Alice Walkers Journey with Self-Esteem Essay -- essays research paper

Many writers choose to write memoirs about terrible incidents that changed their lives. Alice Malsenior Walker is one of those writers. She was born on February 8, 1944 in Eatonton, Georgia. She considers her life to be very successful for several reasons. Walker graduated from high school as valedictorian. She was involved with the civil rights movement in Mississippi where she lived for seven years. During that time she also got married to a lawyer and had her daughter Rebecca. From an early age she was introverted and quite shy, most likely due to a terrible accident. She immediately retreated into solitude, reading poems and stories and then finally writing. â€Å"Beauty: When the Other Dancer Is the Self†, by Alice Walker, is an essay that reflects on her ideas of beauty as a child, a teenager, and as an adult. Walker spent a great deal of time outside, due to the overcrowding in a small house with eight children (St. James). While playing outside at age eight, she was sh ot with a BB gun in the eye, causing her to lose not only her vision in her right eye, but her self esteem as well. She describes several events in her life that are significant in the formation of her identity. Alice Walker’s past reliance of being a physically cute girl, how confident she feels both before an after her surgery, and her constant feeling of being criticized are all factors that make her the woman that she is today. In order for Alice Walker to know the difference between the positive stares that she got when she was younger and the negative glances that she got when she was older, she had to experience that there was a difference between the two. Before the terrible BB gun accident, there was not a doubt in her mind that when people looked at her they saw an adorable little girl. She said, "It was great fun being cute." Afterwards, she believed that all they saw was "a glob of whitish tissue, a hideous cataract† (Walker 3). She compared the beautiful child that she was, to the ever-growing adult that she grew to become. She had a constant inner struggle between the person that she knew she was and the person that she appeared to be. â€Å"Now when I stare at people—a favorite pastime, up to now—they will stare back. Not at the ‘cute’ little girl, but at her scar† (Walker 3). Years later in her home, a woman arrived to take the photo for the back of Walker ’s book. The woman as... ...all that she could with her vision, while she still had it. Although many of us take our physical normalities for granted, Alice Walker choose to share her personal hardships and experiences to show how she has grown to become the writer that she is today. Her positive memories of being an adorable child have shaped her to realize what both ends of the spectrums are like, and what she will never be again. Low self-esteem soon followed, and as Walker grew, she also learned how to cope with the abysmal comments that she was destined to hear. However, as she grew into womanhood, her knowledge that she was still the same person thrived. Although being constantly judged, Alice Walker made light of the situation and realized that she loves the woman that she has become. Works Cited â€Å"St. James Encyclopedia of Pop Culture: Alice Walker.† Gale Group: 5 pars. On-line. Internet. 25 Jan. 2004. Available http://www.findarticles.com/cf_0/g1epc/bio/2419201268/p1/arti cle.jhtml Walker, Alice. "Beauty When The Other Dancer is the Self." The Blair Reader Second Edition. Ed. Laurie Kirszner, and Stephen R. Mandell. Upper Saddle River, NJ: Prentice Hall, 2002. 1-7.

Alcoholism and Drinking - Alcohol and Personality :: Exploratory Essays Research Papers

Alcohol and Personality    Alcoholism is a road often traveled yet there is no light at the end. The road only leads to a life of depression, anxiety, anger, stress, and much more. These are all common unwanted personality traits that we experience at one time or another. However, alcoholics exhibit these traits day in and day our as the likelihood that they act in these types of manners is nearly doubled when alcohol is involved. Alcohol inhibits not only our daily bodily functions but our mind as well. Alcoholism leads to times of withdrawal, low self-esteem, and an overall unwillingness to be part of society. It can turn the gentlest person into a raving psychopath without them even knowing it or if they do know, they refuse to admit it. Alcoholism manipulates the way we think and the way we react in common everyday situations. Minor problems are blown out of proportion while major problems are faced with anger, resentment, and often physical force. Alcoholism does nothing positive for an individual. It has many harmful effects and its effects on one's personality is one of the most harmful of all.    Our personality is who we are and who we are known as. Alcoholism takes that personality, corrupts it, and turns us into the person we never thought weà ¾d become. As the alcohol becomes more important and necessary in an alcoholicà ¾s life he will find himself unable to any longer answer the question of who he is but will rather find himself asking questions such as who he has become. At first, an individual may enjoy an occasional beer or two to à ¾take a load offà ¾. This does not have a permanent adverse effect on his personality. However, as time goes on, if this same person finds himself relying on alcohol to make it through the day, the problem has started. Before he knows it he will find himself psychologically dependent on alcohol and stages will develop. First, he may need a drink before he goes to bed to make him sleep better. Next, he may need to have a beer or two during his lunch break at the office because he has a lot on his mind. Finally, heà ¾ll find himself dr inking as a means of solving the simplest problem or needing a drink before he can even feel comfortable in public. Once this point in the alcoholic cycle is reached, his personality will begin to change as it takes on a new, distorted shape.

Argument of Alfarabi’s Book of Religion ::

Argument of Alfarabi’s Book of Religion For this paper I reviewed four works by the philosopher Abu Nasr al-Farabi (864-933d ce). These were the Enumeration of the Sciences, the Book of Religion, Selected Aphorisms, andthe Attainment of Happiness. Three of these were new translations by Ch. E. Butterworth, the fourth Attainment of Happiness: is from the anthology Medieval Political Philosophy edited by Ralph Lerner and Muhsin Mahdi, the latter being the translator of the piece. The assignment calls for an analysis of one of the above works. Some difficulties were encountered associated with returning to this material after a twelve year hiatus and doing so without the benefit (I now recognize) of lectures. I found myself continually backpedaling from the ambitions of my initial outline - which were largely inspired by the introductions which called for careful inspection of the structure of the arguments and attention to the seeming parallels and repetitions both within and between the texts in question. This, it turned out, was somewhat beyond my abilities. Be that as it may I settled on the text the Book of Religion and did what I could. All four of these readings inter-mesh, some explicitly so. The Book of Religion is designed to present an argument answering questions left unanswered by the presentation in The Enumeration of the Sciences, chapter five. My reading of Selected Aphorisms left me thinking that in addition to forming a parallel self supporting piece it was possible to see it as a glossary of supporting arguments and detail covering the exposition in Enumeration of the Sciences. and particularly Book of Religion. The first task I would like to attempt with this paper is to examine Al-farabi’s stated goals for the Book of Religion. I see three statements, two direct and one implicit. There is the opening paragraph in the first section: a definition of Religion, how it exists in a community1, who founds that community and how it is led. What its purpose is. There is the concluding (and penultimate) paragraph: a discussion of order and harmony (and by inference here - prosperity) in the community which flows from a common religion and purpose. And that this is given to a people by God. The first flows gradually and in a crafted naturalness into a discussion of political philosophy and political science. The latter flows out out of it. The implicit argument is in this construction.

Lascelles Chin …. the Journey of a Jamaican Entrepreneur

Lascelles Chin is founder, chairman and Chief executive officer of the Lasco Group of Companies in Jamaica. The Lasco group is made up of Lasco Distributors, Lasco Foods Successors Ltd, Lasco Foods Ltd, Lasco Barbados Ltd, Lasco Financial Services Limited and Lasco Remittance Services. The range of products and services delivered by the companies is diverse. Lasco Foods Successors Ltd is responsible for the manufacturing and exporting of soy based products while Lasco Foods Ltd is responsible for the packaging of milk powders. Lasco Distributors Ltd is responsible for the local distribution of the ever expanding range of consumer and pharmaceutical products that has made Lasco a household name in Jamaica. These companies currently run by Lascelles Chin marks the present milestone on an entrepreneurial journey by Lascelles Chin that has stretched for more than forty years, Mr. Chin intends to continue this quest for another forty years and beyond. His entrepreneurial journey started in 1961. According to Mr. Chin, he started business with ?175 and was at a great disadvantage as many prominent families were dominating the commercial landscape in Jamaica at the time. He persevered, did his research and learnt as much as he could about manufacturing and distribution practices, importation and various related fields. His policy was to deal honestly with his customers, work very hard and most importantly, avoid spending more than he earned, (Observer 2009). Accordingly this helped him to achieve success. He also realized quite early in life that the only way to maintain success as a business entrepreneur was by honing his skills, hard work, determination, perseverance, clarity of vision and the ability to see obstacles as challenges, (Observer 2009). After graduating from high school in the 1950s Lascelles Chin worked as a lab technician for a short period before taking up a job as a salesman. He did well, and focused on saving portions of his earnings which he later used to start National Trading Company. This principle of not spending more than you earn or saving as much as you can from your earnings would set the stage for his development as an entrepreneur. With this business he sold peas and powdered pepper on a commission basis. He later became a distributor of Henkel products upon recommendation from a visiting representative. The business did well by targeting furniture manufacturers with the Pattex brand of adhesive. Later, during the 1970s, when people were leaving Jamaica in droves, Mr. Chin decided to stay and expand his warehouse and factory. Here Mr. Chin demonstrates the strength and resolution to move against the tide and lay foundations for the future when others were packing up and calling it quits. With time the business moved from Orange Street, downtown Kingston to East Street and then to its current location on Red Hills Road, (Gleaner 2006). He later went on operate other lines of business, Kingston Heirlooms, manufacturing and exporting furniture, Datrex Limited, computer supplies and parts, Triple A Car Rental, Zenith Insurance Brokers, Soft Sheen and Exotic Farms Limited to name a few, (Gleaner 2006). It was however the LASCO branded businesses LASCO Foods Limited and LASCO Distributors Limited operated by Mr. Chin from the 1980’s which made him and his businesses household names within Jamaica. The motivation behind his businesses†¦Ã¢â‚¬ ¦.. the unfulfilled needs identified A journey which started with a man selling peas and powered seasoning on a commission basis had now developed into a number of businesses driven by the same man fuelled with a passion to deliver the best value for money to its customers. According to the company’s website, Lascelles Chin founded LASCO in 1988; its initial operation included the importation of bulk skimmed milk powder and repackaging of sachets for distribution within the Jamaican market. Chin’s intention was to provide a source of milk protein which was affordable for all. Since then Lascelles Chin business has grown from packaging and distributing skim milk to the corporate entity it is today providing a wide range of pharmaceutical, food, household and personal care products to Jamaica the Caribbean, Latin America, North America and England, (LASCO website, 2010). Lascelles Chin apparently influenced by his daily and close interaction with the grass root people on the streets of Kingston during his earlier days as a Salesman, having seen their need for an improved nutritional intake sought to source and deliver products at prices which could be afforded by all. By doing so he has made valuable contribution to the development of the Jamaican society and its labour force with his delivery of nutrition or nutritious products within the reach of the poor and needy. His drive in this area has lead to the pioneering of a number of soy based protein products again with an emphasis on nutritious value and affordability. Procurement of resources Lascelles Chin was able to start his first business, National Trading Company with a few pounds, an accumulation of his savings from his job as a lab technician and sales person. Along the way his business grew due to his timely and astute business decisions which included ventures some of which were risky at the time. Some of those businesses have failed due to changes in the Jamaican landscape, for instance Kingston Heirlooms, his furniture business which was a good earner of valuable foreign exchange at the time suffered from changes in government policies which made conditions difficult for manufacturers. In order to deliver affordable products LASCO has gone to great lengths to source raw materials, consumer and pharmaceutical goods from cost effective sources. LASCO has formed allegiance with major international manufacturers. One of those searches led LASCO to Solae Incorporated, a subsidy of the DuPont Group. With their help LASCO was able to pioneer its current and growing range of soy protein isolate products, facilitating the delivery of highly tasty, nutritious products at an incredible low price to consumers across the Caribbean, (LASCO website, 2010). According to LASCO’s website, â€Å"the popularity of their soy based product has made LASCO the Number One customer in the world for soy protein isolate from Solae Incorporated. Additionally, the American Soybean Association has hailed the LASCO Food Drink line as the tastiest soy product in the world†. Bolstered by this success, LASCO continues its global search for the most affordable, best quality products and have branded corned beef from Argentina, mackerel from Chile, ketchup from the Eastern Caribbean, and vitamins from an outstanding US supplier, whole milk from Ireland, and Corn Flakes from Germany† (LASCO website, 2010). LASCO Distributors has also formed an important strategic alliance with Johnson & Johnson (Jamaica) Limited on April 2, 2001. As a result of that arrangement, LASCO Distributors handles the distribution of all Johnson & Johnson products while LASCO Pharmaceutical Division is esponsible for Lifescan, Contact Lens, and Pharmacy sales. (LASCO website, 2010) According to an interview conducted by Gleaner Lifestyle Editor, Barbara Ellington with Lascelles Chin in 2006 and published in May 2006, a lot of effort is placed in sourcing by the LASCO group. Approximately 50% is purchased locally, 15% within the CARICOM countries and the rest from international firms. According to Mr. Chin in that interview, part of his strategy lies in the fact that he sources well and is not greedy for huge profit margins, this strategy facilitates giving the customers value for money, considering the poorest in the society at all times. He effectively reaps the benefits of the eventual sales volume by keeping his prices one tenth, one fifth or even half of others, (Gleaner, 2006). Lascelles Chin takes pride in the LASCO team who support and execute the corporate strategy on a daily basis in their respective roles. According to the Gleaner Article, May 2006, he indicated that his team is a hard working and dedicated one which operates like a family; they are treated well and are willing to go beyond the call of duty. He believes he has some of the best workers in Jamaica. Challenges faced and overcome The challenges faced by Lascelles Chin during his entrepreneurial journey have been as varied as each of the over forty years since he started National Trading Company. He has faced numerous challenges with financing, security cost, government regulations, changing technology, and the ever changing Jamaican economic landscape to name a few. According to Mr. Chin in his interview with Barbara Ellington, â€Å"In the early days, he wanted a line of credit of ?1,000, and the banks would not give it to him. They thought he was crazy, he eventually got it from Scotia bank†. His problems with pilferage downtown forced a movement of his earlier operations from East Street to Red Hills Road. Today his operations on Red Hills Road and those at his expansive distribution plant at White Marl Central Village, due to their location in two troubled communities have created high security cost. The LASCO team in a bid to mitigate this cost at these locations takes steps to â€Å"work with the communities, establish good relationships and avoid going home late†. Faced with the high manufacturing cost of the 1990s Lascelles.Chin was forced to shut down and bear the losses associated with his furniture and data processing companies. Mr. Chin has however graciously accepted the philosophy that â€Å"failure in a business is an opportunity to learn†. In his bid to He has fought and loss battles with the government pertaining to government regulations geared towards protecting the local milk industry by its imposition of tax levies on powdered milk. LASCO imports a lot of its raw materials and finished products, this creates a demand for foreign currency to service those foreign accounts. In a bid to lessen this strenuous demand compounded by the ever depreciating Jamaican dollar LASCO has leverage its business with the inclusion of LASCO Financial services, a licensed cambio and LASCO Remittance Services a Money Gram representative in Jamaica. These two businesses along with LASCO Successors, which manufactures and exports soy-based, products helps to generate the foreign exchange needed by the LASCO Group. Financial Performance and Customer’s Perception of the business To date LASCO has been doing well. Lead by its founder’s philosophy of giving back from the profits made, the corporation has made numerous and continuous sponsorships and contributions to various areas of nation building, The National Policeman, Nurse, Teacher and Principal and Pharmacist of the Year Awards, are just a few of the many such programmes that LASCO has been associated with over the years. It contributes to various school feeding programmes, school related competitions, it makes donations to various government programmes, mothers and various charities. In return LASCO has gain customer loyalty which keeps the wheels of their business turning. The LASCO brand is currently a household name, synonymous with the provision of healthy nutritious and affordable products and services. According to its website, â€Å"LASCO is renowned for its quality beverages, cereals, canned meats and sauces, personal care items, household products and pharmaceuticals. The company has pioneered a range of products, which utilizes soy protein and delivers to the consumer a highly nutritious product at an incredible low price†. Future Outlook In the earlier operations of his business, Lascelles Chin was supported by is then wife Audrey Chin and other family members at different points along the journey. Today, his eldest daughter holds a senior position in one of the divisions. The LASCO business is a going concern and will remain that way whilst it continues to offer and deliver the kind of products and services that has led to its significant growth over the last two decades. The core business has grown from offering three products to ove r an hundred items. Its consumer and pharmaceutical lines continues to grow with the addition of a range of products each year. The LASCO brand now includes the LASURE, LASCARE and LASMED range of products. Its focus is still on the provision of â€Å"best quality for the consumer’s money†. Steps have been taken to expand their warehouse and distribution plant in White Marl. They have also invested heavily in a new information technology system. Their distribution network continues to spread across the Caribbean, Latin and Central America, The UK and Canada. Though it is dogged by constant competition from major players in the respective markets, LASCO continues to carve out a niche for itself by being the low cost, and value for money supplier of consumer and pharmaceutical products within Jamaica. Conclusion and Opinion of the entrepreneur’s journey Lascelles Chin journey has been one that strongly demonstrates the power of determination mixed with consistent effort in spite of adverse circumstances. Though he has won numerous awards and worn various civic hats including, The Order of Jamaica, The 2001 Business Leader of the Year, The 1997 Entrepreneur of the Year Award from the Jamaica Institute of Management, The President of the Jamaica Exporters Association and is considered to be one of Jamaica’s leading philanthropists, he remains humble in his quest to make â€Å"Living Affordable â€Å"for the Jamaican people. He is an inspiration to all; he has in no uncertain way demonstrated that much can be gained, even with a small start. His entrepreneurial prowess were not garnered in academia, but were nurtured nonetheless by a quest to understand the business landscape and environment ensuring that he understood clearly what he was shaping and the factors that would ensure a successful execution of those ventures. He was unsuccessful in some of his ventures but was not deter from his quest to make a valiant contribution to the development of Jamaica. If I were to have taken the journey taken by Lascelles Chin, before I understood his process and his strategy for success, I probably would have stopped from the 1970’s and become a part of the massive tide of migrants leaving the island for a better opportunity elsewhere. I believe I have a bit of persistence and perseverance but probably would have been deterred from pursuing ventures geared towards improving the quality of life of the Jamaican society by the negative elements within the same society who would have pilfered by business place. The challenges presented by the lack of effort from the different governments to preserve manufacturing or keep the exchange rate stable or exercise the measures needed to curb crime and criminality would have probably led to my â€Å"locking shop† and leaving Jamaica. However, based on the lessons learnt from the journey of Lascelles Chin who started out with his savings, made prudent decisions, braved the economic times and conditions, focused on his goal of improving the quality of life of the poor and needy, through various economic, governmental and technological and social changes, I would take up the mantle of entrepreneurship, having the understanding that success can be achieved, through perseverance, determination, clarity of vision, whilst taking one step at a time, spending less than I earn and treating each failure challenge or obstacle as an opportunity to advance. References Ellington Barbara May 22, 2006, The Monday Interview: Lascelles Chin – Brand Domination at its Best. Retrieved on June 17, 2010 from http://www. jamaica- gleaner. com/gleaner/20060522/business/business1. html Ellington Barbara May 22, 2006, The Monday Interview: Lascelles Chin – Brand Domination at its Best. Retrieved on June 17, 2010 from http://www. jamaica- gleaner. com/gleaner/20060522/business/business1. html Ellington Barbara May 22, 2006, The Monday Interview: Lascelles Chin – Brand Domination at its Best. Retrieved on June 17, 2010 from http://www. jamaica- gleaner. com/gleaner/20060522/business/business1. html Ellington Barbara May 22, 2006, The Monday Interview: Lascelles Chin – Brand Domination at its Best. Retrieved on June 17, 2010 from http://www. jamaica- gleaner. com/gleaner/20060522/business/business1. html Kumar, S (June 2003), Transformation: A Journey. Retrieved on April 26, 2010 from http://www. caibinc. org/files_custom/3176_2350. df National Commercial Bank Annual Report 2009, Retrieved on May 04, 2010 from http://www. jncb. com/docs/NCB_Annual_Report_2009. pdf http://zenithbrokers. com/about_us. html https://www. jamaicaobserver. com/news/161017_Question-Time Ellington Barbara, The Monday Interview: Lascelles Chin – Brand domination at its best http://www. jamaica-gleaner. com/gleaner/20060522/business/business1. html http://www. lascojamaica. com/site/company-profile. htm

Marriott Corporation: The Cost of Capital

In April 1988, Dan Cohrs, vice president of project finance at the Marriott Corporation, was preparing his annual recommendations for the hurdle rates at each of the firm's three divisions. Investment projects at Marriott were selected by discounting the appropriate cash flows by the appropriate hurdle rate for each division. In 1987, Marriott's sales grew by 24% and its return on equity stood at 22%. Sales and earnings per share had doubled over the previous four years, and the operating strategy was aimed at continuing this trend. Marriott's 1987 annual report stated: We intend to remain a premier growth company. This means aggressively developing appropriate opportunities within our chosen lines of business—lodging, contract services, and related businesses. In each of these areas our goal is to be the preferred employer, the preferred provider, and the most profitable company. Mr. Cohrs recognized that the divisional hurdle rates at Marriott would have a significant effect on the firm's financial and operating strategies. As a rule of thumb, increasing the hurdle rate by 1% (for example, from 12% to 12. 12%), decreases the present value of project inflows by 1%. Because costs remained roughly fixed, these changes in the value of inflows translated into changes in the net present value of projects . Figure A shows the substantial effect of hurdle rates on the anticipated net present value of projects. If hurdle rates were to increase, Marriott's growth would be reduced as once profitable projects no longer met the hurdle rates. Alternatively, if hurdle rates decreased, Marriott's growth would accelerate. Marriott also considered using the hurdle rates to determine incentive compensation. Annual incentive compensation constituted a significant portion of total compensation, ranging from 30% to 50% of base pay. Criteria for bonus awards depended on specific job responsibilities but often included the earnings level, the ability of managers to meet budgets, and overall corporate performance. There was some interest, however, in basing the incentive compensation, in part, on a comparison of the divisional return on net assets and the market-based divisional hurdle rate. The compensation plan would then reflect hurdle rates, making managers more sensitive to Marriott's financial strategy and capital market conditions. Professor Richard Ruback prepared this case as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Copyright  © 1998 by the President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to http://www. hbsp. harvard. edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permi ssion of Harvard Business School. Marriott Corporation: the Cost of Capital 1. How does Marriott use its estimate of its cost of capital? Does this make sense? Marriott has defined a clear financial strategy containing four elements. To determine the cost of capital, which also acted as hurdle rate for investment decision, cost of capital estimates were generated from each of the three business divisions; lodging, contract services and restaurants. Each division estimates its cost of capital based on: Debt Capacity Cost of Debt Cost of EquityAll of the above are calculated individually for each of the three divisions, and this is a critical aspect due to the varying cost of debt in particular for each division. Marriott then calculate company wide cost of capital using weighted average of the individual divisions cost of capital. This is a very clever approach, particularly as we see that for example the lodging unit, has a 74% debt percentage in the capital structure, and the fact that Marriott use long term cost of debt for lodging (which in this case is c lose to Government debt 110 bps margin) demonstrates the low risk investors perceive this side of the business to haveWe believe this approach is sound due to the difference in the cost of capital between the divisions being a function of the risk associated with the investments considered so this approach incorporates the fact that risk between the divisions varies. Given this we believe the method chosen by Marriott is compliant with the â€Å"Marriott Financial Strategy† as the capital costing approach is due diligent and reflect the single entity risk (bottom-up) rather than an estimated top-down.We believe this approach enables Marriott to optimize the financial performance and in turn increase the shareholder value. 2. If Marriott used a single corporate hurdle rate for evaluating investment opportunities in each of its lines of business, what would happen to the company over time? Marriott's three divisions are very different in terms of business area, business risk an d capital structure (debt capacity). The result is varying capital costs between the divisions. For instance Lodging has a significant lower cost of capital (WACC) than the Restaurant and even than the company as a whole.Using a single company-wide hurdle rate would create an uneven process in assessing investment opportunities across the divisions. In practical terms the accept/reject decision would not reflect the inherent business risk of the division, which could lead to investments being accepted, while they should have been rejected. Given the WACC calculations in the following questions, we see there is a significant difference in the cost of capital between the different divisions varying from 8. 85% (Lodging) to 12. 11% (Restaurants)Therefore, if we were to use one single corporate hurdle rate, we would assume in this instance that we would use the Marriott WACC of 10. 01%, then we may reject an investment in ‘Lodging’ which would yield a positive NPV and vice versa, we may accept an investment opportunities in ‘Restaurants’ which potentially would yield a negative NPV. Going back to the brief, we know that typically an increase in hurdle rate of 1% will decrease present value of project inflows by 1%. If we were to then use one hurdle rate (10. 1%) and take the lodging hurdle rate (8. 85%) this would be an increase in WACC of 13. 10% (lodging) and would therefore decrease PV of project inflows by the same 13. 10% – so the effect of using a single rate is compounded, firstly it impacts the decision, and the PV due to the discount impact. Over time a single hurdle rate (if consistently higher than the existing approach) would significantly hurt the performance of company as the approach could lead Marriott to reject (or accept) investment opportunities which should have been accepted (or rejected).This would destroy shareholder value. 3. What is Marriott’s Weighted Average Cost of Capital? What types of investmen ts would you value using Marriott’s WACC? To calculate Marriott’s WACC, we need to assess three factors 1) Capital structure, 2) Cost of debt, 3) Cost of Equity. As the corporate tax rate is given we will not manually calculate it. If required we would have used the financial statement in appendix 1 to do so.After having calculated the three factors mentioned above we employ the following formula to find WACC: WACC = (1-t)*rD*(D/V) + rE*(E/V) where Re = After tax cost of equity, Rd = pre tax cost of debt, E = market value of the firm's equity, D = market value of the firm's debt, V = E + D = firm value, E/V = percentage of financing that is equity, D/V = percentage of financing that is debt and t = corporate tax rate. 1) Capital Structure We find the capital structure in Table A on page 4 in the case. As the â€Å"debt percentage in capital† – D/V in the WACC formula – is given we find the equity percentage in capital (E/V) as: E/V= 1 – D/V. Using this we see Marriott is funded using 60% debt and 40% equity. We do realize the data in Table A is the target-leverage ratio, but we are comfortable using the target capital structure for this purpose instead of the current capital structure. 2) Cost of Debt The cost of debt is mathematically defined as Cost of Debt = (1-t) rD, where rD is the rate for pretax cost of debt and (1-t) represents the tax shield via the corporate tax rate. In the following rD is calculated, while the tax shield is not included until the final WACC calculation.Marriott’s debt was divided into two different segments; floating rate and fixed rate. 40% of Marriott’s debt was floating rate where the interest rate payment changes with changes in the market interest rates, while 60% was fixed rate. The case gives a â€Å"debt rate premium above government†, but information about term structure or other features of the floating debt are limited. We believe the correct way to estimate t he cost of debt is to estimate the cost per debt type/segment and then in a second step weigh the costs using the debt structure.To do this we estimate that the floating debt rate is best estimated using the 1yr government rate in Table B – for the reason that we do not have any shorter term data or average, and this most closely would represent floating. While for the fixed debt portion we have selected the 10yr government rate. Again, this is due to a mix of long term and shorter term fixed debit. This is the best assumption we can take using the data provided. Given the above the cost of debt of Marriott is: [Average((1yr Gov. ate)*(Floating debt fraction) + (10yr Gov. rate)*(Fixed Debt Fraction)) + â€Å"Debt Rate Premium Above Government†] [Average((6. 90%)(40%) + (8. 72%)(60%)) +1. 30%] = 9. 29% 3) Cost of Equity Cost of Equity is found using the Capital Asset Pricing Model (CAPM) or rE = RF+ ? i(E[RM] – RF), Where rF is the risk free rate we estimated ear lier, ? is the systematic risk or the overall risk factor and (E[RM] – RF) is the ‘price of risk’ or ‘market risk premium’ (MRP) investors expect over and above what the risk free securities yield.To be consistent in selecting expected market return and the risk free rate, we have selected to use the same time period for both estimates. Using Exhibit 4 and 5 we find the appropriate data. We take the longest time period available as we believe this is the conservative method as outliers in the data is crowded out due to the law of large numbers, which increases the empirical probability of accuracy. Given this we have selected 1926-87 average returns of the long-term U. S government bond as the risk free rate (RF) thus RF is 4. 58%. (Exhibit 4).The MRP is estimated using Exhibit 5, where we use the S excess return over the long term U. S government bond over the same time period as the risk premium (E[RM] – RF) = MRP = 7. 43%. S is chosen as th e â€Å"market return† as the stock index represents a wide and diversified range of equity across different sectors and industries. Given this we believe it is fair to use the S excess return over the risk free rate as the market risk premium (MRP) To find the ? we need to adjust the equity ? given in Exhibit 3 as it reflects the current capital structure and not the target structure.To re-calculate in order for the ? to reflect the Marriott target capital structure, we first calculate the unleveraged ? and then re-leverage it with the target capital structure. The unleveraged ? is calculated using: Unlevered ? = Equity ? / (1 + (1 – t) x (Debt/Equity)). As all data is given in Exhibit 3, we find unleveraged ? = 0. 7610. (See detailed calculations in excel sheet under tab â€Å"Exhibit 3†). To re-leverage the data we re-write the formula: Equity ? = Unlevered ? * (1 + (1 – Tc) x (Debt/Equity)) = 0. 7610 *(1+(1-34%)*(60%/(1-60%)) = 1. 514.We now have all the data need to calculate the cost of equity: rE = RF + ? (E[RM] – RF ) 4. 58%+ 1. 514(7. 43) =15. 83%. Finally we find WACC by employing the formula: WACC = E/V ? rE + D/V ? rD ? (1 – t) 40%*15. 83% + 60% *(9. 29%(1-34%)) = 10. 01%. Please find all detailed calculations in the attracted excel sheet under tab â€Å"Table A†. We would value an investment of similar risk, which would offer us a return higher than the WACC of 10. 01%, as anything over and above this in terms of return would be adding value as the present value of the future cash flows in that case would be positive.In otherwords, we could use WACC as our discount rate and hurdle rate to calculate NPV of potential investment projects of physical asset, where it is expected the financing will be similar to the financing of the company conducting the investment. 4. What is the cost of capital for the lodging and restaurant divisions? The WACC calculation methodology is the same for the divisions as t he calculations under question 3. However the inputs are changed to mirror the attributes and characteristics of the divisions.Please also see excel spreadsheet included within this submission for breakdown of the calculations. Lodging: Cost of debt: For the calculations of the fixed rate debt, we are using the 30 year government bond rate instead of the 10 year. This is a reflection of the comments in the case about the longer durability of the asset and longer financing. For the floating leg of the debt, we continue to use the 1 year government bond rate. rD = Average((1year US (Table B)*Fraction of Floating Debt + 30 Year US*Fraction of Fixed Debt) + 1. 10% rD = Average((6. 90%*50% + 8. 5%*50%) + 1. 10% = 9. 03% Cost of equity: To be consistent we opt for the long-term securities and long-dated data just as we did when calculation the cost of equity in question 3. As for the ? we use the peer group as presented in Exhibit 3. Hence to find the unleveraged beta, we take the average of the equity ? s of the peer group the average debt/equity ratio. After having calculated the unleveraged ? , we re-leverage using the target capital structure of the lodging division. We realize the limitations of using comparable companies to estimate the ? nd understand the criticality of defining the right peer group of comparable companies. We could most likely have increased the accuracy of our calculations by being more due diligent in the selection to find companies that were a closer match to the Lodging (and restaurant) division. However, for the purpose of the calculations in this case, we use the peer group defined in the exhibit. Restaurants: Cost of debt: For the calculations of the fixed rate debt the 10 year government bond is used. rD = Average((1year US (Table B)*Fraction of Floating Debt + 10 Year US*Fraction of Fixed Debt) + 1. 10% D = Average((6. 90%*25% + 8. 72%*75%) + 1. 10% = 10. 07% Cost of equity: To reflect the shorter nature of the assets in the restaur ant business division, we use short-term securities to estimate the risk free rate and the risk premium. We use the same method for estimating ? as we did for the Lodging calculations. Using the data described above, we find WACCLodging to be 8. 85% and WACCRestaurants to be 12. 11%. These findings support the notion that incorporating debt will lower the cost of capital due to the tax shield. Lodging has a debt/equity ratio of 74/26 against the 42/58 in the restaurant division. See detailed calculations in the attached excel sheet) We would also like to point out that of the restaurants given in the brief, many of these would in essence not necessarily be our peer group per se and we would be more selective over the restaurants we would selected to more closely mirror Marriott’s restaurants. With our aim to ensure we have the closest peer group possible for comparison. 5. What is the cost of capital for Marriott’s contract services division? How can you estimate its e quity cost without publicly traded comparable companies?We use the same framework as for the WACC calculations under Q3 and Q4. However, as we do not have a defined ? for the Contract Service division or an adequate peer group, we will estimate the ? using the existing data for Marriott and the two divisions. We know from the literature that a (holding) company’s ? is the weighted ? ’s of the individual business divisions. We use the revenue as the catalyst for the weighing of the ?. For the purpose of the calculations we use the unleveraged ? ’s. Mathematical this can be expressed as: ?(Marriott) = Revenue Weight (Lodging)* ? Lodging) + Revenue Weight (Contract Division)* ? (Contract Division) + Revenue Weight (Restaurants)*? (Restaurants). To find the ? (Contract Division) we re-write the formula to: ?(Contract Division) = [? (Marriott) – Revenue Weight (Lodging)* ? (Lodging) – Revenue Weight (Restaurants)*? (Restaurants)]/ Revenue Weight (Contra ct Division) ?(Contract Division) = [0. 7610 – 40. 99%*0. 5841 – 13. 49%*1. 0014]/45. 52% = 0. 8490 Adjusting for the target capital structure we find ? (Contract Division) equals 1. 223 Using this data, we find WACC for the Contract Service division to be 10. 82%.

Shadow Kiss Chapter 15

Fifteen â€Å"I†¦WHAT?† â€Å"You heard me. I don't know how far things have gone, and honestly, I really don't want to know the details. That's not the point. The point is that it's going to go no farther.† The queen was looking down on me, hands on her hips, clearly waiting for me to swear I'd do whatever she wanted. Except I kind of couldn't. I glanced around the room, certain this was some sort of joke. I looked to the two guardians across the room, half-hoping they'd explain what was going on, but they were doing that seeing-without-actually-seeing thing. No eye contact. I turned back to the queen. â€Å"Um, Your Majesty †¦ there's been some kind of mistake. There's nothing going on between Adrian and me.† â€Å"Do you think I'm an idiot?† she asked. Wow. That was an opening. â€Å"No, Your Majesty.† â€Å"Well, that's a start. There's no point in lying to me. People have seen you together, here and back at your school. I saw you myself in the courtroom.† Damn it. Why had Adrian chosen that moment to be chivalrous and sneak another hug? â€Å"I've heard all the illicit details about what's going on, and it is going to stop right here, right now. Adrian Ivashkov is not going to run off with some cheap dhampir girl, so you might as well rid yourself of that delusion right now.† â€Å"I never thought he was going to – seeing as how we're not involved,† I said. â€Å"I mean, we're friends, that's all. He likes me. He's a flirt. And if you want to talk illicit stuff, then†¦yeah, I'm pretty sure he's got a list of illicit things he'd like to do with me. Lots of illicit things. But we're not doing them. Your Majesty.† As soon as the words left my mouth, I felt like an idiot. From the look on her face, however, it didn't seem like things could really get any worse for me. â€Å"I know about you,† she said. â€Å"All anyone talks about are your recent awards and accolades, but I haven't forgotten that it was you who took Vasilisa away. I also know about the trouble you used to get into – I know about the drinking, about the men. If it was up to me, I'd pack you up and send you off to some blood whore commune. You'd probably fit in well.† Drinking and men? She made me sound like an alcoholic prostitute when, honestly, I'd probably drunk no more than other teenagers at high school parties. Telling her this seemed useless, though. Pointing out that I was still a virgin probably wouldn't have made much of a difference either. â€Å"But,† she continued, â€Å"your recent†¦ achievements make sending you away impossible. Everyone believes you have some glorious future ahead of you. Maybe you do. Regardless, if I can't stop you from being a guardian, I can affect whose guardian you are.† I stiffened. â€Å"What are you saying? Are you threatening me?† I spoke the words tentatively, not as a challenge. She couldn't be serious. Taking me away from Lissa during the field experience was one thing, but we were talking about an entirely different matter now. â€Å"I'm just saying I have a great interest in Vasilisa's future, that's all. And if I have to protect her from corrupting influences, I will. We can find her another guardian. We can find you another Moroi.† â€Å"You can't do that!† I exclaimed. I could tell by the look on her face that she was happy to finally get a real reaction out of me. I was both angry and afraid, and I fought hard against my normal explosive instincts. Diplomacy and honesty were what I needed now. â€Å"I'm not doing anything with Adrian. Really. You can't punish me for something I'm not doing.† I quickly remembered to add: â€Å"Your Majesty.† â€Å"I don't want to punish you at all, Rose. I just want to make sure we understand each other. Moroi men don't marry dhampir girls. They play with them. Every girl thinks it's going to be different with her – even your mother did with Ibrahim, but she was wrong too.† â€Å"With who?† I asked, the name hitting me like a slap in the face. Ibrahim? I'd never even heard of that name, let alone someone called that. I wanted to ask who he was and what his connection to my mother was, but Tatiana just kept talking. â€Å"They're always wrong. And you can try your hardest to change that, but it's a waste of time.† She shook her head, like she felt sorry for these dhampir girls, but her smug air contradicted any true sympathy. â€Å"You can use your pretty face and easy body as much as you want, but in the end, you're the one who'll get used. He may say he loves you now, but in the end, he'll get tired of you. Save yourself the grief. I'm doing you a favor.† â€Å"But he isn't saying he loves – † There was no point. The ironic thing here was that I was fairly certain Adrian did just want to use me for sex. I didn't have any delusions about that. But seeing as I wasn't actually sleeping with him, there was no problem – except, well, that Tatiana seemed to see of all this as a problem. I sighed, suspecting no argument was going to make her believe that I wasn't interested in Adrian. â€Å"Look, if you're so certain we can't have a future together, then why are you telling me this? According to you, he's going to throw me away anyway. Your Majesty.† She hesitated for just a second, and I nearly laughed. Despite her trash-talking about me, my mom, and other dhampirs, some part of her really was worried that I might indeed be charming and pretty enough to seduce Adrian into a disgraceful marriage. She quickly hid her uncertainty. â€Å"I like to take care of things before they become messy, that's all. Besides, it's going to make things easier for him and Vasilisa if they aren't dragging around baggage from you.† Whoa, whoa. My moment of brief satisfaction shattered – into confusion. I was as lost now as I'd been when she first started accusing me of being involved with Adrian. â€Å"Him and†¦ Vasilisa? Lissa? What are you talking about?† I forgot the Your Majesty, but I don't think she cared at this point. â€Å"The two of them are an excellent match,† she said, sounding like she was about ready to purchase some artwork. â€Å"Despite your bad influence, Vasilisa's grown into a very promising young woman. She has a very serious, very dedicated nature that will cure some of his recklessness. And being together would allow them to continue examining their†¦unusual magical situation.† Five minutes ago, me marrying Adrian had been the craziest thing I'd ever heard. It had just been trumped, however, by the thought of Lissa marrying Adrian. â€Å"Lissa and Adrian. Together. You can't be serious. Your Majesty.† â€Å"If they're both here together, I think they'll come around to it. They already have a certain charisma around each other. Plus, both of Adrian's grandmothers came from branches of the Dragomir family. He has more than enough blood to help her carry on the Dragomir line.† â€Å"So does Christian Ozera.† In one of their more disgustingly cute moments, Lissa and Christian had looked up his family tree to see if he had enough Dragomir genes to be able to pass on the name. When they found out he did, they'd then starting naming their future children. It had been horrible. I'd left after Lissa told me they'd name their third daughter after me. â€Å"Christian Ozera?† That condescending smile of hers tightened. â€Å"There is no way Vasilisa Dragomir is going to marry him.† â€Å"Well, yeah. Not anytime soon. I mean, they're going to go to college and – â€Å" â€Å"Not now, not ever,† interrupted Tatiana. â€Å"The Dragomirs are an ancient and exalted line of royalty. Their last descendent is not going to attach herself to someone like him.† â€Å"He's royal,† I said in a low voice that was on the verge of becoming my scary voice. For whatever reason, her insulting Christian made me angrier than her insulting me. â€Å"The Ozera line is every bit as important as the Dragomirs and Ivashkovs. He's royal, just like Lissa, like Adrian, and like you.† She snorted. â€Å"He is not like us. Yes, the Ozeras are one of the royal houses, and yes, he has several respectable distant cousins. But we aren't talking about them. We're talking about the son of someone who purposely became a Strigoi. Do you know how many times that's happened in my lifetime? Nine. Nine in fifty years. And his parents were two of them.† â€Å"Yes – his parents,† I said. â€Å"Not him.† â€Å"It doesn't matter. The Dragomir princess cannot associate with someone like him. That position is simply too prestigious.† â€Å"But your nephew is the perfect choice,† I said bitterly. â€Å"Your Majesty.† â€Å"If you're such a smart girl, then you tell me – back at St. Vladimir's, how are they treated? How do your classmates view Christian? How do they view Christian and Vasilisa together?† Her eyes gleamed knowingly. â€Å"Fine,† I said. â€Å"They have lots of friends.† â€Å"And Christian is fully accepted?† Immediately, I thought of Jesse and Ralf grilling me about Christian. And yes, there were plenty of people who still avoided Christian like he was already Strigoi. It was why he'd had no partner in culinary science. I tried to hide my thoughts, but my hesitation had given me away. â€Å"You see?† she exclaimed. â€Å"And that's just a microcosm of society. Imagine it on a bigger scale. Imagine how it'll be when she's active in the government and trying to get others to support her. He'll be a liability. She'll make enemies just because of him. Do you really want that to happen to her?† It was exactly what Christian had feared, and I denied it now as much as I had to him. â€Å"It won't happen. You're wrong.† â€Å"And you're very young, Miss Hathaway. You're also delaying your flight.† She moved toward the door. The guardians across the room were by her side in the blink of an eye. â€Å"I have nothing more to say and hope this will be the last time we ever have a discussion like this.† Or any discussion, I thought. She left, and as soon as etiquette said I could go, I sprinted off to catch my plane. My head reeled as I went. How insane was that lady? Not only was she convinced that I was on the verge of eloping with Adrian, she also believed that she could work some kind of arranged marriage with him and Lissa. It was almost impossible to figure out which part of that conversation had been the most ridiculous. I could hardly wait to tell the others what had happened and have a good laugh over it. But, as I returned to my room to get my bag, I reconsidered. There was already so much gossip about me and Adrian going around; I didn't think I should be fueling the fire. I also didn't think Christian should hear about this. He was already insecure about his position with Lissa. How would he feel if he found out the queen was already making plans to get rid of him? So I decided to sit on the information for a while, which was hard because Lissa was practically waiting outside my door when I got back. â€Å"Hey,† I said. â€Å"I thought you'd be on the plane?† â€Å"Nope. They delayed it by a few hours.† â€Å"Oh.† Going home suddenly sounded like the best idea ever. â€Å"What'd the queen want?† asked Lissa. â€Å"To congratulate me,† I said glibly. â€Å"Over my Strigoi kills. I didn't expect that from her – it was kind of weird.† â€Å"Not that weird,† she said. â€Å"What you did was amazing. I'm sure she just wanted to recognize you for what you did.† â€Å"Yeah, I guess. So what's going on? What are we going to do with the extra time?† There was excitement in both her eyes and her feelings, and I welcomed a change in subject. â€Å"Well†¦ I was thinking. Since we're at the Royal Court†¦ don't you want to check it out? There's gotta be more to it than a bar and a coffee shop. Seems like we should know this stuff if we're going to be living here. Besides, we've got a lot to celebrate.† The full force of our situation hit me. I'd been so distracted by Victor that I hadn't even really let things sink in: We were at the Royal Court, the center of Moroi leadership. It was nearly as big as the Academy, and there had to be more to it than the all-business side we'd seen so far. Plus, she was right. We had a lot to be happy about. Victor had been put away. She'd gotten a sweet college deal. Only my alleged affair with Adrian had been a downside, but I was willing to put that aside as Lissa's contagious excitement seized me. â€Å"Where's Christian?† I asked. â€Å"Doing his own thing,† she said. â€Å"You think we need him along?† â€Å"Well, he usually is along lately.† â€Å"Yeah,† she admitted, â€Å"but I'd kind of like just us to hang out.† I sensed the thoughts behind her decision. Our brief conversation just before she'd gone to see the queen had made her nostalgic for the old days, back when it had just been the two of us on our own. â€Å"No complaints here,† I said. â€Å"How much can we cover in three hours?† A mischievous grin lit her face. â€Å"The essentials.† I could tell she had something special in mind, but she was trying to keep it in hidden. She couldn't block me out of the bond, but she had learned that if she didn't think too hard about certain things, then I wouldn't pick up on them easily. She liked being able to think that she could surprise me sometimes. Trying to hide big issues or problems from me never worked, though. We set back out into the cold weather, with Lissa leading the way. She steered us away from the administrative buildings, off toward some others set at the farther end of the Court's grounds. â€Å"The queen lives in that first building,† Lissa explained. â€Å"It's not exactly a palace but the closest we have. Back when the Court was in Europe, Moroi royalty used to live in castles.† I made a face. â€Å"You make that sound like a good thing.† â€Å"Stone walls? Turrets? Even you have to admit that sounds pretty neat.† â€Å"Yeah, but I bet they had crap Internet access.† Lissa shook her head at me, smiling, and didn't dignify my comment with a response. We passed some other buildings that had the same ornate stonework as the others but were tall and built in a style that reminded me of apartments. She confirmed as much. â€Å"Those are town houses, where people who live here year-round stay.† I eyed them, wondering what they were like on the inside, and a happy thought came to me. â€Å"You think that's where we'll live?† The thought caught her off guard, but she soon grew just as excited as me. She, too, liked the idea of us having our own place, free to decorate it and come and go as we wanted. I rather liked the idea of Dimitri living with us too, but here at Court, he wouldn't be with her 24/7. For that matter, I actually wouldn't need to be with her 24/7 either. Would they let me live with her? Or would this be another chance to show I wasn't needed? â€Å"I hope so,† she said, oblivious to my worries. â€Å"Top floor with a view.† I mustered another smile. â€Å"And a pool.† â€Å"How can you think about a pool in this weather?† â€Å"Hey, if we're fantasizing here, we might as well go the whole way. I bet Tatiana's got one. I bet she wears a bikini and has hot guys rubbing her down with suntan lotion.† I expected another eye roll, but Lissa just grinned as she led me into a building that was near the town houses. â€Å"Funny you mention that.† â€Å"What?† I exclaimed. She was about ready to burst with her secret. I was this close to pulling it out of her mind. I would have, too, if I hadn't been so stunned by our surroundings. It was sensory overload: delicate music, fountains, plants, people in white robes, everything gleaming and silver†¦ It was a spa, a full-fledged luxury spa hidden away in an old stone building here at Court. Who would have guessed? A long granite receptionist's desk guarded the entrance, so we only had a partial view, but what I could see was pretty sweet. Women sat along a wall getting pedicures and manicures. Moroi men and women were getting haircuts and color. What looked like a maze of halls could just be seen in the back of the salon, with a directory of arrows pointing to other sections: massage, sauna, facials, etc. Lissa grinned at me. â€Å"What do you think?† â€Å"I think Adrian was right about the Court having all sorts of secrets.† I gave a mock sigh. â€Å"And I hate having to admit that he's right.† â€Å"You've been so down about the field experience and†¦other stuff.† She didn't have to mention Mason's death and the Strigoi fight. I read it from her mind. â€Å"I figured you could use a treat. I checked their openings here while you were with the queen, and they were able to squeeze us in.† Lissa walked up to the receptionist and told her who we were. The woman immediately recognized our names but seemed surprised to be letting a dhampir in. I didn't care, though. I was too bedazzled by the sights and sounds around me. Compared to the harsh, practical lifestyle I usually led, this sort of luxury almost defied belief. After checking in, Lissa turned to me, face eager and radiant. â€Å"I got us set up to get massages with these – â€Å" â€Å"Nails,† I interrupted. â€Å"What?† â€Å"I want my nails done. Can I get a manicure?† It was the most exotic, completely useless thing I could imagine. Well, it wasn't useless for ordinary women. But for me? With the way I used my hands and subjected them to blisters, bruises, dirt, and wind? Yes. Useless. I hadn't painted my nails in ages. There was no reason. Half the nail polish would probably chip off after one practice session. A novice like me couldn't afford that kind of luxury. And that was why I so, so desperately wanted one. Seeing Lissa wear makeup had awakened that longing in me for some beautification of my own. I accepted that it could never be a regular part of my life, but if I was in a place like this today, then by God, I wanted my nails done. Lissa faltered a little. She'd apparently had big plans for this massage thing. But, she had a hard time refusing me and spoke to the receptionist again. It sounded like the receptionist had to do a bit of juggling with her schedule, but she said she could make it work. â€Å"Of course, Princess.† She smiled happily, entranced by Lissa's natural charisma. Half the time, Lissa didn't even need spirit to get people to help her. â€Å"I don't want to be an inconvenience,† Lissa said. â€Å"No, no. Definitely not!† We soon found ourselves sitting at adjacent tables while Moroi women soaked our hands in hot water and started scrubbing them with weird combinations of sugar and seaweed. â€Å"Why the manicure?† Lissa wanted to know. I explained my reasoning to her, about how I hardly had time for makeup anymore and how the abuse my hands went through made any sort of pampering impractical. Her face turned thoughtful. â€Å"I never thought about that before. I just figured you weren't into it lately. Or, well, that you didn't need it. Not with your looks.† â€Å"Whatever,† I said. â€Å"You're the one guys worship.† â€Å"Because of my name. You're the one that guys – like a certain one we know – actually want for other reasons.† Gee, I wondered who she could be referring to. â€Å"Yeah, but those other reasons aren't very noble.† She shrugged. â€Å"The point's the same. You don't need makeup for them to drool all over you.† Then I felt the weirdest thing through the bond. I saw myself through her eyes. It was like looking in a mirror, except she only had a profile view of me. But when she looked at me, she really did think I was beautiful. With my tan and dark brown hair, I seemed exotic to her. She felt pale and washed out compared to me, skinny next to my curves. It was surreal, considering how often I felt scruffy next to her luminous beauty. Her envy wasn't malicious; that wasn't in her nature. It was more wistful, an admiration of a look she could never have. I wanted to reassure her but had a feeling she didn't want me knowing about her insecurities. Besides, my thoughts were interrupted when the woman doing my nails asked what color I wanted. I picked a color that looked like gold glitter. Gaudy, perhaps, but I actually thought it looked kind of cool, and it wasn't like it was going to last long anyway. Lissa picked pale pink, a color as refined and elegant as she was. Hers got painted a lot faster than mine, though, because my manicurist had to spend so long softening my hands and filing the nails. Lissa finished long before I did. When we both had glamorous hands, we proudly held them up side by side. â€Å"You look gorgeous, darling,† she declared, affecting a sophisticated air. Laughing, we went off to the massage area. Lissa had originally scheduled us for extensive massages, but the manicure had cut into a chunk of that time. So we modified the full-body massage into a foot massage, which was just as well since we couldn't have put on robes or any other changes of clothes with our nails still wet. All we had to do was remove our shoes and roll up our pants. I sat down in a chair while my feet soaked in warm, bubbling water. Someone put something into the tub that smelled like violets, but I didn't pay much attention. I was too entranced by my hands. They were perfect. The manicurist had buffed and hydrated them to silky softness, and my nails had been transformed into gleaming gold ovals. â€Å"Rose,† I heard Lissa say. â€Å"Hmm?† The lady had also put a clear coat of nail polish over the gold. I wondered if that would give the nails a longer lease on life. â€Å"Rose.† Sensing that Lissa wanted my undivided attention, I finally looked up from my awesome hands. She was grinning from ear to ear. I could feel that excited news burning in her again, the secret she'd had while we'd been walking over here. â€Å"What's up?† I asked. She nodded downward. â€Å"Rose, this is Ambrose.† I glanced absentmindedly toward the masseuse at my feet. â€Å"Hey, Ambrose, how's it – † I cut myself off before the words holy crap or whoa left my lips. The guy massaging my feet couldn't have been much older than me. He had curly black hair and muscles everywhere. I knew this for a fact because he was shirtless and offered us both a good view of his sculpted pecs and biceps. His deep golden skin was a color achievable only by excessive time in the sun, indicating he was human. The bite marks on his neck confirmed it. A pretty boy feeder. Very pretty. His attractiveness was almost unreal, though. Dimitri was gorgeous, but he had little flaws that made him that much more gorgeous. Ambrose was too perfect, like a piece of art. I didn't want to throw myself into his arms or anything, but he was certainly nice to look at. Lissa, still worried about my love life, had apparently thought this was exactly what I needed. Her masseuse was female. â€Å"It's very nice to meet you, Rose,† said Ambrose. He had a musical voice. â€Å"It's nice to meet you too,† I said, suddenly self-conscious as he lifted my feet out of the water and toweled them off. I was especially self-conscious of the appearance of my feet. They weren't gross or anything, since they weren't usually exposed to the elements like my hands. I just kind of wished they'd been polished up too if this male model was going to handle them so much. Lissa, astute enough to sense me being flustered, could barely stop from laughing. I heard her thoughts in my head: Cute, huh? I cut her a look, refusing to voice my thoughts out loud. He's Tatiana's personal masseuse. That practically makes you royalty. I sighed loudly to let her know she wasn't as funny as she thought she was. And when I say personal, I mean personal. I jerked in surprise, accidentally kicking one of my feet out. Ambrose's deft hands caught it before I hit him in his pretty face, thankfully. I might not have been able to communicate telepathically but I was pretty sure there could be no question to Lissa that the look on my face said, You can't be serious because if you are, you're in big trouble. Her grin widened. I thought you'd like that. Pampered by the queen's secret lover. Pampered wasn't exactly the word that came to mind. Looking at Ambrose's young, beautiful features, I just couldn't picture him getting it on with that old hag. Of course, that denial might have just been my brain's way of refusing to acknowledge that someone who had touched her was now touching me. Ew. Ambrose's hands were checking out my calves along with my feet, and he struck up a conversation about what elegant legs I had. His dazzling white smile never left his face, but most of my answers were curt. I still couldn't get over the thought of him and Tatiana together. Silently, Lissa groaned. He's flirting with you, Rose! she thought to me. What are you doing? You can do better than that. I went to all this trouble to get you the hottest guy here, and this is what I get! This one-sided-conversation thing was becoming a pain in the ass. I wanted to tell her that I'd never asked for her to rent out this guy for me. In fact, I suddenly had images of the queen calling me in for another meeting to yell at me for having a nonexistent affair with Ambrose too. Wouldn't that be perfect? Ambrose continued smiling as he rubbed the soles of one foot with his thumbs. It hurt – but in a good way. I hadn't realized how sore that spot was. â€Å"They go to such trouble to make sure you wear the right black and white clothes, but no one ever thinks about your feet,† he mused. â€Å"How are you supposed to stand around all day and still manage roundhouse kicks and cat stances in bad shoes?† I was about to tell them that he really didn't need to keep worrying about my feet, but something odd suddenly struck me. â€Å"Roundhouse kicks† and â€Å"cat stances† weren't top-secret guardian terms. Anyone could Google â€Å"martial arts† and find out about those kinds of things. Still, it wasn't the kind of topic I'd expect a Moroi to casually throw around, let alone a feeder. I studied Ambrose closer, noting the way his dark eyes so carefully darted around and observed everything. I recalled his fast reflexes in stopping my kick. I felt my jaw start to drop, and I shut it before I looked like an idiot. â€Å"You're a dhampir,† I breathed.

Critical Evaluation of Institutional Factors Impact on Outward/Inward

Essay Critical Evaluation of Institutional Factors Impact on Outward/Inward Foreign Direct Investment This aim of this essay is to evaluate the impact of institutional factors on outward and inward FDI. This will be done by determination of the major FDI (Foreign Direct Investment) factors, evaluation of the role of institutional factors and investigation of institutional factors impact on inward and outward FDI flows.Several sources (Aswathappa, 2012; Jensen, 2012) have identified FDI as an investment, made by a company based in one country (home country) into another company, which is based in other country (host country), in order to obtain certain degree of management control over that company. Recent evidence (Ho and Rashid, 2011) has demonstrated that a tendency for a firm to engage in foreign investment depends on a combination of different factors and elements.Dunning (2011) has argued that company has to satisfy three conditions in order to successfully engage in internation al activity, which are ownership (know-how, technologies), localisation (natural resources, low production costs) and internationalisation. This theory is quite unique because it is developed by several important FDI determinants such as natural resources, production efficiency, strategic assets and market size. Nachum (1999) has argued that in accordance with Hymer’s firm’s specific advantages theory, companies are engaging in FDI if they possess specific advantages e. . access to raw materials, economy of scale, marketing advantages, etc. Aswathappa (2010) has suggested another FDI determinant which is ‘follow the client/rival’. If one of the clients builds a foreign facility, it is reasonably for the company to follow the client and also build a foreign facility in order to continue cooperating with the client. If one company goes to the foreign market it draws the attention of other similar companies, that can potentially exploit similar opportunity an d therefore follow the rival.The same source has also stated that market size is another crucial FDI determinant, which play important role for foreign investors. Nevertheless, Seyoum (2011) has argued that FDI inflows cannot be only determined by such variables as qualitative and skilled labour, availability of natural resources, technologies or modern infrastructure. It is essential to highlight the importance of role of institutional factors in attracting foreign investors. It was suggested by Solomon (2007) that foreign investors are seeking for countries with stable political and social institutions.As it was figured out by Benassy-Quere, et al. (2007) the main institutional factors are: efficient protection of civil and property rights, economic and politic freedom and stability and corruption. Moreover, Globerman and Shapiro (2003) have stated that good institutions (well developed financial system, private property protection, government services, etc. ) have positive impact on both inward and outward FDI. Nevertheless, in some cases quality of institutions depends on FDI for instance, Chinese MNE’s value natural resources more than sound legal system or political stability (Kolstag and Wiig, 2012).According to Jensen (2012) host country’s political regime is one of the most important determinants of FDI. It is considered that authoritarian regime is rather more stable than democratic. The same source has assumed that democracy may be influenced by the interests of the particular groups, which can increase tax rates, trade barriers or implement protectionism policies in order to protect domestic companies from foreign MNE’s. A study carried out by (Knutsen, et al. , 2011) has stated that authoritarian regimes can reduce labour costs supressing human or different organisation rights e. g. hild labour and trade unions and therefore decrease costs for foreign investors. Nonetheless, there is counterargument provided by the same source s (Jensen, 2012; Knutsen, et al. 2011) which suggests that democracy has rather more positive effects on FDI that authoritarian regime. It was argued that reduced child labour can increase education level and trade unions can bring more social stability. In some cases MNE’s are able to influence democratic country’s government in their favour. Moreover, investments in non-democratic countries may hurt reputation of the foreign investors and decrease demand for their products at home market.Recent evidence (Hatchondo and Martinez, 2011) has argued that foreign investors enjoy sound legal protection system. Another source (OECD, 2008) has suggested that higher protection standards results in the greater positive impact on FDI. It was also argued that governments with free market economy have more efficient legal protection system than countries where economy is heavily influenced by government e. g. China. Free market economy is based on ownership, therefore MNE’s from such countries value property rights and they tend to select host countries with the same regulations and laws (Hsu, Zhang and Long, 2007).Level of corruption, is quite contradicting aspect of inward FDI. It is mostly assumed to have negative impact on FDI. Firstly, it brings additional costs, if foreign investors have to bribe someone. Secondly, corruption involves more uncertainty and risk because it is done in illegal way. Furthermore bribed contracts cannot be enforced in court. This issue is also able to impact on outward FDI, because investors tend to exclude possible risks and uncertainty (Wei, 2000; Knutsen, et al. , 2011). However, Egger and Winner (2005) have suggested that corruption may be beneficial for the FDI.The authors have described an idea of â€Å"grabbing hand† and â€Å"helping hand†. It was said that, indeed, corruption bring additional costs and uncertainty for foreign investors and acts as the host country’s â€Å"grabbing handâ⠂¬  but it is only in the short run. It was stated that in long run corruption might be attractive for foreign investors. Corruption allows speeding up bureaucratic procedures or can help to avoid regulatory and administrative restrictions and therefore it will act as the â€Å"helping hand†. Ultimately, if the revenue effects are bigger that costs effects corruption is likely to be positive for FDI.In accordance with several studies (Wells, 2001; Azemar and Delios, 2008) it was figured out that taxes have relatively small impact on IFDI (Inward Foreign Direct Investment). The authors have stated that in some cases foreign investors are much likely to focus on large market size with rather high tax rates than on country with small market size and much lower tax rates. Nevertheless, it was suggested that countries with excessive tax rates are much likely to kill IFDI however the countries with reasonable tax rates may exert little or almost no influence on IFDI.Furthermore, i t was also mentioned that tax havens demonstrate that countries (or regions) with extremely low tax rates are important determinant of the IFDI e. g. Delaware in the USA. Peng and Parente (2012) have stated that bureaucratic regulations and heavy taxation on domestic earnings in Brazil have pushed two thirds of the OFDI stock to tax havens. Another interesting idea was proposed by Wells (2001) it was argued that if host countries policymakers have better understanding of how tax policies can affect the foreign investors, they would be more successful in terms of attracting FDI’s.For, example tax holiday policy could stimulate IFDI flows. A number of authors (Kolstag and Wiig, 2012; Kalotay and Sulstarova, 2010) have figured out that OFDI (Outward Foreign Direct Investment) may be heavily influenced by government or political changes. One of the best examples is Chinese â€Å"Open Door† and â€Å"Go Global† policies, it was argued that those changes has increased total Chinese OFDI from 3. 3% in 1996 to 10% in 2006 (Kolstag and Wiig, 2012). However, it was also described that most of the Chinese companies are state owned and their activities reflect political objectives e. . focus on natural resources. Political changes and stability is significant push factor. After the collapse of the Soviet Union, many Russian privately-owned companies were actively engaging in OFDI. The reason of that issue is that they tried to avoid uncertainty and find safe environment with stable political environment (Kalotay and Sulstarova, 2010). As it was figured out by several authors (Levent, 2006; Garcia and Navia, 2003) financial institutions are important ‘Push’ factor of OFDI. Financial conditions of the home country affect the decision to invest abroad.If home country has poor financial system e. g. no access to financial support, unstable deposit base, high interest rates, etc. than the MNE’s are much likely to seek countries with wel l-developed financial institutions. Another finding was proposed by (Kolstag and Wiig, 2012) arguing that in some countries e. g. China, financial institutions are more cooperative with foreign investors that with the domestic companies, therefore companies are pushed to go overseas in order to obtain access to financial institutions.Witt and Lewin (2007) have stated that misalignments between the firms needs and home country institutional conditions are pushing firms to go abroad. The authors have demonstrated that countries with relatively high societal coordination are slowly adapting changes in the extra-institutional environment and results as the misalignments between firms and home institutions. For example, in year 2003 Germany had high social contributions and taxes as well as others rigidities which have impacted on both OFDI and IFDI flows.It was argued that every seventh German entrepreneur was planning to partly move abroad, every ninth was planning to move all producti on abroad and every thirteenth was thinking of relocating HQ (Head Quarter) abroad. Therefore, firms tend to seek the most appropriate for them institutional environment and if there is no such in home country, they are much likely to go abroad. Summarising all of the issues, it was figured out that most of the institutional factors have quite significant impact on IFDI and OFDI. The research has demonstrated that such nstitutional factors as political stability, governmental regime, corruption, legal system, financial institutions, etc. have serious impact on FDI. Nevertheless, there are some situations when other non-institutional factors may be more important, for instance China is focused more on the natural resources more than on the good institutions or market size might be more important for foreign investors than taxation issues. It was also found out that some institutional determinants may have impact on both outward and inward FDI flows.For example, political stability or corruption, these two factors may be applicable for both types of FDI flows. However, some of those institutional factors are better applicable for IFDI rather than OFDI or vice versa. References Aswathappa, K. (2010). ‘Intrernational Business’, 4th Edition, pp. 100-112. New Dehli: McGraw Hill. Azemar, C. and Delious, A. (2008). ’ Tax competition and FDI: The special case of developing countries. Journal of the Japanese and International Economies’. 22 (1), pp. 85-108. Dunning, J (2011). New Challenges for International Business Research: Back TotThe Future, pp. 90-200. UK: Edward Elgar. Egger, P. and Winner, H. (2005). ‘Evidence on corruption as an incentive for foreign direct investment’. European Journal of Political Economy. 21 (4), pp. 932-952. Garcia, A. and Navia, D. , (2003). ‘DETERMINANTS AND IMPACT OF FINANCIAL SECTOR FDI TO EMERGING ECONOMIES: A HOME COUNTRY'S PERSPECTIVE’, pp. 21-23. Spain: Banco de Espana. Globerman, S. and D. Shapiro (2002). ‘Global Foreign Direct Investment Flows: The Role of Governance Infrastructure’, World Development, 30, 11, 1899–919. Hatchondo, J. C. and Martinez, L. (2011). Legal Protection to Foreign Investors. Legal Protection to Foreign Investors’. 97 (2), pp. 175-187. Hsu, C. , Zhang, W. and Lok, L. , (2007). ‘The Business and Investment Environment in Taiwan and Mainland China’, pp. 200-205. Singapore: World Scientific. Jensen, N. , (2012). ‘Politics and Foreign Direct Investment’, pp. 8-14. 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