Receipts – ADRs vs. Foreign Securities) http://www. sec. gov/pdf/ininvest. pdf (Page 12) (SAP) Hedge Fund – Quants †¢ Jim Simons (Renaissance Technologies) – Commodities/Futures – (Rapid Fire Trading) – (computer and system specialists, researchers and traders) (computational linguists–speech recognition/investing) †¢ http://chinese-school. netfir ms. com/abacus-hedge-funds-Jim-Simons. html †¢ †¢ Kenneth Griffin (Citadel Investment Group) – Convertible Bonds –> Long-Short †¢ http://money. cnn. om/2008/12/08/news/companies/citadel_vickers. boyd. fortune/index. htm The Quants (Scott Patterson – Wall Street Journal Reporter) †¢ †¢ http://www. businessweek. com/magazine/content/10_09/b4168070829612. htm http://online. wsj. com/article/SB10001424052748704509704575019032416477138. html Steven Palmer (AlphaNorth Asset Management Inc) (Microcap – Tech) †¢ http://www. theglobeandmail. com/globe-investor/funds-and-etfs/funds/top-hedge-fund-manager-turns-to-techmicro-caps/article1884049/ House Dems propose taxing equity trades to fund new federal programs †¢ †¢ †¢ Financial transaction tax on all stock (0. 5%), bond (0. %) and derivatives (0. 005%) trades Protects financial markets from speculation Make high-frequency trading â€Å"unprofitable† http://thehi ll. com/blogs/floor-action/house/249893-house-dems-propose-taxing-equity-trades-to-fund-new-federal-programs Harsh HFT curbs could sneak into MiFID †¢ †¢ †¢ †¢ Introduction of minimum resting times between trades Could force HFT firms out of the market, widening spreads and making trading more costly Meetings held with the European Parliament’s Economic and Monetary Affairs Committee (ECON) MiFID (Markets in Financial Instruments Directive) – European Union Law http://www. hetradenews. com/news/Regions/Europe/Harsh_HFT_curbs_could_sneak_into_MiFID_II. aspx CAPITAL MARKET THEORY RSM 332 – Week 2 Week 1 – Introduction – Financial Accounting (Review) Week 2 – Financial Markets and Net Present Value Week 3 – Present Value Concepts Week 4 – Bond Valuation and Term Structure Theory Week 5 – Valuation of Stocks Week 6 – Risk and Return – Problem Set #1 Due Week 7* – Midterm (Tuesday*) We ek 8 – Portfolio Theory Week 9 – Capital Asset Pricing Model Week 10 – Arbitrage Pricing Theory Week 11 – Operation and Efficiency of Capital Markets Week 12 – Course Review – Problem Set #2 DueContact: otto. [email  protected] utoronto. ca THANK YOU SEE YOU NEXT WEEK! OFFICE HOURS WEDNESDAYS – 4:00PM-6:00PM ROOM 413 OR 417 105 ST. GEORGE STREET ROTMAN (NORTH BUILDING)

How Antagonists Effect a Story Essay

In the movie Dark Knight Rises, the antagonist was Bane. Bane’s motives were to wreck and destroy the plans of the protagonist, Batman. Likewise, the antagonist in the book To Kill a Mockingbird, Bob Ewell displayed similar characteristics that were against the protagonist, Scout Finch. In the case of the Shakespearean play Midsummer Night’s Dream, the antagonist is not clear since the play is fully based on confusion and accidents. However, the closest thing being the antagonist is love since it causes the characters in the play to act erratic, foolish and fickle. All the antagonists strived for one similar goal; to ruin the plans of the protagonists. In Dark Knight Rises, Bane displayed his antagonistic character by wreaking havoc in the city of Gotham which is contrary to what Batman would do. â€Å"When Gotham is ashes, then you have my permission to die. â€Å"- Bane to batman after initially defeating him explaining why he does not kill him. This line states Bane’s plan for Gotham and Batman. It also proves that Bane is the antagonist. This also display’s Bane’s yearning for power. By defeating Batman, he expects to establish his rule over Gotham. â€Å"Oh, you think the darkness is your ally. But you merely adopted the dark; I was born in it, moulded by it, I didn’t see the light until I was already a man, by then it was nothing to me but BLINDING! â€Å"- Bane to Batman during their first bout. This quote explains how Bane thinks he can defeat batman and prevail. It also displays a key quality of an antagonist which is confidence. Bane’s behavior and actions in the movie affects the plot in a huge way. It calls upon Gotham’s fate into question whether if Gotham city will survive or not. Therefore, this adds a dramatic suspense to the plot and raises its climax. In To Kill a Mockingbird, Bob Ewell displayed his antagonistic character by going against the verdict at Tom Robinson’s trial, someone who he claims, raped his daughter, Mayella Ewell. After Bob lost the case after being confronted by Atticus of clear evidence that he was lying, he attacked Atticus’ children Scout and Jem. This show’s Bob’s need for revenge and his hatred towards Atticus. He also treats mostly all the characters in the book in an offensive manner and he is hated by everyone. â€Å"I seen that black nigger yonder ruttin’ on my Mayella! † (17. 84). This quote proves his persistence in proving the point that Tom Robinson (whom he refers to as ‘nigger’) raped Mayella. Persistence is also a preserved quality in an antagonist. â€Å"You don’t have to touch her, all you have to do is make her afraid, an’ if assault ain’t enough to keep you locked up awhile, I’ll get you in on the Ladies’ Law, so get outa my sight! If you don’t think I mean it, just bother that girl again! † (27. 8, 12). This quote which was pointed against Helen Robinson, shows that Bob Ewell is a power seeking person. By scaring Helen, he is declaring his power over her. Bob has a major effect on the plot of this story, not only he is raising suspense, but he is also the leading cause for hatred in the story. Had not Bob befit this role in the plot, the story would have not reached its climax. In the Shakespearean play Midsummer Night’s Dream, the antagonist is not clearly depicted since it is a comedy. However, there seems to be a great deal of actions of foolishness and fickleness among the characters. This is caused by love. When Hermia fell in love with Lysander, Demetrius who was betrothed to marry Hermia, objected to their love. However, another maiden named Helena was in love with Demetrius. This displays a trail which love creates. In other words, a confusion on who loves who. To further eradicate this confusion, the flower’s juice which was placed on Lysander and Demetrius turned the situation around. The lovers switched their hearts to Helena. Therefore causing a huge mishap. Love has a huge effect on the plot. It caused hatred and violence therefore adding to the suspense and the climax. It was also persistent which resulted in the characters’ firm actions. In Conclusion, the antagonists in all three pieces had the following similar characteristics: Persistence, Power hunger and hatred. However, all the antagonists strived towards one specific goal that is to eliminate the protagonist. All three antagonists had similar effects towards the plot and therefore raising the climax.

Congress and The Presidency Essay Example | Topics and Well Written Essays - 1000 words

Congress and The Presidency - Essay Example While the House and the Senate enjoy equal status in most matters, there are some special powers granted to one chamber only. Here, it is interresting to note that for matters pertaining to the confirmation of presidential nominations to high-level executive and judicial positions, and for the ratification of treaties, there is a requirement for the Senate's advice and consent. On the other hand, it is important for bills in lieu of raising revenue to originate in the House of Representatives, apart from any proceedings that have to do with the process of impeachment. Before proceeding, it is important to point out that from 1952 to 1994, there was a lull in the any activity from the Republican side where the Congress was concerned. But after the Republicans made a sweep with the 1994 mid term elections by capturing a whooping 54 seats in the House of Representatives and eight seats in the Senate , the Congressional corridors were dominated basically by the Republicans who have made various changes in the Congress for the last twelve years before the Democrats took over. In this regard, the first aspect we will study in this paper is that of policy making as regards the power of the institutional heads in the Republican quarters. Here, the Republicans are vastly different from their Democrat counterparts in the sense that the typical Republican is a staunch believer of the fact that law making is an activity that occurs strictly in the legislative and judicial province where the judges are the end all and be all as far as law making and asserting the same is concerned. This began to show in the Congress with a strict segregation of law and policy making practices followed by the Senate and the House. With the adevnt of the Republican, both wings now had seperatist attitudes towards the activities and tasks that were to be carried out by them.This was a major change launched by the Republican majoirty. With further Republican contact, there were changes that took place where the power of campiagn contributors were concerned as well. With different groups having their own varied interests, it was seen that the pattern of campaign contributors changed to open invitations for all kinds of people instead of being restricted to the most righteous as it was in the Democratic past. Fruther, if one is take a closer look at the policy making process as far as ignoring the national interest to pay more attention to the character of local interest was concerned, it will be clearly seen that the Iraq war was one such instance where the natinal interest was hardly paid heed to. In the name of "democracy", the Bush government went all out to satisfy the instigations of a personal set of Republican lobbyists. If instead of the theoretical pretense of "democracy" (as in "exporting democracy to Iraq"), one were to closely examine the actually existing practice of "democracy," it would have been more accurate to say that what we have today is oligarchical rule by and large for a plutocracy -- so-called "conservatism" in theory (small government, fiscal conservatism, isolationist foreign policy) boils down in practice to no-holds-barred greed - pursued where possible in an authoritarian manner. As far as influencing

MGT CHECKPOINT WK9 Essay Example | Topics and Well Written Essays - 250 words

MGT CHECKPOINT WK9 - Essay Example Although supervisors cannot give it to an employee, they can influence employees to be motivated by creating an environment that creates motivation on the side of an employee (2004). To maintain a workforce that is motivated, Supervisors need to understand different needs of his subordinates and try to fulfil them. Therefore, supervisors must acquaint themselves with the need hierarchy theory that demands good wages for employees, pensions to cater for safety needs, friendly co-workers for social needs, promotions, recognition, and rewards for self-esteem needs and meaningful work for self-actualisation needs. In addition, a supervisor can do the following to maintain employee’s motivation; make the work interesting, relate rewards to performance, provide valued rewards, treat employees as individuals, encourage employee’s participation and cooperation, and give timely and accurate feedback. Besides motivating the existing employees, supervisors must make the correct choices when selecting new staffs to join the company. An employee who is properly orientated and trained is quite productive to the company. In addition, timely planning boosts

The effects of the Ottoman Empire on modern day Crete Essay

The effects of the Ottoman Empire on modern day Crete - Essay Example Crete, therefore, has a rich history that informs how individuals strove to build a better world for the rest of the human population. The past struggles of the Cretan people define their modern culture. Multiple events helped create the Cretan culture. To begin with, conquests have made the modern day Crete. This mainly occurred due to the wealth associated with the Island as different parties sought to gain economically from Crete. In addition, religion hugely influenced the development of the region. This occurred in terms of religious conversion and religious conflicts. Notably, Islam and Christianity informed the cultures and attitudes of the residents of Crete. In addition, intervention by international parties influenced the development of Crete. Modern Cretans have a culture of self-defense and self-reliance. In this sense, the citizens believe that they should assume the responsibility of their own lives. In such a nation, individuals slightly delineate from politics since they believe pure hard work relieves one from poverty. Self-reliance is notable in the military culture of Cretans. For instance, a significant number of surveys note that every household in Crete owns at least one gun. These guns are either legal or illegal. In the 17th century’s rebellions against the Christian rule, the Ottoman authorities usually responded by executing several bishops and Christians. In turn, the Greeks attacked the Turkish people. It is notable that there were huge casualties on both sides of the war. The Muslims who migrated into the northern fortified towns experienced famine that consumed almost 60% of the population (Kyriakopoulos, 2008). These experiences seemed to have forged an attitude among Cretans that the state mig ht not always protect them. In this turn, they ensure their own security by owning guns. The Cretans have a contemporary language that borrows heavily from the region’s development. In as much as the general

Marketing Communications in Tourism & Leisure Industry Essay

Marketing Communications in Tourism & Leisure Industry - Essay Example In this regard, the critical theory is applicable to the noble cause of whl.travel’s campaign in promoting sustainable tourism through empowering the local communities to take a leading role in building the tourism industry in their respective communities. The goal of critical theory in tourism is to empower the members of the local communities to be the main actors in promoting the tourism industry (Tribe, 2008). Indeed, it is the duty of every business to ensure that they achieve their profit goals but there is also need to create a fine balance between their activities and the need to safeguard the interests of the culture of the local people in communities they will be operating in. Thus, the cultural environment is made up of institutions and other forces that affect a society’s values, perceptions, preferences and behaviours (Kotler and Armstrong, 2004). Usually people grow up in a particular society that shapes their basic beliefs and values and they absorb the w orldview that defines their relationships with others. Therefore, different cultural characteristics affect the marketing decision making process of a particular organisation that operates directly within the community. For instance, people have different views about themselves, others, organisations, society, nature as well as the universe (Kotler & Armstrong, 2004). It is therefore imperative for the organisations operating in the tourism industry to adopt the environmental perspective. This is â€Å"a management perspective in which the firm takes aggressive actions to affect the public and forces in its marketing environment rather than simply watching and reacting to them.† (Kotler and Armstrong, 2004, p.132) Evaluation of Marketing Communications by whl.travel In order to evaluate the marketing communications used by whl.travel, it is important to give a historical background of the organisation in order to gain a clear understanding of the whole concept. According to i ts official website (2011), â€Å"the WHL Group is a private company incorporated in Hong Kong and is owned and operated by a team from Australia, Brazil, the Czech Republic, Hong Kong, India, South Africa, Switzerland, Syria, USA, Vietnam and Zambia.† Whl.travel launched its campaign after realising that it was important to incorporate the cultural values of local people in emerging tourist markets especially in the developing world. The strategy it uses is unique in that the booking site for all tourist facilities in the areas it is operating in are owned and operated by the local people. The major aim of this strategy is to empower the local people to have control of the tourism industry while at the same time promoting their local culture and environment through sustainable practices. Culture exchange is promoted and there are various marketing communication strategies used to achieve this initiative. A company’s marketing communication mix is also called the promo tion mix and it is defined as â€Å"a concept of marketing communi

What are some guidelines that would help one achieve individuality Essay

What are some guidelines that would help one achieve individuality - Essay Example Different people require different environment to develop and there is no single life pattern suitable for everyone (Ten, 1980). On individuality, John Stuart Mill recommends that people should not follow the custom just because it is the norm. Conforming would only compare human beings to apes and sheep, which rely on faculty of imitation (Mill, Anderson & Anderson, 2003). Instead, Mill wants people to choose their course of life more reflectively basing their decisions on their own experiences. Attaining individuality is dependent of reflection and deliberation. This involves use of distinctive human faculties including judgment, perception, mental activity, discriminative feeling and moral preference (Mill, Anderson & Anderson, 2003). Since individual natures are not transparent, people experience living, deliberate and reflect on these experiences and derive lessons from them. Following the lessons, an individual should then make right inferences regarding what is more suitable for them (Mill, Anderson & Anderson, 2003). In light of Mills’ advocacy for developing individuality, Vincent Ruggiero (2008) gives four steps that act as guidelines to assist in achieving individuality. The first step according to Ruggiero (2008) is treating an individual’s first reaction to another person, situation or issue with suspicion (Ruggiero, 2008). A person should not at first embrace that feeling or reaction without examining the reason as to why they reacted in such a manner. People, issue or situations bring out feeling of joy, shock, disappointment or hurt. It is important that a person, before internalizing these feeling, understands why they occurred in the first place. The second step involves deciding why they reacted as they did during the encounter. At this stage, if possible an individual should determine what specific

The Role of Older Australians in Family Life Assignment

The Role of Older Australians in Family Life - Assignment Example Contrary to other countries which are giving little importance or no importance at all to older people, Australia recognizes the essential role that older people assume in the society. They specifically believe that older Australians play an active and significant role in family life. This recognition serves as a proof that Australians are indeed family-oriented. As such, for the purpose of this essay, the older Australian’s family life, living arrangements and inter-generational role shall be discussed. Also, the change of their roles and activities beyond eighty years of age shall be analyzed. Generally, when one reaches the old age, he or she is somehow considered as irrelevant to the economic growth of a community. One may base this argument on the fact that old people often retire from work and are eventually left at home. This consequence is viewed by some as disadvantageous to one’s family as well as to the government. The reason of which primarily revolves around the idea of â€Å"financial cost.† On the part of the family concerned, the presence of old people at home means â€Å"additional dependents.† With regard to the government’s side, an increase of the aging population which is higher than the rate of those newly born means lesser workforce and more funding for services like healthcare and medicine. In connection, Australia is observed to have been experiencing a problem with â€Å"aging population† (De Vaus, Gray & Stanton, 2003). For older Australians (aging sixty-five years and older), family life consists of two important matters, living arrangement, and inter-generational role.  

Case assignment for sport facilities and venues Study

Assignment for sport facilities and venues - Case Study Example The dilemma being faced by Atkins is similar to the one faced by many expanding business organisations that is to decide whether or not expand their operations beyond a certain point in terms of cost and profitability. ... This growing seasonal demand versus the diminishing capacity is an operational challenge at Golden Shores.The problem remains that this demand is not permanent or steady through out the year.The aim would thus be for a profit sustainable methodology to apply to the capacity planning decision that faced operations management for the tennis facilities. Some statistical calculations Next pertaining to the query about the number of tennis courts which will be needed in July 2004 and its comparison to the present capacity as well as the way ahead for the planning for the next season in terms of capacity by Ms Atkins it is possible to show the following workings. These workings take into account the peak months of usage as well as the past use of the facility.The rate at which the demand is increasing and the cost of utilising 100% capacity of each court alongwith tariff management. It can be seen from Exhibit 3 that July and August are the peak months for Guest nights with the total court hours peaking to 2885 hours. The factors or the formula I would suggest for Ms Atkins would be to focus on capacity decisions which determine other measures of service management such as productivity, growth, change, and competition. GS tennis courts will have to as a part of the service industry provide services as and when they are demanded because it cannot be inventoried.The cost would the demand variability which will lead to alternating periods of idle service workers or facilities and consumer waits. This cost has to be subtracted as a trade off to the cost of idle resources versus consumer retention since a dissatisfied consumer base is likely to hurt the long-term profits and

An Evaluation of Pip, and His Great Expectations Essay Example for Free

An Evaluation of Pip, and His Great Expectations Essay In the year 1860, author Charles Dicken’s began his thirteenth novel, Great Expectations. The work is a coming-of-age novel, which tells the life story of an orphan boy named Pip, who much like Dickens’ in his earlier years is unhappy with his current life. A number of Charles Dickens’ personal life events are mirrored in the novel, leaving Great Expectations to be one of his most autobiographical works. Young Pip, the protagonist of the novel is stuck living in the marsh country, he is working a job that he hates, and considers himself to be too good for his current surroundings, much like Dickens’ did when he was younger. While working on Great Expectations, Dickens’ made weekly installments to the novel, leading it to be one of his most well structured works. Great Expectations is a novel which develops a number of different themes as the story progresses, with the primary theme being personal growth and ambition. The story tells us that morals such as affection, loyalty and conscience are much more important in reality than social-class, social advancement, and wealth. The protagonist, Pip, is destined to learn this lesson through his ‘great expectations’, as he explores different ideas of ambition and self-improvement. Great Expectations is a convincing tale told in the perspective of an orphan named Pip, who tells his realistic life story from the very beginning of his ‘great expectations’, which all began one evening when he had a strange encounter with an escaped convict in a cemetery, while he was looking at the tombstones of his parents. This mysterious stranger ordered young Pip to bring him food and a file to break loose the shackle on his leg. If Pip does not comply, the strangers promises to murder him. After bringing the convict food and an iron the next day, Pip finds out that the convict has been arrested, and the mysterious criminal has protected Pip by telling the authorities that he stole the food himself. Some time after this event took place, a lawyer by the name of Jaggers appears in the marsh country that Pip lives in, and he comes with strange news: a strange benefactor has given young Pip a large fortune, and Pip must leave his life of being a blacksmith at the for ge behind in order to go to London with Jaggers and become a gentleman, and get his education. During his time in London, Pip discovers many truths about his life, the mysterious benefactor, and his past. A man from the country marsh named Orlick who is the polar-opposite of Pip reappears in his life, and is dead set on ruining it, as well as hopefully killing him. The reader is kept guessing what will happen with Orlick and Pip as the story progresses, as well as who Pip’s mysterious benefactor is. Dickens’ managed to make Great Expectations and interesting read, but a rather dull journey lacking any sort of excitement. Instead of having any sort of surprise throughout Great Expectations, the author simply gives answers to questions asked and created throughout the story, none in which intrigue the readers. The end holds no real surprise, and the novel ultimately ends up being just a message to the readers, saying that money and living in a good social class is not important in comparison to family, friends, and happiness. There are a number of events throughout that story that are irrelevant to everything, such as Pip and his friend Herbert end up being in debt. The debt has absolutely no negative or positive effect on the story, but is only a bit of filler throughout one of the chapters. The main character of Great Expectations, Pip, is the most guilt-ridden character in the novel, he has no prejudice. His most noticeable and crucial characteristics are his naturally good conscience, and his immature glory of romance. Pip eventually faces an internal conflict once he better understands the reality behind poverty and immorality, he decides that he wants to achieve as much as possible. Because of this, Pip puts his life at the marsh country behind him, he abandons the people who care for him the most, and goes to London where he becomes a gentleman. In London, Pip views his past actions very negatively, and very seldom does he ever give himself credit for good deeds he has done in the past. As a gentleman, Pip starts to act as he always imagined a gentleman would, this adds to him treating his family poorly. Many of the characters throughout the story do not seem to be very realistic, it is almost as if they were meant to come across as being quite fictional. Estella is an unrealistically ‘cold’ character, who has zero feelings for anybody or any living thing. She has absolutely no ability to express emotions to the extent that it seems completely unreal.Despite this, Estella almost does come across as being quite sympathetic for her being the way she is. She warns Pip regularly that she has â€Å"no heart†, and strongly urges him to love somebody else, for she is not good for his wellbeing and happiness. At the end of the novel, however, Estella finally begins to feel like as though she is out of Miss Havisham’s control, and is finally her own person, as she tells Pip, â€Å"Suffering has been stronger than all other teaching. . . I have been bent and broken, but I hope into a better shape.† Miss Havisham is the most unrealistic character in Great Expectations, she lives in a rotted mansion, and has not removed her wedding dress in over ten years. Miss Havisham has stopped every clock in her mansion at twenty minutes to nine, and refuses to ever know what time it is, whether it be day or night. Great Expectations takes place in the 19th century, the main character, Pip, is born in England in the 1800’s and is telling his story in the year 1860. The novel is set around the life of Pip, who is on a mission to meet his â€Å"great expectations†, whatever those may be, and to become a gentleman. His life story takes place both in the southeast marsh country of England, and eventually in London, England, where Pip lives as a gentleman. Great Expectations takes place during a very busy time for England, with the Industrial Revolution occurring, as well as the voidance of slavery in the British colonies during 1834. To the people, London is considered to be a prospering capital, and England is a powerful giant on the globe. However, the way Dickens’ depicts is quite the opposite of that. Pip’s hometown Kent, which resides near the marshlands is twenty miles away from the ocean, and the townsfolk can see the Thames River flow through it. Off in the distance of the marshland and ocean is where the convict ships dock, causing many criminals to lurk about the area. The setting is important because of the time period the story takes place, the economy is thriving and there is plenty of opportunity for money. The mood throughout the story feels rather empty, there is never much tension, never much pain, and never much happiness throughout Great Expectations. There are times throughout the novel when some places Pip travels to bring the mood to different levels, for example, Miss Havisham’s rotting mansion sets a darker mood on the tale, but shortly after when Pip is back in London, the story is back to the usual calm mood of Great Expectations. The story often goes through mood swings because of this. When certain characters come into the picture, they do hav e a slight effect on the atmosphere, though the atmosphere of the novel is usually made clear through Pip’s thoughts, as well as his actions. The year is 1860, Charles Dickens’ has just begun his thirteenth novel, the irritating tale of a young man named Pip, who has come across a large fortune of money, and decides to selfishly leave his family and loved ones behind in order to go to London, and be rich. As the novel progresses, Pip develops as a human being and learns many things, as well as beats himself up for his past. Throughout the ride, Pip comes across a great deal of many different people,such as a heartbroken old timer who grieves every day in her own self pity, a stone cold young lady who holds no love for any living thing, a criminal who has a strong sense of high values, and a lawyer who takes Pip under his wing to becoming a gentleman. Each character is unique in their own way, yet each continue to be uninteresting throughout the novel. Dickens’ not only presented the readers with a number of dull characters, but gave his audience a boring tale which ultimately holds no sort of significance in the end. While the novel is generally quite uninteresting, the setting of the novel is rather exciting as it takes place during the Industrial Revolution of England, however this is hardly noted in the novel, therefore putting readers in front of a rather empty, â€Å"too much like home† world, where the men work hard and the women stay at inside all day, the rich are greedy and the poor are struggling. Charles Dickens had a great idea with Great Expectations, but focused too much on other things as well throughout the story which ultimately helped lead it to become uninteresting and irritating to get through, at times there was too much going on in the novel, while at other times unnecessary events were taking place, which did not progress the story in any way whatsoever. Though the theme of Great Expectations exists, the end gives readers more of a relief that the book is finished, rather than leaving them in an intrigued state which Dickens seemed to have originally intended.

Load Calculation Voltage Drop And Size Cable

Load Calculation Voltage Drop And Size Cable Before wiring installation process is carried out, it must follow the rules of Malaysia 1994. which requires all wiring, additional wiring or rewiring to carried out by Electrical Contractor or Electrical Wiring Unit require approval writing from the licensee or supply authority. Wireman or Contractor need to plan and indentify the work want to carried out, so that work can be more clean, tidy and safe to uses. the wireman or contractor should: Make a site visit Follow the guideline regulation from JKR identifies the user load requirement calculate the maximum demand and total connected load determine the equipment submit plants, drawings and specifications 2.0 Regulation and Nominal Voltage in Malaysia 2.1 The Regulation Electricity supplied to domestic consumers must be follow standard specification, which are: MS MSIEC International Electro technical Commission, IEC British Standard , BS the current British standard has integrated with the European standard, BSEN European Standard, EN Electricity supplied also need to refer akta bekalan elektrik years 1990. This act is to provide for the investing of property and liabilities of the lembaga letrik negara in a each company, to make financial arrangement for that company, to provide for matters relating to employee and for other matters connected therewith Guidance notes for wiring regulation can refer IEE wiring regulation by Brian reference for all contractors, technicians and other professionals working in a non- supervisory capacity, as well as newcomers to the industry, all of whom are involved in inspecting and testing electrical installations, and need to ensure their work complies with the latest version of the Wiring Regulations. The installation on equipment and so on need to follow regulation from JKR such as : L-S1 : Specification for low voltage internal electrical installation system L-S2 : Specification for low voltage automatic power factor correction L-S3 : Specification for low voltage underground cable L-S4 : Specification for low voltage overhead line distribution L-S5 : Specification for three phase generator set L-S6 : Specification for acoustic treatment for generator room L-S7 : Specification for single phase diesel generator set L-S8 : Specification for lightning protection system( using stranded G.I wires) L-S9 : Specification for lightning protection system for structures 2.2 Nominal Voltage in Malaysia The official mains power voltage is AC 230 V with the tolerance of +10%,- 6%. However, the supplied voltage remains at 240 V, as the supplied voltage is within the allowed tolerance. Areas that rely on private power companies, like some parts of Penang and Kedah, receive a true 230 V supply. Remote villages which rely on off-grid localized diesel generators (i.e. small villages and/or isolated holiday resorts on islands too far away from the mainland to have viable underwater cabling) may receive unstable power with higher voltages, with some areas recorded to be as high as 260 V Before this, the rated voltage in Malaysia is 240/415V with range +5% to -10%, and effective in January 2008 the rated change to 230/415V with range +10% to -6% 3.0 Load Calculation Each design want to be made need go through the process of load calculation, where the process is calculated from distribution board(DB), sub-switch board(SSB) and main switch board(MSB) A distribution board is a panel or enclosure that houses the fuses, circuit breakers, and ground leakage protection units used to distribute electrical power to numerous individual circuits or consumer points. The board typically has a single incoming power source and includes a main circuit breaker and a residual current or earth leakage protection device. A distribution board may be used to distribute either single or three phase supplies depending on the installation specifics. Although distribution board equipment, layouts, and legislative requirements differ from country to country, the basic principles of distributing a single supply to various individual points while ensuring safety and control for each remains the same. sub-switchboard function is same as distribution board, but MSB is MSB is an assembly of distribution panels, each of which contains switches and breakers that allow electricity to be redirected to appropriate loads. The role of MSB is to divide the main curre nt provided to the switchboard into smaller loads for further distribution and to provide switching, over-current protection and metering for these various loads. 3.1 Type of load Electrical load types fall into four categories: resistive, capacitive, inductive or a combination of these. Few loads are purely resistive, capacitive or inductive. The imperfect nature of how electrical and electronic devices are built causes inductance, capacitance and resistance to be an inherent part of many devices. 3.1.1 Resistive Loads A resistor is a device that resists the flow of electricity. In doing so, some of the electrical energy is dissipated as heat. Two common resistive loads are incandescent light bulbs and electric heaters. Resistance (R) is measured in ohms. An incandescent light bulb produces light by passing an electric current through a filament in a vacuum. The resistance of the filament causes it to heat up and the electrical energy is converted to light energy. Electric heaters work in the same way except they produce little, if any, light. The electrical current and the voltage in a resistive load are said to be in phase with each other. As voltage rises or falls, the current also rises and falls with it. 3.1.2 Capacitive Loads A capacitor stores electrical energy. Two conductive surfaces are separated by a non-conductive insulator. When an electrical current is applied to a capacitor, electrons from the current gather on the plate attached to the terminal to which the electric current is applied. When the current is removed, the electrons will to flow back through the circuit to reach the other terminal of the capacitor. Capacitors are used in electric motors, radio circuits, power supplies and many other circuits. The capability of a capacitor to store electrical energy is called capacitance (C). The main unit of measure is the farad, but most capacitors are measured in microfarads. The current leads the voltage of a capacitor. The voltage across the terminals starts out at zero volts while the current is at its maximum. As the charge builds on the capacitors plate, the voltage rises and the current falls. As a capacitor discharges, the current rises as the voltage falls. 3.1.3 Inductive Loads An inductor may be any conductive material. When a changing current passes through an inductor, it induces a magnetic field around itself. Turning the inductor into a coil increases the magnetic field. A similar principal occurs when a conductor is placed within a changing magnetic field. The magnetic field induces an electrical current within the conductor. Inductance (L) is measured in henries. The changing voltage and current in an inductor are out of phase. As current rises to a maximum, the voltage falls. 3.1.4 Combination Loads All conductors have some resistance under normal conditions and also exhibit inductive and capacitive influences, but these small influences are generally dismissed for practical purposes. Other loads make use of various combinations of inductors, capacitors and resistors to perform specific functions. The tuning circuit of a radio uses variable inductors or capacitors in combination with a resistor to filter out a range of frequencies while allowing just one narrow band to pass through to the rest of the circuit. A cathode ray tube in a monitor or television makes use of inductors, resistors and the inherent capacitance of the tube to control and display a picture on the phosphor coatings of the tube. Single phase motors often use capacitors to aid the motor during starting and running. The start capacitor provides an additional phase of voltage to the motor since it shifts the current and voltage out of phase with each other. 3.2 Total Connected Load(TCL) and Maximum Demand(MD) One of the most calculation basic electrical calculation is to calculate the total connected load(TCL) and maximum demand(MD) The TCL is the mechanical and electrical load that will be connected for that particular area, where all of the electrical loads in an installation be maximized and simultaneously, The MD is the total kW that actually contributes the total power used in one time after applying the diversity factor based on the Total Connected Load calculated. It less than or equal to the connected load (TCL). Value of maximum demand of a building and ratio of diversity factor must be determined so as not overdesigned or under designed. By using MD also, many cost can be reduced as cable size, the size of the breaker, busbar size etc By calculating the TCL, it can know the total load connected for a particular area and also can determine the sizing of cables. But, the most important thing is by having the TCL, it can determine the MD. This MD will be declared to the utility provider for the purpose of meter deposit and utility bill 3.2.1 Diversity Factor (DF) Diversity factor is different or ratio between MD and TCL. the equation can relate MD, TCL to DF is : MD = TCL x DF Should be reminded, to determined DF normally it can not be precisely determined. DF value is only an approximate value only based on the guidance or previous data. The diversity factor is almost always greater than 1 since all components would have to be on at simultaneously at full load for it to be one. 3.2.2 Increase Burden After MD known then it should be added 20% at DB and 30% in SSB or MSB to determine the size of the incoming breaker. This is because taking into account the increase in the load in the future. it is known as increase burden. The specification percent of increase burden: Distribution Board School: MD + 20% Office : TCL Hospital : TCL + 20% Sub Switchboard and Main Switchboard MD + 30% 3.3 Circuit Breaker To provided adequate over current protection, each circuit should be equipped with a circuit breaker for automatic interruption of supply in the event of overload current and fault current. the circuit breaker installed in a circuit should break any fault current flowing in the circuit breaker before such current causes danger due to thermal or mechanical effect produced in the circuit or the associated connection. the characteristics of the breaker shall satisfy the condition that the breaking capacity should be greater than or equal to the prospective short circuit current or earth fault current at the point at which the breaker installed The rated current of a circuit breaker is the current that it can carry continuously, generally for a duration of more than eight hours. The rated current must not cause a temperature is between -5C to 40C. Different temperature rise limits are specified for different parts of a circuit breaker. A circuit breaker will not operate (Trip) if the current passing through it is 105% to 113% of its rated current. It will take one or two hours to trip if the current passing through it is 130% to 145% of the rated current. 3.4 Type of Circuit Breaker need to be determined 3.4.1 Miniature Circuit Breaker(MCB) MCB are used extensively for the protection of final circuit in domestic and commercial installations. they offer these circuit protection, particularly when overload or short circuit conditions are being considered than the fuse alternatives. MCBs are available for both single phase and three phase circuit. In a single phase circuit, a single MCB may be used in the live conductor or a two-pole MCB connected in the live and natural conductor. three or four pole MCBs are used for protection in three phase supplies. If a fault current flow through even one pole of an MCB, all the three poles will be operated. The main standard for MCBs in BS 3871. This standard covers MCB ratings up to 100A, breaking capacities up to 9 kA and voltage ratings up to 415V The preferred value of the rated current are : 6, 8, 10, 13, 16, 20, 25, 32, 40, 50, 63, 80, 100, and 125A Instead of specifying the breaking capacity, the standard specifies the value of the short circuit capacity. the short circuit capacity refers to the prospective current expressed by its r.m.s value which the MCB is designed to make (closed), to carry for its operating time and to break under the specified conditions. the standard value of rated short circuit are 1.5, 3, 4.5, 6 and 10kA. for values above 10kA up to and including 25kA, the preferred value 20kA 3.4.2 Moulded Case Circuit Breaker(MCCB) Moulded case circuit breaker(MCCB) are required for installation which have higher fault level or higher current ratings exceeding 125A. MCCBs have several advantages over ordinary switches and fuses in the control and protection of circuit and apparatus. they have a repeatable non-destructive performance and are safe in operation under fault conditions. it has built-in mechanism to simultaneously open all three phases for a single phase fault. These circuit breaker are mainly used to protect main feeder cables, for incoming supply to sub circuit/distribution boards and for large motor circuit. for installation, MCCBs are suitable as free standing units, or for building into compact cubic-type switchboards. Auxiliary items such as shunt trio elements, status switches, interlocks and motor-operated mechanism for remote operating can all be integrated into the MCCB. The main industrial standard for MCCBs are BS EN 60947-1 and BS EN 60947-2. these two standard define the characteristics, conditions for operation, methods for testing and the requirements for circuit breaker with rated voltages up to and including 1000V a.c or 1500 d.c. As there are no other standard values specified in BS EN 60947, the followings are some typical technical data for reference : Current rating : 10, 16, 20, 32, 40, 50, 63, : 80, 100, 200, 300, 400, : 630, 800, 1250A Rated voltage : 380, 400, 415V Rated breaking capacity : 10, 20, 25, 35, 65, : 85kA(r.m.s) Rated making capacity : 17, 44, 53, 63, 84, : 143kA(peak) One minutes power frequency withstand voltage : 2.5kV 3.4.3 Residual Current-operated Circuit Breaker(RCCB) The Residual Current-operated Circuit Breaker(RCCB) are primarily designed to protect against indirect contact electric shock. The term indirect contact refers to the contact of the supply voltage indirectly through the touching of the exposed-conductive-part such as the metalic enclosures of electrical appliances, the metallic conduit, trunking or cable tray. These exposed-conductive-part are insulated from the live conductor and are connected to the earthing terminal and thus, should be at the earth potential. However, during an earth faults, as there is an earth fault current flowing from the love conductor through the exposed-conductive-part to the earth, the exposed metalwork may be at high potential relative to earth. touching the exposed- conductive-parts at this instance may cause an electric shock if its potential to earth exceeds 50V. Furthermore, id it is a high impedance earth fault, the magnitude of the earth fault current may not activate the overcurrent protective device. Thus, a current will continue to flow to earth, possibly generating heat and causing fire. RCCB is designed to detect such a residual current (ie. earth leakage current), to compare it to reference value and to open the protected circuit when the residual current exceeds this reference value. RCCBs are not designed to have a high breaking capacity and in fact, they have only a limited breaking capacity. They are therefore, not a replacement for other overcurrent protective devices which are designed to interrupt high fault current. There are four standard for RCCBs namely, BS4293, IEC 755, IEC 1008- 1 and Singapore standard SS 97. Based on IEC 1008, RCCBs are specified as follows: Preferred rated voltage : single phase, phase to neutral : 230V :three phase, three wire :400V : three phase, 4 wire : 400V Preferred rated current, IN :10, 13, 16, 20, 25, 32, 40, 63, 80, 100, 125A Rated residual operating current,IË„N : 0.006, 0.01, 0.03, 0.1, 0.3, 0.5A Standard value of residual non operating current : 0.5 IË„N minimum value of the rated making and breaking capacity :10 IN or 500A whichever is greater Rated condition short circuit current : 3, 4.5, 6, 10, 20kA Maximum break time : 0.3s for residual current equal to 0.5 IË„N : 0.15s for residual current equal to 20.5 IË„N : 0.04s for residual current equal to 50.5 IË„N 0.004s for residual current to 500A 4.0 Voltage Drop Voltage drop difference in voltage from one point in a current path to any other point in the same current path. Voltage drop is the result that happens to a voltage value when it meets with resistance in any current path while current is flowing, it only happens when flowing current meets resistance in a current path, the higher the value of current flowing, the higher the voltage drop across any conductor, connection, or contact in the current path. Based on Ohms law; it takes one volt to push one amp through one ohm of resistance. The location of a voltage drop in a parallel circuit determines the affect it will have on the loads that are in parallel. When a voltage drop occurs before, or ahead of the last parallel splice in a parallel circuit, it will provide less than source voltage to all loads in parallel beyond the last parallel splice. When a voltage drop occurs after the last parallel splice in a parallel circuit, the same value of voltage drop has an identical affect on the load in the affected branch whether it appears on the voltage feed side, or on the ground side of the branch load. When current flows through the cable, the voltage drop will result. This is based on a formula : V = I x R ; I = current flows through the cable R = Resistance of the cable Based on requirement of IEE wiring regulation 525-01-01. The voltage drop between the origin of the installation (usually the supply terminals) and terminals of the fixed current using equipment does not exceed 4% of the nominal voltage of the supply. The voltage drop for building must make sure it not more than 4% depend to nominal voltage, where : 4% of 1ÃŽÂ ¦ = 4% of 240 V = 9.6 Volt 4% of 3 ÃŽÂ ¦ = 4% of 415 V = 16.6 Volt The voltage drop for outside building, must not exceed 20V from nominal voltage 4.1 The Voltage Drop is Closely Related with Size of Cable Most circuits in a house do not have enough current or length to produce a high voltage drop. In the case of very long circuits, for example, connecting a home to a separate building on the same property, it may be necessary to increase the size of conductors over the minimum requirement for the circuit current rating. Heavily-loaded circuits may also require a cable size increase to meet voltage drop requirements in wiring regulations. Voltage drop and size cable can related with equation : VD Total of voltage drop Vd Voltage drop on cable mV/A/m In Rated current of breaker (A) L Length of Cable (meter) 5.0 Cable In electrical engineering cables are used to carry electric currents. Cables are the mean by which electrical energy is distributed from its source to its point of use. Copper wires in a cable may be bare, or they may be plated with a thin layer of another metal, most often tin but sometimes gold, silver or some other material. Tin, gold, and silver are much less prone to oxidation than copper, which may lengthen wire life, and makes soldering easier. http://www.electronicsteacher.com/direct-current/dc-metering-circuits/00376.png 5.1 Insulation The insulation surrounds each conductor to prevent direct contact between individual conductors and earth. Type of insulation will depends on the voltage, the operating temperature of the conductor and the mechanical and environmental condition affecting the cable during both installation and operation. Type of insulation material: Polyvinyl chloride (PVC) Rubber Cross-linked polyethylene (XLPE) Powdered mineral Oil impregnated paper tapes 5.2 Type of conductor PVC, PVC/PVC XLPE, XLPE/PVC (>25 mm2) PVC/SWA/PVC XLPE/SWA/PVC (>25 mm2) Fire Rated Cable MIMS (Mineral Insulated Mineral Sheathed Copper Conductor) MICC (Mineral Insulated Copper Clad Copper Conductor) 5.3 Installation method GI Conduit PVC Galvanised/H.D.G. Trunking PVC Hot Dipped Galvanised Perforated Cable Tray PVC/PVC, XLPE/PVC, PVC/SWA/PVC, XLPE/SWA/PVC Hot Dipped Galvanised Cable Ladder PVC/PVC, XLPE/PVC, PVC/SWA/PVC, XLPE/SWA/PVC 5.4 Cable type and selection The current carrying capacity of a cable must be sufficient to cater for the maximum sustained current which will normally flow through it. The insulation must be adequate to deal with the voltage of the system and must not be damaged by the heat produced by the current flow, high ambient temperature or by heat transferred. Cable selection therefore is primarily related to the size of the cable which will carry the required current without the temperature of the surrounding insulation rising above a critical level which will result in the breakdown of the insulation. 5.5 Current rating of cable The current rating of cable is determined by a number of factors: Ambient temperature Maximum allowable conductor temperature Conductor material insulation material Installation method 5.6 Determine the Size cable The proper sizing of an electrical (load bearing) cable is important to ensure that the cable can: Operate continuously under full load without being damaged Withstand the worst short circuits currents flowing through the cable Provide the load with a suitable voltage (and avoid excessive voltage drops) (optional) Ensure operation of protective devices during an earth fault Selected the size cable can base on : In à ¢Ã¢â‚¬ °Ã‚ ¥ Ib Iz à ¢Ã¢â‚¬ °Ã‚ ¥ In Iz à ¢Ã¢â‚¬ °Ã‚ ¥ In à ¢Ã¢â‚¬ °Ã‚ ¥ Ib * In rated current Iz rated current of cable Ib design current

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Emotional memory is one of the methods used in Stanislavski’s system. This method is where the actor draws on one of their own personal memories that relates to the situation their character is in. Emotional memory helps the actor to really become the character and portray the emotions the character would be feeling at the time. For example, if your character is grieving you would think of a time when you have grieved and remember how you felt and how you reacted to certain situations at this time. I have used this method during my rehearsal process on several occasions and it works well for me. I feel this method assists to make my performance real and believable. Emotional memory is a big part of method acting, although this method was devised by Stanislavski, Lee Strasberg said, â€Å"Method acting is what all actors have always done whenever they acted well.† (www.methodactingstrasberg.com,11/13). When emotional memory is incorporated into the rehearsal process, the actor really starts to feel the same way that the character would in the given situation. An example of this from Stanislavski’s book ‘An Actor Prepares’ is when an actor is guided through an emotional memory exercise by the director. â€Å"Imagine our amazement when both Tortsov and Rokhmanov told us that, whereas our playing of this exercise used to be indirect, insincere, fresh and true; today it was false, insincere and affective. We were dismayed at such unexpected criticism. We insisted that we really felt what we were doing. â€Å"Of course you were feeling something†, said the director. â€Å"If you were not you would be dead. The point is: what were you seeing? Let us try to disentangle things and to compare your former with your present exercise.† (Stanislavski, 1936: 163-... ...t ways. Once this part of the rehearsal process is complete the actor will know which emotions and feelings work best in the scene and will begin to incorporate emotional memory and the inner monologue. In conclusion to this essay we can say that Stanislavski’s system in the training of the actor and the rehearsal process is effective. The system helps actors to break down their characters gradually and really know the role. Some may even the say that the system helps them to almost become the character. The system has played a significant part in theatre training for many years. It has been used, adapted and interpreted by several practitioners, actors and tutors. For many years to come Stanislavski’s system will still be used in theatre training. Not only is it an effective system it is the past, present and future of theatre training and the rehearsal process.