Solutions of Financial Management

Chapter 1 An Overview of Financial Management Learning Objectives After reading this chapter, students should be able to: ? Identify the three main forms of business organization and describe the advantages and disadvantages of each one. ? Identify the primary goal of the management of a publicly held corporation, and understand the relationship between stock prices and shareholder value. ? Differentiate between what is meant by a stock’s intrinsic value and its market value and understand the concept of equilibrium in the market. Briefly explain three important trends that have been occurring in business that have implications for managers. ? Define business ethics and briefly explain what companies are doing in response to a renewed interest in ethics, the consequences of unethical behavior, and how employees should deal with unethical behavior. ? Briefly explain the conflicts between managers and stockholders, and explain useful motivational tools that can help to prevent t hese conflicts. Identify the key officers in the organization and briefly explain their responsibilities. Lecture Suggestions Chapter 1 covers some important concepts, and discussing them in class can be interesting. However, students can read the chapter on their own, so it can be assigned but not covered in class. We spend the first day going over the syllabus and discussing grading and other mechanics relating to the course. To the extent that time permits, we talk about the topics that will be covered in the course and the structure of the book.We also discuss briefly the fact that it is assumed that managers try to maximize stock prices, but that they may have other goals, hence that it is useful to tie executive compensation to stockholder-oriented performance measures. If time permits, we think it’s worthwhile to spend at least a full day on the chapter. If not, we ask students to read it on their own, and to keep them honest, we ask one or two questions about the mate rial on the first mid-term exam.One point we emphasize in the first class is that students should print a copy of the PowerPoint slides for each chapter covered and purchase a financial calculator immediately, and bring both to class regularly. We also put copies of the various versions of our â€Å"Brief Calculator Manual,† which in about 12 pages explains how to use the most popular calculators, in the copy center. Students will need to learn how to use their calculators immediately as time value of money concepts are covered in Chapter 2. It is important for students to grasp these concepts early as many of the remaining chapters build on the TVM concepts.We are often asked what calculator students should buy. If they already have a financial calculator that can find IRRs, we tell them that it will do, but if they do not have one, we recommend either the HP-10BII or 17BII. Please see the â€Å"Lecture Suggestions† for Chapter 2 for more on calculators. DAYS ON CHAPT ER: 1 OF 58 DAYS (50-minute periods) Answers to End-of-Chapter Questions 1-1When you purchase a stock, you expect to receive dividends plus capital gains. Not all stocks pay dividends immediately, but those corporations that do, typically pay dividends quarterly.Capital gains (losses) are received when the stock is sold. Stocks are risky, so you would not be certain that your expectations would be met—as you would if you had purchased a U. S. Treasury security, which offers a guaranteed payment every 6 months plus repayment of the purchase price when the security matures. 1-2No, the stocks of different companies are not equally risky. A company might operate in an industry that is viewed as relatively risky, such as biotechnology—where millions of dollars are spent on R&D that may never result in profit.A company might also be heavily regulated and this could be perceived as increasing its risk. Other factors that could cause a company’s stock to be viewed as re latively risky include: heavy use of debt financing vs. equity financing, stock price volatility, and so on. 1-3If investors are more confident that Company A’s cash flows will be closer to their expected value than Company B’s cash flows, then investors will drive the stock price up for Company A. Consequently, Company A will have a higher stock price than Company B. -4No, all corporate projects are not equally risky. A firm’s investment decisions have a significant impact on the riskiness of the stock. For example, the types of assets a company chooses to invest in can impact the stock’s risk—such as capital intensive vs. labor intensive, specialized assets vs. general (multipurpose) assets—and how they choose to finance those assets can also impact risk. 1-5A firm’s intrinsic value is an estimate of a stock’s â€Å"true† value based on accurate risk and return data. It can be estimated but not measured precisely.A sto ck’s current price is its market price—the value based on perceived but possibly incorrect information as seen by the marginal investor. From these definitions, you can see that a stock’s â€Å"true long-run value† is more closely related to its intrinsic value rather than its current price. 1-6Equilibrium is the situation where the actual market price equals the intrinsic value, so investors are indifferent between buying or selling a stock. If a stock is in equilibrium then there is no fundamental imbalance, hence no pressure for a change in the stock’s price.At any given time, most stocks are reasonably close to their intrinsic values and thus are at or close to equilibrium. However, at times stock prices and equilibrium values are different, so stocks can be temporarily undervalued or overvalued. 1-7If the three intrinsic value estimates for Stock X were different, I would have the most confidence in Company X’s CFO’s estimate. In trinsic values are strictly estimates, and different analysts with different data and different views of the future will form different estimates of the intrinsic value for any given stock.However, a firm’s managers have the best information about the company’s future prospects, so managers’ estimates of intrinsic value are generally better than the estimates of outside investors. 1-8If a stock’s market price and intrinsic value are equal, then the stock is in equilibrium and there is no pressure (buying/selling) to change the stock’s price. So, theoretically, it is better that the two be equal; however, intrinsic value is a long-run concept. Management’s goal should be to maximize the firm’s intrinsic value, not its current price.So, maximizing the intrinsic value will maximize the average price over the long run but not necessarily the current price at each point in time. So, stockholders in general would probably expect the firmâ⠂¬â„¢s market price to be under the intrinsic value—realizing that if management is doing its job that current price at any point in time would not necessarily be maximized. However, the CEO would prefer that the market price be high—since it is the current price that he will receive when exercising his stock options.In addition, he will be retiring after exercising those options, so there will be no repercussions to him (with respect to his job) if the market price drops—unless he did something illegal during his tenure as CEO. 1-9The board of directors should set CEO compensation dependent on how well the firm performs. The compensation package should be sufficient to attract and retain the CEO but not go beyond what is needed. Compensation should be structured so that the CEO is rewarded on the basis of the stock’s performance over the long run, not the stock’s price on an option exercise date.This means that options (or direct stock awards) sho uld be phased in over a number of years so the CEO will have an incentive to keep the stock price high over time. If the intrinsic value could be measured in an objective and verifiable manner, then performance pay could be based on changes in intrinsic value. However, it is easier to measure the growth rate in reported profits than the intrinsic value, although reported profits can be manipulated through aggressive accounting procedures and intrinsic value cannot be manipulated.Since intrinsic value is not observable, compensation must be based on the stock’s market price—but the price used should be an average over time rather than on a spot date. 1-10The three principal forms of business organization are sole proprietorship, partnership, and corporation. The advantages of the first two include the ease and low cost of formation. The advantages of the corporation include limited liability, indefinite life, ease of ownership transfer, and access to capital markets.The disadvantages of a sole proprietorship are (1) difficulty in obtaining large sums of capital; (2) unlimited personal liability for business debts; and (3) limited life. The disadvantages of a partnership are (1) unlimited liability, (2) limited life, (3) difficulty of transferring ownership, and (4) difficulty of raising large amounts of capital. The disadvantages of a corporation are (1) double taxation of earnings and (2) setting up a corporation and filing required state and federal reports, which are complex and time-consuming. 1-11Stockholder wealth maximization is a long-run goal.Companies, and consequently the stockholders, prosper by management making decisions that will produce long-term earnings increases. Actions that are continually shortsighted often â€Å"catch up† with a firm and, as a result, it may find itself unable to compete effectively against its competitors. There has been much criticism in recent years that U. S. firms are too short-run profit-oriente d. A prime example is the U. S. auto industry, which has been accused of continuing to build large â€Å"gas guzzler† automobiles because they had higher profit margins rather than retooling for smaller, more fuel-efficient models. -12Useful motivational tools that will aid in aligning stockholders’ and management’s interests include: (1) reasonable compensation packages, (2) direct intervention by shareholders, including firing managers who don’t perform well, and (3) the threat of takeover. The compensation package should be sufficient to attract and retain able managers but not go beyond what is needed. Also, compensation packages should be structured so that managers are rewarded on the basis of the stock’s performance over the long run, not the stock’s price on an option exercise date.This means that options (or direct stock awards) should be phased in over a number of years so managers will have an incentive to keep the stock price hig h over time. Since intrinsic value is not observable, compensation must be based on the stock’s market price—but the price used should be an average over time rather than on a spot date. Stockholders can intervene directly with managers. Today, the majority of stock is owned by institutional investors and these institutional money managers have the clout to exercise considerable influence over firms’ operations.First, they can talk with managers and make suggestions about how the business should be run. In effect, these institutional investors act as lobbyists for the body of stockholders. Second, any shareholder who has owned $2,000 of a company’s stock for one year can sponsor a proposal that must be voted on at the annual stockholders’ meeting, even if management opposes the proposal. Although shareholder-sponsored proposals are non-binding, the results of such votes are clearly heard by top management. If a firm’s stock is undervalued, t hen corporate raiders will see it to be a bargain and will attempt to capture the firm in a hostile takeover.If the raid is successful, the target’s executives will almost certainly be fired. This situation gives managers a strong incentive to take actions to maximize their stock’s price. 1-13a. Corporate philanthropy is always a sticky issue, but it can be justified in terms of helping to create a more attractive community that will make it easier to hire a productive work force. This corporate philanthropy could be received by stockholders negatively, especially those stockholders not living in its headquarters city.Stockholders are interested in actions that maximize share price, and if competing firms are not making similar contributions, the â€Å"cost† of this philanthropy has to be borne by someone–the stockholders. Thus, stock price could decrease. b. Companies must make investments in the current period in order to generate future cash flows. Sto ckholders should be aware of this, and assuming a correct analysis has been performed, they should react positively to the decision. The Mexican plant is in this category. Capital budgeting is covered in depth in Part 4 of the text.Assuming that the correct capital budgeting analysis has been made, the stock price should increase in the future. c. U. S. Treasury bonds are considered safe investments, while common stock are far more risky. If the company were to switch the emergency funds from Treasury bonds to stocks, stockholders should see this as increasing the firm’s risk because stock returns are not guaranteed—sometimes they go up and sometimes they go down. The firm might need the funds when the prices of their investments were low and not have the needed emergency funds.Consequently, the firm’s stock price would probably fall. 1-14a. No, TIAA-CREF is not an ordinary shareholder. Because it is one of the largest institutional shareholders in the United St ates and it controls nearly $280 billion in pension funds, its voice carries a lot of weight. This â€Å"shareholder† in effect consists of many individual shareholders whose pensions are invested with this group. b. The owners of TIAA-CREF are the individual teachers whose pensions are invested with this group. c. For TIAA-CREF to be effective in wielding its weight, it must act as a coordinated unit.In order to do this, the fund’s managers should solicit from the individual shareholders their â€Å"votes† on the fund’s practices, and from those â€Å"votes† act on the majority’s wishes. In so doing, the individual teachers whose pensions are invested in the fund have in effect determined the fund’s voting practices. 1-15Earnings per share in the current year will decline due to the cost of the investment made in the current year and no significant performance impact in the short run. However, the company’s stock price should increase due to the significant cost savings expected in the future. -16The board of directors should set CEO compensation dependent on how well the firm performs. The compensation package should be sufficient to attract and retain the CEO but not go beyond what is needed. Compensation should be structured so that the CEO is rewarded on the basis of the stock’s performance over the long run, not the stock’s price on an option exercise date. This means that options (or direct stock awards) should be phased in over a number of years so the CEO will have an incentive to keep the stock price high over time.If the intrinsic value could be measured in an objective and verifiable manner, then performance pay could be based on changes in intrinsic value. Since intrinsic value is not observable, compensation must be based on the stock’s market price—but the price used should be an average over time rather than on a spot date. The board should probably set the CEOà ¢â‚¬â„¢s compensation as a mix between a fixed salary and stock options. The vice president of Company X’s actions would be different than if he were CEO of some other company. 17.Setting the compensation policy for three division managers would be different than setting the compensation policy for a CEO because performance of each of these managers could be more easily observed. For a CEO an award based on stock price performance makes sense, while in this situation it probably doesn’t make sense. Each of the managers could still be given stock awards; however, rather than the award being based on stock price it could be determined from some observable measure like increased gas output, oil output, etc. Answers to End-of-Chapter ProblemsWe present here some intermediate steps and final answers to end-of-chapter problems. Please note that your answer may differ slightly from ours due to rounding differences. Also, although we hope not, some of the problems may have mor e than one correct solution, depending on what assumptions are made in working the problem. Finally, many of the problems involve some verbal discussion as well as numerical calculations; this verbal material is not presented here. 2-1FV5 = $16,105. 10. 2-2PV = $1,292. 10. 2-3I/YR = 8. 01%. 2-4N = 11. 01 years. 2-5N = 11 years. 2-6FVA5 = $1,725. 22; FVA5 Due = $1,845. 99. 2-7PV = $923. 98; FV = $1,466. 4. 2-8PMT = $444. 89; EAR = 12. 6825%. 2-9a. $530. d. $445. 2-10a. $895. 42. b. $1,552. 92. c. $279. 20. d. $499. 99; $867. 13. 2-11a. 14. 87%. 2-12b. 7%. c. 9%. d. 15%. 2-13a. 10. 24 years. c. 4. 19 years. 2-14a. $6,374. 97. d(1). $7,012. 47. 2-15a. $2,457. 83. c. $2,000. d(1). $2,703. 61. 2-16PV7% = $1,428. 57; PV14% = $714. 29. 2-179%. 2-18a. Stream A: $1,251. 25. 2-19a. $423,504. 48. b. $681,537. 69. c(2). $84,550. 80. 2-20Contract 2; PV = $10,717,847. 14. 2-21a. 30-year payment plan; PV = $68,249,727. b. 10-year payment plan; PV = $63,745,773. c. Lump sum; PV = $61,000,000. 2-22a . $802. 43. c. $984. 88. 2-23a. $881. 7. b. $895. 42. c. $903. 06. d. $908. 35. e. $910. 97. 2-24a. $279. 20. b. $276. 84. c. $443. 72. 2-25a. $5,272. 32. b. $5,374. 07. 2-26$17,290. 89; $19,734. 26. 2-27a. Bank A = 4%. 2-28INOM = 7. 8771%. 2-293%. 2-30a. E = 63. 74 yrs. ; K = 41. 04 yrs. b. $35,825. 33. 2-31a. $35,459. 51. b. $27,232. 49. 2-32$496. 11. 2-33$17,659. 50. 2-34a. PMT = $10,052. 87. b. Yr 3: Int/Pymt = 9. 09%; Princ/Pymt = 90. 91%. 2-35a. PMT = $34,294. 65. b. PMT = $7,252. 78. c. Balloon PMT = $94,189. 69. 2-36a. $5,308. 12. b. $4,877. 09. 2-37a. 50 mos. b. 13 mos. c. $112. 38. 2-38$309,015. 2-39$36,950. 2-40$9,385. 3-1$1,000,000. 3-2$2,500,000. -3$3,600,000. 3-4$20,000,000. 3-5a, possibly c. 3-6$89,100,000. 3-7a. $50,000. b. $115,000. 3-8NI = $450,000; NCF = $650,000; OCF = $650,000. 3-910,500,000 shares. 3-10a. $2,400,000,000. b. $4,500,000,000. c. $5,400,000,000. d. $1,100,000,000. 3-11$12,681,482. 3-12a. $592 million. b. RE04 = $1,374 million. c. $1,600 million. d. $15 million. e. $620 million. 3-13a. $90,000,000. b. NOWC05 = $192,000,000; NOWC04 = $210,000,000. c. OC04 = $460,000,000; OC05 = $492,000,000. d. FCF = $58,000,000. 3-14a. $2,400,000. b. NI = 0; NCF = $3,000,000. c. NI = $1,350,000; NCF = $2,100,000. 4-1AR = $800,000. 4-2D/A = 58. 33%. 4-3TATO = 5; EM = 1. . 4-4M/B = 4. 2667. 4-5P/E = 12. 0. 4-6ROE = 8%. 4-7$112,500. 4-815. 31%. 4-9$142. 50. 4-10NI/S = 2%; D/A = 40%. 4-112. 9867. 4-12TIE = 2. 25. 4-13TIE = 3. 86. 4-14ROE = 23. 1%. 4-15(ROE = +5. 54%; QR = 1. 2. 4-167. 2%. 4-17a. 4-186. 0. 4-19$262,500. 4-20$405,682. 4-21$50. 4-22A/P = $90,000; Inv = $90,000; FA = $138,000. 4-23a. Current ratio = 1. 98; DSO = 76. 3 days; Total assets turnover = 1. 73; Debt ratio = 61. 9%. 4-24a. TIE = 11; EBITDA coverage = 9. 46; Profit margin = 3. 40%; ROE = 8. 57%. 6-1b. Upward sloping yield curve. c. Inflation expected to increase. d. Borrow long term. 6-22. 25%. 6-36%; 6. 33%. 6-41. 5%. 6-50. %. 6-621. 8%. 6-75. 5%. 6-88. 5%. 6-96. 8%. 6-106. 0 %. 6-111. 55%. 6-120. 35%. 6-131. 775%. 6-14a. r1 in Year 2 = 6%. b. I1 = 2%; I2 = 5%. 6-15r1 in Year 2 = 9%; I2 = 7%. 6-1614%. 6-177. 2%. 6-18a. r1 = 9. 20%; r5 = 7. 20%. 6-19a. 8. 20%. b. 10. 20%. c. r5 = 10. 70%. 7-1$935. 82. 7-2a. 7. 11%. b. 7. 22%. c. $988. 46. 7-3$1,028. 60. 7-4YTM = 6. 62%; YTC = 6. 49%; most likely yield = 6. 49%. 7-5a. VL at 5% = $1,518. 98; VL at 8% = $1,171. 19; VL at 12% = $863. 78. 7-6a. C0 = $1,012. 79; Z0 = $693. 04; C1 = $1,010. 02; Z1 = $759. 57; C2 = $1,006. 98; Z2 = $832. 49; C3 = $1,003. 65; Z3 = $912. 41; C4 = $1,000. 00; Z4 = $1,000. 00. -710-year, 10% coupon = 6. 75%; 10-year zero = 9. 75%; 5-year zero = 4. 76%; 30-year zero = 32. 19%; $100 perpetuity = 14. 29%. 7-815. 03%. 7-9a. YTM at $829 ? 15%. 7-10a. YTM = 9. 69%. b. CY = 8. 875%; CGY = 0. 816%. 7-11a. YTM = 10. 37%; YTC = 10. 15%; YTC. b. 10. 91%. c. -0. 54% (based on YTM); -0. 76% (based on YTC). 7-12a. YTM = 8%; YTC = 6. 1%. 7-13VB = $974. 42; YTM = 8. 64%. 7-1410. 78%. 7-15a. 5 years. b. YTC = 6. 47%. 7-16$987. 87. 7-17$1,067. 95. 7-188. 88%. 7-19a. ABS = 6. 3%; F = 8%. 7-20a. 8. 35%. b. 8. 13%. 8-1[pic] = 11. 40%; ( = 26. 69%; CV = 2. 34. 8-2bp = 1. 12. 8-3r = 10. 9%. 8-4rM = 11%; r = 12. 2%. 8-5a. = 1. b. r = 13%. 8-6a. [pic]Y = 14%. b. (X = 12. 20%. 8-7bp = 0. 7625; rp = 12. 1%. 8-8b = 1. 33. 8-94. 5%. 8-104. 2%. 8-11r = 17. 05%. 8-12rM – rRF = 4. 375%. 8-13a. ri = 15. 5%. b(1). rM = 15%; ri = 16. 5%. c(1). ri = 18. 1%. 8-14bN = 1. 16. 8-157. 2%. 8-16rp = 11. 75%. 8-171. 7275. 8-18a. $0. 5 million. d(2). 15%. 8-19a. CVX = 3. 5; CVY = 2. 0. c. rX = 10. 5%; rY = 12%. d. Stock Y. e. rp = 10. 875%. 8-20a. rA = 11. 30%. c. (A = 20. 8%; (p = 20. 1%. 8-21a. ri = 6% + (5%)bi. b. 15%. c. Indifference rate = 16%. 9-1D1 = $1. 6050; D3 = $1. 8376; D5 = $2. 0259. 9-2[pic] = $6. 25. 9-3[pic] = $21. 20; rs = 11. 30%. 9-4b. $37. 80. c. 34. 09. 9-5$60. 9-6rp = 8. 33%. 9-7a. 13. 33%. b. 10%. c. 8%. d. 5. 71%. 9-8a. $125. b. $83. 33. 9-9a. 10%. b. 10. 38%. 9-10$23. 75. 9 -11$13. 11. 9-12a(1). $9. 50. a(2). $13. 33. a(3). $21. 00. a(4). $44. 00. b(1). Undefined. b(2). -$48. 00, which is nonsense. 9-13a. rC = 8. 6%; rD = 5%. b. No; [pic] = $32. 61. 9-14[pic] = $27. 32. 9-15a. P0 = $32. 14. b. P0 = $37. 50. c. P0 = $50. 00. d. P0 = $78. 28. 9-16P0 = $19. 89. 9-17a. $713. 33 million. b. $527. 89 million. c. $42. 79. 9-186. 25%. 9-19a. $2. 10; $2. 205; $2. 31525. b. PV = $5. 29. c. $24. 72. d. $30. 00. e. $30. 00 9-20a. P0 = $54. 11; D1/P0 = 3. 55%; CGY = 6. 45%. 9-21a. 24,112,308. b. $321,000,000. c. $228,113,612. d. $16. 81. 9-22$35. 00. 9-23a. New price = $44. 26. b. beta = 0. 5107. 9-24a. $2. 01; $2. 31; $2. 66; $3. 06; $3. 52. b. P0 = $39. 43. c. D1/P0 2006 = 5. 10%; CGY2006 = 6. 9%; D1/P0 2011 = 7. 00%; CGY2011 = 5%. 10-1rd(1 – T) = 7. 80%. 10-2rp = 8%. 10-3rs = 13%. 10-4rs = 15%; re = 16. 11%. 10-5Projects A through E should be accepted. 10-6a. rs = 16. 3%. b. rs = 15. 4%. c. rs = 16%. d. rs AVG = 15. 9%. 10-7a. rs = 14. 83%. b. F = 10%. c. re = 15. 81%. 10-8rs = 16. 51%; WACC = 12. 79%. 10-9WACC = 12. 72%. 10-10WACC = 11. 4%. 10-11wd = 20%. 10-12a. rs = 14. 40%. b. WACC = 10. 62%. c.Project A. 10-13re = 17. 26%. 10-1411. 94%. 10-15a. g = 9. 10%. b. Payout = 50. 39%. 10-16a. g = 8%. b. D1 = $2. 81. c. rs = 15. 81%. 10-17a. g = 3%. b. EPS1 = $5. 562. 10-18a. rd = 7%; rp = 10. 20%; rs = 15. 72%. b. WACC = 13. 86%. c. Projects 1 and 2 will be accepted. 10-19a. Projects A, C, E, F, and H should be accepted. b. Projects A, F, and H should be accepted; $12 million. c. Projects A, C, F, and H should be accepted; $15 million. 10-20a. rd(1 – T) = 5. 4%; rs = 14. 6%. b. WACC = 10. 92%. 11-1NPV = $7,486. 68. 11-2IRR = 16%. 11-3MIRR = 13. 89%. 11-44. 34 years. 11-5DPP = 6. 51 years. 11-6a. 5%: NPVA = $3. 52; NPVB = $2. 87. 0%: NPVA = $0. 58; NPVB = $1. 04. 15%: NPVA = -$1. 91; NPVB = -$0. 55. b. IRRA = 11. 10%; IRRB = 13. 18%. c. 5%: Choose A; 10%: Choose B; 15%: Do not choose either one. 11-7a. NPVA = $866. 16; IRRA = 19. 86%; MIRRA = 17. 12%; PaybackA = 3 yrs; Discounted Payback = 4. 17 yrs; NPVB = $1,225. 25; IRRB = 16. 80%; MIRRB = 15. 51%; PaybackB = 3. 21 yrs; Discounted Payback = 4. 58 yrs. 11-8a. Without mitigation: NPV = $12. 10 million; With mitigation: NPV = $5. 70 million. 11-9a. Without mitigation: NPV = $15. 95 million; With mitigation: NPV = -$11. 25 million. 11-10Project A; NPVA = $30. 16. 11-11NPVS = $448. 86; NPVL = $607. 0; Accept Project L. 11-12IRRL = 11. 74%. 11-13MIRRX = 13. 59%. 11-14a. HCC; PV of costs = -$805,009. 87. c. HCC; PV of costs = -$767,607. 75. LCC; PV of costs = -$686,627. 14. 11-15a. IRRA = 20%; IRRB = 16. 7%; Crossover rate ? 16%. 11-16a. NPVA = $14,486,808; NPVB = $11,156,893; IRRA = 15. 03%; IRRB = 22. 26%. b. Crossover rate ? 12%. 11-17a. NPVA = $200. 41; NPVB = $145. 93. b. IRRA = 18. 1%; IRRB = 24. 0%. c. MIRRA = 15. 10%; MIRRB = 17. 03%. f. MIRRA = 18. 05%; MIRRB = 20. 48%. 11-18a. No; PVOld = -$89,910. 08; PVNew = -$94,611. 45. b. $2,470. 80. c. 22. 94%. 11-19b. NPV10% = -$99,174; NPV20% = $500,000. d. 9. 54%; 22. 7%. 11-20$10,239. 20. 11-21MIRR = 10. 93%. 11-22$250. 01. 12-1a. $12,000,000. 12-2a. $2,600,000. 12-3$4,600,000. 12-4b. Accelerated method; $12,781. 64. 12-5E(NPV) = $3,000,000; (NPV = $23. 622 million; CV = 7. 874. 12-6a. -$178,000. b. $52,440; $60,600; $40,200. c. $48,760. d. NPV = -$19,549; Do not purchase. 12-7b. -$126,000. c. $42,518; $47,579; $34,926. d. $50,702. e. NPV = $10,841; Purchase. 12-8a. Expected CFA = $6,750; Expected CFB = $7,650; CVA = 0. 0703. b. NPVA = $10,036; NPVB = $11,624. 12-9NPV5 = $2,211; NPV4 = -$2,081; NPV8 = $13,329. 12-10a. NPV = $37,035. 13. b. +20%: $77,975. 63; -20%: NPV = -$3,905. 37. c.E(NPV) = $34,800. 21; (NPV = $35,967. 84; CV = 1. 03. 13-1a. E(NPV) = -$446,998. 50. b. E(NPV) = $2,806,803. 16. c. $3,253,801. 66. 13-2a. Project B; NPVB = $2,679. 46. b. Project A; NPVA = $3,773. 65. c. Project A; EAAA = $1,190. 48. 13-3NPV190-3 = $20,070; NPV360-6 = $22,256. 13-4A; EAAA = $1,407. 85. 1 3-5Projects A, B, C, and D; Optimal capital budget = $3,900000. 13-6NPVA = $9. 93 million. 13-7Machine B; Extended NPVB = $3. 67 million. 13-8EAAY = $7,433. 12. 13-9Wait; NPV = $2,212,964. 13-10No, NPV3 = $1,307. 29. 13-11a. Accept A, B, C, D, and E; Capital budget = $5,250,000. b. Accept A, B, D, and E; Capital budget = $4,000,000. c.Accept B, C, D, E, F, and G; Capital budget = $6,000,000. 13-12a. NPV = $4. 6795 million. b. No, NPV = $3. 2083 million. c. 0. 13-13a. NPV = -$2,113,481. 31. b. NPV = $1,973,037. 39. c. E(NPV) = -$70,221. 96. d. E(NPV) = $832,947. 27. e. $1,116,071. 43. 14-1QBE = 500,000. 14-230% debt and 70% equity. 14-3a. E(EPSC) = $5. 10. 14-4bU = 1. 0435. 14-5a. ROELL = 14. 6%; ROEHL = 16. 8%. b. ROELL = 16. 5%. 14-6a(1). -$60,000. b. QBE = 14,000. 14-7No leverage: ROE = 10. 5%; ( = 5. 4%; CV = 0. 51; 60% leverage: ROE = 13. 7%; ( = 13. 5%; CV = 0. 99. 14-8rs = 17%. 14-9a. P0 = $25. b. P0 = $25. 81. 14-10a. FCA = $80,000; VA = $4. 80/unit; PA = $8. 0/unit. 14-11a. 10. 96%. b. 1. 25. c. 1. 086957. d. 14. 13%. e. 10. 76%. 14-12a. EPSOld = $2. 04; New: EPSD = $4. 74; EPSS = $3. 27. b. 339,750 units. c. QNew, Debt = 272,250 units. 14-13Debt used: E(EPS) = $5. 78; (EPS = $1. 05; E(TIE) = 3. 49(. Stock used: E(EPS) = $5. 51; (EPS = $0. 85; E(TIE) = 6. 00(. 15-1Payout = 55%. 15-2P0 = $60. 15-3P0 = $40. 15-4D0 = $3. 44. 15-5$3,250,000. 15-6Payout = 31. 39%. 15-7a. $1. 44. b. 3%. c. $1. 20. d. 33? %. 15-8a. 12%. b. 18%. c. 6%; 18%. d. 6%. e. 28,800 new shares; $0. 13 per share. 15-9a(1). $3,960,000. a(2). $4,800,000. a(3). $9,360,000. a(4). Regular = $3,960,000; Extra = $5,400,000. c. 5%. d. 15%. 16-1103. 41 days; 86. 99 days; $400,000; $32,000. 16-273 days; 30 days; $1,178,082. 16-3$1,205,479; 20. 5%; 22. 4%; 10. 47%; bank debt. 16-4a. 83 days. b. $356,250. c. 4. 87(. 16-5a. DSO = 28 days. b. A/R = $70,000. 16-6a. 32 days. b. $288,000. c. $45,000. d(1). 30. d(2). $378,000. 16-7a. 57. 33 days. b(1). 2(. b(2). 12%. c(1). 46. 5 days. c(2). 2. 1262(. c(3 ). 12. 76%. 16-8a. ROET = 11. 75%; ROEM = 10. 80%; ROER = 9. 16%. 16-9b. $420,000. c. $35,000. 16-10a. Oct. loan = $22,800. 17-1AFN = $410,000. 17-2AFN = $610,000. 17-3AFN = $200,000. 17-4a. $133. 50 million. b. 39. 06%. 17-5a. $5,555,555,556. b. 30. 6%. c. $13,600,000. 7-6$67 million; 5. 01. 17-7$156 million. 17-8a. $480,000. b. $18,750. 17-9? S = $68,965. 52. 17-10$34. 338 million; 34. 97 ? 35 days. 17-11$19. 10625 million; 6. 0451. 17-12a. $2,500,000,000. b. 24%. c. $24,000,000. 17-13a. AFN = $128,783. b. 3. 45%. 17-14a. 33%. b. AFN = $2,549. c. ROE = 13. 06%. 18-1a. $5. 00. b. $2. 00. 18-2$27. 00; $37. 00. 18-3a, b, and c. 18-4$1. 82. 18-5rd = 5. 95%; $91,236. 18-6b. Futures = +$4,180,346; Bond = -$2,203,701; Net = $1,976,645. 18-7a. $3. 06; $4. 29. b. 16. 67%, 61. 46%; -100%. c. -16. 67%; -100%; 63. 40%. d. No; $30. 00 and $27. 00. e. Yes; $37. 50 and $37. 50. 19-10. 6667 pound per dollar. 9-227. 2436 yen per shekel. 19-31 yen = $0. 00907. 19-41 euro = $0. 68966 or $1 = 1. 45 e uros. 19-5 |Dollars per 1,000 Units of: | |Pounds |Can. Dollars |Euros |Yen |Pesos |Kronas | |$1,747. 10 |$820. 60 |$1,206. 90 |$8. 97 |$93. 10 |$128. 10 | 19-76. 49351 krones. 19-815 kronas per pound. 19-10rNOM-U. S. = 4. 6%. 19-11117 pesos. 19-12b. $1. 6488. 19-13a. $2,772,003. b. $2,777,585. c. $3,333,333. 19-14+$250,000. 19-15b. $19,865. 19-16$468,837,209. 19-17a. $52. 63; 20%. b. 1. 5785 SF per U. S. $. c. 41. 54 Swiss francs; 16. 92%. 20-155. 6%; 50%. 20-2$196. 6. 20-3CR = 25 shares. 20-4a. D/AJ-H = 50%; D/AM-E = 67%. 20-5a. PV cost of leasing = -$954,639; Lease equipment. 20-6a. EV = -$3; EV = $0; EV = $4; EV = $49. d. 9%; $90. 20-8a. PV cost of owning = -$185,112; PV cost of leasing = -$187,534; Purchase loom. 20-9b. Percent ownership: Original = 80%; Plan 1 = 53%; Plans 2 and 3 = 57%. c. EPS0 = $0. 48; EPS1 = $0. 60; EPS2 = $0. 64; EPS3 = $0. 86. d. D/A0 = 73%; D/A1 = 13%; D/A2 = 13%; D/A3 = 48%. 21-1P0 = $37. 04. 21-2P0 = $43. 48. 21-3$37. 04 to $43. 48. 21-4a. 16. 8%. b. V = $14. 93 million. 21-5NPV = -$6,747. 71; Do not purchase. 21-6a. 14%. b. TV = $1,143. 4; V = $877. 2.

Drums Along the Mohawk essays

Drums Along the Mohawk essays Type of literary work: Historical Novel The theme of this novel is the willpower to achieve one's goal, or in this case, the American dream. The characters are very strong and show a lot of fortitude in accomplishing their goals. They go through very tough and adverse times, but they refuse to accept defeat. These are the foundations upon which America was built. No matter what happens they continue to fight for their natural, God-given, rights, as defined in the Constitution. Through hardships of their own, they hope to earn their land, houses, animals, and their material possessions necessary to live their lives. They do this in order to make life easier and more beautiful for themselves and their children. Lana and Gil are good examples of this theme. When they are first married, they have nothing but a cow, a few pieces of furniture, a peacock feather, which symbolizes the entity of this dream. This is all eventually lost in the war, but by the end of the novel, Gil is farming on his own land, has built a new house, and owns a yoke of oxen. Lana has her two boys, a baby daughter, and she later reclaims her feather. They are both now satisfied with the lives they are living, and Lana goes on to say,We?ve got this place?We?ve got the children?We?ve got each other. Nobody can take those things away. Not any more.? This is the statement that provides which they have accomplished their goals, and it finalizes their contentment. The novel is set in the eighteenth century during the time of the Revolutionary War. Such characters live in a very hostile environment. Instead of focussing on the huge impact of the war, the author shows how the times affected the farmers and residents of the Mohawk Valley in upstate New York. This is where the novel takes place. There are constant invasions, which devastate the residents of the valley. They are very detrimental to the attempts made at farming. It is hard for the set...

How to Write Your First Screenplay

How to Write Your First Screenplay How to Write Your First Screenplay How to Write Your First Screenplay By Ali Hale Have you ever daydreamed about writing for the big screen? I know I have! Writing a screenplay that gets picked up by Hollywood could see your story reach millions of people – whereas even bestselling novels often only sell in the tens of thousands. Writing a screenplay is very different from writing a short story or a novel, though. There are some specific conventions that you need to know about, in terms of the structure of your story itself, and in terms of how you lay it out on the page. I’m not going to attempt to give you an exhaustive guide in a single blog post – but I’ll take you through all the basics, and give you plenty of links to further reading so you can dig deeper on particular areas of screenwriting that interest you. What’s the Difference Between a Screenplay and a Script? Scripts for plays are laid out slightly differently. They’re designed to be performed live, rather than pre-recorded and shown on a screen. They’ll include stage directions (like â€Å"Exit, stage left† – or Shakespeare’s famous, â€Å"Exit, pursued by a bear†). Screenplays are scripts for something that will be filmed and later â€Å"screened† – shown in the cinema or on TV. They’ll often include instructions for specific shots – e.g. â€Å"CLOSE UP†. Assuming that you’re writing for film, they’ll also have specific length requirements. Coming Up With an Idea for a Screenplay Just as with any type of fiction you write, having a strong idea is essential. Your screenplay should be able to be summed up in a â€Å"logline† – a one-sentence summary of the plot. This logline should include: The protagonist (hero) – e.g. A suburban mother of two. Their goal – e.g. must save her husband The antagonist (villain) or antagonistic force – from a deranged and deadly neighbour. As James Burbridge says, in a great post about constructing a logline: If you can’t write a decent logline of your idea  before  embarking on the script, then maybe reconsider writing that thing. If it’s unfocused and muddled at the loglines stage, it’s not going to get any better as you write. If you’re short of ideas, you might look for inspiration from: Art or music – could something you’ve seen or heard spark off your story? Something you wrote in the past – perhaps you didn’t have enough material for a novel but it would make a great screenplay. A classic story – there have been many, many films based on fairy tales (Disney has probably cornered the market in these!) and Shakespeare. Your idea needs to be something that will take about 100 – 120 minutes to play out on screen. A minute on the screen equates to about one page of script so that means that your screenplay should be between 100 and 120 pages (when laid out with proper formatting, which we’ll come onto in a moment). Planning and Structuring Your Screenplay All writing has structure, and if you’ve written so much as a short story, you’ll know how important it is to have a beginning, middle and end. Screenplays have a more detailed structure, though. You might think this is restrictive – but there’s a lot you can do within this structure, and it’ll help you shape your ideas so your story doesn’t drag. The standard screenplay structure looks like this: Act I – roughly the first 25% of your screenplay. (20 – 30 minutes on the screen.) This is often called the â€Å"setup† – it’s where you introduce your characters and their world and get the story started. Act II – the middle 50% of your screenplay. (Up to an hour on the screen.) This is often called the â€Å"confrontation† – it’s where you complicate the story and the tension rises. Act III – the final 25% of your screenplay. (A final 20 – 30 minutes.) This is often called the â€Å"resolution† – it’s where there’s a confrontation between the protagonist and antagonist (or antagonistic force) and – normally – the protagonist prevails. Within these acts, there are particular points that you’re expected to hit at specific stages: The first turning point: this comes towards the end of Act I, and it changes things. It’s where the protagonist discovers something, or does something, that means nothing will ever be the same. This is what really kicks off the story. For instance, in the story a suburban mother of two must save her husband from a deranged and deadly neighbour, the first turning point might be the neighbour threatening or even attacking the husband. The second turning point: this comes towards the end of the second act. It raises the stakes and moves the story into the third act. For instance, this second turning point might have the neighbour kidnapping one of the children: the mother needs to rescue her child and protect her husband. There are plenty of other â€Å"points† that screenwriters are advised to meet, though you’ll probably find there’s some debate about what exactly these are! There’s a good breakdown of the five-point structure here, which you might want to follow. Laying Out Your Screenplay on the Page Screenplays require a very specific format, which is different from scripts written to be performed on stage. (For instance, these scripts will have character names on the left, with a colon after them, and screenplays have character names centred, with no colon.) For your screenplay, you should use the font Courier New, size 12. Why? Because that way, all scripts fit the same number of lines on a page – making it easy to estimate their run-time from the page count. (Courier is a fixed-width font, so each letter takes up the same amount of space.) Here’s how the first few lines of a script might look: Ive annotated it with some notes about the way in which its laid out. The easiest way to make sure you’re formatting your screenplay correctly is to use specialised software: Final Draft is the industry standard, used by the majority of professional screenwriters but it’s pricy ($249.99). Scrivener can be used to format screenplays (as well as novel manuscripts) – it’s not as specialised as Final Draft, but it’s a lot cheaper ($45). Each of these offer a free trial, so you can give them a try before deciding whether or not to purchase them. Writing a screenplay is no small undertaking – and we’ve only covered the basics of what you need to know. If you want to go further with your screenwriting journey, check out some of these great resources: How to Write a Screenplay, WikiHow While I sometimes find WikiHow’s articles low-quality, this is a great in-depth piece that’s been expertly reviewed and carefully put together. If you want a step by step, very beginner-friendly introduction to writing a screenplay, give it a read! How to Write a Screenplay You Can Sell, Stephanie Palmer, Good in a Room This honest, practical article explains what you need to do to write a good screenplay – from choosing one genre to watching the same movie over and over again to get to grips with structure. If you’re serious about screenwriting, give it a read. How to Write a Screenplay: Script Writing Example Screenwriting Tips, Mario O. Moreno and Kay Tuxford, Writers Store This is a detailed, reassuring article about writing a screenplay, with lots of specific details on layout as well as some helpful tips on length and even on binding and presenting your script. How to Write Your Screenplay in 24 Hours – Advice from a Hollywood Screenwriter and Producer, Dr. Kenneth Atchity, TCKPublishing In this post, you’ll find two really useful resource: precise instructions on what should happen by different points in your screenplay (with page numbers, for a 115 page script), and a nifty way to chart the rising and falling intensity of different scenes in your screenplay. 10 Screenplay Structures That Screenwriters Can Use, Ken Miyamoto, Screencraft If you’d like to look at some different ways to tell a story, going beyond the three-act structure, this post is a great place to begin. Throughout the post, there are examples of each type of structure, with tips on what types of story each one will work best for. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Fiction Writing category, check our popular posts, or choose a related post below:7 Classes and Types of Phrases15 Types of DocumentsDouble Possessive

How can we define authorship in TV Assignment Example | Topics and Well Written Essays - 500 words

How can we define authorship in TV - Assignment Example Given this argument, it follows that the identification of the technical competence of the director would enable critic and viewers alike to determine the quality and artistic value of the TV program. Auteurism however has been criticized in its application to film and TV show making because the creation of a film or show involves a lot of people in its production process that it would be difficult to say that a certain individual was solely responsible of the authorship or creation of the film (Moran 1999). Moreso, in a Hollywood setting where a multitude of people had to work and collaborate together to create a film. We can cite for example the film The Big Sleep (1946) which was a product of collaboration with different film makers. It involved novelist Raymond Chandler who wrote the novel which was the basis of the film, Howard Hawks, screenwriters William Faulkner, Leigh Brackett and actors Humphrey Bogart and Lauren Bacall (Lev 1988) all were distinguished artists in their own right. It is also important to note that the film made a last minute revision in January of 1946 invites discussion about authorship because it clarifies when and who decides for the change of the fi lm indicating ownership of the film (Lev 1988). This is an important notion of auteurism because it highlights the complicity in according authorship in a film as argued by the critics of auteurism. In contemporary setting in creating a TV program various creative people are involved to complete the production. It involves Director,  Producer,  Creator,  Executive producer,  Assistant producer,  Researcher,  Star,  Writer, all of which have creative inputs to complete the production of a TV program. Such, if we are to determine authorship in the strict meaning of the word, it would be difficult to assign it to a single individual because no individual can complete a TV program by himself.   We can however infer to the

Summary Essay Example | Topics and Well Written Essays - 250 words - 4

Summary - Essay Example In its most basic sense, the petrophysical model took into account nearly all the measurements as well as readings which were extracted from down hole using logging tools and hence the pertinent interpretations were derived as a result of the same. His assertion was that logging data and then finding out the readings are in essence elements that were all computerized and thus he was optimistic that the industry shall cease to make use of the old logs which used to be written on papers and later on saved within different packs of paper, all of which were cylindrical in shape and form. What this model did was to include different kinds of logs as it made use of a wire line data within its entirety. Further, the model focused on the basis of finding out how and where to complete the well as well as identify the net pay zone, and whether or not it cut off any data meanwhile. Mullen pinpointed after a thorough analysis a certain number of advantages related with this software which suggested that it was indeed pretty easy to learn and make use of, and it also cut back on the cycle time as nearly all logs were digital in nature. Moving on, this software played its due role at providing job treatment reports as well as other information which saved a lot of time as it employed the most advanced technological regimes. What is even better is that this software was considered very accurate as well as up to date with regards to its related understanding level. For instance, in GR logs it was able to distinguish each and every radioactive mineral in its own form so that a proper determination was sought as to whether shale or clay minerals and rocks could have existed, whilst understanding the same within the realms of the readings that were taken. Further it played its due role at differentiating the height of the reservoir, its permeability as well as the hydrocarbon pore volume. The orientation of naturally occurring fracture within the formation was also accounted

An event that involving an ASL experience Essay Example | Topics and Well Written Essays - 500 words

An event that involving an ASL experience - Essay Example We noticed 4 to 5 other people who were also signing in for different presentations which were also offering ASL interpretation services. We proceeded to the counter where we found a lady doing the registration of the people who had come to attend the various presentations. We made ourselves known to her and also informed her that we had emailed a lady by the name Deanna earlier to inform her about our attendance of a presentation that was also offering ASL interpretation services (Sternberg 12). Amazingly, it so happened that the lady we were talking with was the same lady we had emailed. Deanne informed us that there was an organic beauty product presentation that was going on in theatre B and she directed us to the place using ASL since the venue of the whole event was fairly large and there were a number of activities going on simultaneously. Initially as she was directing us she was too fast and we had a problem following up but luckily another user of ASL noticed that we were not keeping pace with Deanne and asked her to slow down. It is then that she realized she was a little bit too fast for us and apologized that she forgot we were ASL students. She continued to direct us slowly and we understood what she said. We afterwards headed to theatre B as we had been directed and found that the presentation had just begun. We noticed 2 interpreters and about 4 to 5 deaf people who attended the same presentation. I found myself learning a lot of vocabularies some of which are, strawberry, beauty products, brown sugar, white vinegar, coconut, melt, plastic, body lotion, sun burn and so on. I also realized interestingly that I understood the translation with ease and that I was able to follow questions that were raised by the deaf people (Sternberg 71). The communication was very clear to me. Another interesting experience was that my 2 classmates and I decided that we shall not communicate in English but we shall use ASL from the

Correlates of criminal behavior

Correlates of criminal behavior Introduction Factors that correlate with crime are those, such as economic deprivation, that demonstrate a relationship with the incidence of criminal behavior. It is crucial to remember that correlations only tell us that there is a relationship between one variable and another they do not tell us what is causing what. For example, there is an association between failing at school and juvenile delinquency but we cannot say that low school achievement necessarily cause delinquency (Dwyer, 2001). It is possible that once an individual becomes involved in delinquent behavior, their school work suffers and grades begin to deteriorate. Alternatively, there may be a third factor, perhaps the attitude of the family towards school work and offending that causes both of the other factors (Dwyer, 2001). It is important, though, to recognize that a relationship does have a cause and this is what researchers are trying to uncover, but at no time should we jump to superficial conclusions about the exact direction of the cause. Case Study A: DV a 36-year-old, Single Black Male DV, a 36-year-old, single Black male was charged with possession of a firearm by a convicted felon. During formal interviews, DV was initially uncooperative with the evaluators. He pretended not to understand what was asked of him. He was strongly encouraged to cooperate with the evaluation. After a period of observation and initial psychological testing, it was explained to him that his report of experiencing auditory hallucinations was unlikely to be true (Heilbrun, Marczky DeMatteo, 2002). DV was administered psychological testing on three separate occasions. Initial test results clearly demonstrated DV intended to represent himself as mentally ill and confused. After further counseling, he was re-administered two tests, which he appeared to complete in a cooperative fashion. DVs responses on a structured interview of symptoms of mental illness were consistent with those of someone intending to put on psychotic mental illness (Heilbrun et al., 2002). DV began smoking marijuana as a teenager and has continued to use it throughout adulthood. Selling illicit drugs eventually became his primary source of income through the years. Prior to his arrest, he used marijuana on a daily basis and drank alcohol much less frequently, primarily on the weekends or when it was available (Heilbrun et al., 2002). DV has been arrested at least 20 times throughout adolescence and adulthood. He has been incarcerated in state prisons twice, both for felony convictions. The only previous mental health treatment he has received was during his incarceration in a state prison. He had been experiencing nervousness, tremors, and what he referred to as depression. This condition was reportedly treated with antipsychotic medication for a period of six months. His reports of past mental health symptoms were vague, and he indicated that he has never sought mental health treatment when out of prison (Heilbrun et al., 2002). Criminal Behavior: Mental Disorder   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  According to Bartol and Bartol (2011) mental illness is a disorder of disease of the mind that is judged by experts to interfere substantially with a persons ability to cope with life on a daily basis. It presumably deprives the person of freedom of choice, but it is important to note that there are degrees to this deprivation. The term mental disorder, however, need not imply that a person is sick, to be pitied, or even necessarily less responsible for his or her actions. Psychological Theory   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Psychology is the science of behavior and mental process. Psychological criminology, then, is the science of the behavior and mental process of the person who commits crime. In the psychology of crime, both social and personality influences on criminal behavior are considered, along with the mental processes that mediate that behavior.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  It is hard to specify typically the psychological theories of crime. Psychological theories centers on the influence of individual and family factors on offending. Psychological theories usually develop and attempt to explain offending on an ongoing project thats starts from childhood to adulthood (Bartol Bartol, 2011). Correlates and Developmental Risk factors The parental and family risk factors led DV to become deviant at a very young age. During a conducted interview, DV stated that he lived at home with his mother, father, and two brothers until the age of eight, when his mother was killed in a car accident. After his mothers death, he began living with an aunt, who raised him until he left home at the age of 14. He attended school through the eighth grade and was expelled from school after the eighth grade, partly because of his poor attendance and partly because of his involvement in two fights (Heilbrun et al., 2002). He described school as being difficult for him because he never had any family support. After his mother died, nobody really cared whether he went to school. It was the loss of his mother that triggered his criminal behavior. Is this Person a Criminal? In summary, DV manifest a personality style and behavior pattern that is characterized by dislike towards authority and violation of social norms and laws. He was diagnosed with malingering (resolved) cannibus abuse and antisocial personality disorder. DV can be held accountable for his actions. He knew that the current adjudication constitutes his third felony conviction, and he knew the sentencing mandates associated with a third felony conviction. Specifically, DV was aware that he could have received a very lengthy sentence for his third conviction and knew his plea carried the probability of a relatively short sentence. He knew that his plea agreement called for his full cooperation in the resolution of his case (Heilbrun et al., 2002). DV was deemed competent to stand trial based on his ability to comprehend what he did and he knew this. Case Study B: 24-Year-Old John D. John is a 24-year-old Caucasian male who was convicted of Sexual Battery, which occurred on February 10, 1998, and is awaiting sentencing. John D. was an only child born to unwed parents on February 9, 1975. He grew up in an unstable environment and his father was a drug addict who neglected to care for him. He recalls no memories of his father prior to the age of eight (Heilbrun et al., 2002). At eight years old, John D. recalled playing with and smelling someones feet. He cant remember exactly what happened at the moment but recall it was really scary. He remembers his fathers hands pulling his knees apart. That was all he can remember about the incident (Heilbrun et al., 2002). Criminal Behavior: Sex Offender (Sexual Battery)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Sex offenders often commit a variety of crime beyond sexual offenses, although this is more likely to be the case with rapists than the child molesters. There is no single profile that encompasses a majority of sex offenders. The features of their crimes also differ distinctly among offenders, including time and place, the gender and age of the victim, the degree of planning the offense, and the amount of violence used or intended (APA, 2000; Bartol Bartol, 2011). Sociological Theory   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The sociological approach examines underlying social conditions that may influence criminal behavior by focusing on how social structure and processes contribute to crime. Life course criminology focuses on life tragedies or paths that may lead to lifelong or repeated criminal behavior. The Sociological theory of criminal behavior is the way people look at their environment. Sociologically, a person will be overwhelmed by closeness, the imitation and behavior of those they look up to, as well as their understanding of what is right and what is wrong (Bartol Bartol, 2011).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  People are not born with a predisposition to violence or lack of power; rather they become that way as a result of social experiences. Furthermore, criminal behavior, again like all behavior, is an individuals way of adapting to his or her environment. Correlates and Developmental Risk factors   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Examples of social risk factors are parental and family risk factors including faulty or inadequate parenting, sibling influences, and child maltreatment or abuse. A wide variety of circumstances can lead to a single-parent home. John D.s father died when he was nine years old. He is unable to recall any memories of his father prior to age eight. His parents never married but after his fathers death, his mother married a man that told John D. someday he would burn in hell (Heilbrun et al., 2002).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  His mothers parental styles were inappropriate. John D. loved her because she could be fun to be with, and she was proud of him. At the same time he hated her because of the way she treated him. He described her as very moody, at times she would be nice and at other times she lashed out and smacked him in the face. John D. also stated that he often felt like a surrogate husband to his mother, because whenever it was time to kiss her goodnight, she would stick her tongue out (Heilbrun et al., 2002).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  John D. spent most of his time living with his maternal grandparents. His grandmother would walk in on him when he was changing his underwear and would always find an excuse to come into the bathroom and wipe him after he was done. He didnt realize his grandmothers behavior was inappropriate until later (Heilbrun et al., 2002).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Models are those significant persons in the social environment that provide cues for how to do something (Bartol Bartol, 2011; Jackson, 2008). For example, a child may learn how to shoot a gun by imitating television or video characters. The child then will rehearse and fine-tunes this behavioral pattern by practicing with toy guns. John D.s behavioral patterns are the outcome of the models he had in his life. Is this Person a Criminal?   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  John D. is responsible for his actions and should be held criminally liable for what he did. He shows no remorse for his victims. He kills his victims and plays with their feet. He has a tendency to act upon his fantasies. He has a high potential for dangerous behavior inflicted against self and others. Case Study C: 21-Year-Old Jimmy M. The defendant in this case, Jimmy M., was charged with aggravated murder in the shooting death of a police officer in November of 1997. Jimmy M. has an extensive criminal record and a history consistent with an antisocial personality disorder. Antisocial personality disorder is not usually considered to be a mitigating factor. In addition to the antisocial personality disorder, Jimmy M. had suffered from a serious head injury, resulting in the request for a neuropsychological evaluation (Heilbrun et al., 2002). Jimmy M. was born to Darlene M (who was 15 years old when she got pregnant) and Bob Hoover on September 21, 1976. Jimmy M. only saw his father twice, once in fifth or sixth grade and the second time was last year while he was incarcerated. He primarily raised by his foster grandmother, Martha Washington; Ms. Washington was Jimmy M.s mothers foster parent. Jimmy M.s mother was a drug addict and alcoholic who was arrested and spent time in jail and prison before dying of a drug overdose in 1989 (Heilbrun et al., 2002). On one occasion, when Jimmy M. was eight years old, his mother used him to hide stolen money. Jimmy M. developed significant behavioral problems following his mothers death. He subsequently had numerous contacts with juvenile authorities and was placed with the Department of Youth Services on several occasions. He encountered numerous conflicts with his grandmother. Although things have not always been stable with his grandmother, Jimmy M. stated that they remain close today (Heilbrun et al., 2002). Criminal Behavior: Murder (Aggravated Murder)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The term murder is reserved for the unlawful killing of one human being by another with malice aforethought, either expressed or implied. Malice aforethought refers to premeditation, or the mental state of a person who thinks ahead, plans, and voluntarily causes the death of another, without legal excuse or justification. However, premeditation can occur in a very short period of time (even a minute); it does not require weeks of planning (Bartol Bartol, 2011). Biological Theory   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Historically, neurological impairment, whether by heredity, injury, or disease, has been thought to coincide with criminal behavior. For example, head injury and violent behavior are found to coexist in criminals at a higher than average rate. Though a direct link cannot be determined between the two, researchers observe that neurological problems, in combination with environmental and social risk factors, interact to influence criminal behavior (APA, 2000; Bartol Bartol, 2011; Raine, 2002). Biological theories have a misunderstanding stereotype that if a person is a criminal then that person was born a criminal. Biological theories are only one interpretation of criminality (Rafter, 2008). Biology has an effect on our social and emotional lives that would be categorized as biological influences on our behavior. Some examples would be menstruation affects some women more than others, but many have more mood swings during, and just before, menstruation. Pregnancy also affects hormones and therefore emotions. In many cases, a women seems calmer than usual when pregnant, not reacting as she normally would to the stresses of work and life. Hormones in pregnancy have a lot of functions, including effects on mood and puberty is another example with which everyone is familiar. During the transition from childhood into a sexual world, teenagers go through some profound emotional and behavioral changes usually suffered along with them by their parents, other relatives, and teache rs (Raine, 2002). Eventually they mature and become adults; but in the years of puberty, the change in outlook and disturbance of behavior can be profound. But again, the environmental influences are crucial in how puberty, a biological change, is realized. Correlates and Developmental Risk factors Jimmy M.s mother was 15 when she was pregnant and 16 when he was born. Given her own drug, alcohol, and legal problems she was clearly unable to provide adequate parenting. His foster grandmother was, at best, inconsistent in her ability to provide for Jimmy M. and the other children within her care, who included Jimmy M.s mother. Following his mothers death, Jimmy M.s behavior showed clear signs of deterioration, and he joined the local gang (Heilbrun et al., 2002). As a result of Jimmy M.s early childhood experiences, he has bonded to no one, has little capacity for empathy, and has shut off his emotions from the rest of the world. Is this Person a Criminal?   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Therefore, Jimmy M. is responsible for his actions and should be held criminally liable for what he did. However, based on his past, Jimmy M. should undergo treatment to eliminate harm to him and to others. Jimmy M. demonstrated a capacity of attachment. Once his mother passed he began to seek support by associating with the local gang. There is a possibility that through treatment and rehabilitation Jimmy M. can do better for himself. Conclusion According to Bartol and Bartol (2011) Crime, like all behavior, is complex and varied, and there are no simple answers regarding its causes. This is hardly surprising considering the great variety of crimes and offenders. Different theories put the emphasis on different causal factors: biology, personality, unconscious conflict, social learning, to name but a few. It is still by no means clear whether or not biological factors are implicated in antisocial behavior but, even if they are, most researchers acknowledge that the environment in which children are reared can either stimulate or inhibit any inborn tendency is criminality. The type of environment most conducive to delinquency is one of poverty, deprivation, a stressful family life and lack of educational opportunities. These factors are inextricably inter-related and the more of these that a child endures, the greater the likelihood of them committing criminal acts. Nevertheless, many individuals exposed to all of these risk factors do not embrace a life of crime. Perhaps we need to take a more careful look at protective factors such as personal disposition, loving relationships, social support systems and, indeed, gender, in order to more successfully address the problem of crime. References American Psychological Association (2000). Diagnostic and Statistical Manual of Mental Disorders (DSM-IV-TR) (4th ed., vol. Text Revision). Arlington, VA: Author. Bartol, C .R. Bartol, A. M. (2011). Criminal behavior: A psychosocial approach (9th ed.). Upper Saddle River, NJ: Pearson Education, Inc. Dwyer, D. (2001). Angles on criminal psychology. United Kingdom: Nelson Thornes, Ltd. Heilbrun, K., Marczyk, G. R., DeMatteo, D. (2002). Forensic mental health assessment: A casebook. New York: Oxford Press. Jackson, R. (Ed.). (2008). Learning forensic assessment. New York: Routledge. Rafter, N. (2008). The criminal brain: Understanding biological theories of crime. New York, New York: New York University Press. Raine, A. (2002). Biosocial studies of antisocial and violent behavior in children and adults: A review. Journal of Abnormal Child Psychology, 30(4), 311-26.