Quality of Service (QoS): Issues and Recommendations

Quality of Service (QoS): Issues and Recommendations The Effects Of Movement On QoS – As the mobile device moves from a cell protected from one base station to an adjoining cell of a different base station during a connection handover takes place. This hand over time may just result in a short loss of communication which would possibly not be obvious for voice interplay however can outcomes in loss of information for different applications. For mobile computing, the base station may have to provide regional processing, storage or other services as good as communication. Variations in link quality will additionally be caused by atmo ­ circular conditions such as rain or lightning. These effects need additional refined dynamic QoS management than fixed systems. It is therefore the variation in QoS that is that the crucial distinction between mobile systems and communications based on wired networks. This implies for adaptive QoS management that specifies a variety of acceptable QoS levels, instead of attempting to ensure specific values. The QoS management is additionally accountable for cooperation with QoS aware applications to support adaptation, instead of insulating applications from variation in underlying QoS. The effects of quality on QoS need then that algorithms utilized should be capable of managing frequent loss and reappearance of mobile device within the network, and that overhead ought to be reduced in periods of low connectivity. This is in contrast to traditional distributed applications, wherever moderately stable presence and systematically high network quality square measure usually assumed. The Restrictions Of Portable Devices On QoS – Portability of the mobile computing device imposed variety of problems that place limitations on QoS. The main limitation is within the physical size of mobile computers. Systems usually are designed with the limitations of batteries in mind. Current battery technology still needs appreciable area and weight for modest power reserves, and isnt expected to become considerably additional compact in future. This then places limits on the style due to the ought to offer low power consumption as a primary style goal: low power processors, displays and peripherals, and the observe of getting systems powered down or sleeping once not in active use are common measures to reduce power consumption in portable PCs (Personal computer) and PDAs (Personal digital assistant). Low power consumption elements are usually grade of processing power below their higher consumption desktop counterparts, so limiting the complexness of tasks performed. The practice of intermittent activity might seem as frequent failures in some situations. Similarly, mobile technology needs vital power, notably for transmission, thus network association should be intermittent. The second purpose is that of user interfaces: giant screens, large keyboards, and refined and straightforward to use pointer systems are commonplace in a desktop surroundings. These facilitate data wealthy, complicated user interfaces, with precise user management. In portable computers, screen size is reduced, keyboards are typically additional incommodious, and pointer devices less refined. PDAs have tiny, low resolution screens that are usually additional suited to text than graphics and will solely be monochrome. They have stripped miniature keyboards, and pen based mostly, voice, or easy cursor input and selection devices. These limitations in input and show technology need a considerably totally different approach to user interface style. In sush type of environments where users may use a variety of systems in different situations, the interface to applications may then be heterogeneous. QoS management in a mobile environment should enable for scaling of delivered information, and also less complicated user interfaces once connecting using a common combination of portable devices and higher power non-portable devices [1, 6] and field of context aware computing provides groundwork during this area, wherever instead of treating the geographical context (as for mobility), one can treat the choice of end system as giving a resource context. The Effects On Other Non-Functional Parameters – Any style of remote access will increase security risks however wireless based mostly communication is especially likely to unseen undetected therefore mobility complicates traditional security mechanisms. Even nomadic systems can build use of less secure telephone and net based mostly communications than workplace systems using LANs. Some Organizations might place restrictions on what knowledge or services will be accessed remotely, or need a lot of subtle security than is required for workplace systems. In addition, there are legal and moral problems rose within the observance of users locations. Cost is another parameter that might be stricken by the employment of mobile communications. However, whereas wireless connections are frequently more expensive, the basic principles of QoS management in relevancy price are the same as for fixed systems. The only major extra quality is formed by the risk of a bigger range of connection, and therefore price, options, and the risk of performing accounting in multiple currencies. WORK ON MANAGEMENT OF QoS IN MOBILE ENVIRONMENTS Management Adaptivity As declared within the section The Effects of Movement on QoS, one of the key ideas in managing QoS for mobile environments is adaptation to changes in QoS. In the following we tend to discuss 3 categories of change that have to be catered for. Large-grained change is characterized as changes due to varieties of end system, or network connection in use, generally these can vary infrequently, often only between sessions, and therefore are managed mostly at the initialization of interaction with applications, probably by suggests that of context awareness. Hideable changes are those minor fluctuations, some of that could be peculiar to mobile systems, that are sufficiently little in degree and period to be managed by traditional media aware buffering and filtering techniques. Buffering is often used to take away noise by smoothing a variable (bit or frame) rate stream to a constant rate stream. Filtering of packets could differentiate between those containing base and improvement levels of information in multimedia streams, e.g., moving from color to black and white images and are like those in fixed network systems [35]. However, as mobile systems move, connections with totally different base stations have to be set up and connections to remote servers re-routed via the new base stations. This needs moving or putting in filters for these connection, different connection could not give the same QoS as the previous one, and so the needed filter technique could differ. To manage this needs an extension of the traditional interactions for migrating connections between base stations. The choice and handover of management should realize of offered QoS, needed QoS, and the capability of the network to accommodate any needed filters. Wherever the network cannot maintain the current level of service, base stations ought to initiate adaptation in conjunction with handover [14, 41]. Fine-grained change are those changes that are often transient, however vital enough in vary of variation and period to be outside the range of effects that will be hidden by traditional QoS management ways. These include: Environmental effects in wireless networks. Other flows beginning and stopping in a part of the system so affecting resources available. Changes in accessible power inflicting power management Functions to be initiated, or degradation in functions like radio transmission. These types of change should be informed with the applications involved, as they need interation between QoS management and the application for adaptation. In several conditions it is a reasonable to assume that the wireless connection will determine the overall QoS. However, an end-to-end QoS management is still needed, specially for multicast systems, and those using the internet for their connection. The impact of price on patterns of desired adaptivity also becomes more pronounced in mobile systems, wherever connections usually have a charge per unit time or per unit data. Adaptation paths connected with QoS management ought to be able to describe how a lot of the users are willing to pay for a certain level of presentation quality or timeliness. The heterogeneousness inherent in systems that might offer network access through more than one media also will be a issue here, as certain sorts of connection can cost more than others, and cost of connection will vary due to telecoms supplier traffic structures. Resource Management And Reservation – Some researchers contend that resource reservation isnt relevant in mobile systems, as the accessible bandwidth in connections is just too extremely variable for a reservation to be meaningful. However, some resource allocation and admission control would appear reasonable once resources are scarce, even if laborious guarantees of resource provision are not practical. [44, 47] proposes that guarantees be created in admission control on lower bounds of needs, whereas providing best-effort service beyond this. This is achieved by creating advance reservation of minimum levels of resources within the next predicted cell to confirm accessibility and smooth handoff, and maintaining a portion of resources to handle unforeseen events. The issue of resource reservation is given some thought by those engaged on base stations and wired elements of mobile infrastructures, as these high bandwidth elements should be shared by several users, therefore the traditional resource management approach s till applies. Context Awareness – A further aspect of resource management is that of large grained adaptivity, and context awareness. [49] defines situation as the entire set of circumstances close surrounding agent, including the agents own internal state and from this context as the elements of the situation that ought to impact behavior. Context aware adaptation may include migrating data between systems as a results of mobility; dynamic a user interface to reflect location dependent information of interest; choosing a local printer or power conscious scheduling of actions in portable environments. The QoS experienced is also dependant on awareness of context, and applicable adaptation to that context [11]. A elementary paper on context awareness is [13], that emphasizes that context depends on more than location, i.e., vicinity to alternative users and resources or environmental conditions such as lighting, noise or social things. In consideration of QoS presentation, the problems with network connectivity, comm unications price and bandwidth, and location are obvious factors, poignant data for interactions as well as how end systems are used and users preferences, for instance, network bandwidth may be available to supply spoken messages on a PDA (Personal digital assistant) with audio capability, however in several situations text show would still be the most applicable delivery mechanism speech might not be intelligible on a noisy factory floor, and secrecy is also required in conferences with customers. Quality will therefore cover all non-functional characteristics of information poignant any aspect of perceived quality. CONCLUSION We discussed the critical issues faced by QoS in a mobile environment, the time those challenges emerged and the techniques that were put forward to tackle those challenges following literature to discussed work. The Persistence of Memory by Salvador Dalà ­: An Analysis The Persistence of Memory by Salvador Dalà ­: An Analysis The Persistence of Memory is a surreal landscape created in 1931 by the famous Spanish artist, Salvador Dali. This oil painting measures 9 1/2 x 13 inches, or 24.1 x 33 cm and is on display at the Museum of Modern Art in New York (MoMA). It has been displayed in galleries worldwide and is a symbol of Dalis work. The Persistence of Memory contains a light blue horizon, which slowly fades downward from blue to yellow across the top quarter of the painting. Under the skyline sits a body of water, or what looks to be a large lake or a reflecting pool. The body of water traces the skyline until it interacts with neighboring mountains to the right. In front of the mountains there is lone pebble. On the left close to the water, Dali places a reflective, blue, elevated, rectangular platform with dark brown trimming around the edges. Placed in front of this platform, there is another single pebble. A lifeless tree with a hollow top, is in front of it, missing all of its leaves and branches but one. The single branch holds a silver pocket watch which appears to be melting on the end of the branch showing the numbers three through nine. Only one hand of the watch is shown, pointing at the 6. The tree is located on top of a light brown square object that looks desk-like. The brown object takes over the bottom left corner of the painting, and even goes off the canvas. On this object there are two more pocket watches residing. One of them is gold and melted, hanging half way off the light brown cube. The hands of the gold watch are stopped at five of seven and there is a fly on the face near the 1 oclock mark. The fly is also casting a very small shadow, which is shaped more like a human. The other pocket watch is bronze and shut. The exterior of the pocket watch is covered with a swarm of black ants. Unlike the other clocks, this is shut, and the only one that is not warped or melted of the four. The ground in The Persistence of Memory is a dark brown that almost turns black in certain areas. On it lies a white figure on its right side with another silver-colored melting clock on its back. The white figure is human-like, with over emphasized large eyelashes. It has a what looks to be a trade mark Salvador Dali moustache and lips where eyebrows would be on a human face. Its nose is flared and has another small brown object coming out of the right nostril. The white figure has no limbs or other human-like characteristics. The rest of the scenery around the white figure is dark and barren. The Persistence of Memory uses the basic elements of art including a plethora of lines, values, shapes, form, colors, and texture (Glatstein). The lines that Dali uses in the painting vary on the shape which he is working with. Most of the painting contains lines that are relatively thin and similar in width, with the exception of the mountains, and the eyelashes of the white figure. The lines on the mountains are noticeable, and give them a rough realistic approach. On the white figure Dali uses different lengths and widths to create individuality in each lash. He also makes everything detailed down to the very last ant on the bronze watch. The lines that make up the watches are so detailed that they even show each number on the faces. The use of lines also improve the realistic look of the reflection of the mountains in the water. The lines on the platform and brown object are straight and symmetric. He does not leave many visible sketch marks in this painting, so it is not clear o r easy to distinguish his lines from shading. The lines that he does show usually complement the dark shadows of his surrealist landscape. The values and shading in this painting are very drawn out and detailed. The shadows in Dalis Persistence of Memory are the heart and soul of the piece, creating a universe that has never been seen before. Thick values highlight details and color, giving a three dimensional illusion to this piece. On the tree, the values are implied to create the illusion of bark, while the limp clock it is holding on its branch uses value to create a tarnished and three dimensional effect. The brown object also uses shading to get this effect. The watches on the brown cube have detailed shading on and around them, and use color to shade and give a shiny effect. The melting one uses a great deal of color on the face, while the watch with the ants draws attention to the insects covering it. The ground is primarily solid brown, with vivid black shadows overpowering the landscape. This stresses the amount of sunlight that is shown in the landscape, reflecting off of other interacting objects. The mounta ins use a combination of light and darkness mixed with color rather than only black to create this style. Some of the ridges on the mountains are shaded with black, along with other parts of the painting such as the white figure and the brown cube where the two pocket watches are placed. The ants are all black, and have very little shading, while the fly on the other watch only has a blue shadow of a human figure. The white figure has shading throughout its entire body. There is heavy shading on his head, nose eyelashes, and where its body touches the ground. This painting contains a variety of shapes and forms that add to the uniqueness of its style. There are noticeable figures and shapes, and unidentifiable ones throughout the painting. The blue platform in the far corner is a solid three dimensional rectangle, as is the large brown cube in front of it. In these objects the lines are straight and solid, and although the object is not identifiable, the geometric shapes are (Jirousek). The way that the clocks are melting adds a sense of movement and flimsiness. The mountains are recognizable shapes, along with the body of water surrounding them. The tree is easily identified, as are ants and the fly. The white figure is almost cubist, missing parts and anatomical structures, somewhat resembling a Picasso or Braque painting. It still contains human qualities, like the eyelashes and the nose but lacks a solid form. Many of the objects in this painting interact with others, either resting on or touching. The clocks are an example of this be cause they almost mold to whatever object they come into contact with. This painting is three dimensional, geometric, and abstract, and does not stick to all traditional shapes or forms (Jirousek). The color scheme along with the shading work to bring the painting to life. The colors are not vivid or bright, but more saturated and dark. Dali uses shadow and color together to create a different experience. The colors in The Persistence of Memory are primarily warm including a lot of yellow, gold, black, and brown (Warm Colors). The browns on the cube and the scenery range from light to dark. The mountains are a shade of yellow, along with a lot of what the sun touches in the painting. The watches are gold, silver, and bronze and have a shine to them because of the color and shading. There are also cool colors in this piece including blue, white, and silver (The Meaning of Color). The faces of the clocks, tree, the flys shadow, the sky and water are all a blue tint, working with the warm colors to balance the painting. The texture of the painting mainly focuses on senses such as sight and touch. From smooth surfaces to rough and jagged objects, Dali intensifies the visual experience to create an imaginary sense of touch. The blue platform appears to have a smooth reflective surface, with a rough wooden underside. The tree in front of it has a course exterior with deteriorating bark. The clock on its weak branch has a flexible but noodle like appearance to it. The large brown object with the other two clocks on top looks smooth and almost wooden. The pocket watch with the ants on it looks smooth and shiny, but still covered in small black ants. The gold pocket watch looks melted and squishy. The hands on the watch appear to go in every direction and never stay in sync with each other. The mountains in the background look narrow, ancient, dangerous, with noticeable signs of erosion. The water looks still, clear, reflecting the mountains in the landscape. The two pebbles that are separated on the far left and right in the background have a smooth exterior. The white figures skin is smooth as well, although the shading gives the impression that the figures body is wavy and ameba-like. Its moustache and lips where his eyebrow appear to be drawn on and unnatural. The large eyelashes have a rough and soft texture, as does his nose and the rest of his face. Salvador Dalis painting The Persistence of Memory, uses a variety of artistic methods and principles (Glatstein). The emphasis of the piece are the four melting clocks scattered throughout the painting. Some may argue that its his mysterious white figure that draws more attention to the work. The painting carries a strong sense of movement as well. The melting clocks create an optical illusion, giving the viewer the impression that they are actually dripping metal. The ant colony on the bronze watch also creates a sense of motion as they scatter on its surface. The cracked and crumbling mountains add to this movement too, while the water below and the white figure stay completely still. The use of shadows in the picture builds a strong contrast between sources of light and darkness. The lighting projects emphasis on several objects and builds three dimensions using shadow and color. The contrast also brings the three dimensional illusion to life, giving the painting its distinguishin g features. The painting lacks a definite pattern or motif, and the only reoccurring object is the pocket watches. Its scenery changes throughout the piece from geometric objects, to empty space, to mountains. In this piece the vanishing point appears to make sense and the water touching the skyline gives an illusion of distance. The proportion of the other objects in the painting however, do not follow traditional standards. The pocket watches seem ridiculously large and warped in every direction, while the tree holding the silver watch up is similar in size to the pocket watch. The overall unity of Dalis painting brings mixed emotions. The interpretation of the piece always has a critics bias either directly or indirectly. The Persistence of Memory seems to have a darker impact on people because of its style and subject matter. It is not seen as a cheerful or happy painting, but more eerie and disturbing. According to the Salvador Dali Museum this painting is known to cause fear a nd anxiety of the unknown surroundings (Clocking in With Salvador Dali). Dalis creation of this painting was not drug induced, but from melting cheese and bizarre dreams (Rochfort). The message Dali is trying to spread is that life is fast paced and full of choices which sometimes produce unfavorable outcomes, but we move on. The clocks are only stepping stones into the real meaning behind the painting. The silver watch on the tree is symbolic of a time which has recently passed (Being second closest to the white figure). The gold watch symbolizes the best years of life slowly escaping. The closed bronze watch with the ants could symbolize a time which the artist wanted to move on and forget. The one on top of the white figure symbolizes the place that he is at now and currently trying to live through. The pebbles painted on opposite sides of the canvas symbolize separation between a lover. The cracks in the mountains are obstacles that one faces before they can reach a stable point in life and find happiness. The raised blue platform in the back symboliz es the path to a higher quality of life, while the dead tree shows mortality and that nothing lives forever. The flys shadow in the form of a person could be another symbol of Dalis love escaping, or that he wishes to escape reality. Many sources state that Salvador Dali had fallen in Gala, his only love and muse included in her many pieces (Salvador Dali-A Soft Self-Portrait). This piece defines surrealism, breaking many of the norms previously adopted by artists and critics. The painting itself reflects a lot on Salvador Dali, and the way which he viewed life. His artistic style is incredible, and his dream photographs (Clocking in with Salvador Dali) are mind blowing. His use of colors and lighting creates a three dimensional experience that was never seen before. The lifelike qualities and absurd creatures that inhabit the piece make it so good, and separate it from the rest. It has even been noted that the white figure seen in the painting is a self portrait of Dali, (looking at the moustache above its eyelashes) (Clocking in with Salvador Dali). The clocks themselves make The Persistence of Memory an iconic piece and have been emulated and parodied in popular culture as well. It surpasses much of the Modern Art of its time, involving more talent than just throwing paint buckets at a canvas. I was able to see this painting in person at the Philadelphia Art Museum in 2005 when the Dali Exhibit was on display.

Charlotte Perkins Gilman’s “The Yellow Wallpaper” Essay

Charlotte Perkins Gilman wrote â€Å"The Yellow Wallpaper† in the late 1800’s while being treating by the very trusted Weir Mitchell. During this time women were commonly admitted into the care of doctors by their husbands without their given consent. At this time there was very little research concerning Post- Partum Depression. According to the A.D.A.M Medical Encyclopedia, Post-Partum is moderate to extreme depression women may experience after giving birth. The symptoms include fearfulness, restlessness, and anxiety- all of which are displayed by Jane in â€Å"The Yellow Wallpaper.† Gilman was advised by Dr. Mitchell to stop writing and rest, only partaking in â€Å"household† activities. She was not to visit with friends or go outside much. Contesting to these rules, Gilman ended treatment with Mitchell and wrote â€Å"The Yellow Wallpaper† with the hopes of shedding much needed light on the ineffectiveness of his strategies. The mental condition of many women often worsened due the general population’s lack of consideration involving a woman’s outspoken opinion involving the betterment of her own health. Carol Kessler writes in â€Å"Consider Her Ways: The Cultural Work of Charlotte Perkins Gilman’s Pragmatopian Stories, 1908-1913,† â€Å"The utopian fiction of Charlotte Perkins Gilman takes on as its â€Å"cultural work† the demonstration that women are not confined to one traditional mode of being–wife/motherhood–but can fill as varied social roles as can male counterparts† (126). Kessler is stating Gilman’s writing is not only a statement against the mental health practices concerning women, but also includes other issues that were dominated by a patriarchal society. Denise D. Knight suggests in her essay â€Å"I Am Getting Angry Enough to do Something Desperate,† that Jane’s behavior at the end is â€Å"an expression of the tremendous rage she feels toward her husband, John† (78). This statement is evidence suggesting that women were well aware of the need for a change involving these matters. Gilman uses the yellow wallpaper to symbolize the psychological, sexual and creative oppression women experienced during Gilman’s contemporary times. Jane’s â€Å"condition† is revealed to the reader at the beginning of the story. Jane has just arrived at the â€Å"vacation† home and is writing secretly since John forbids it. She writes of John, â€Å"You see, he does not believe I am sick!† (Gilman 173). This quote indicates to the audience that Jane’s voice is of no importance next to John’s. Jane continues to voice her opinion about her illness and what she believes could cure her. John blatantly ignores any suggestions she may have concerning her own health, appearing heartless and cold. This is very clear when Jane initially voices dislike for the room with the yellow wallpaper, in which she is assigned to stay. Jane writes, â€Å"I don’t like our room one bit. I wanted one downstairs that opened on the piazza †¦but John would not hear of it!† (Gilman 174). Gilman allows the audience a glimpse at the symbolism of the wallpaper at this point. Jane mentions her dislike of the room with the yellow wallpaper as soon as she is introduced to it. Upon bringing this discomfort to John’s attention she is sufficed with a promise to replace it. However, John later breaks his promise with the reasoning that they will only be there three months. The creeping feeling Jane experiences concerning the wallpaper symbolizes the mental instability she feels looming over her. John convinces Jane there is nothing wrong with the room and refuses to move her even though she requests he do so. When Jane persists she writes of his response to her, â€Å"But John says if I feel so, I shall neglect proper self-control; so I take pains to control myself† (Gilman 174). Jane is forced to h ide her feelings and worsening condition, as well as her writing. This interaction between the two characters demonstrates how many women during this time period were not to have opinions or preferences. This scene displays the lack of self-expression and freedom women encountered. Creativity in women was not widely accepted in Gilman’s society and was often deemed improbable. In one of Jane’s entries she describes, â€Å"There comes John, and I must put this away he hates to have me write a word† (Gilman 175). This sentence is powerful because the written word is often more powerful than the spoken word. Women were rarely given the luxury of speaking freely, much less writing freely. John’s reluctance to allow Jane to write illustrates the narrow minded ideals men had concerning women. In â€Å"Why I Wrote the Yellow Wallpaper,† Gilman writes that Dr. Mitchell, â€Å" concluded there was nothing much the matter with me, and sent me home with solemn advice to â€Å"live as domestic a life as far as possible,â₠¬  to â€Å"have but two hours’ intellectual life a day,† and â€Å"never to touch pen, brush or pencil again as long as I lived’†(51). Both Gilman and Jane were creative women that used writing as therapy to express what others around them could not understand. Jane’s journal and her writing symbolize the creative talents and intelligence many women were capable of but were forced to conceal. Gilman contradicts the idea of women being married to make great â€Å"mothers† with the statement, â€Å"And yet I cannot be with him† (Gilman 177). Jane is referring to her infant son. The possibility that a woman could want more from life other than to marry and have children was an almost impossible notion at the time. In â€Å"Gilman’s ‘The Yellow Wallpaper’: A Centenary† Linda Wagner- Martin writes, â€Å"Of these many conflicts inherent in women’s trying to lead acceptable female lives, perhaps the most troublesome is that of motherhood, its attendant responsibilities, and its almost inevitable loss of self-identity† (52). The A.D.A.M Medical Encyclopedia sugg ests that a common cause of Post-Partum Depression in women is the decreasing amount of time they have to themselves after having a child. Women of brighter minds were often misplaced in this type of society. Many artists feel an undeniable obligation to their work, often taking time away from their families. It was impossible for artistic women to prosper when their prime purpose in life was to marry and have children. Knight writes, â€Å"Gilman demonstrates how stifling the cult of domesticity was for intelligent women† (78). Jennie, Jane’s caretaker, represents this idea. Jane writes of Jennie, â€Å"She is a perfect and enthusiastic housekeeper, and hopes for no better profession† (Gilman 178). Jennie’s characteristics and tendency to stay out of Jane’s business resembles a fear felt by many women. While it was common for many intelligent women to become depressed due to creative and psychological oppression, fear often quieted any desires for change. It was widely understood that any woman who tried to live otherwise would just as easily end up in Jane’s predicament. Martin writes of the matter, â€Å" The point, obviously, is that society expects women to be fulfilled through motherhood, and that women who question their roles as mothers, who complain or are angry about those roles, are suspect if not beyond human comprehension† (63). In â€Å"The Yellow Wallpaper† Jane’s behavior often reflects this idea that women longed for the opportunity to choose their life occupation, rather than being assigned it. Sexual oppression of women is also touched on in this piece. John often goes away for a work and even when he visits, there is minimal physical contact between him and Jane. Judith A. Allen writes in â€Å"Reconfiguring Vice: Charlotte Perkins Gilman, Prostitution, and Frontier Sexual Contracts,† â€Å"Gilman shared in a common, international, late nineteenth-century feminist critique of marriage and of other sexual economic contracts† (173). Gilman’s very opinionated statements regarding women’s freedoms clearly extended to their sexual needs as well as emotional needs. While it was often expected for women to stay behind and tend to the children while the men were away at work, it was often overlooked how these physical absences affected them. It was socially acceptable for a man to appease his sexual appetite with other women while he was away, but not for his wife to do the same with other men. This was taxing on many women. When John is visiting Jane one night, he simply scoops her up and takes her to bed, where he reads to her until she is tired and ready for bed. Jane appears to be too ill to confront her sexual desires like many women of the time. Her relationship described with John is surfaced. Since there is a lack of a physical relationship between the two, there appears to be no relationship at all. This clarifies the belief that women were married off to produce children and please their husbands. Once Jane begins taking notice of the wallpaper itself, the tone of the story takes a dive. While the tone of the story begins somewhat light hearted and seemingly harmless, there is still a hint of foreshadowing. It is when Jane becomes obsessed the audience becomes aware of how terrible her condition truly is. It is almost used as a mockery of John’s ignorance throughout the entire story. The narrator writes, â€Å"There are things in that paper that nobody knows about but me, or ever willâ €  (Gilman180). This is when Jane is realizing the figure in the wallpaper in fact is a woman and she appears to be behind bars. The symbolism here is that no one can understand how Jane is feeling, including the other women around her. As time goes on John tells Jane things such as, â€Å"You are gaining flesh and color,† and â€Å"I feel much easier about you† (Gilman181). Rather than asking Jane how she feels, he is telling her. The irony is Jane’s willingness to accept being told how to act, feel, and live. Based on the mockery provided by the narrator, John does not truly understand what Jane needs, considering he, like everyone else involved, does not view women as people capable of reasoning and complex feelings. This idea was prevalent to the society throughout that time period. The phrase â€Å"dear John† is mentioned throughout the story, indicating the importance of John to Jane. As Jane’s condition and obsession with the wallpaper worsen, her strength d ecreases as well. She is forced increasingly rely on others, including John. She writes of John, â€Å"Dear John! He loves me very dearly and hates to have me sick† (Gilman 180). The irony is how little of importance Jane appears to have in John’s life. He has a routine written for Jennie and Jane to follow throughout the day while he’s away. One of the nights he is visiting, Jane writes, â€Å"He said I was his darling and his comfort and all he had† (Gilman 180). These words have an empty meaning. If Jane were the only thing John had, he would have paid more attention to her and realized she was not getting better in the least. This supports the then popular belief that women would be content with simply being told what they want to hear. In â€Å"The Yellow Wallpaper,† there are statements made against the male physicians that were so highly admired among communities during Gilman’s time. Jane writes, â€Å"John is a physician and perhaps that is one reaso n I do not get well faster† (Gilman 173). Jane is admitting that a woman’s duty to submit to her husband gets in the way of her need to be persistent concerning her health. This observation is ironic and bold. It argues the mockery in the situation. John, as a doctor, is held up to such high standards, yet he has no idea what is really going on with this woman. The story is ridiculing society’s idea of â€Å"intelligence.† John makes the mistake of treating Jane as if something is wrong with her. However, the humor is in the doctors’ inability to figure out that women are simply composed of the same emotional capabilities as men. It is also necessary to pay special to attention the symbolism of name choice in â€Å"The Yellow Wallpaper.† John and Jane can allude to â€Å"Jane Doe† and â€Å"John Doe.† If this is the case, both could be identified as of no particular importance to the audience. A Jane or John Doe are unidentified people. Gilman did not feel the need to give the se characters any specific names that would identify them with a particular characteristic or trait. Their situation is unidentified, and their situation was very common for that time. John’s disregard for Jane’s claims of her slow descent into a worsening mental condition was a common practice for doctors regarding women. Often when a woman needed or wanted something, she had no other choice but to acquire the assistance of her husband. In the instance of Jane needing alternative means of medical care, her only hope would have been John. Naturally John did not listen to her protests. Gilman is stating that both men and women should have an equal say in marriage. Kessler writes, â€Å"The ‘partnership’ society that Eisler defines seems already to have been present in the â€Å"pragmatopian† imagination of Charlotte Perkins Gilman as revealed in her turn-of-the-century fiction, especially the short stories: the alternative or partner-oriented gender roles she depicts could be realized or attained then or in the present-day society that we know† (126). There were also many marriages lacking the understanding John clearly does not display. This coincides with the idea that many women who were married to many men at that time experienced the oppression Jane feels and were met with the same ignorance John displays. At the end of the story Jane writes, â€Å"For outside you have to creep on the ground, and everything is green instead of yellow† (Gilman 188). This has a childlike feel to it. Earlier in the story, when Jane is trying to talk to John about how she is feeling he replies with, â€Å"What is it, little girl?† (Gilman 181). The last scene of the story describes Jane as this crazy woman, but it has her creeping around the ground like a child. In â€Å"Environment as Psychopathological Symbolism in ‘The Yellow Wallpaper,’† Loralee MacPikew writes, â€Å"The fact that the narrator’s prison-room is a nursery indicates her status in society. The woman is legally a child; socially, economic ally, and philosophically she must be led by an adult–her husband† (286). One day when Jane is stuck in her room alone, she reverts to her childhood while staring at the wallpaper, giving a description of a vivid memory. She writes, â€Å"I never saw so much expression in an inanimate thing before, and we all know how much expression they have! I used to lie awake as a child and get more entertainment and terror out of blank walls and plain furniture than most children could find in a toy-store† (Gilman 177). These behaviors revert to the idea that even as children, females were facing emotional neglect. It also supports the idea Jane was often treated like children by their husbands, posing the question how could she be expected to be a â€Å"good† mother if she herself was not permitted to act like an adult. Gilman’s decision to make the wallpaper yellow as opposed to any other color is interesting. Yellow is often viewed as a neutral color concerning gender. This may be connected to Gilman’s outcry of the belief that women ar e inferior to men concerning creative, emotional, and intelligent capability. Once Jane begins to acknowledge the wallpaper, her descriptions of it become more detailed. She describes it, â€Å"looked at in one way, each breadth stands alone; the bloated curves and flourishes- a kind of â€Å"debased Romanesque† with delirium tremens- go waddling up and down in isolated columns of fatuity† (Gilman 179). The words â€Å"delirium tremens† (Gilman 179) indicate how the wallpaper concurs with Jane’s worsening condition. Colors have often been known to manipulate a person’s mood. Following this belief, yellow is known to promote communication. This is an ironic symbol, considering John did not listen to Jane in the least. There are many times he overlooks her feelings or statements. At the beginning of the story Jane claims to feel something strange about the house. When she brings this to John’s attention he says what she â€Å"felt was a draught, and shut the window† (Gilman 174). Clearly John’s inability to listen to Jane discourages her to speak of anything at all to him. In â€Å"Consider Her W ays,† Kessler writes, â€Å"By refusing to accept definitions of traditional â€Å"male† and â€Å"female† roles, and instead of offering clear alternatives to such mainstream notions, Gilman forces readers to question boundaries defining behavior assumed acceptable on the basis of gender† (126). This statement supports the notion that Gilman believed that both men and women should share all household responsibilities, including working and raising children. The satirical symbolism at the end of â€Å"The Yellow Wallpaper† is astounding. It does a great job of surprising and shocking the audience. It leaves this image imprinted of a crazy lady taking a bite out of a bed and creeping around her husband. Once Jane believes she is the lady inside the wallpaper, she writes, â€Å"and I don’t want to have anybody in, till John comes. I want to astonish him† (Gilman 187). At this point her anger is apparent. The narrator is clearly pointing fingers at who is to blame for her current predicament. She is comparable to a child throwing a tantrum. It’s almost as if Jane is assuming the behaviors of a role she has been given, which is no different than what she does from the beginning of the story. She does what she is told. However, John often refers to her as everything but a woman. Naturally this mentality was bound to catch on. Jane also had no other means of escape from her world. John refused to allow her to go anywhere. It was almost as if she were a child being grounded. When children are forced to stay inside they use their imaginations as entertainment. To do this is human nature, and Jane is no exception. There is also attention to be paid to the bars described in the wallpaper. Jane writes, â€Å"at night in any kind of light, in twilight, candlelight, lamplight, and worst of all by moonlight, it becomes bars!† (Gilman 182). The bars symbolize all the oppression felt by Jane. As the progression of Jane’s condition worsens, the appearance of the bars becomes more prominent. Once Jane discovers the bars, she notices the woman in the wallpaper, â€Å"The outside pattern, I mean, and the woman behind it is as plain as can be† (Gilman 182). This quote refers to the unawareness John and other men of the time displayed concerning women. Gilman is making a statement against how obvious it is that Jane knows what she needs more so than her husband. This scenario was common among many women during that time period. It is also an outcry against a woman’s inability to practice self-expression. Once Jane decides to try and help the woman escape from the wallpaper (and becomes the woman herself), she peels off all the paper so she cannot be put back. Once John gets into the room she says to him, â€Å"’I’ve got out at last,’ said I,† in spite of you and Jane! And I’ve pulled of most of the paper, so you can’t put me back!’† (Gilman 189). This statement could be interpreted as Gilman’s creative self being defiant against the rules set up by a patriarchal society. While this last scene can be understood as haunting and disturbing, it almost seems as if Jane is getting the last laugh in the end. Her husband who is â€Å"successfully† a physician has failed his own wife. Jane’s road to insanity was brought on by her husband’s â€Å"trusted† tactics. Shortly after the story was published, Weir Mitchell was forced to re-evaluate his tactics used on â€Å"mentally unstable† women. There were many patriarchal barriers facing women when â€Å"The Yellow Wallpaper† was written. Gilman does an extraordinary job of displaying the horrors that resulted from this complex and delicate subject. The image of a woman behind bars in yellow wallpaper could not be more appropriate to convey such an important message. This short story demonstrates the feeling of entrapment and misplacement many creative and intelligent women felt during Gilman’s time. The yellow wallpaper is a strong symbol of a declaration of independence, creativity, and self-expression in a society where such notions were much too often withheld from the female population.

Approaches in Psychology Essay

We can also describe the definition of developmental psychology as â€Å"It is the study in which behavior develop and change during a life span. Special areas of interest include the development of language, social attachments, emotions, thinking and perception† More In Developmental Psychology: Developmental psychology is the scientific study of age-related changes throughout the human life span. A discipline of scientific inquiry, developmental psychology recognizes humans of all societies and cultures as beings who are â€Å"in process,† or constantly growing and changing. There’s a special device or you can say that there’re special cells in the brain of a baby and has the specific period by which baby learns the language and this type of thing is not available in the minds of animals. The development of emotions and thinking are also based upon the development of mind and language. When a baby learn the language he also try to act and shows emotions like hunger, pain and something like that. 2- Industrial Psychology: What is Industrial Psychology? Industrial and Organizational Psychology is a specialist rea that applies psychological knowledge and skills to work, with the aim of improving organizational effectiveness and the quality of work life. More In Industrial Psychology: Psychologists in this field advise businesses and organizations on a variety of subjects: the selection and training of workers; how to promote efficient working conditions and techniques; how to boost employee morale, productivity, and job satisfaction; and the b est ways to evaluate employee performance and create incentives that motivate workers. I-O psychology first became prominent during World War II (1939-1945), when it became necessary to recruit and train the large number of new workers who were needed to meet the expanding demands of industry. The selection of workers for particular jobs is essentially a problem of discovering the special aptitudes and personality characteristics needed for the job and of devising tests to determine whether candidates have such aptitudes and characteristics. The development of tests of this kind has long been a field of psychological research. Once the worker is on the job and has been trained, the fundamental aim of the I-O psychologist is to find ways in which a particular job can best be accomplished with a minimum of effort and a maximum of individual satisfaction. The psychologist’s function, therefore, differs from that of the so-called efficiency expert, who places primary emphasis on increased production. Psychological techniques used to lessen the effort involved in a given job include a detailed study of the motions required to do the job, the equipment used, and the conditions under which the job is performed. These conditions include ventilation, heating, lighting, noise, and anything else affecting the comfort or morale of the worker. After making such a study, the I-O psychologist often determines that the job in question may be accomplished with less effort by changing the routine motions of the work itself, changing or moving the tools, improving the working conditions, or a combination of several of these methods. Industrial-organizational psychologists have also studied the effects of fatigue on workers to determine the length of working time that yields the greatest productivity. In some cases such studies have proven that total production on particular jobs could be increased by reducing the number of working hours or by increasing the number of rest periods, or breaks, during the day. I-O psychologists may also suggest less direct requirements for general improvement of job performance, such as establishing a better line of communication between employees and management. 3- Child Psychology: What is Child Psychology? It’s the study in which we study how children grow and issues related with their upbringing, physical and psychological health. More In Child Psychology: Child Development, physical, intellectual, social, and emotional changes that occur from birth to adolescence. Although people change throughout their lives, developmental changes are especially dramatic in childhood. During this period, a dependent, vulnerable newborn grows into a capable young person who has mastered language, is self-aware, can think and reason with sophistication, has a distinctive personality, and socializes effortlessly with others. Many abilities and characteristics developed in childhood last a lifetime. Some developments in behavior and thought are very similar for all children. Around the world, most infants begin to focus their eyes, sit up, and learn to walk at comparable ages, and children begin to acquire language and develop logical reasoning skills at approximately the same time. These aspects of individual growth are highly predictable. Other aspects of development show a much wider range of individual differences. Whether a child becomes outgoing or shy, intellectually advanced or average, or energetic or subdued depends on many unique influences whose effects are difficult to predict at the child’s birth. A variety of factors influence child development. Heredity guides every aspect of physical, cognitive, social, emotional, and personality development. Family members, peer groups, the school environment, and the community influence how children think, socialize, and become selfaware. Biological factors such as nutrition, medical care, and environmental hazards in the air and water affect the growth of the body and mind. Economic and political institutions, the media, and cultural values all guide how children live their lives. Critical life events, such as a family crisis or a national emergency, can alter the growth of personality and identity. Most important of all, children contribute significantly to their own development. This occurs as they strive to understand their experiences, respond in individual ways to the people around them, and choose activities, friends, and interests. Thus, the factors that guide development arise from both outside and within the person. Why is the study of child development important? One reason is that it provides practical guidance for parents, teachers, child-care providers, and others who care for children. A second reason is that it enables society to support healthy growth. Understanding early brain development, for example, means that parents can provide better opportunities for intellectual stimulation, and society can reduce or eliminate obstacles to healthy brain growth. Third, the study of child development helps therapists and educators better assist children with special needs, such as those with emotional or learning difficulties. Finally, understanding child development contributes to self-understanding. We know ourselves better by recognizing the influences that have made us into the people we are today. 4- Educational Psychology: What is Educational Psychology? Educational Psychology, application of scientific method to the study of the behavior of people in instructional settings. Although the behavior of teachers and students is of greatest interest, educational psychologists also study the behavior of other groups, such as teacher aides, infants, migrants, and the aged. The areas covered by educational psychologists inevitably overlap with other areas of psychology, including child and adolescent development, social psychology, psychological testing, and educational counseling. There are different theories of child psychology which are as follow: †¢ Learning (Different theories of learning help educational psychologists understand, predict, and control human behavior. For example, educational psychologists have worked out mathematical models of learning that predict the probability of a person’s making a correct response; these mathematical theories are used to design computerized instruction in reading, mathematics, and secondlanguage learning. Different psychologist have their contribution in this field. Ivan Pavlov and B. F Skinner are prominent) †¢ Motivation (Attribution theory describes the role of motivation in a person’s success or failure in school situations. Success on a test, for instance, could be attributed to luck or hard work; the theory predicts the behavior of students depending on their responses. ) †¢ Development (The theory of the Swiss psychologist Jean Piaget that intellectual ability is qualitatively different at different ages and that children need interaction with the environment to gain intellectual competency has influenced all of education and psychology.

Gearing Ratio Dividends Decision and Working Capital - Free Essay Example

Sample details Pages: 14 Words: 4123 Downloads: 6 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? SABMiller plc is one of the biggest brewers in the world. The company produces globally recognised brands as Pilsner Urquell, Peroni Nastro Azzurro, Grolsch, Miller Genuine Draft, etc., and is also one of the largest bottlers of Coca-Cola products. SABMillers main office is located in the City of Westminster, London. It is listed on the London Stock Exchange and is part of the FTSE 100 Index. Don’t waste time! Our writers will create an original "Gearing Ratio Dividends Decision and Working Capital" essay for you Create order History SABMiller has operations and distribution interests across six continents. The company was founded as South African Breweries (SAB) in South Africa in 1895, where the business operations were limited until 1995 with the entry into the European market acquiring Dreher in Hungary. After this, the group began to expand operations and/or distributions all around Europe. In 1999 the company began to be listed on the London Stock Exchange to raise capital for acquisitions. Thus, in 2002 the group purchased the Miller Brewing Company in North America from the Altria Group and added Miller to its original name. SABMiller expanded its operations to the Latin American market in 2005 with the acquisition of a major interest in Bavaria S.A., South Americas second largest brewer, in Colombia. Actually the group has operations in another five countries of Latin America, including El Salvador, Ecuador, Panama, Peru and Honduras. The next important acquisition in Europe was on 9 October 2007 when SABMiller and Molson Coors Brewing Company made a joint venture known as Miller Coors. It was followed by the acquisition of Royal Grolsch in Europe on 19 November 2007. Moreover, SABMiller has brewing operations in another 31 countries from the African continent, and in Asia where is the second-largest brewer in India, has ventures in Vietnam and Australia, and produces a Chinese brewer brand in partnership with China Resources Enterprise Limited. Adoption of International Financial Reporting Standards SABMiller plc began to prepare its consolidated financial statements in accordance with IFRS from 1 April 2005. As the groups financial year represents the period from 1 April to 31 March, the first consolidated financial statement prepared in accordance with IFRS was for the 2006 financial year, because this includes comparatives for 2005. To be fully prepared for the transition in 2005 and for the first set of applicable financial statements for the year ending 31 March 2006, SABMiller established a project team involving representatives of businesses and functions to plan for and achieve a smooth transition to IFRS. The main effects of the adoption of IFRS that impact the groups 2005 published UK GAAP results included hedge accounting, accounting for embedded derivatives and other items as accounting for business combinations, pensions and post-retirement benefits, deferred tax, share-based payments, goodwill and the presentation of results of associates. 1. The companys gearing decision. Gearing Gearing ratio means the contribution of owners equity to borrowed funds. The ratio explains that how much amount in business is funded by the owner as against the borrowed funds. Gearing can also be defined as the ratio between the companys borrowing and owner equity. It is known as leverage. The interests cover or times interest earned and equity ratio are mostly common example of gearing ratio which is mostly used. Types of gearing ratio: Different types of gearing ratio are used to calculate the financial leverage of the company. The most commons way to calculate the gearing ratio is as follows: Long-term debt over total equity, or Long-term debt over long-term debt plus total equity By using the any above formula gearing ratio can be calculated which determine the financial leverage of the company. It tells us the level to which the firm performance is funded by creditor funds. Calculation of Gearing Ratio: The higher degree of gearing ratio or leverage of the company, the more company is measured risky. Company with high gearing ratio is more at risk whatever the situation company must carry on their services to its debt apart from that how bad sale are. A larger quantity of equity provides a cushion and is look like calculate of financial strength. Gearing ratio can be obtained by dividing long term liabilities with shareholder equity. The formula is given as below Gearing Ratio of SABMILLER We calculated the gearing ratio of SABMiller for four year by using the above formula and the result are shown below Appendix1 Calculation of Gearing Ratios Years 2007 2008 2009 2010 Long-term Liabilities 4,666 6,064 7,612 7,794 Shareholder equity 7,345 8,821 10,734 13,358 Gearing ratios % 75.62 80.50 85.24 66.41 The gearing ratio of the year 2007,2008,2009,2010 is 75.62, 80.50, 85.24, and 66.41 respectively. We took the figures of long-term liabilities and shareholder equity from the annual report of the company. The calculation of gearing ratio taken from the FAME. Historical background Miller and Modigliani derived the theorem and wrote their path breaking article when they were both professors at the Graduate School of Industrial Administration (GSIA) of Carnegie Mellon University. In contrast to most other business schools, GSIA put an emphasis on an academic approach to business question. The story goes that Miller and Modigliani were set to teach corporate finance for business students despite the fact that they had no prior experience in corporate finance. When they read the material that existed they found it inconsistent so they sat down together to try to figure it out. The result of this was the article in the American Economic Review and what has later been known as the MM theorem. Modigliani and Miller The Modigliani-Miller theory (1958) forms the basis for modern thinking on Capital structure. The theory states that in a perfect world, in the absence of taxes, bankruptcy costs, and asymmetric information, the value of a firm is unaffected by how that firm is financed. It does not matter if the firms capital is raised by issuing stock or selling debt. Therefore there is no optimal capital structure. Propositions: Originally this theory was proven under no tax assumption. Two propositions constitute this theory which can be extended to a situation with taxes sometimes .e.g. consider two identical firms but with different financial structures. The first firm i.e.U is unlevered; it is only financed by equity. The second firm i.e. L. is levered; it is partly financed by debt and partly by equity. The Modigliani-Miller theorem states that the value of the two firms is the same. Modigliani and Millers without tax In 1958, Modigliani and miller assumed that the company is a perfect capital market and ignoring taxation where the working capital and market value are remains constant at all levels of gearing . As a result company having financial risk if the company gears up, the working capital decrease which is caused by having a greater amount of cheaper debt is exactly offset by the increase in the WACC as well as an increase cost of equity. Therefore a company cannot reduce its WACC by altering its gearing. As gearing increases, the financial risk to shareholders increases, therefore Keg increases. Benefits of cheaper debt increase in Keg due to increasing financial risk. The WACC, the total value of the company and shareholder wealth are constant and unaffected by gearing levels. No optimal capital structure exists. (WATON D and Head A, Corporate Finance: Principles and Practice, 4th edition, FT Prentice Hall) Modigliani and Millers with taxes In 1963, when Modigliani and miller admitted corporate tax into their analysis, their conclusion altered dramatically. As debt became even cheaper (due to the tax relief on interest payments), cost of debt falls significantly from Kd to Kd(1-t). Thus, the decrease in the WACC (due to the even cheaper debt) is now greater than the increase in the WACC (due to the increase in the financial risk/Keg). The WACC falls as gearing increases. Therefore, if a company wishes to reduce its WACC, it should borrow as much as possible. Benefits of cheaper debt increase in Keg due to increasing financial risk. Companies should therefore borrow as much as possible. Optimal capital structure is 99.99% debt finance. (BREALEY and Myers, Principles of Corporate Finance, 6th edition, McGraw Hill) Conventional theory: If there is only the cost of equity capital WACC begins. Because the capital is replaced by cheaper borrowing money more expensive, WACC decreases. However, since the debt will increase further, both debt holders and shareholders observe a higher risk, they may need to increase revenue for both. Inevitably, WACC should be increased to a certain extent. This predicts that there is an optimal ratio of capital to which the WACC is the minimum. Bankruptcy cost The Companys Bankruptcy cost is including the cost of trustees fees, legal fees and other cost of reorganisation whereas the dead weight loss is incurred the firms value discounted value of the expected cash flow from operation. In 1977 WAENER measured the direct cost of bankruptcy in railroads (1933-1955). There are assumed that Modigliani and Miller is perfect capital market thus, the company would able to raise the fund and avoid bankruptcy. But in the real world a biggest drawback of the companies is their high level of debt which could backfires if they default to pay the rate of interest and in consequence company faced bankruptcy and this bankruptcy risk convey to shareholder and debt-holders. It is noted that shareholder suffer a high degree of bankruptcy risk as they come last in the creditors hierarchy on liquidation. However the debt and equity increase the Working Capital while it is reduce the companys share price. It also gives high level of gearing if it is modified wi th-tax model and then an optimal capital structure appears with below the 99.99% level of debt which is previously recommended. Evidence seems to support the view that capital structure trades off tax shield gains against bankruptcy costs (SEE JU, PARRINO, WEISBACH, JFQA, 2005).Optimal capital structure take on increasing amounts of debt finance until the marginal gain from the debt finance is equal to the marginal cost of expected bankruptcy Pecking order theory The pecking order theory is explained an optimal capital structure by studying the trade-off between the return and drawback of debt finance. In this approach, there is no search for an optimal capital structure. Companies cleanly pursue a recognized pecking order which permitted them to move up finance in the most competent way, the order is as follows: (Power T Walsh S O Meara P, Financial Management, Gill Macmillan) Use of retained earnings available for all issue debt; Then issue equity, as a last resort The justifications that support the pecking order there are three: companies want to reduce the cost issue Companies will want to reduce the time and expense involved convincing investors outside the merit of the project.. the existence of asymmetrical information, and are expected to exchange information, which management actions MYERS (1984) ARGUES firms diverge significantly from long-run target capital structures owing to preference to fund investment internally. One of the pecking orders comes into the theory that we have reason to expect that very profitable firms would borrow at least, because they have a higher retained earnings finance investment projects. Baskin (1989) found a negative correlation between high profits and high levels of leverage. This finding is contrary to the idea of the existence of an optimal capital structure and provides strong expertise offered by the pecking order theory. Agency Costs An Agency costs are known as the principal-agent problem. Most of the largest finance providers companies actively they are not able to manage the company. In effect the company need to employ an agents which are not possible way to measure the equity or debt- holders. If the company want to invest in high return project by raise fund from debt holder where the level of company performance are satisfactory than shareholders action could potential. Because they would get share from higher level of return otherwise they would feel less interest to invest their money in high risk of project. But debt holder would not get a share of the higher returns since their returns are not dependent on company performance. Therefore debt-holder often imposes restrictive covenants in the loan agreements for limit managements freedom of action. These agreements would: limit the further debt, set a target gearing ratio and current ratio. restrict the excessive dividends control the disposal of major assets or manage the type of activity the company may engage in. as gearing increases, the debt holder would include more obligation on companys freedom of operating and investment flexibility which may lead to a reducing share price and it is not acceptable by management. Thus, they generally limit the level of gearing to limit the level of restrictions on them. (J.M. Samuels, F.M. Wilkes and R.E Brayshaw, Financial Management Decision Making). Interpretation: The company seemed followed MM theory and the long-term borrowing had constant increment. Based on the 2007- 2009, and the ratios increased from 75.62% to 85.24%. In spite of 2009, the gearing ratio dropped to 66.41%, the debt still on an increased trend and the total long-term borrowing increased from $2915 million in 2007 to $7809million in 2009. Whereas according to Pecking Order, the retained earnings should be the most favourable finance for the company, however, SABMiller seemed not a case. The companys retained holdings was not utilized as the priority of the finance, by contrast, their main funding were from debt instead. Therefore it seems that SABMiller has some bankruptcy cost and agency cost. 2. The companys dividend decision. Dividends Dividend is the distribution of value to shareholders. Dividends represent drawings by the shareholders of the company. Dividends are paid out of the revenue reserves and should be deducted from these reserves (usually retained earnings) when preparing the balance sheet. Shareholders are often paid an annual dividend, perhaps in two parts. An interim dividend may be paid part way through the year and a final dividend shortly after the year end. Dividend Policy: Dividend policy (1961) defines as the rules and regulation to provide dividend payment of companies shareholders. A specific dividend policy gives a high level of advantage of the company and its shareholders. Because it is determine the impact of business operation in terms of different number of test scenarios and therefore company should have an efficient dividend policy to attract the shareholder for further invest in business. There are two dividend policy company could adopt such as: Dividend irrelevance Theory: Miller and Modiglianis (1958, 1961) Dividend irrelevant theory specify a frictionless market with a fixed investment policy, all feasible capital structure and dividend policies are optimal because all imply identical stockholder wealth, and so the choice among them is irrelevant. In the other sense irrelevant dividend policy is absence of taxes and transaction costs in perfect capital market which could not effect on shareholder value or stock price. There are three cases M M irrelevant policy does not affect on the shareholders value when company may need cash or company necessarily to sell share to raise fund to paid shareholder or when shareholder desire to get cash. The effect of any dividend policy can offset by management adjusting the sale of new stock or investors adjusting their dividend stream through stock purchases or sales. Dividend Relevance Theory: The dividend relevance theory was anticipated by Myron J.Gordon and John Lintner. They suggested that investors are generally risk averse and would rather have dividends today (bird-in-the-hand) than possible share appreciation and dividends tomorrow. This theory is opposite of MM Dividend irrelevant theory and dividend policy affect on the share price and it ensure that shareholders wealth is maximize. The SABMiller Plc has an effective dividend policy which is as follows: Dividend Policy of SABMiller Plc: In SAB plcs listing particulars dated 1 March 1999, the directors stated their intention to adopt a new dividend policy. This would take account of the Groups underlying performance; the opportunities for the profitable investment of retained profits; and would maintain an appropriate level of dividend cover, considering, among other factors, the level of dividend cover generally maintained by FT-SE All-Share companies and the Groups peers in the international alcoholic beverages sector. In the light of these statements, and having regard to the level of dividends paid by SAB Ltd in the past, the directors have determined to move the dividend cover in the medium term from the prior years approximately 1.8 times, to a range of 2.2 to 2.5. Taxation: There is no impact on shareholders which are companies. However, taxation can distort investment decisions by individuals, residents of the UK. Britain there are two kinds of taxes which are: capital gains tax and income tax. Income tax for greater shareholder influence (taxes @ 40%), which is why they prefer the capital gains which are taxed 18%. Low band, taxpayers can take advantage of the dividend tax @ 20%. Deferred tax is recognised on the unremitted earnings of overseas subsidiaries where there is an intention to distribute those reserves. A deferred tax liability of US$31 million (2009: US$16 million) has been recognised. A deferred tax liability of US$ 46 million (2009: US$29 million) has also been recognised in respect of unremitted profits of associates where a dividend policy is not in place. There are not any further details given in the Annual report 2010 and FAME or Companies website. Dividends declare over the years: As the group reports in US dollars, dividends are declared in US dollars. They are payable in south African rand to shareholders on the south African register, in US dollars to shareholders on the UK register with a address in the United States (unless mandated otherwise), and in sterling to all remaining shareholders on the UK section of the register. Appendix 2 Dividends paid years Total Dividends Adjusted diluted Earnings per Share Dividend per share Millions Cents 2006 520 108.4 44 2007 681 119.3 50 2008 769 142.4 58 2009 877 136.8 58 2010 924 160.4 68 The board has proposed a final dividend of 51 US cents to make a total of 68 US cents per share for the year- an increase of 17% from the prior year. This represents a dividend cover of 2.4 times based on adjusted earnings per share, as described above (2009: 2.4 times). The groups guideline is to achieve dividend cover of between 2.0 and 2.5 times adjusted earnings. The relationship between the growth in dividends and adjusted earnings per share is demonstrated in picture below. In addition, the directors are proposing a final dividend of 42.0 US cents per share in respect of the financial year ended 31 March 2009, which will absorb an estimated US$631 million of shareholders funds. If approved by shareholders, the dividend will be paid on 28 August 2009 to shareholders registered on the London and Johannesburg Registers on 21 august 2009. The total dividend per share for the year is 58.0 US cents (2008: 58.0 US cents). Dividend Announcement and Market Impact of SABMiller Plc: The SABMiller Plc dividend declared on 1st December 2010 which is 20 cents US per share( Financial Time) however the board of SABMiller Plc declared a interim dividend of US 0.195 per share which is payable on 10 December 2010 to their shareholders who is registered on the London and Johannesburg stock exchange. According to the last report on February 2011 we found that the SABMiller company the fourth quarter and full year ended December 2010 shows companys net income increased by 38% of $146 Million for fourth quarter and 21.9 % of $1.087 Million for full year which is favourable for positive pricing , band mix and an effective cost management. Leo Kiely the chief executive of SABMiller Plc comment that : We continue to invest in innovation behind our premium light brands, drive growth in our craft and import portfolio and deliver synergy and cost savings as promised and Our consistent focus generated positive net revenue per barrel growth for the fourth quarter. We are building brand equity and improving our mix to meet the challenges ahead in 2011. Interpretation: It is assumed that SABMiller Plc is practicing MM irrelevant dividend theory. Because the market is competitive however from the appendix 2 we can see that their dividend per share gone up over the five year whereas dividend per share growth increasing except 2009. In 2010 dividend per growth is 17.24% and dividend yield ratio is 2.30% which indicated company are concerned to reinvest of their profit. 3. The Companys management of working capital Working capital: Working capital is a financial tool which helps toÂÂ  measure of both companys efficiency and its short-term financial health. If working capital of the firm is in positive value it means company is efficient and healthy. But if working capital of the firm is in negative value that means company is unable to meet its short-term liabilities with its current assets e.g. cash, accounts receivable and inventory. The working capital also known as net working capital. If a company current assets remain lower than its current liabilities, then the company would be in problem in paying back to its creditors the short term. The worst possibility is bankruptcy. Calculating Working Capital: The following formula is use to calculate the working capital of company. By looking at the working capital position, we can predict the future financial difficulties. Even a business whos fixed assets worth more than billions of dollars can bankrupt if unable to pay its monthly bills. Poor working capital i.e.: increase borrowing and delayed payments to creditor can build pressure on the financial position of a company which ultimately lower its credit rating. Consequently a company has to pay more money due to its lower credit rating as bank charge higher interest rate. Negative Working Capital Can Be a Good Thing for High Turn Businesses Negative working capital indicated that companies high inventory turns and business operated by a cash basis where working capital not as much. That means company can raise money any time then turn around and plough that money back into inventory to increase the sales .if financial crisis arise for the short period of time management can stockpile the proceed from their daily. Therefore there is not necessary a large amount of working capital since the cash could arise quickly. Working Capital of SABMiller PLC: The following tables showed the working capital of SABMiller Plc for five years. Appendix3 years current assets current liabilities working capital WC ratio 2006 2829 4865 -2036 58.15005 2007 2989 5717 -2728 52.28267 2008 4127 6203 -2076 66.53232 2009 3472 5345 -1873 64.9579 2010 3895 5977 -2082 65.16647 As we know working capital of SABMiller Plc is in extremely negative which is not good for the investors and financial institution. The above data is taken from annual report and financial statement links for these above figures are being given in the end of assignment (Internet Reference). Analyses of working capital using ratios: Ratio Analysis enables the business owner/manager to spot trends in a business and to compare its performance and condition with the average performance of similar businesses in the same industry. To do this compare your ratios with the average of businesses similar to yours and compare your own ratios for several successive years, watching especially for any unfavourable trends that may be starting. Ratio analysis may provide the all-important early warning indications that allow you to solve your business problems before your business is destroyed by them. Balance Sheet Ratio Analysis: Balance sheet ratios measure liquidity and solvency (a businesss ability to pay its bills as they come due) and leverage (the extent to which the business is dependent on creditors funding). They include the following ratios: The financial ratio analysis by Meir Liraz Current Ratios: The Current Ratios is one of the best known measures of financial strength. Its formula is If you feel your businesss current ratio is too low, you may be able to raise it by: Paying some debts. Increasing your current assets from loans or other borrowings with a maturity of more than one year. Increasing your current assets from new equity contributions. Putting profits back into the business Converting non-current assets into current assets. Quick Ratios: The quick ratio is sometimes called the acid-test ratio and is one of the best measures of liquidity. It is known as liquidity ratio. The quick ratio is a much more exacting measure than the current ratio. By excluding inventories, it concentrates on the really liquid assets, with value that is fairly certain. The SABMiller Plcs Ratio Appendix 4 SABMiller Plc Consolidated Balance Sheet 2010 2009 2008 2007 2006 m m Total Current Assets 3895.00 3472.00 4135.00 2989.00 2829.00 Total Current liabilities 9204.00 7745.00 6257.00 5157.00 4865.00 Inventories 1295.00 1241.00 1362.00 928.00 878.00 Current Ratio 0.4231 0.4482 0.660 0.5796 0.5815 Quick Ratio 0.2824 0.2880 0.4431 0.3996 0.401 Form the Appendix 5 it noticeable that the SABMiller Plcs current ratio is not favourable and it indicated that company are not capable to pay their obligation whereas their quick ratio is favourable cause it decrease 0.2880 to 0.2824% by 2010 compare than 2009. Conclusion The SABMiller plc is one of the leading brewers who operating across six continents. The report approached their financial performance and risk Analysis with theatrical impact. According to 2010 financial report group revenue up 4 %( US$8,330 million) and EBITA up 6% with margin growth of 30 basis points (bps) driven by robust pricing and cost efficiency as well as they also gain in share market. They have strong cash flow of $2010M with dividend per share up 17%. However The SABMiller Plcs working capital is not favourable and company enjoying a high level of debt risk.