National Bureau of Economic Research Essay

Go to the National Bureau of Economic Research (NBER) Web site, http://www. nber. org, and select New Working Papers. In the Google search space, type â€Å"alcohol. † Use the titles and summaries of the papers to answer the following questions relating to elasticity: (a) Do the mentally ill have perfectly inelastic demands for cigarettes and alcohol? Elasticity helps us define the relationship of changes in price and incomes to the effect of supply and demand. The question posed is: do the mentally ill have perfectly inelastic demands for cigarettes and alcohol? First, we must define what perfectly inelastic demand is. As defined by our textbook, a perfectly inelastic demand is one in which price change results in no change whatsoever in the quantity demanded. This is further defined as an extreme case. After reading a paper written by Henry Saffer and Dhaval Dave in 2002, the conclusions were rather convincing. When mental illness is not factored into price elasticity for cigarettes and alcohol, it is determined that raising the price of these addictive goods will lower the demand for them. The paper shows that mental illness raises the consumption of these addictive goods by 94% and 25% respectfully. Further, the test for elasticity was performed with this specific group in mind. It was determined that mental illness had no substantive effect on the price elasticity of cigarettes and alcohol. With this in mind it is easy to draw the conclusion that the mentally ill do not have perfectly inelastic demands for cigarettes and alcohol. Reference Working paper 8699 Mental Illness and the demand for alcohol, cocaine and cigarettes by Henry Saffer and Dhaval Dave. b) Does alcohol consumption increase in bad times? Before reading this article and looking at the question presented in front â€Å" does alcohol use increase in bad times? ’’ you would quickly determine that logically the answer is yes. With simple knowledge of alcohol intake one would be provoked to think alcohol in bad times can be used as self-medication to the lack of income. We have all seen that famous scene where a stressed individual will order numerous shots of hard liquor to ease their sorrow, but nevertheless with all that simple knowledge the answer to the question is actually no. By the research done in this paper by Christopher. J Ruhm he brings to light that alcohol intake doesn’t have a positive increase in bad times instead it has a decline in consumption. He uncovers that heavy drinkers decrease quite a lot with the loss of income, and that even recreational and binge drinking declines as well though at a smaller pace. As a whole, alcohol consumption doesn’t increase during bad times overall. Reference Working paper 8511 Does Drinking Really Decrease in Bad Times?  By Christoher Ruhm and William Black (c) What is the effect of cigarette taxes (and smuggling) on the consumption of alcohol? What does that imply about the cross elasticity of demand between the two? Tax implications and its effect on alcohol consumption were studied in detail in working paper 8962. This study was done in Canada. What the writer found was that higher tax rates for cigarettes wouldn’t stimulate alcohol consumption as a replacement habit. When smuggling was factored into the equation, it was found that in Canadian smuggling could have increased both cigarette and alcohol consumption. After analyzing the data with two different data sets and trying to determine cross elasticity, the first analysis determined that cigarettes and alcohol were complimentary, as cigarette consumption decreased, so did alcohol consumption, when smuggling is not factored. However, when a different data set is used, the FAMEX data, then the two were found to be independent. This forced the writer to concede that no conclusion could be drawn on the subject at the time, but that the writer could conclude that alcohol is not a substitute of cigarettes.

Financial Management Chapter 8 K

ey Chapter 8 Stocks and Their Valuation LEARNING OBJECTIVES After reading this chapter, students should be able to: †¢ Identify some of the more important rights that come with stock ownership and define the following terms: proxy, proxy fight, takeover, and preemptive right. †¢ Briefly explain why classified stock might be used by a corporation and what founders’ shares are. †¢ Differentiate between closely held and publicly owned corporations and list the three distinct types of stock market transactions. Determine the value of a share of common stock when: (1) dividends are expected to grow at some constant rate, (2) dividends are expected to remain constant, and (3) dividends are expected to grow at some super-normal, or nonconstant, growth rate. †¢ Calculate the expected rate of return on a constant growth stock. †¢ Apply the total company (corporate value) model to value a firm in situations when the firm does not pay dividends or is privately he ld. †¢ Explain why a stock’s intrinsic value might differ between the total company model and the dividend growth model. Explain the following terms: equilibrium, marginal investor, and Efficient Markets Hypothesis (EMH); distinguish among the three levels of market efficiency; briefly explain the implications of the EMH on financial decisions; and discuss the results of empirical studies on market efficiency and the implication of behavioral finance on those results. †¢ Read and understand the stock market page given in the daily newspaper. †¢ Explain the reasons for investing in international stocks and identify the â€Å"bets† an investor is making when he does invest overseas. Define preferred stock, determine the value of a share of preferred stock, or given its value, calculate its expected return. 1. LECTURE SUGGESTIONS This chapter provides important and useful information on common and preferred stocks. Moreover, the valuation of stocks reinforc es the concepts covered in both Chapters 6 and 7, so Chapter 8 extends and reinforces those chapters. We begin our lecture with a discussion of the characteristics of common stocks, after which we discuss how stocks are valued in the market and how stock prices are reported in the press. We conclude the lecture with a discussion of preferred stocks.The details of what we cover, and the way we cover it, can be seen by scanning Blueprints Chapter 8. For other suggestions about the lecture, please see the â€Å"Lecture Suggestions† in Chapter 2, where we describe how we conduct our classes. DAYS ON CHAPTER: 3 OF 58 DAYS (50-minute periods) ANSWERS TO END-OF-CHAPTER QUESTIONS 8-1True. The value of a share of stock is the PV of its expected future dividends. If the two investors expect the same future dividend stream, and they agree on the stock’s riskiness, then they should reach similar conclusions as to the stock’s value. -2A perpetual bond is similar to a no-grow th stock and to a share of preferred stock in the following ways: 1. All three derive their values from a series of cash inflows–coupon payments from the perpetual bond, and dividends from both types of stock. 2. All three are assumed to have indefinite lives with no maturity value (M) for the perpetual bond and no capital gains yield for the stocks. 8-3Yes. If a company decides to increase its payout ratio, then the dividend yield component will rise, but the expected long-term capital gains yield will decline. 8-4No. The correct equation has D1 in the numerator and a minus sign in the denominator. -5a. The average investor in a listed firm is not really interested in maintaining his proportionate share of ownership and control. If he wanted to increase his ownership, he could simply buy more stock on the open market. Consequently, most investors are not concerned with whether new shares are sold directly (at about market prices) or through rights offerings. However, if a ri ghts offering is being used to effect a stock split, or if it is being used to reduce the underwriting cost of an issue (by substantial underpricing), the preemptive right may well be beneficial to the firm and to its stockholders. . The preemptive right is clearly important to the stockholders of closely held firms whose owners are interested in maintaining their relative control positions. SOLUTIONS TO END-OF-CHAPTER PROBLEMS 8-1D0 = $1. 50; g1-3 = 5%; gn = 10%; D1 through D5 = ? D1 = D0(1 + g1) = $1. 50(1. 05) = $1. 5750. D2 = D0(1 + g1)(1 + g2) = $1. 50(1. 05)2 = $1. 6538. D3 = D0(1 + g1)(1 + g2)(1 + g3) = $1. 50(1. 05)3 = $1. 7364. D4 = D0(1 + g1)(1 + g2)(1 + g3)(1 + gn) = $1. 50(1. 05)3(1. 10) = $1. 9101. D5 = D0(1 + g1)(1 + g2)(1 + g3)(1 + gn)2 = $1. 50(1. 05)3(1. 10)2 = $2. 1011. 8-2D1 = $0. 50; g = 7%; ks = 15%; [pic] = ? [pic] -3P0 = $20; D0 = $1. 00; g = 10%; [pic] = ? ; ks = ? [pic] = P0(1 + g) = $20(1. 10) = $22. ks= [pic] + g = [pic] + 0. 10 = [pic] + 0. 10 = 15. 50%. ks = 15. 50%. 8-4Dp = $5. 00; Vp = $60; kp = ? kp = [pic] = [pic] = 8. 33%. 8-5a. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year 2. b. 0 1 2 3 | | | | 1. 25 1. 50 1. 80 1. 89 37. 80 = [pic] The horizon, or terminal, value is the value at the horizon date of all dividends expected thereafter. In this problem it is calculated as follows: pic] c. The firm’s intrinsic value is calculated as the sum of the present value of all dividends during the supernormal growth period plus the present value of the terminal value. Using your financial calculator, enter the following inputs: CF0 = 0, CF1 = 1. 50, CF2 = 1. 80 + 37. 80 = 39. 60, I = 10, and then solve for NPV = $34. 09. 6. The firm’s free cash flow is expected to grow at a constant rate, hence we can apply a constant growth formula to determine the total value of the firm. Firm Value = FCF1/(WACC – g) Firm Value = $150,000,000/(0. 10 – 0. 05) F irm Value = $3,000,000,000.To find the value of an equity claim upon the company (share of stock), we must subtract out the market value of debt and preferred stock. This firm happens to be entirely equity funded, and this step is unnecessary. Hence, to find the value of a share of stock, we divide equity value (or in this case, firm value) by the number of shares outstanding. Equity Value per share = Equity Value/Shares outstanding Equity Value per share = $3,000,000,000/50,000,000 Equity Value per share = $60. Each share of common stock is worth $60, according to the corporate valuation model. 8-7a. 0 1 2 3 4 | | | | 3,000,000 6,000,000 10,000,000 15,000,000 Using a financial calculator, enter the following inputs: CF0 = 0; CF1 = 3000000; CF2 = 6000000; CF3 = 10000000; CF4 = 15000000; I = 12; and then solve for NPV = $24,112,308. b. The firm’s terminal value is calculated as follows: [pic] c. The firm’s total value is calculated as follows: 0 1 2 3 4 5 | | | | | | 3, 000,000 6,000,000 10,000,000 15,000,000 16,050,000PV = ? 321,000,000 = [pic] Using your financial calculator, enter the following inputs: CF0 = 0; CF1 = 3000000; CF2 = 6000000; CF3 = 10000000; CF4 = 15000000 + 321000000 = 336000000; I = 12; and then solve for NPV = $228,113,612. d. To find Barrett’s stock price, you need to first find the value of its equity. The value of Barrett’s equity is equal to the value of the total firm less the market value of its debt and preferred stock. Total firm value$228,113,612 Market value, debt + preferred 60,000,000 (given in problem) Market value of equity$168,113,612Barrett’s price per share is calculated as: [pic] 8-8FCF = EBIT(1 – T) + Depreciation – [pic] – ([pic] = $500,000,000 + $100,000,000 – $200,000,000 – $0 = $400,000,000. Firm value = [pic] = [pic] = [pic] = $10,000,000,000. This is the total firm value. Now find the market value of its equity. MVTotal= MVEquity + MVDebt $10,000,0 00,000= MVEquity + $3,000,000,000 MVEquity= $7,000,000,000. This is the market value of all the equity. Divide by the number of shares to find the price per share. $7,000,000,000/200,000,000 = $35. 00. 8-9a. Terminal value = [pic] = [pic]= $713. 33 million. . 0 1 2 3 4 | | | | | -20 30 40 42. 80 ($ 17. 70) 23. 49 522. 10 753. 33 $527. 89 Using a financial calculator, enter the following inputs: CF0 = 0; CF1 = -20; CF2 = 30; CF3 = 753. 33; I = 13; and then solve for NPV = $527. 89 million. c. Total valuet=0 = $527. 89 million. Value of common equity = $527. 89 – $100 = $427. 89 million. Price per share = [pic] = $42. 79. 8-10The problem asks you to determine the value of [pic], given the following facts: D1 = $2, b = 0. 9, kRF = 5. %, RPM = 6%, and P0 = $25. Proceed as follows: Step 1:Calculate the required rate of return: ks = kRF + (kM – kRF)b = 5. 6% + (6%)0. 9 = 11%. Step 2:Use the constant growth rate formula to calculate g: [pic] Step 3:Calculate [pic]: [pic] = P0 (1 + g)3 = $25(1. 03)3 = $27. 3182 ( $27. 32. Alternatively, you could calculate D4 and then use the constant growth rate formula to solve for [pic]: D4 = D1(1 + g)3 = $2. 00(1. 03)3 = $2. 1855. [pic] = $2. 1855/(0. 11 – 0. 03) = $27. 3182 ( $27. 32. 8-11Vp = Dp/kp; therefore, kp = Dp/Vp. a. kp = $8/$60 = 13. 3%. b. kp = $8/$80 = 10. 0%. c. p = $8/$100 = 8. 0%. d. kp = $8/$140 = 5. 7%. 8-12[pic] 8-13a. ki = kRF + (kM – kRF)bi. kC = 9% + (13% – 9%)0. 4 = 10. 6%. kD = 9% + (13% – 9%)(-0. 5) = 7%. Note that kD is below the risk-free rate. But since this stock is like an insurance policy because it â€Å"pays off† when something bad happens (the market falls), the low return is not unreasonable. b. In this situation, the expected rate of return is as follows: [pic] = D1/P0 + g = $1. 50/$25 + 4% = 10%. However, the required rate of return is 10. 6 percent. Investors will seek to sell the stock, dropping its price to the following: pic] At this point, [p ic], and the stock will be in equilibrium. 8-14Calculate the dividend cash flows and place them on a time line. Also, calculate the stock price at the end of the supernormal growth period, and include it, along with the dividend to be paid at t = 5, as CF5. Then, enter the cash flows as shown on the time line into the cash flow register, enter the required rate of return as I = 15, and then find the value of the stock using the NPV calculation. Be sure to enter CF0 = 0, or else your answer will be incorrect. D0 = 0; D1 = 0; D2 = 0; D3 = 1. 0; D4 = 1. 00(1. 5) = 1. 5; D5 = 1. 00(1. 5)2 = 2. 25; D6 = 1. 00(1. 5)2(1. 08) = $2. 43. [pic] = ? 0 1 2 3 4 5 6 | | | | | | | 1. 00 1. 50 2. 25 2. 43 0. 658 +34. 71 = 0. 858 18. 378 36. 96 $19. 894 = [pic] [pic] = D6/([pic] – g) = $2. 43/(0. 15 – 0. 08) = $34. 71. This is the stock price at the end of Year 5.CF0 = 0; CF1-2 = 0; CF3 = 1. 0; CF4 = 1. 5; CF5 = 36. 96; I = 15%. With these cash flows in the CFLO register, press NPV to g et the value of the stock today: NPV = $19. 89. 8-15a. The preferred stock pays $8 annually in dividends. Therefore, its nominal rate of return would be: Nominal rate of return = $8/$80 = 10%. Or alternatively, you could determine the security’s periodic return and multiply by 4. Periodic rate of return = $2/$80 = 2. 5%. Nominal rate of return = 2. 5% ( 4 = 10%. b. EAR = (1 + NOM/4)4 – 1 EAR = (1 + 0. 10/4)4 – 1 EAR = 0. 103813 = 10. 3813%. -16The value of any asset is the present value of all future cash flows expected to be generated from the asset. Hence, if we can find the present value of the dividends during the period preceding long-run constant growth and subtract that total from the current stock price, the remaining value would be the present value of the cash flows to be received during the period of long-run constant growth. D1 = $2. 00 ( (1. 25)1 = $2. 50PV(D1) = $2. 50/(1. 12)1= $2. 2321 D2 = $2. 00 ( (1. 25)2 = $3. 125PV(D2) = $3. 125/(1. 12)2= $2 . 4913 D3 = $2. 00 ( (1. 25)3 = $3. 90625PV(D3) = $3. 0625/(1. 12)3= $2. 7804 ( PV(D1 to D3)= $7. 5038 Therefore, the PV of the remaining dividends is: $58. 8800 – $7. 5038 = $51. 3762. Compounding this value forward to Year 3, we find that the value of all dividends received during constant growth is $72. 18. [$51. 3762(1. 12)3 = $72. 18. ] Applying the constant growth formula, we can solve for the constant growth rate: [pic]= D3(1 + g)/(ks – g) $72. 1807= $3. 90625(1 + g)/(0. 12 – g) $8. 6616 – $72. 18g= $3. 90625 + $3. 90625g $4. 7554= $76. 08625g 0. 0625= g 6. 25%= g. 8-17First, solve for the current price. P0 = D1/(ks – g) P0 = $0. 50/(0. 2 – 0. 07) P0 = $10. 00. If the stock is in a constant growth state, the constant dividend growth rate is also the capital gains yield for the stock and the stock price growth rate. Hence, to find the price of the stock four years from today: [pic] = P0(1 + g)4 [pic] = $10. 00(1. 07)4 [pic] = $13. 1079 6 ? $13. 11. [pic] 8-18a. [pic] b. [pic] 8-19 0 1 2 3 4 | | | | | D0 = 2. 00 D1 D2 D3 D4 g = 5% [pic] a. D1 = $2(1. 05) = $2. 10; D2 = $2(1. 05)2 = $2. 21; D3 = $2(1. 5)3 = $2. 32. b. Financial Calculator Solution: Input 0, 2. 10, 2. 21, and 2. 32 into the cash flow register, input I = 12, PV = ? PV = $5. 29. c. Financial Calculator Solution: Input 0, 0, 0, and 34. 73 into the cash flow register, I = 12, PV = ? PV = $24. 72. d. $24. 72 + $5. 29 = $30. 01 = Maximum price you should pay for the stock. e. [pic] f. No. The value of the stock is not dependent upon the holding period. The value calculated in Parts a through d is the value for a 3-year holding period. It is equal to the value calculated in Part e except for a small rounding error.Any other holding period would produce the same value of [pic]; that is, [pic] = $30. 00. 8-20a. 1. [pic] 2. [pic] = $2/0. 15 = $13. 33. 3. [pic] 4. [pic] b. 1. [pic] = $2. 30/0 = Undefined. 2. [pic] = $2. 40/(-0. 05) = -$48, which is nonsense. Th ese results show that the formula does not make sense if the required rate of return is equal to or less than the expected growth rate. c. No. 8-21The answer depends on when one works the problem. We used the February 3, 2003, issue of The Wall Street Journal: a. $16. 81 to $36. 72. b. Current dividend = $0. 75. Dividend yield = $0. 75/$19. 8 ( 3. 9%. You might want to use ($0. 75)(1 + g)/$19. 48, with g estimated somehow. c. The $19. 48 close was up $0. 98 from the previous day’s close. d. The return on the stock consists of a dividend yield of about 3. 9 percent plus some capital gains yield. We would expect the total rate of return on stock to be in the 10 to 12 percent range. 8-22a. End of Year: 02 03 04 05 06 07 08 | | | | | | | D0 = 1. 75 D1 D2 D3 D4 D5 D6 Dt= D0(1 + g)t D2003= $1. 75(1. 15)1 = $2. 01. D2004= $1. 5(1. 15)2 = $1. 75(1. 3225) = $2. 31. D2005= $1. 75(1. 15)3 = $1. 75(1. 5209) = $2. 66. D2006= $1. 75(1. 15)4 = $1. 75(1. 7490) = $3. 06. D2007= $1. 75(1. 15)5 = $1. 75(2. 0114) = $3. 52. b. Step 1: PV of dividends = [pic]. PV D2003 = $2. 01/(1. 12)= $1. 79 PV D2004 = $2. 31/(1. 12)2= $1. 84 PV D2005 = $2. 66/(1. 12)3= $1. 89 PV D2006 = $3. 06/(1. 12)4= $1. 94 PV D2007 = $3. 52/(1. 12)5= $2. 00 PV of dividends= $9. 46 Step 2: [pic] This is the price of the stock 5 years from now. The PV of this price, discounted back 5 years, is as follows: PV of [pic] = $52. 80/(1. 12)5 = $29. 6. Step 3: The price of the stock today is as follows: [pic]= PV dividends Years 2003-2007 + PV of [pic] = $9. 46 + $29. 96 = $39. 42. This problem could also be solved by substituting the proper values into the following equation: [pic]. Calculator solution: Input 0, 2. 01, 2. 31, 2. 66, 3. 06, 56. 32 (3. 52 + 52. 80) into the cash flow register, input I = 12, PV = ? PV = $39. 43. c. 2003 D1/P0 = $2. 01/$39. 43= 5. 10% Capital gains yield= 6. 90* Expected total return= 12. 00% 2008 D6/P5 = $3. 70/$52. 80= 7. 00% Capital gains yield= 5. 00 Expected total return= 12 . 00% We know that ks is 12 percent, and the dividend yield is 5. 10 percent; therefore, the capital gains yield must be 6. 90 percent. The main points to note here are as follows: 1. The total yield is always 12 percent (except for rounding errors). 2. The capital gains yield starts relatively high, then declines as the supernormal growth period approaches its end. The dividend yield rises. 3. After 12/31/07, the stock will grow at a 5 percent rate. The dividend yield will equal 7 percent, the capital gains yield will equal 5 percent, and the total return will be 12 percent. d.People in high income tax brackets will be more inclined to purchase â€Å"growth† stocks to take the capital gains and thus delay the payment of taxes until a later date. The firm’s stock is â€Å"mature† at the end of 2007. e. Since the firm’s supernormal and normal growth rates are lower, the dividends and, hence, the present value of the stock price will be lower. The total ret urn from the stock will still be 12 percent, but the dividend yield will be larger and the capital gains yield will be smaller than they were with the original growth rates. This result occurs because we assume the same last dividend but a much lower current stock price. . As the required return increases, the price of the stock goes down, but both the capital gains and dividend yields increase initially. Of course, the long-term capital gains yield is still 4 percent, so the long-term dividend yield is 10 percent. 8-23a. Part 1: Graphical representation of the problem: Supernormal Normal growth growth 0 1 2 3 ( | | | | †¢Ã¢â‚¬ ¢Ã¢â‚¬ ¢ | D0 D1 (D2 + [pic]) D3 D( PVD1PVD2 [pic] P0 D1 = D0(1 + gs) = $1. 6(1. 20) = $1. 92. D2 = D0(1 + gs)2 = $1. 60(1. 20)2 = $2. 304. [pic] [pic]= PV(D1) + PV(D2) + PV([pic]) = [pic] = $1. 92/1. 10 + $2. 304/(1. 10)2 + $61. 06/(1. 10)2 = $54. 11. Financial Calculator solution: Input 0, 1. 92, 63. 364(2. 304 + 61. 06) into the cash flow register, in put I = 10, PV = ? PV = $54. 11. Part 2: Expected dividend yield: D1/P0 = $1. 92/$54. 11 = 3. 55%. Capital gains yield: First, find [pic], which equals the sum of the present values of D2 and [pic] discounted for one year. [pic] Financial Calculator solution: Input 0, 63. 364(2. 304 + 61. 6) into the cash flow register, input I = 10, PV = ? PV = $57. 60. Second, find the capital gains yield: [pic] Dividend yield = 3. 55% Capital gains yield = 6. 45 10. 00% = ks. b. Due to the longer period of supernormal growth, the value of the stock will be higher for each year. Although the total return will remain the same, ks = 10%, the distribution between dividend yield and capital gains yield will differ: The dividend yield will start off lower and the capital gains yield will start off higher for the 5-year supernormal growth condition, relative to the 2-year supernormal growth state.The dividend yield will increase and the capital gains yield will decline over the 5-year period until divid end yield = 4% and capital gains yield = 6%. c. Throughout the supernormal growth period, the total yield will be 10 percent, but the dividend yield is relatively low during the early years of the supernormal growth period and the capital gains yield is relatively high. As we near the end of the supernormal growth period, the capital gains yield declines and the dividend yield rises. After the supernormal growth period has ended, the capital gains yield will equal gn = 6%.The total yield must equal ks = 10%, so the dividend yield must equal 10% – 6% = 4%. d. Some investors need cash dividends (retired people), while others would prefer growth. Also, investors must pay taxes each year on the dividends received during the year, while taxes on capital gains can be delayed until the gain is actually realized. 8-24a. ks = kRF + (kM – kRF)b = 11% + (14% – 11%)1. 5 = 15. 5%. [pic] = D1/(ks – g) = $2. 25/(0. 155 – 0. 05) = $21. 43. b. ks = 9% + (12% â€⠀œ 9%)1. 5 = 13. 5%. [pic] = $2. 25/(0. 135 – 0. 05) = $26. 47. c. ks = 9% + (11% – 9%)1. 5 = 12. 0%. [pic] = $2. 25/(0. 12 – 0. 5) = $32. 14. d. New data given: kRF = 9%; kM = 11%; g = 6%, b = 1. 3. ks = kRF + (kM – kRF)b = 9% + (11% – 9%)1. 3 = 11. 6%. [pic] = D1/(ks – g) = $2. 27/(0. 116 – 0. 06) = $40. 54. 8-25a. Old ks = kRF + (kM – kRF)b = 9% + (3%)1. 2 = 12. 6%. New ks = 9% + (3%)0. 9 = 11. 7%. Old price: [pic] New price: [pic] Since the new price is lower than the old price, the expansion in consumer products should be rejected. The decrease in risk is not sufficient to offset the decline in profitability and the reduced growth rate. b. POld = $38. 21. PNew = [pic]. Solving for ks we have the following: $38. 1= [pic] $2. 10= $38. 21(ks) – $1. 9105 $4. 0105= $38. 21(ks) ks= 0. 10496. Solving for b: 10. 496% = 9% + 3%(b) 1. 496% = 3%(b) b = 0. 49865. Check: ks = 9% + (3%)0. 49865 = 10. 496%. [pic] = [pic] = $38. 21 . Therefore, only if management’s analysis concludes that risk can be lowered to b = 0. 49865, or approximately 0. 5, should the new policy be put into effect. SPREADSHEET PROBLEM 8-26The detailed solution for the spreadsheet problem is available both on the instructor’s resource CD-ROM and on the instructor’s side of South-Western’s web site, http://brigham. swlearning. com. INTEGRATED CASEMutual of Chicago Insurance Company Stock Valuation 8-27ROBERT BALIK AND CAROL KIEFER ARE SENIOR VICE-PRESIDENTS OF THE MUTUAL OF CHICAGO INSURANCE COMPANY. THEY ARE CO-DIRECTORS OF THE COMPANY’S PENSION FUND MANAGEMENT DIVISION, WITH BALIK HAVING RESPONSIBILITY FOR FIXED INCOME SECURITIES (PRIMARILY BONDS) AND KIEFER BEING RESPONSIBLE FOR EQUITY INVESTMENTS. A MAJOR NEW CLIENT, THE CALIFORNIA LEAGUE OF CITIES, HAS REQUESTED THAT MUTUAL OF CHICAGO PRESENT AN INVESTMENT SEMINAR TO THE MAYORS OF THE REPRESENTED CITIES, AND BALIK AND KIEFER, WHO WILL MAKE THE ACTUA L PRESENTATION, HAVE ASKED YOU TO HELP THEM.TO ILLUSTRATE THE COMMON STOCK VALUATION PROCESS, BALIK AND KIEFER HAVE ASKED YOU TO ANALYZE THE BON TEMPS COMPANY, AN EMPLOYMENT AGENCY THAT SUPPLIES WORD PROCESSOR OPERATORS AND COMPUTER PROGRAMMERS TO BUSINESSES WITH TEMPORARILY HEAVY WORKLOADS. YOU ARE TO ANSWER THE FOLLOWING QUESTIONS. A. DESCRIBE BRIEFLY THE LEGAL RIGHTS AND PRIVILEGES OF COMMON STOCKHOLDERS. ANSWER:[SHOW S8-1 THROUGH S8-5 HERE. ] THE COMMON STOCKHOLDERS ARE THE OWNERS OF A CORPORATION, AND AS SUCH THEY HAVE CERTAIN RIGHTS AND PRIVILEGES AS DESCRIBED BELOW. 1. OWNERSHIP IMPLIES CONTROL.THUS, A FIRM’S COMMON STOCKHOLDERS HAVE THE RIGHT TO ELECT ITS FIRM’S DIRECTORS, WHO IN TURN ELECT THE OFFICERS WHO MANAGE THE BUSINESS. 2. COMMON STOCKHOLDERS OFTEN HAVE THE RIGHT, CALLED THE PREEMPTIVE RIGHT, TO PURCHASE ANY ADDITIONAL SHARES SOLD BY THE FIRM. IN SOME STATES, THE PREEMPTIVE RIGHT IS AUTOMATICALLY INCLUDED IN EVERY CORPORATE CHARTER; IN OTHERS, IT IS NEC ESSARY TO INSERT IT SPECIFICALLY INTO THE CHARTER. B. 1. WRITE OUT A FORMULA THAT CAN BE USED TO VALUE ANY STOCK, REGARDLESS OF ITS DIVIDEND PATTERN. ANSWER:[SHOW S8-6 HERE. ] THE VALUE OF ANY STOCK IS THE PRESENT VALUE OF ITS EXPECTED DIVIDEND STREAM: [pic] = [pic]HOWEVER, SOME STOCKS HAVE DIVIDEND GROWTH PATTERNS THAT ALLOW THEM TO BE VALUED USING SHORT-CUT FORMULAS. B. 2. WHAT IS A CONSTANT GROWTH STOCK? HOW ARE CONSTANT GROWTH STOCKS VALUED? ANSWER:[SHOW S8-7 AND S8-8 HERE. ] A CONSTANT GROWTH STOCK IS ONE WHOSE DIVIDENDS ARE EXPECTED TO GROW AT A CONSTANT RATE FOREVER. â€Å"CONSTANT GROWTH† MEANS THAT THE BEST ESTIMATE OF THE FUTURE GROWTH RATE IS SOME CONSTANT NUMBER, NOT THAT WE REALLY EXPECT GROWTH TO BE THE SAME EACH AND EVERY YEAR. MANY COMPANIES HAVE DIVIDENDS THAT ARE EXPECTED TO GROW STEADILY INTO THE FORESEEABLE FUTURE, AND SUCH COMPANIES ARE VALUED AS CONSTANT GROWTH STOCKS.FOR A CONSTANT GROWTH STOCK: D1 = D0(1 + g), D2 = D1(1 + g) = D0(1 + g)2, AND SO ON. WI TH THIS REGULAR DIVIDEND PATTERN, THE GENERAL STOCK VALUATION MODEL CAN BE SIMPLIFIED TO THE FOLLOWING VERY IMPORTANT EQUATION: [pic] = [pic] = [pic]. THIS IS THE WELL-KNOWN â€Å"GORDON,† OR â€Å"CONSTANT-GROWTH† MODEL FOR VALUING STOCKS. HERE D1 IS THE NEXT EXPECTED DIVIDEND, WHICH IS ASSUMED TO BE PAID 1 YEAR FROM NOW, kS IS THE REQUIRED RATE OF RETURN ON THE STOCK, AND g IS THE CONSTANT GROWTH RATE. B. 3. WHAT HAPPENS IF A COMPANY HAS A CONSTANT g THAT EXCEEDS ITS ks? WILL MANY STOCKS HAVE EXPECTED g > ks IN THE SHORT RUN (THAT IS, FOR THE NEXT FEW YEARS)?IN THE LONG RUN (THAT IS, FOREVER)? ANSWER:[SHOW S8-9 HERE. ] THE MODEL IS DERIVED MATHEMATICALLY, AND THE DERIVATION REQUIRES THAT ks > g. IF g IS GREATER THAN ks, THE MODEL GIVES A NEGATIVE STOCK PRICE, WHICH IS NONSENSICAL. THE MODEL SIMPLY CANNOT BE USED UNLESS (1) ks > g, (2) g IS EXPECTED TO BE CONSTANT, AND (3) g CAN REASONABLY BE EXPECTED TO CONTINUE INDEFINITELY. STOCKS MAY HAVE PERIODS OF SUPERNORMAL GR OWTH, WHERE gS > ks; HOWEVER, THIS GROWTH RATE CANNOT BE SUSTAINED INDEFINITELY. IN THE LONG-RUN, g < ks. C. ASSUME THAT BON TEMPS HAS A BETA COEFFICIENT OF 1. , THAT THE RISK-FREE RATE (THE YIELD ON T-BONDS) IS 7 PERCENT, AND THAT THE REQUIRED RATE OF RETURN ON THE MARKET IS 12 PERCENT. WHAT IS THE REQUIRED RATE OF RETURN ON THE FIRM’S STOCK? ANSWER:[SHOW S8-10 HERE. ] HERE WE USE THE SML TO CALCULATE BON TEMPS’ REQUIRED RATE OF RETURN: ks= kRF + (kM – kRF)bBon Temps = 7% + (12% – 7%)(1. 2) = 7% + (5%)(1. 2) = 7% + 6% = 13%. D. ASSUME THAT BON TEMPS IS A CONSTANT GROWTH COMPANY WHOSE LAST DIVIDEND (D0, WHICH WAS PAID YESTERDAY) WAS $2. 00 AND WHOSE DIVIDEND IS EXPECTED TO GROW INDEFINITELY AT A 6 PERCENT RATE. 1.WHAT IS THE FIRM’S EXPECTED DIVIDEND STREAM OVER THE NEXT 3 YEARS? ANSWER:[SHOW S8-11 HERE. ] BON TEMPS IS A CONSTANT GROWTH STOCK, AND ITS DIVIDEND IS EXPECTED TO GROW AT A CONSTANT RATE OF 6 PERCENT PER YEAR. EXPRESSED AS A TIME LINE, WE HAVE THE FOLLOWING SETUP. JUST ENTER 2 IN YOUR CALCULATOR; THEN KEEP MULTIPLYING BY 1 + g = 1. 06 TO GET D1, D2, AND D3: 0 1 2 3 | | | | D0 = 2. 00 2. 12 2. 247 2. 382 1. 88 1. 76 1. 65 . . . D. 2. WHAT IS THE FIRM’S CURRENT STOCK PRICE? ANSWER:[SHOW S8-12 HERE. WE COULD EXTEND THE TIME LINE ON OUT FOREVER, FIND THE VALUE OF BON TEMPS’ DIVIDENDS FOR EVERY YEAR ON OUT INTO THE FUTURE, AND THEN THE PV OF EACH DIVIDEND DISCOUNTED AT k = 13%. FOR EXAMPLE, THE PV OF D1 IS $1. 8761; THE PV OF D2 IS $1. 7599; AND SO FORTH. NOTE THAT THE DIVIDEND PAYMENTS INCREASE WITH TIME, BUT AS LONG AS ks > g, THE PRESENT VALUES DECREASE WITH TIME. IF WE EXTENDED THE GRAPH ON OUT FOREVER AND THEN SUMMED THE PVs OF THE DIVIDENDS, WE WOULD HAVE THE VALUE OF THE STOCK. HOWEVER, SINCE THE STOCK IS GROWING AT A CONSTANT RATE, ITS VALUE CAN BE ESTIMATED USING THE CONSTANT GROWTH MODEL: pic] = [pic] = [pic] = [pic] = $30. 29. D. 3. WHAT IS THE STOCK’S EXPECTED VALUE ONE YEAR FROM NOW? ANS WER:[SHOW S8-13 HERE. ] AFTER ONE YEAR, D1 WILL HAVE BEEN PAID, SO THE EXPECTED DIVIDEND STREAM WILL THEN BE D2, D3, D4, AND SO ON. THUS, THE EXPECTED VALUE ONE YEAR FROM NOW IS $32. 10: [pic] = [pic] = [pic] = [pic] = $32. 10. D. 4. WHAT ARE THE EXPECTED DIVIDEND YIELD, THE CAPITAL GAINS YIELD, AND THE TOTAL RETURN DURING THE FIRST YEAR? ANSWER:[SHOW S8-14 HERE. ] THE EXPECTED DIVIDEND YIELD IN ANY YEAR n IS DIVIDEND YIELD = [pic], WHILE THE EXPECTED CAPITAL GAINS YIELD ISCAPITAL GAINS YIELD = [pic] = k – [pic]. THUS, THE DIVIDEND YIELD IN THE FIRST YEAR IS 7 PERCENT, WHILE THE CAPITAL GAINS YIELD IS 6 PERCENT: TOTAL RETURN = 13. 0% DIVIDEND YIELD = $2. 12/$30. 29 = 7. 0% CAPITAL GAINS YIELD = 6. 0% E. NOW ASSUME THAT THE STOCK IS CURRENTLY SELLING AT $30. 29. WHAT IS THE EXPECTED RATE OF RETURN ON THE STOCK? ANSWER:THE CONSTANT GROWTH MODEL CAN BE REARRANGED TO THIS FORM: [pic] = [pic]. HERE THE CURRENT PRICE OF THE STOCK IS KNOWN, AND WE SOLVE FOR THE EXPECTED RETURN. FOR BON TEMPS: pic] = $2. 12/$30. 29 + 0. 060 = 0. 070 + 0. 060 = 13%. F. WHAT WOULD THE STOCK PRICE BE IF ITS DIVIDENDS WERE EXPECTED TO HAVE ZERO GROWTH? ANSWER:[SHOW S8-15 HERE. ] IF BON TEMPS’ DIVIDENDS WERE NOT EXPECTED TO GROW AT ALL, THEN ITS DIVIDEND STREAM WOULD BE A PERPETUITY. PERPETUITIES ARE VALUED AS SHOWN BELOW: 0 1 2 3 | | | | 2. 00 2. 00 2. 00 1. 77 1. 57 1. 39 . . . P0 = 15. 38 P0 = D/kS = $2. 00/0. 13 = $15. 38. NOTE THAT IF A PREFERRED STOCK IS A PERPETUITY, IT MAY BE VALUED WITH THIS FORMULA. G.NOW ASSUME THAT BON TEMPS IS EXPECTED TO EXPERIENCE SUPERNORMAL GROWTH OF 30 PERCENT FOR THE NEXT 3 YEARS, THEN TO RETURN TO ITS LONG-RUN CONSTANT GROWTH RATE OF 6 PERCENT. WHAT IS THE STOCK’S VALUE UNDER THESE CONDITIONS? WHAT IS ITS EXPECTED DIVIDEND YIELD AND CAPITAL GAINS YIELD IN YEAR 1? YEAR 4? ANSWER:[SHOW S8-16 THROUGH S8-18 HERE. ] BON TEMPS IS NO LONGER A CONSTANT GROWTH STOCK, SO THE CONSTANT GROWTH MODEL IS NOT APPLICABLE. NOTE, HOWEVER, THAT THE STO CK IS EXPECTED TO BECOME A CONSTANT GROWTH STOCK IN 3 YEARS. THUS, IT HAS A NONCONSTANT GROWTH PERIOD FOLLOWED BY CONSTANT GROWTH.THE EASIEST WAY TO VALUE SUCH NONCONSTANT GROWTH STOCKS IS TO SET THE SITUATION UP ON A TIME LINE AS SHOWN BELOW: 0 1 2 3 4 | | | | | 2. 600 3. 380 4. 394 4. 65764 2. 301 2. 647 3. 045 46. 114 54. 107 SIMPLY ENTER $2 AND MULTIPLY BY (1. 30) TO GET D1 = $2. 60; MULTIPLY THAT RESULT BY 1. 3 TO GET D2 = $3. 38, AND SO FORTH. THEN RECOGNIZE THAT AFTER YEAR 3, BON TEMPS BECOMES A CONSTANT GROWTH STOCK, AND AT THAT POINT [pic] CAN BE FOUND USING THE CONSTANT GROWTH MODEL. pic] IS THE PRESENT VALUE AS OF t = 3 OF THE DIVIDENDS IN YEAR 4 AND BEYOND AND IS ALSO CALLED THE TERMINAL VALUE. WITH THE CASH FLOWS FOR D1, D2, D3, AND [pic] SHOWN ON THE TIME LINE, WE DISCOUNT EACH VALUE BACK TO YEAR 0, AND THE SUM OF THESE FOUR PVs IS THE VALUE OF THE STOCK TODAY, P0 = $54. 107. THE DIVIDEND YIELD IN YEAR 1 IS 4. 80 PERCENT, AND THE CAPITAL GAINS YIELD IS 8. 2 PERCENT: DI VIDEND YIELD = [pic] = 0. 0480 = 4. 8%. CAPITAL GAINS YIELD = 13. 00% – 4. 8% = 8. 2%. DURING THE NONCONSTANT GROWTH PERIOD, THE DIVIDEND YIELDS AND CAPITAL GAINS YIELDS ARE NOT CONSTANT, AND THE CAPITAL GAINS YIELD DOES NOT EQUAL g.HOWEVER, AFTER YEAR 3, THE STOCK BECOMES A CONSTANT GROWTH STOCK, WITH g = CAPITAL GAINS YIELD = 6. 0% AND DIVIDEND YIELD = 13. 0% – 6. 0% = 7. 0%. H. SUPPOSE BON TEMPS IS EXPECTED TO EXPERIENCE ZERO GROWTH DURING THE FIRST 3 YEARS AND THEN TO RESUME ITS STEADY-STATE GROWTH OF 6 PERCENT IN THE FOURTH YEAR. WHAT IS THE STOCK’S VALUE NOW? WHAT IS ITS EXPECTED DIVIDEND YIELD AND ITS CAPITAL GAINS YIELD IN YEAR 1? YEAR 4? ANSWER:[SHOW S8-19 AND S8-20 HERE. ] NOW WE HAVE THIS SITUATION: 0 1 2 3 4 | | | | | 2. 00 2. 0 2. 00 2. 00 2. 12 1. 77 1. 57 1. 39 20. 99 25. 72 = [pic] DURING YEAR 1: DIVIDEND YIELD = [pic] = 0. 0778 = 7. 78%. CAPITAL GAINS YIELD = 13. 00% – 7. 78% = 5. 22%. AGAIN, IN YEAR 4 BON TEMPS BECOMES A CONSTANT GROWTH STOCK; HENCE g = CAPITAL GAINS YIELD = 6. 0% AND DIVIDEND YIELD = 7. 0%. I. FINALLY, ASSUME THAT BON TEMPS’ EARNINGS AND DIVIDENDS ARE EXPECTED TO DECLINE BY A CONSTANT 6 PERCENT PER YEAR, THAT IS, g = -6%. WHY WOULD ANYONE BE WILLING TO BUY SUCH A STOCK, AND AT WHAT PRICE SHOULD IT SELL? WHAT WOULD BE THE DIVIDEND YIELD AND CAPITAL GAINS YIELD IN EACH YEAR?ANSWER:[SHOW S8-21 AND S8-22 HERE. ] THE COMPANY IS EARNING SOMETHING AND PAYING SOME DIVIDENDS, SO IT CLEARLY HAS A VALUE GREATER THAN ZERO. THAT VALUE CAN BE FOUND WITH THE CONSTANT GROWTH FORMULA, BUT WHERE g IS NEGATIVE: [pic] = [pic] = [pic] = [pic] = [pic] = $9. 89. SINCE IT IS A CONSTANT GROWTH STOCK: g = CAPITAL GAINS YIELD = -6. 0%, HENCE: DIVIDEND YIELD = 13. 0% – (-6. 0%) = 19. 0%. AS A CHECK: DIVIDEND YIELD = [pic] = 0. 190 = 19. 0%. THE DIVIDEND AND CAPITAL GAINS YIELDS ARE CONSTANT OVER TIME, BUT A HIGH (19. 0 PERCENT) DIVIDEND YIELD IS NEEDED TO OFFSET THE NEGATIVE CAPITAL GAINS YIELD.J. BON TEMPS EMB ARKS ON AN AGGRESSIVE EXPANSION THAT REQUIRES ADDITIONAL CAPITAL. MANAGEMENT DECIDES TO FINANCE THE EXPANSION BY BORROWING $40 MILLION AND BY HALTING DIVIDEND PAYMENTS TO INCREASE RETAINED EARNINGS. THE PROJECTED FREE CASH FLOWS FOR THE NEXT THREE YEARS ARE -$5 MILLION, $10 MILLION, AND $20 MILLION. AFTER THE THIRD YEAR, FREE CASH FLOW IS PROJECTED TO GROW AT A CONSTANT 6 PERCENT. THE OVERALL COST OF CAPITAL IS 10 PERCENT. WHAT IS BON TEMPS’ TOTAL VALUE? IF IT HAS 10 MILLION SHARES OF STOCK AND $40 MILLION TOTAL DEBT, WHAT IS THE PRICE PER SHARE? ANSWER:[SHOW S8-23 THROUGH S8-28 HERE. 0 1 2 3 4 | | | | | -5 10 20 21. 20 $ -4. 545 8. 264 15. 026 398. 197 $416. 942 = TOTAL VALUE VALUE OF EQUITY = TOTAL VALUE – DEBT = $416. 94 – $40 = $376. 94 MILLION. PRICE PER SHARE = $376. 94/10 = $37. 69. K. WHAT DOES MARKET EQUILIBRIUM MEAN? ANSWER:[SHOW S8-29 AND S8-30 HERE. ] EQUILIBRIUM MEANS STABLE, NO TENDENCY TO CHANGE. MARKET EQUILIBRIUM MEANS THAT PRICES ARE STABLEâ₠¬â€œAT ITS CURRENT PRICE, THERE IS NO GENERAL TENDENCY FOR PEOPLE TO WANT TO BUY OR TO SELL A SECURITY THAT IS IN EQUILIBRIUM.ALSO, WHEN EQUILIBRIUM EXISTS, THE EXPECTED RATE OF RETURN WILL BE EQUAL TO THE REQUIRED RATE OF RETURN: [pic] = D1/P0 + g = k = kRF + (kM – kRF)b. L. IF EQUILIBRIUM DOES NOT EXIST, HOW WILL IT BE ESTABLISHED? ANSWER:[SHOW S8-31 AND S8-32 HERE. ] SECURITIES WILL BE BOUGHT AND SOLD UNTIL THE EQUILIBRIUM PRICE IS ESTABLISHED. M. WHAT IS THE EFFICIENT MARKETS HYPOTHESIS, WHAT ARE ITS THREE FORMS, AND WHAT ARE ITS IMPLICATIONS? ANSWER:[SHOW S8-33 THROUGH S8-37 HERE. ] THE EMH IN GENERAL IS THE HYPOTHESIS THAT SECURITIES ARE NORMALLY IN EQUILIBRIUM AND ARE â€Å"PRICED FAIRLY,† MAKING IT IMPOSSIBLE TO â€Å"BEAT THE MARKET. WEAK-FORM EFFICIENCY SAYS THAT INVESTORS CANNOT PROFIT FROM LOOKING AT PAST MOVEMENTS IN STOCK PRICES–THE FACT THAT STOCKS WENT DOWN FOR THE LAST FEW DAYS IS NO REASON TO THINK THAT THEY WILL GO UP (OR DOWN) IN THE FUTURE. THIS FORM HAS BEEN PROVEN PRETTY WELL BY EMPIRICAL TESTS, EVEN THOUGH PEOPLE STILL EMPLOY â€Å"TECHNICAL ANALYSIS. † SEMISTRONG-FORM EFFICIENCY SAYS THAT ALL PUBLICLY AVAILABLE INFORMATION IS REFLECTED IN STOCK PRICES, HENCE THAT IT WON’T DO MUCH GOOD TO PORE OVER ANNUAL REPORTS TRYING TO FIND UNDERVALUED STOCKS.THIS ONE IS (WE THINK) LARGELY TRUE, BUT SUPERIOR ANALYSTS CAN STILL OBTAIN AND PROCESS NEW INFORMATION FAST ENOUGH TO GAIN A SMALL ADVANTAGE. STRONG-FORM EFFICIENCY SAYS THAT ALL INFORMATION, EVEN INSIDE INFORMATION, IS EMBEDDED IN STOCK PRICES. THIS FORM DOES NOT HOLD–INSIDERS KNOW MORE, AND COULD TAKE ADVANTAGE OF THAT INFORMATION TO MAKE ABNORMAL PROFITS IN THE MARKETS. TRADING ON THE BASIS OF INSIDER INFORMATION IS ILLEGAL. N. PHYFE COMPANY RECENTLY ISSUED PREFERRED STOCK. IT PAYS AN ANNUAL DIVIDEND OF $5, AND THE ISSUE PRICE WAS $50 PER SHARE. WHAT IS THE EXPECTED RETURN TO AN INVESTOR ON THIS PREFERRED STOCK?ANSWER:[SHOW S8-38 AND S8-39 HERE. ] [pic]= [pic] = [pic] = 10%. ———————– ks = 15% gn = 6% ( 1/(1. 15)3 ( 1/(1. 13)3 ( 1/(1. 13)2 ( 1/1. 13 gs = 50% gn = 8% [pic] ks = 12% gs = 15% gn = 5% WACC = 10% [pic] = 30. 29 = [pic] g = 0% g = 0% g = 0% gn = 6% ks = 13% [pic] = $66. 54 = [pic] gs = 30% gs = 30% gs = 30% gn = 6% ks = 13% g = 0% ks = 13% g = 6% ks = 13% ks = 10% gs = 20% gs = 20% gn = 5% WACC = 12% WACC = 12% gn = 7% [pic] WACC = 13% gn = 7% 530 = [pic] ( 1/(1. 15)4 ( 1/(1. 15)5 ks = 12% ( 1/1. 13 ( 1/(1. 13)2 ( 1/(1. 13)3 ( 1/(1. 13)2 ( 1/(1. 13)2 ( 1/1. 13 ( 1/(1. 13)2 ( 1/(1. 13)3 ( 1/(1. 13)3 ( 1/1. 13 ( 1/1. 13 (%89

Local Color In Huck Finn Essay

Huckleberry Finn, a tale about a boy and his struggles with the society in which he lives, is written by Samuel L. Clemens. In the story, Huck manages to escape from the custody of Widow Douglas and travels down the river to a nearby island where he encounters Miss Watson’s runaway slave, Jim. Together, they float down the Mississippi River, to find a new life, where they can live freely and easily. The Adventures of Huckleberry Finn is perhaps the finest example of â€Å"local color†, an emphasis which is laid on the surrounding settings. Throughout the novel, Clemens accents â€Å"local color† by illustrating the natural scenery, the way of thinking, and the distinct practices and folklore encompassing the area. The novel’s plot revolves around the Mississippi River. The river breaks all the barriers of the time period, between black and white, young and old, slave and free. With their many journeys on land, they invariably return at the raft. While stopped in a near by village, Huck and Jim manage to escape the king and the duke, seeking refuge on raft. â€Å"It was the raft, and mighty glad was we to get aboard of it again†(Clemens 1309). Later on in the novel, at the Phelps Farm plantation, Tom and Huck learn that Jim is held captive in a hut just beyond Aunt Sally’s house. They devise a scheme to get him out, involving digging a tunnel, sawing off a leg of a bed which Jim was chained to, using a rope ladder, and having Jim flee from a makeshift window. The plan runs smoothly, all three exiting through the man made hole, until Tom gets caught on a piece of wood, which creates a clamorous noise. At that moment, they began their retreat in a hurry. Fifteen men, equipped with rifles and dogs, begin their hunt for the three outlaws: â€Å"Then we struck out, easy and comfortable, for the island where my raft was; and we could hear them yelling and barking at each other†Ã‚ ¦Ã¢â‚¬ (Clemens 1442). They manage to, once again, get away seeking protection on the raft. The raft shielded both Huck and Jim from nearly every obstacle, yet slavery was still present no matter where they were. During the time this novel was set, just prior to the 1860’s, slavery prevailed all across the United States, especially in the South. Slaves were thought of as property for the white man to own, thus making them inferior. It was not until the Civil War where the slavery issue was addressed and eventually resolved. Throughout  the story, Huck and Jim travel down the Mississippi in search of freedom. Jim escapes from the possession of Miss Watson, fearing she was going to sell him down the river and thus separate him from his family. At one of their stops, at the Phelps farm, Huck hears a story from Tom’s Aunt Sally about an explosion on a boat: â€Å"It warn’t the grounding † that didn’t keep us back but a little. We blowed out a cylinder-head. Good Gracious! Anybody hurt? No’m. Killed a nigger. Well, it’s lucky; b ecause sometimes people do get hurt†(Clemens 1409). Ultimately, at the culmination of the novel, Miss Watson grants Jim his freedom, as stated in her will. Much of the population of this time based most of their practices and rituals on either the Bible or folklore. Jim, Miss Watson’s slave, had a hairball, taken from the fourth stomach of an ox. He believed this hairball was a prophecy, which truly spoke to him. In another episode, while Huck is stranded on Jackson’s Island, he hears loud explosions in the distance: â€Å"You see, they was firing cannon over the water, trying to make my carcass come to the top†(Clemens 1287). It was common knowledge of the time that when a dead body is in a river, the vibrations from the cannon ball will enable it to rise and float. Furthermore, residents believed that when quicksilver was put into loaves of bread, it would float to the dead carcass. The Adventures of Huckleberry Finn has numerous instances in which â€Å"local color† is present. Throughout the novel, heavy focus is laid upon the Mississippi River, and the villages close by. Common men and women used superstition and folklore to explain and solve life’s natural phenomena. Along with this is the portrayal of the brutal aspects, both physical and psychological, of slavery. At the conclusion of the novel, all hurdles are overcome, and Jim and Huck become free. Most of the population of this time was narrow-minded, being on the river, away from society, allowed Huck and Jim to overcome these bounds.

Critical Evaluation of the Paper Case Study Example | Topics and Well Written Essays - 1500 words

Critical Evaluation of the Paper - Case Study Example Viewed through a different lens, we can also see the author’s attempt to effortlessly move from theory to practice and back. This can be accomplished if practice dictates theoretical constructs that can be tested in different firms and industries. Another criterion that could enable this movement is the deconstruction of a complex subject into a well-ordered sequence. The author has been able to fulfill this through his 10-step procedure for strategic thinking. We would provide a balanced approach that hints towards the affirmative, yet there are some gaps that have not been addressed. To illustrate, let us look at Schoemaker where he says that his purpose is to provide a systematic methodology that would fashion a bridge between theory and practice. Whilst agreeing that the author has definitely provided a systematic methodology, there is no evidence of the academic theory that can be tested against the practice. In fact, the author makes no effort to state the key tenets of theory with regard to scenario planning. On the contrary, the paper abounds with several thoughtful instances drawn from practice, where organizational actors and organizations faced critical situations. Extending the answer to our question further, we also find that the author has omitted to explain the validity of his methodology to the context of the broader environment. In other words, we do not know whether the insights gained from these two companies are sufficient to provide an all-encompassing answer with regard to scenario planning.... The author has been able to fulfill this through his 10-step procedure for strategic thinking. Has the author been able to meet his stated purpose through this paper? We would provide a balanced approach that hints towards the affirmative, yet there are some gaps that have not been addressed. To illustrate, let us look at Schoemaker (1995 p.26) where he says that his purpose is to provide a systematic methodology that would fashion a bridge between theory and practice. Whilst agreeing that the author has definitely provided a systematic methodology, there is no evidence of academic theory that can be tested against practice. In fact, the author makes no effort to state the key tenets of theory with regard to scenario planning. On the contrary, the paper abounds with several thoughtful instances drawn from practice, where organizational actors and organizations faced critical situations. Extending the answer to our question further, we also find that the author has omitted to explain the validity of his methodology to the context of the broader environment. In other words, we do not know whether the insights gained from these two companies are sufficient to provide an all-encompassing answer with regard to scenario planning. We have evidence mainly from industry. There are two firms where the author has studied scenario planning. He has probably adopted the role of a facilitator or consultant in these two firms. Hence we can say that the author draws more upon primary research to enhance the credibility of his arguments. Notably, the author also makes select references to past events that transpired such as the attack of Pearl Harbor by the Japanese, the vast penetration of personal

Terror Risk Assessment and Counter-Terrorism Strategy Essay

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Negative Election Advertising and Its Impact Research Paper

Negative Election Advertising and Its Impact - Research Paper Example Negative advertising has steadily increased from the 1960s, and the messages emanating from these campaigns include  attacks  focused  on  individuals and their personal characteristics and issues or attacks that may be relevant or irrelevant to issues being handled at that moment. In this context, Jamieson  in her researches  suggested  that  negative advertisements focus  mainly on an adversary ’s failure  and are different from  contrast advertisements, where the latter provides  Ã¢â‚¬Å"explicit  comparisons  between  the  candidates’  qualities,  records  or  proposals† (Jamieson 99). Researchers have suggested that specific factors often affect the style and mode of negative advertising, such as certain traits of a candidate, characteristics like his or her political status, or gender of the candidate. Researchers further suggest  that  candidates appearing to trail during campaigns generally prefer using negative advertisements to gain a favorable position.  However, when differences between candidates are very small and one candidate is seen to be leading the campaign by a small margin, that person may resort to negative advertising to  maintain  and the gap and stop the opponents from catching up. The  gender of  the main  candidate  and  his or her adversary,  party  affiliations,  and  dissimilitude in  election  funding (between the chief candidate and his opponent)  also  affect the use of negative  advertising. A majority of the researches, until date, have explored negative advertising based on candidate dissimilarities. Various scholars have contended that gender is one of the crucial factors during choosing political campaign strategies where women candidates tend to relay their electoral messages (rhetoric) to the public in a different manner, owing to stereotypes that are gender-based.  Ã‚  

Self-Reflection Component Essay Example | Topics and Well Written Essays - 250 words

Self-Reflection Component - Essay Example I put forth great level of effort toward completion of the project, as I am a very devoted kind of a student who believes in the attainment of objectives through resolution and perseverance. Working in a group was a totally new and fresh experience for me. I really liked working in the group, as I was able to share my ideas and perspectives with all the compromising and appreciative members of the group. All of us helped each other out, and gave positive feedback and constructive criticism to each other, and hence, although a sense of competition was there but it was very encouraging and fruitful for all of us. We communicated with each other about the goals and objectives of the project, set deadlines, and met those deadlines through willpower. I hope to work on more business related projects in future, as I have gained a lot of knowledge through this project and wish to gain more through group

Unit 3 Introduction to American Court System Essay

Unit 3 Introduction to American Court System - Essay Example Moreover, this system declines a hierarchical model of searching justice and favors the coordinate model (Dammer & Albanese, 2010). The coordinate model exercised by this system divides authority for developing, giving evidence and deciding on the verdict. This division checks power among the eventual decision makers. Therefore, this system manifests the public’s sovereignty, eliminates government abuse, and finally averts lawyers’ abuse. The rule of evidence incorporated by this system has an overall effect on the capacity of the system to identify truth because of delay. Subjection of both parties on the same formalities results to scant comfort. This will not guarantee a fair result because it is inadequate at the conceptual level (Leo, 2009). Moreover, inequality amid the parties leads to unjust advantage for the trial because the rules of evidence support the accused. This system is also deficient because of its inequality. This is because substantial responsibility is within the power of the lawyers for the accused. This is a weakness of this system because there is no representation for the accused. Conclusively, this system requires a neutral fact seeker. It encourages the contrasting sides to search and present their most persuasive evidence. However, the fact seeker is forbidden from making judgments before winding up the

Leadership essence Essay Example | Topics and Well Written Essays - 3000 words

Leadership essence - Essay Example The trait theory postulates that leaders are born rather than made. It emphasizes nature over nurture. Most research on trait theory is coalesced around the qualities of distinguished leaders compared to non-leaders or followers. Trait approach focuses on the type of people that become leaders, and this process provides organizations with information on the qualities to look for when selecting leaders for different positions of leadership (Conger& Riggio, 2012, pp. 12). Style approach focuses on the behavior of leaders rather than personal traits of leaders. Style approach posits that since a leaders behavior can be changed, and; therefore, there is need to train leaders on the right leadership qualities. Stogdill et al worked on leadership style with a focus on consideration and initiating structure and define them two styles as follows: The consideration style is where leaders show concern for their subordinates so as to earn their trust and, as a result, improve response and promote camaraderie (Conger& Riggio, 2012, pp.14). Initiating structure is a style where leaders define closely and clearly their expectations of subordinates in accomplishment of designated schedules. Some researchers have suggested that a combination of both consideration and initiating structure was the best leadership style. Korman in his study observed that the two styles were plagued by inconsistent results. He suggested that the effectiveness of the two types of leadership behavior was situation wise contingent; that is, what worked well in some situations failed in others (Gill 2012, pp. 63). Proponents of the contingency approach emphasize on the situational factors when defining leadership. They tend to specify situational variables that moderate the effectiveness of different leadership approaches. The most prominent exemplar of the contingency approach is Fiedler’s

Apology Essay Example | Topics and Well Written Essays - 1250 words

Apology - Essay Example Yet another account of the trial is given by Aristophanes, a comic playwright. The philosopher was a member of the sub-council – the Council of Five Hundred – that ruled over the Assembly. His morals, way of thinking did not create much of a fuss at first. He did all that he thought was right, nothing more and then a time came when Athens was under attack and Sparta won the battle. The Greeks were humiliated and angry, especially when Socrates did not seem to approve of their form of government. He was considered as a critic of the then governmental system of Greece and due to this and other things he was accused against, he was put on trial by Anytus, Lycon and Meletus – the latter being the prosecutor who was mostly responsible for putting Socrates on trial. "Socrates does injustice and is meddlesome, by investigating the things under the earth and the heavenly things, and by making the weaker speech the stronger, and by teaching others these same things" (Plat o, West and West 66). The above were the charges placed against Socrates and he had to plead innocent or guilty for them. In simple words, Socrates’ thoughts were not similar to the thoughts the Greeks generally had. He believed that the gods knew everything, were present everywhere, one could not hide anything or anyone from them. The majority of the Greeks thought that the gods were partially present, that they knew some things and remained unaware about others. Their concepts of gods was different and it was not that much of a problem until Socrates actually refused to follow an order regarding to agreeing to allowing something illegal to happen. He had taken a vow and believed that the gods would know he had done wrong and for this he was being put on trial, for going against what they thought was god’s will when, in fact, it was just their own. The wording of this charge of impiety makes one assume that Socrates did not believe in the gods which were worshipped by the people of Athens, but also that he did not believe in the authority of gods at all. When, in fact, that was not the case and Socrates proves them wrong at several points in his apology. Socrates relates an incident in which Chaerephon, a friend of his and also quite a famous personality in the city, went to the Oracle of Delphi and actually questioned whether anyone was wiser than Socrates and the reply was in negative. The philosopher believed this to be a paradox in itself since he did not consider himself to be the wisest person, but thought it to be true, too, so he spent his entire life trying to prove the Oracle of Delphi correct. On questioning a few of the prominent Athenians who were thought to be wise, Socrates only managed to conclude that, indeed, he was the wisest of all of them. This was because he was aware of the fact that he was still ignorant of many things of life, whilst the others thought they were intelligent enough, they did not think that there might be room for further improvement, etc. and that was the paradox itself. The fact that he knew he was ignorant and the others did not proved that he was the Oracle was right. This point did seem to humiliate the respected men and only managed to turn them against him though. But it also shows that Socrates wanted the Oracle to be right and if he

Why go to College Essay Example for Free

Why go to College Essay I believe that one of the best ways for me to be successful in life is by going to college. In today’s world, getting through life happily seems hard to do with only a high school diploma. Hopefully going to college will give me the education I need to have a happy, successful life. Even though college is very costly and time consuming, I hope it will eventually get me a higher degree, so I can live life in a way that makes me happy. College should help me improve myself in many ways and also help me achieve my goals in life. The things I hope to do in college are; enhance my knowledge, obtain new experiences, and prepare myself for a career I enjoy. Many people know that knowledge is the key to success. It is very hard for people without further education to support their families. My father chose to work with my grandfather straight out of high school. They are still in the flooring business to this day. My dad pushed me to go to college because he doesn’t want me to go through what he has to go through every day. The intense, physical labor, and the long hours at work make him regret what he chose as his career. He now knows that if he would have went to college, it could have changed his life. Even though I don’t know what kind of degree I want to get out of college, I thought that going to college would be the best thing for me to do straight out of high school. Trying to live with the job I have right now would almost be impossible to support myself, let alone a whole family. It is proven that almost every person with further learning, makes more money than a person with just a high school diploma. Even though my parents are able to support my family, my dad only having a high school diploma, it is very hard for them to do. Something that is very important to me, is finding a career that I actually enjoy. If I did find a job where I made a lot of money, but didn’t enjoy it, I don’t know if would be worth it. I need to find something that I am happy with, so I will be more willing to go to work every day. I know that I will be spending the next few years of my life in college, and I will also be spending more money than I have. The reason I want to put  myself through all of the schooling, is because I know it will give me a better future.

The Poetry of the First World War Essay Example for Free

The Poetry of the First World War Essay Does the Poetry of the First World War reflect the changing attitudes to War? Poems in the early part of the First World War were pro war which means that they were saying that the war was good fun with women and uniforms. The main aims of the poems were to get men to join the army and fight the Germans. After two years of the war in July 1916 the battle of the Somme took place, 60,000 English soldiers died each day. Anti war poems started to be written about how bad war really was, but these poems were hardly ever published in newspapers or magazines, as they still wanted men to join up to fight. The two pro war poems that I have chosen are Fall In by Harold Begbie and Whos for the Game by Jessie Pope. The Recruiting poems of 1914 were required because, unlike most European countries, we did not have conscription and therefore did not have a large army. They saw the war was going to be long and hard and recruiting poems and posters made people volunteer for the army until conscription was introduced in 1916. Fall In by Harold Begbie does exactly what it is meant to do. It makes people feel ashamed about not going and fighting for your country. The title Fall In is like a command, which they use in the army saying you must fall in, group together and fight. It also has another meaning say you are going to fall in to the army. You do not have a choice but you will fall in. Begbie says: What will you lack, sonny, what will you lack. When the girls line up on the street, shouting their love to the lads come back These are the first three lines and are saying that when the other men who joined up for the army come back, you will be left on your own with all the girls wanting the army men. And grin till your cheeks are red? Here the man Begbie is talking about his embarrassment about not being in the war and his face is going red. When your children yet to be clamour to learn of the part you played Begbie is saying that if you have children who are yet to be born and they want to know about what you did in the war, what will you do when you cannot answer them? You will miss out on your children looking up to you; this is what Begbie is saying. When you sit by the fire in an old mans chair and your neighbours talk of the fight Again Begbie is telling you when your friends will talk about the war for years to come they will not respect you when you answer that you did not go. Begbie is saying that you will miss the respect from friends. Your head shamed and bent? Or say I was not the first to go. But I went, thank God, I went Begbie is saying this to make people who have not gone to war yet feel that it does not matter that you have not gone yet, but there is still time to join to get all the things I just said you will miss. In the last stanza Begbie is saying if you do not join up and the war was lost it will be your fault that we lost. Begbie is trying to make the shirkers feel ashamed for not volunteering by telling them of the things they will miss out on. Things like, the women when you return from war, by your children looking up to you and the respect of your friends and neighbours when they talk about the war in years to come. Then towards the end of the poem he says that you can join up now, you were not the first to go but you went. The second pro war poem I will look at is Whos for the Game? by Jessie Pope. The great soldier poet, Wilfred Owen, particularly detested her. In this poem she tries to make war sound like a game. The poem is based on the game rugby. Pope says: Whos for the game, the biggest thats played? She is saying who wants to join the army, come on, its just a game come and play. Who would much rather come back with a crutch, Than lie low and be out of the fun? Pope is saying that it is better if you go to war and get injured than just having to lie low, rather than people talking about you not going to war and missing out on all the fun of war. Throughout the poem Jessie Pope uses slang, sit tight and up to her neck. She does this because it will be young men joining the army and they do not want to be sitting in the pub reading a formal poem, which they will not understand and just read the first line and put it down. They want to read in the way most of these men would talk. Rupert Brooke was a highly popular pro war poet. He was unaware of the conditions in the trenches which motivated by poets such as Wilfred Owen, Isaac Rosenberg and Siegfried Sesson on the front line. The two anti war poems I have chosen are Dulce et Decorum Est and Disabled. I felt that of the poems that I was given to choose from, these two told a tragic story of what war was really like. Wilfred Owen at the time seemed to be bitter. His reason for being bitter is that he read the pro war poetry by writers such as Jessie Pope, who was writing about the joys of war, how fun it was and how the ladies will love you. I have chosen Dulce Est because the poem describes the hardships for a group of soldiers who have to struggle through the life of war in the trenches. I have chosen Disabled because it shows the struggle of one man who has lost his legs and his arms at the elbow. All he has are the memories and they seem to become more distant as the days go on. Dulce et Decorum Est Pro Patri Moria translated into English means It Is Sweet And Honourable To Die For Ones Country. If someone is reading the poem for the first time and learns of the English meaning of the title before reading the poem they may feel it is a poem that makes you think of the army in a good way. After reading the poem a number of times I have come to a conclusion that Owen named the poem this because of the strong statement that he makes in the poem. In a way I get the feeling that Owen was mocking the saying but I dont think he was mocking the army as a whole. The first stanza is not like how a pro war poem starts they are not all having a laugh wearing nice uniform, being cheered at by the ladies, they are staggering through mud, tired bleeding, and this is was Owen wanted you to think what war was really like. Owen says Bent double, like old beggars under sacks, Knock-kneed, coughing like hags Own is trying to say that these men came into the army as fit young men and now war has turned them into old hags, bent over and staggering. Till on the haunting flares we turned our backs The soldiers are fed up. They are so tired that even when the flares go off behind them they dont have the energy or even feel like turning around to see them. And towards our distant rest The reader and the men are lured into a false sense of security as we think they are safe from bombs. Blood shod Owen says this because they have been walking for a long time and is like they are wearing shoes of blood but what he is really saying is they have been treated like animals because Horses hoofs are shod. The men have been treated in an inhumane way, like they are worthless. Drunk with fatigue Owen is saying that the soldiers are so tired that it is as though they are drunk. Owen is trying too saying that the soldiers are as though they dont know entirely what they are doing. They are just being led along like zombies. Of tired, outstripped Five-Nines that dropped behind them Fine-Nines are gas bombs that the Germans used in the war. Owen is saying that the men are so tired that they are just blanking out the sounds of these gas bombs, as they are behind the lines and think they are not in range. The bombs are personified as is they are moving slowly and are weary. The pace of the poem quickens in the 2nd stanza. The soldiers are woken by a gas attack. This effectively shatters the mood that Owen has told of us in the opening stanza. The soldiers are now woken by the fact that their lives are in danger and they now have to be fully aware of all their surroundings. Owen says Gas! GAS! Quick boys! The men have just woken up they are still half-asleep the first sign of Gas is in lower case as they have just seen what going on. The second GAS is the man shouting for their lives as they try to find their gas masks. Dim through the misty panes and thick green light, as under a green sea, I saw him drowning The green light Owen talks about is the gas falling down on them. Owen uses a simile saying that the man is drowning in a green sea, which he means by the colour of the gas looking like the sea. The reality is that the man is drowning, when a gas attack takes place, the lungs fill up with fluid and drown on your own bodily fluids. The ecstasy of fumbling Owen does not mean that there is an adrenaline rush. But medically it means a morbid state of nerves, which means that your nerves are making you think of one thing to do, which in this case, is to put your gas masks on. Fitting the clumsy helmets Owen is either saying that the men are clumsy in putting the helmets on or the helmets clumsy by letting the gas in. Owen tells us how this memory has stayed with him. The sight of a dying man lunging at him in a plea for his life. In the short 3rd stanza, Owen seems to have a great fear of the gas attacks when he talks of them. Owen talks of all of the nightmares he has had because of the war and this event. Owen says In all my dreams before my helpless sight Owen is dreaming about that man, which was dying before him Owen dreams about it because there was no way in which he could help him. The 4th stanza is back to the slow pace of the 1st stanza. In this stanza Owen is accusing the pro war poets of doing this, making young men to join the army and just to go to their deaths. He was addressing mainly Jessie Pope because on the original draft he writes under the title, To Jessie Pope He describes how the man was taken away and then Owen walked behind and saw his face. Owen is still haunted by the nightmare. If in some smothering dream Owen describes his dreams as smothering because when he sleeps that is all he can think of the man dying. We flung him in The dead bodies are treated like meat there are so many deaths it becomes like a routine thing. In the first stanza he say blood shod like animals are shod once again here is another reference to them being treated like animals. My friend, you would not tell with such high zest to children or ardent for some desperate glory. Owen is saying that if you could see the things he had seen then you would not believe the lies that the pro war poets tell you. By saying this he is expressing the bitterness he has not only for the army but the situation as a whole. Owen adds more examples of this throughout the last stanza. Owens main question to the reader in the last stanza is before going into the army think carefully of what you are doing as you might get and see something in great contrast to what you may have imagined. The poem is describing a terrible shocking death by gas, how can it be sweet and honourable to die for ones country if you die like this. This is the country that sold him the old lie. Dulce ET decorum est. pro patria moria. In Disabled Owen is describing a man who has no legs and his arms have been amputated at the elbow. He is in an institute, a nursing home of some sought. This poem is an angry response to the type of patriotic poetry with made light of disability and which glorified death. Instead of writing and millions of dead or injured, he focuses on one person. Disability is not on the battlefield with bombs going off and people being blown up, it is at home, after the war, after the glory of winning. People will only think about the men who died in the war, not the people how have been, dehumanised and will have to sit in some home for the rest of the their lives. This is why the poem comes across as so shocking because in the days of the war people didnt know about the disabled people just about the people who died. Till gathering sleep The man is waiting for the night to come for him to sleep, as he hates to die, as he cannot do anything. I think the man sees sleeping as an alternative to death and he wants to end his life. Owen tell us about how he used to be, before he became injured, he used to like going out to have fun on the town at night, but now he just wants to go to bed and forget about the memories At the start of the 4th stanza it says, One time hed liked a blood-smear down his leg, This is ironic as he liked getting injured and bleeding and it is as if he enjoyed it now it has got it a millions time worse. It was after football, when hed drunk a peg. Hes thought hed better join He had drunk a peg of beer so he was probably not in the right frame of mind when he decided to join the army. It also says Someone had said hed look a god in kilts, Thats why; and may be, too, to please his Meg He is saying that he joined the army because he would look good in a uniform. I many of the pro war poems say that is one of the good things about war the uniform. He also joined because of a girl called Meg, who he was trying to impress, which it also says in pro war poems that when you join the army you get all the women wanting to be with you. The young man had lied to get in to the army Smiling they wroth his lie; aged nineteen years The men who were recruiting even knew that he was lying but they still wrote his name down. Germans he scarcely thought of he join the war note knowing about what was going on he had never thought about the Germans before. He talks about the evenings. He says that at this time the towns atmosphere was fun and happy everyone is dancing having fun. Owen makes the town sound romantic so that would feel for the man more. He says the girls look upon like he has some kind of disease. He talks of how he will never again feel the waist of a woman. He also talks about how he threw away his knees in the war. His was once a lovely face which now he looks old. His back is now in a brace and this was the back that was not so long ago was a strong as anything. He has lost his colour just like losing blood. He feels as though he has poured his life away down endless shell holes; he wonders what he has been given for this. Nothing. And leap of purple spurted from his thigh. Owen says And no fears of fear have come yet He had thoughts of all the swords and other weaponry that he would receive in the army. He had great thoughts of wearing the smart uniform. He thought that playing football was great, the buzz he got from the cheering. People thought of him as hero. He thought that people would cheer for him in the army; he wanted to be a hero in the army. He thinks of the army spirit, the pride in his unit. He tells about how he was given cheers and the noise of the drums as he leaves. He is so very optimistic. When he is brought back the cheers were not like the ones before the cheers are in contrast to what he imagined. This is ironic to him. Only a few people cheered when he came back only one man inquired this man was the priest. He will spend the next few years doing as the rules say. People will just take pity on him. He talks of how the women ignore him for the strong people. People with all their body. His final thoughts of the poem are one of total depression. He thinks that life is pointless. He is so helpless he cant go to bed without someone being there to help him. He feels as though he only has a few years left. He wants to be put to death as he feels like he has nothing to offer or that his life tolerable and he feels as though nothing that he does or feels will make him feel his life is worth it. As you can see from both poems they are very powerful. Each of the two poems makes a statement. One difference between the poems is that Dulce Est is a view on the army that concerns a whole array of the army. With Disabled it is just a description of the pain of one person. One thing that I feel both poems have in common is that they both talk about how they were lied to and how they were sold a lie. This is true, If a person wanted an example of army life at its worst then I would show them Dulce ET Decorum. However if I was asked about a poem that describes a poem where a person can see how the war affected people. II would recommend the latter Disabled is in my opinion the most moving of the stories as it represents a mans struggle for his life. This man can offer nothing to his country now. He cant even offer himself something that he feels will make his staying alive worth it. Whilst the majority of the people in Dulce Et are still alive this mans soul, has in effect died. He has lost his colour and cant get used to the fact that he is unpopular. I find Dulce Et Decorum to be the more shocking of the two poems. My reasons are as follows, although Disabled is a very moving and powerful poem in its own right, it only describes the view of one person in the army. I think that what makes Dulce Et so powerful is that Owen speaks for the masses in the army when he talks of the daily horrifying sights and regular attempts by the Germans to gas them. Reading these poems can enlighten a person. Many people say that they live stressful lives and are under extreme pressure. If you think of what these young men must have gone through it can put a lot of things in to perspective. Day in day out these men had to have the weight of a nation on their shoulders this is before they have to dodge land mines and gas attacks.

Effect of Cigarette Smoke on Mold Growth | Experiment

Effect of Cigarette Smoke on Mold Growth | Experiment The effect of exposed cigarette smoke on the amount of mold growth on bread is analyzed. What exactly is cigarette smoke? What is bread and how do these elements or substances work together to produce such a bacteria? How does mold and cigarette effect its environment and all living things within it? Cigarette smoke, also known as environmental tobacco smoke, is made of tobacco. It is considered a mixture of two forms of smoke that come from burning tobacco. Bread is a food made of flour, water, and yeast mixed and baked together. Analyze the effects of dangerous substances such as mold and cigarette smoke in the environment. How does cigarette smoke affect the mold growth on bread? Literary Discussion Cigarette smoke does halt the natural growth of the mold process. In humans, weight isnt necessarily gained for those who constantly smoke cigarettes. Bread will naturally mold overtime. It has been determined that overtime, mold doesnt grow on bread in an environment with cigarette smoke to the extent that it does with natural air. Bread is composed of three main ingredients: grains, flour, water, and yeast. Grains are small, hard seeds, especially the seeds of food plants such as wheat or corn. Flour is the finely ground meal of grain. Water is a transparent, odorless, tasteless liquid and yeast comes from grain. It is used as ferment baked in bread. Yeast has three main requirements. Moisture is one of those requirements. Yeast also requires food and heat so it can develop, increase, and grow. The yeast grows after this process is complete and all requirements are met. Yeast has main functions in bread. It is supposed to produce carbon dioxide gas to enable the dough to rise. The entire process of bread rising is based off of yeast. Yeast is a fungus that is composed of one cell and sugar is a necessity to grow. This fungus breaks sugar down in to smaller components. Carbon dioxide is a naturally occurring chemical compound composed of two oxygen atoms. These atoms are the number of electron pairs that an atom can share with other atoms bonded to a single carbon atom. Yeast also aids in giving bread its characteristic flavor and aroma. Saccharomyces cerevisiae is a series of yeasts. To the right is an image of Saccharomyces cerevisiae yeast which is used to bake. It is the most common type of yeast used in the bread-baking process. Yeasts are considered eukaryotic model organisms in cell biology and molecular biology as well. Eukaryotic organisms have a nucleus unlike prokaryotic organisms. Most yeasts divide themselves through budding which is a c haracteristic used to perceive yeasts through a microscope. They appear to be shaped or formed like an 8. High protein flour assist in bread rising. Bread flour isnt anything, but white flour made from hard, high-protein flour. This gives the bread a good texture. The texture of the bread, whether it is good or bad, all depends on the type of flour. Preferably bread flour would be the best type of flour to use when baking bread, but all-purpose flour could possibly give you good results as well. Self-rising flour contains baking powder. Baking powder is a substance used to produce fermentation in the bread dough. This type of flour would not be used if yeast is an ingredient used to make the bread. Baking flour mostly comes from wheat. Every type of flour is suited to different types of foods. All types of flours are different. If a recipe requires one type of flour and a different type of flour is used, preparation is needed for the outcome. The recipe might not come out like its supposed to because not all recipes use the same type of flour. It is imperative to know what type of flour is manipulated in the process of baking. Bread flour differs from all purpose flour. Bread flour has more protein content and gluten strength than all-purpose flour. Unlike bread flour, all-purpose four may be unbleached or bleached and bread flour is unbleached. From time to time bread flour is conditioned with ascorbic acid. Ascorbic acid is a naturally occurring organic compound with antioxidant compounds which is an advocate for the volume increasing and better texture. Yeast products need as much protein as they can get and bread flour would be the best choice because it contains 12% to 14% of protein, also known as gluten. To the left is an image of bread flour. To the right is an image of all-purpose flour. Water is one of the ingredients that make up bread. It is an enormous factor in the process of bread making. This is because it is used to form the dough or paste. Without the formation of dough, bread couldnt be made. The amount of liquid or water necessary for bread differs with different recipes. In baking, water serves as a solvent which means it has the power to dissolve other ingredients to produce a solution. Water is considered the dispersing agent and solvent for ingredients such as salt, sugar, and yeast. Bread dough is needed to be consistent and water is responsible for that consistency. In other words, a certain amount of water is needed to get the dough to be the right texture. Dry doughs wont ferment as fast as soft doughs. Water is necessary for yeast to reproduce and ferment. Water hardness is the amount of calcium and magnesium ions in water. The expression that represents water hardness is parts per million (ppm). The best measurement suited for bread baking is aro und 100 to 150 (ppm) of minerals; medium hardness. Flour, water, and yeast all work as a team to produce good, strong bread dough. There is a process of bread making. This process starts off with mixing, combining, stirring these ingredients. The yeast and flour have enzymes within them. The enzymes in both large starch molecules to break down into simple sugars. The yeast metabolizes these simple sugars. When something is metabolized, it goes through a process of metabolism. Metabolism is a process in an organism where its material substance is produced, maintained, and destroyed, and by which energy is made available. It is the process in which the internal environment adjusts and is maintained when there are external environmental changes taking place. The yeast also exudes a liquid. This liquid releases carbon dioxide similar to humans after they breathe in oxygen. It releases ethyl alcohol as well and they are both released into existing air bubbles in the dough. In the picture to the left, a visual demonstration of how yeast ce lls work is shown. It shows sugars metabolized. Yeast cells thrive on simple sugars. As the sugars are metabolized, carbon dioxide and alcohol are released into the bread dough, making it rise (Phillips, Scott). Carbon Dioxide will begin to inflate the bubble only if the dough has a strong and elastic gluten network. The more the tiny air cells fill with carbon dioxide, the more the dough rises. When making bread, it is best to develop as much gluten, a type of protein within flour, as you can because the gluten strengthens the dough. It also holds in any gases to help the bread rise. The bread dough is then tucked and stretched into a round to give it a smooth outside. This smooth cover, outside, top, or shelter traps the gases produced by fermentation. The dough is then put aside for approximately ten to fifteen minutes. Sitting aside allows the gluten bonds relax. The process of shaping the dough at last is then made easier. This process isnt necessary and isnt taken by all baker s, but is very beneficial. Fermentation starts off with the enzymes in the yeast breaking down starch into flavorful sugars. The sugar in the yeast is then used to produce carbon dioxide, alcohol, and a lot of byproducts. Amylose and maltose break down into glucose and proteins break down into amino acids. The dough becomes more acidic as the process of fermentation proceeds. There are six main steps to the bread making process. These six main steps do not change if bread is made by hand. The first step is to accurately weigh the ingredients used to bake the bed. The second step includes mixing and kneading the dough. Now this step may change depending on how the dough is mixed. Dough can be mixed and knead by using a bread machine, mixer, or kneading by hand. After mixing and kneading, theres a test that is recommended to take called the window test. First, pinch off a piece of dough. Then, the dough is grasped on opposite sides with both hands. Next, the dough should be spread apart approximately three to five centimeters. The dough is supposed to look a certain way after this. Its supposed to look like a window with a window-like membrane in the center. The dough most likely will come out either two ways. If the dough tears or doesnt stretch easily, it needs to be kneaded more. If it forms a window-like membrane and stretches easily, the process of kne ading is over. The next main step is to proof the dough followed by dividing, knocking back the dough. The fifth step is to finally proof the dough. This step involves shaping the dough into the desired shape and leaving the dough to rise in an environment where it is warm and moist until the dough raises almost doubles in size. Last, but certainly not least, bake the dough so it can form into a loaf. When the bread is baked in a hot, preheated oven, the best way to check if the bread is completely done is by tapping it on the base with your knuckle. The bread is baked completely if it sounds hollow. The bread should then be put on a wire rack to cool. A cigarette is a cylindrical roll of finely cut tobacco used for smoking. It is considerably smaller than most cigars and usually wrapped in thin white paper. There are multiple brands of cigarettes. Other than tobacco, there are approximately 4,000 ingredients within a cigarette. The cigarette would be considered to be made up of a cocktail of ingredients. There are quite a few ingredients that people wouldnt assume to be in a cigarette. Chocolate, beeswax, yeast, and wine are four of those additives. Todays cigarettes are definitely not healthy, not saying that they ever were. Cigarettes now a days include ammonia (household cleaner), arsenic (used in rat poisons), butane (gas, used in lighter fluid), DDT (a banned insecticide), Naphthalene (ingredient in mothballs), etc. These ingredients are death threats. One ingredient that killed over 2,000 people in Bhopal, India after being accidentally released is Methyl Isocyanate. Carbon monoxide (a gas in car exhausts), copper (electric wiring), tar (road surfaces), acetone (paint stripper), benzene (petrol fumes), formaldehyde (embalming fluid), methanol (rocket fluid), and radon (radioactive gas), etc make up a cigarette as well. These arent all of the negative substances within a cigarette, but these are key ones. Nicotine is composed of several chemicals. These chemicals have substantial effects on the human body. Together these chemicals can cause nicotine overdose. Nicotine gives a sense of relaxation and recovery because of the changing of the shape of the body and brain function. Nicotine is addictive. It is a depressant. It is nicotine that is the addictive substance in tobacco. Over the past 100 years, the tobacco industry has been tweaked to get smokers hooked more effectively. Ammonia may not seem like it has anything to do with tobacco let along cigarettes, but the additive in cigarettes aids in the lungs absorbing cigarette smoke quicker. This explains why people get higher from cigarettes. Ammonia is also a substance used to clean toilets. Chocolate is an addition to cigarettes. The effect it has on the body isnt nowhere near the effect other things have. It is only in a cigarette to take away the bitter taste. It also potentially puts off the natural tobacco taste. Cigarettes are a hundred percent legal and should be outlawed by many laws, but isnt. Not only do cigarettes affect the people that smoke them, but they affect the people and environment in the surrounding areas as well. The affect of other people is called second-hand smoking. Second-hand smoking is when someone who doesnt smoke ingests more than 4,000 hazardous compounds as well as the smoker. Second-hand smoke is more dangerous than smoking. Cigarette smoke contains small amounts of radioactive materials. These radioactive materials are inhaled by non-smokers and smoker into their lungs. They build up and overtime and as they increase they become a big dose of radiation. Cigarette smoke influences the atmosphere around big time. The actual cigarette bud and smoke affect the environment the most. Cigarette buds and smoke result in air, water and in addition land pollution. Cigarette smoke and buds are considered one of the number one contributors to the environmental pollution. They effect the environment in several of ways. Cigarette buds affect the water because numerous amounts of them are left on the ground. Most of them end up pushed down into the lakes by wind, water, etc. A lot of animals such as fish eat these buds believing they are food. This eats away at the insides of these living organisms. The rest of the buds that dont go anywhere and stay on the ground are there for an extremely long time. Cigarette buds dont decompose fast. It takes them approximately twenty five to twenty six years to decompose. These buds left in the grass pollute the plants and soil by being leached into the soil. Cigarette buds can also contribute to the start of a fire. Especially during dry season fires are likely to happen. Cigarette smoke affects the human body extremely. The cigarette smoke increases and accelerates the aging process in the human body. Smoking also causes dieses in nearly every organ in the human body. A hazardous disease such as lung cancer can kill you. Cigarettes contain tar and low-tar cigarettes do not reduce the risk of lung cancer. Smoking causes 90% of lung cancer deaths in men and 80% in women according to statistics. When you inhale smoke, it automatically affects your lungs. Another disease that is easily given than taken is Crohns disease. Cigarette smoking for weight loss has widely been used as an appetite suppressant. Cigarette smoke has a negative effect on it. Patients with Crohns disease have a higher risk at relapses and repeated surgeries. These patients need more treatment such as aggressive and immunosuppressive treatment. If a smoker stops smoking, the risk at having Crohns disease is still there. Smokers have a higher risk at developing a peptic ulcer, a liver disease, heartburn, etc. Nicotine affects the brain in major way. Eukaryotic organisms have a nucleus which is the brain of a cell. Nicotine affects the brain by decreasing the supply of blood to the brain and its cells. Blood is transferred to the brain by the carotid artery. There are many arteries that supply blood to the brain, but the main artery is the carotid artery. The amount of diseases given with smoking to the human body varies. There are numerous fatal diseases associated with smoking; long term and also inhaling second-hand smoke. Some examples of these diseases are within the cancer family. Smoking causes cancer within the mouth, throat, larynx, lung, esophagus, pancreas, kidney, and bladder. It also causes cancers of the stomach acute myeloid leukemia, and cervix. Above is a graph with information that shows the estimated average and annual number of smoking-attributable deaths in the United States during 2000 through 2004 by specific causes.( Centers for Disease Control and Prevention, 2004,) Bladder cancer may occur at any stage, but smoking cigarettes aid in the development of it in a human body. It is common for bladder cancer to take place in patients over fifty years of age. If bladder cancer is detected at an early stage and immediately treated, it could possibly be curable. Blood cancer is diagnosed during a cystoscopy when a biopsy is done. The process involves a certain instrument which is passed through the tube. The tube carries the urine from the bladder to the outside of the body also known as the urethra. Esophageal cancer is animosity of the esophagus. Diagnosis of esophagus cancer has more than one way, but one way is by barium X-Ray of the esophagus. It is confirmed by the endoscopy with a biopsy of the cancer tissue. The esophagus is an approximately ten inch tube located in the chest. It can cause pain with swallowing food and can hinder the food from smoothly, gently, and easily going down. Treating esophageal cancer differs. It all depends on the age and health of the patient mainly. It also depends on the location, size, and extent of the cancer spread in the human body. The muscular tube has multiple of layers. These layers include the inner layer or lining. The inner layer of lining is called the mucosa. This part of the esophagus is moist to aid in the food passing to the stomach. Submucosa has glands that make mucus. The mucus is the liquid that keeps the esophagus moist. The next layer consists of the muscle layer. The muscles in the muscle layer push the food down to the stomach. The last layer, outer layer, covers the esophagus. Kidney cancer is when cells within kidney tissue dont. These cells eventually create a tumor. There are different types of kidney cancers. Those different types include Rena Cell Carcinoma (RCC), Transitional Cell Carcinoma, Renal Sarcoma, and Wilms Tumor. RCC is the most common type of kidney cancer in adults. Transitional Cell Carcinoma usually begins in the renal pelvis. Renal Sarcoma is the least common form of kidney cancer. Wilms tumor is the most common type of kidney cancer in children. Symptoms of kidney cancer consist of a condition called hematuria which is when blood is in the urine, a lump in the kidney area, bone pain, pain in the side, high blood pressure, etc. Kidney cancer overall isnt very common. There are four stages of kidney cancer and is mainly treated by surgery. Surgical options differ from simple nephrectomy, partial nephrectomy, and radical nephrectomy. The remainder kidney is usually able to perform the work of both kidneys if one is removed. (United State s National Center for Chronic Disease Prevention and Health Promotion, U.S.) To the left is an illustration of a kidney. Laryngeal cancer is a disease in which cancer cells form in the tissues of the larynx. The larynx is the voice box in the human body. The pharynx is located right above the larynx. The pharynx is the throat in the neck. The voice box contains the vocal chords. Majority Laryngeal cancer form in squamous cells. There are three main parts of the larynx which are the supraglottis, glottis, and subglottis. The supraglottis is the upper part of the larynx located above the vocal chords. Glottis is the middle part in the same area where the vocal chords are. The lowest part of the larynx is the subglottis. The subglottis is located between the vocal chords and trachea. The trachea is also known as the windpipe. The use of all tobacco products can affect the risk of developing Laryngeal cancer. Ear pain and a sore throat are symptoms of Laryngeal cancer. Hoarseness within the voice and a lump in the neck or throat are symptoms as well. A doctor should immediately be acknowledged if any of th ese symptoms take place especially a lump in the neck or throat. There are four stages to this disease and the stage affects the treatment options. When a certain stage is reached, treatment isnt guaranteed to prevent any tragedy such as death. Oral cancer is a subtype of head and neck cancer. It is any cancerous tissue growth located in the mouth. Oral cancer can affect any are of the mouth. The mouth is also known as the oral cavity. This are includes the lips, gum tissues, tongue, cheek lining, and the hard and possible soft palate. According to statistics, oral cancer kills one person every five hours. This disease is greatly influenced by smoking cigarettes mainly because the cigarette is smoked used by lips and the chemicals travel throughout the mouth to the throat. Just like majority of other cancers, treating oral cancer depends on the size of the cancer and the stage that the cancer is in. Men have a higher risk of being diagnosed with oral cancer. Symptoms of oral cancer include tiny white or red spots, swelling of the jaw, a sore that doesnt heal within two weeks or bleeds immediately, etc. In oral cancers early stages, it is hard to detect the cancer because known of the symptoms take place. Theres neither pain nor red and white bumps inside the mouth that can be related to oral cancer. Pancreatic cancer is cancer in the pancreas which is a 6-inch long organ located behind the stomach in the back of the abdomen. The pancreas contains exocrine and endocrine glands. The classification of pancreatic cancer depends on whether it affects the exocrine or the endocrine functions of the pancreas. A gland that secretes externally through a duct is an exocrine gland. An endocrine gland is any of the glands of the endocrine system that secrete hormones directly into the bloodstream. The most common type of pancreatic cancer is tumors that affect the exocrine functions. These tumors are called either cystadenomas or adenocarcinomas. The uncommon tumors in pancreatic cancer are tumors that affect the endocrine functions. These tumors are called neuroendocrine or islet cell tumors. Symptoms of pancreatic cancer consists of pale or grey stool, excess fat in stool, pain in the upper abdomen, dark urine, yellowness in the skin or eyes, vomiting, nausea, loss of appetite, etc. Pain i n the upper abdomen comes from the tumor pushing against nerves. Mold is a fungus. Mold can be found indoors and outdoors. Mold is a living organism. It reproduces. Mold reproduces by creating mold spores. Mold spores can be thought of as seeds. Mold spores are necessary for mold to reproduce. They can form anywhere and can enter houses through cracks, windows, door-ways, etc. Four major elements contribute to mold growth indoors and three of those elements contribute to outdoor mold growth. The four elements that contribute to indoor mold growth are temperature, food source, oxygen, and water. Water, temperature, and oxygen are needed in order for outdoor mold to grow. Mold feeds off of all types of cellulose materials. For instance, mold feeds on wood, fabrics, wall paper, etc. Mold grows in temperatures that range between 40 and 110 degrees Fahrenheit. This fungus does need air to advance, but it grows best in area with poor ventilation. Mold needs water, moisture, or high humidity in order to develop. Mold travels by mold spores. They spread through air, water, or by hitching a ride on a host. The hosts that mold spores happen to latch on to are items such as clothing, insects, and humans. Mold spores will follow air currents. Mold is dangerous. Mold spore contain mycotoxins. Mycotoxins are secondary metabolites produced by micro fungi that are capable of causing disease and death in humans and other animals. These mycotoxins enter the body two ways. They are inhaled or absorbed through the skin. Mold is an allergy for a lot of people. Mold can provide nasal congestion, eye or skin irritation, or wheezing. More severe reactions are possible if the human body cant take the fungus or fight off the bacteria. Shortness of breath and fevers are considered severe reactions to mold that may occur in a person whom has severe allergies. Some people may develop mold infections in their lungs like obstructive lung disease if they have chronic lung illnesses. When high amounts of airborne toxic mold spores are inhaled deep into the lungs they can enter the bloodstream and affect so many different things. The immune system, nervous system, liver, kidneys, and blood can be affected. This can cause brain damage. The immune system is made up of organs, tissues, and cells that work together as a network. They work together to protect the body. The cells in the immune system, white blood cells or leukocytes, are divided into two main groups. The two basic types of leukocytes are phagocytes and lymphocytes. They combine together to seek out and destroy disease-causing substances and organisms. Phagocytes are cells that chew up invading organisms and lymphocytes are cells that allow the body to remember and recognize previous invaders. Lymphocytes help the body destroy them. Neutrophil is the most common type of phagocytes. Immunity is the ability to resist a particular toxin by the action of specific antibodies. The human body has three types of immunity. The three types include innate, adaptive, and passive. Innate is natural immunity and everyone is born with it. Adaptive immunity or active immunity develops throughout the life of a human. Passive immunity is borrowed from another source. It doesnt last long. The immune system does have problems. The disorders fall into four main categories. The first two categories are immunodeficiency disorders and autoimmune disorders the next two are allergic disorders and cancers of the immune system. Autoimmune disorders are when the immune system attacks its own tissue as foreign matter. Allergic disorders are when the immune system overreacts in response to an antigen. Mold as well as cigarette smoke has a huge effect on the nervous system in the human body. The nervous system is made up of the brain, spinal cord, and nerves. The nervous system is the human bodys control system. The ability for the human body to see, feel, hear, smell, taste, and reproduce is controlled by the nervous system. Cigarette smoke and mold damages your brain the most. The brain and spinal cord are the only two organs a part of the nervous system. If the brain is damaged, the rest of the body doesnt operate the same because the job of the brain is to control everything. The forebrain, midbrain, and hind brain are the three segments that the brain is divided into. The brain, nerves, and the spinal cord are all connected by the brain stem. The spinal cord finds the association neuron. A sensory neuron informs the body of its environment. It serves as an integration or interpretation center of sensory neurons and motor neurons. The association neuron interprets the informati on and responds to the environment with the motor neuron. In the circulatory system, blood vessels are the highways of the human body. When something molds, its not in a good condition. Tobacco smoke has an uncountable amount of toxins within it. These toxins travel throughout the blood in the human body. There are two types of blood vessels. Arterial arteries are one and venous veins are the other ones. Capillaries are minute vessels. They allow oxygen and nutrients to traverse through their walls to all the body cells. The tissue of arteries has different textures. They are tough on the outside, muscular in the middle, and smooth on the inside. There are two venae cavae. They are the two largest veins in the body. They carry the deoxygenated blood to the right side of the heart. The tissues of the veins are thin, and not as flexible nor muscular than the arteries. The heart is the center of the circulatory system. It is located behind the breastbone and centered perpendicular to the midline of the chest. The heart receives oxygen from the lungs and has two parts. The heart has its own circulation network that is made up of arteries and veins. The upper chamber of the heart is called the atrium and the lower chamber of the heart is called the ventricle. The picture on the right is an illustration of the upper chamber and the image on the left is a picture of the lower chamber of the heart. Both chambers have two parts. The atrium has two auricles, the left and right auricle. Both auricles hold cache for blood that enters the heart. The left ventricle is bigger and more muscular than the right ventricle because it pumps blood to the whole body. The left ventricle accomplishes this task because it has an opening that blood flows through to the central artery also known as the aorta. The central artery is where the blood circulation originates throughout the human body. Smoking cigarettes causes heart disease and strokes which are two types of cardiovascular diseases. Heart disease and stroke are considered to be the third main causes of death in the United States. Heart and blood vessels are harmed by tobacco smoke. A symptom of heart disease is heart palpitation which is a feeling that that the heart is beating too fast or too hard, skipping a beat, too slow, or fluttering. When the heart beat isnt consistent meaning the heart beat is irregular, heart disease could possibly be the outcome. Cardiovascular diseases in which include heart disease, is the number one killer of women. There are different types of strokes. Ischemic strokes are the main kinds of strokes that occur. The other strokes are hemorrhagic strokes. Ischemic strokes are when there is a physical blockage of blood traveling to the brain. This causes the brain cells in the area to die. Hemorrhagic strokes are the sudden onset of neurological symptoms as a result of bleeding in the brain. This type of stroke can easily increase the pressure inside of the brain. This can lead to brain damage. There are some people that dont recover from brain damage and eventually become brain dead which means their body cant function anymore. Specific items in tobacco smoke can damage important genes that control cell growth. If a cell doesnt grow completely and substantially correct, it doesnt function right. If tobacco smoke and mold can affect the human body in such a way, it definitely can affect bread. Those whom smoke and are addicted to smoking crave the nicotine. They know the cigarettes are constantly harming the human body, but an addiction isnt easy to overcome. When a smoker smokes, they usually dont gain a lot of weight. This is because the substances and chemicals in the cigarette stunt the growth and development. On bread, smoke stunts the growth of mold. This is explains why bread cigarette smoke does affect the mold growth on bread more than air does. This is very ironic because most people wouldnt think the air that humans breathe in could impact bread in such a negative way more than cigarette smoke. Chemicals that arent needed to be absorbed in the human body take the body off balance as well as other things such as bread. Vocabulary Nicotine- one of the most addictive substances known to a man. Nicotine is one of the components or substances that make up cigarettes. Powerful- producing great physical effects and efforts. Drugs- are extremely dangerous substances whether they are legal or illegal. Over-the-counter drugs can be as dangerous and effective because everyones tolerance for drugs differ. Poisons- are substances that cause disturbances to organisms. Usually takes place by chemical reactions or other activity on the molecular scale, when a sufficient quantity or total is absorbed by an organism. Insecticides- made up of substances or mixture of substances intended for preventing, repelling or mitigating and pest. Tobacco- causes a wide variety of dieses, cancer, and death. A carrier for the addictive drug called nicotine. Volatile- is applied to a substance with a high vapour pressure that passes readily into a gaseous phase. Biological Growth- the exponential growth of biological organisms. Mold- a large and taxonomically diverse number of fungal species where their growth results in a moldy appearance of objects, especially foods. Spores- a reproductive cell or structure produced by certain fungi, plants (moss, ferns), and some bacteria. Contaminate- to make something impure, unclean, by exposure to or addition of, contact, a mixture, or polluting substance. Loaf- a shaped or molded often symmetrical mass of food; bread baked in one piece. Hygiene- a condition or practice conducive to the preservation of health, as cleanliness; keeping something in a substantial condition. Moderate- root word of moderation. Keeping or when something is kept within reasonable or proper limits. Atmosphere- a buffer that