Corruption Of The American Dream In The Great Gatsby Essay Example For Students

Corruption Of The American Dream In The Great Gatsby Essay The Great Gatsby By: Ali E-mail: emailprotected In the novel The Great Gatsby by F. Scott Fitzgerald, Jay Gatsby is a mysterious man living in the West Egg district of Long Island. Gatsby is extremely wealthy and owns a mansion with a large swimming pool, a fancy car, and dozens of servants. Every Saturday night, he throws extravagant parties which many people, most of whom havent even been invited, attend. No one really knows anything about Gatsby, except that he is rich and generous. However, many rumors are created about him. Some say that he was a German spy during the war and some say that he killed a man. As the summer progresses, Nick Carraway the narrator who is also Gatsbys neighbor, learns more about who Gatsby really is, or rather who he isnt and reasons why he lives his life as he does. Nick doesnt approve of Gatsbys lifestyle and the way he earns his money, but nevertheless he sees Gatsby as superior to those who surround him. Nick admires the romantic hope that motivate s Gatsby to pursue his dreams. Jay Gatsbys greatness is a result of his naive belief that he can make his dreams a reality. In the beginning of the novel, Nick sums up Gatsbys character and the reasons why he respects him. Gatsby who represented everything for which I have an unaffected scorn. If personality is an unbroken series of successful gestures, then there was something gorgeous about himThis responsiveness had nothing to do with that flabby impressionability which is dignified under the name if the creative temperamentit was an extraordinary gift for hope, a romantic readiness such as I have never found in any other person and which is not likely I shall ever find again.(6) Nick makes it very clear that he doesnt agree with the way Gatsby makes and uses his money. Although Nick comes from a very wealthy family himself, he was taught to work hard for his money. Nevertheless, he does find himself admiring Gatsby. He values Gatsbys hope, no matter how false it is, that one day he will have a life with the woman whom he loves. Wealthy people often use their money to get everything they have always wanted for themselves, but Gatsby uses his money to get everything that he thinks Daisy has always wanted in hopes of winning her back. Gatsby believes in the possibility of romance, and even though the possibility is based on shallow material realities, it is motivated by his love of Daisy. It is selfish in a way, but Nick is able to appreciate the romantic aspect of it and therefore, able to see Gatsbys true greatness. Nick Carraway meets Gatsby for the first time at one of his Saturday night parties. They become friends and Gatsby begins to confide in Nick about his life. Nick learns that Gatsbys real name is Jim Gatz. He changed it to Jay Gatsby when he was seventeen because he wasnt happy with who he was and where he came from. However, it is from his friend Jordan Baker that Nick learns Gatsbys biggest secret, the reason for his beautiful parties and lavis h lifestyle. Five years earlier, when Gatsby was an officer in the army and about to go to war, he met and fell in love with Nicks cousin, Daisy Fay. Gatsby went to fight in the war and although he never stopped loving her, Daisy eventually married pompous and arrogant Tom Buchanan. When Gatsby found out that Daisy and Tom had a house on East Egg, he bought his house on West Egg so that he would be directly across the bay from her. The parties and luxuries were all used to try to impress Daisy and they were also part if his dream that he would finally win her back. Gatsby and Daisy meet when Nick invites them both over for tea at Gatsbys request. During this time, Gatsby is just as captivated by her as he was all those years earlier. He invites Daisy to his next party and it is there that Nick and Gatsby have a conversation about Daisy that reveals just how much he believes in his dreams. I wouldnt ask too much of her, I ventured. You cant repeat the past. Cant repeat the past? He c ried incredulously. Why of course you can! He looked around wildly , as if the past were lurking here in the shadow of his house, just out of reach of his hand. Im going to fix everything just the way it was before, he said nodding determinedly. Shell see.'(116) Gatsby is convinced that he can make everything exactly as it was before Daisy married Tom and therefore, make her want to leave Tom to be with him. Unfortunately, he is sadly mistaken. At one point in the novel, Gatsby, Nick, Daisy, Tom, and Jordan Baker go to New York City together for the day, where Gatsby finally reveals his love for Daisy in front of Tom. He wants Daisy to admit that she never loved Tom, be she cannot do it because it would be a lie. Daisy did and maybe still does love Tom and Gatsby can see that nothing he says can change that. His dream of reliving the past is slowly deteriorating before his very eyes. Gatsby and Daisy do however, leave New York City to go home together with Daisy driving his car. As they are speeding away, she accidentally hits a young woman who runs out into the road. Ironically, the woman is Myrtle Wilson, with whom Tom has been having a love affair. She is killed and Gatsby decided that he will take the blame to protect Daisy. It is his final act of love toward her because the next day, Wilson finds Gatsby lounging in his pool and shoots him in the head, killing him. It was Gatsbys naive hope for love that kept him alive, but also that killed him in the end. His dream of eternal love made him superior to others, but as Gatsby proved, even great men can be destroyed. .uc7c324c086146bed1da3e919dae477c6 , .uc7c324c086146bed1da3e919dae477c6 .postImageUrl , .uc7c324c086146bed1da3e919dae477c6 .centered-text-area { min-height: 80px; position: relative; } .uc7c324c086146bed1da3e919dae477c6 , .uc7c324c086146bed1da3e919dae477c6:hover , .uc7c324c086146bed1da3e919dae477c6:visited , .uc7c324c086146bed1da3e919dae477c6:active { border:0!important; } .uc7c324c086146bed1da3e919dae477c6 .clearfix:after { content: ""; display: table; clear: both; } .uc7c324c086146bed1da3e919dae477c6 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .uc7c324c086146bed1da3e919dae477c6:active , .uc7c324c086146bed1da3e919dae477c6:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .uc7c324c086146bed1da3e919dae477c6 .centered-text-area { width: 100%; position: relative ; } .uc7c324c086146bed1da3e919dae477c6 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .uc7c324c086146bed1da3e919dae477c6 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .uc7c324c086146bed1da3e919dae477c6 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .uc7c324c086146bed1da3e919dae477c6:hover .ctaButton { background-color: #34495E!important; } .uc7c324c086146bed1da3e919dae477c6 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .uc7c324c086146bed1da3e919dae477c6 .uc7c324c086146bed1da3e919dae477c6-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .uc7c324c086146bed1da3e919dae477c6:after { content: ""; display: block; clear: both; } READ: Human Rights vs. Sovereignty Essay We will write a custom essay on Corruption Of The American Dream In The Great Gatsby specifically for you for only $16.38 $13.9/page Order now

Business Of Tata Motors Samples for Students †MyAssignmenthelp.com

Question: Discuss about the Report on Business Of Tata Motors. Answer: Analysis of the Tata Motors Tata Motors, earlier known as TELCO (Tata Engineering and Locomotive Company) is one of the Businesses that the Tata group is into. Tata motors has its headquarter at Mumbai India and it manufactures passenger cars, military vehicles, trucks, vans etc(Spokesperson 2016). Tata Motors as said in the introduction paragraph owns manufacturing plants in Argentina, South Africa, Spain and Great Britain. Tata Motors was the first Indian automobile company that achieved the capability of developing a competitive indigenous automobile. Tata Motors has ranked 226th place in the list of 500 top global fortune lists of biggest corporations of the world. In 1998 Tata Motors launched its first ever fully indigenous vehicle Tata Indica, which created a revolution in the Indian Automobile market(WikiPedia 2017). Till date Tata Motors has more than 10 passenger vehicles in its squad. The Tata group was founded by Jamestji Tata and it was Rattan Tata who took the Tata group to other heights of success by his dedication towards the Tata Group in just a period of less than 20 years he made Tata a well established and a well recognized organization at an international level(Shekar 2016). Tata Motors believes in equality and friendship among all the nations. The theory of liberalism suits and fits best to the development of the Tata Motors. The theory of liberalism states that international business organizations are the one that plays a key role in making the relationships better of different countries(Leonard 2016). The theory of liberalism states and believes that International business organization can develop cooperation among various states and they can solve any critical issues with non violent methods. Tata Motors believes in the same and works towards the welfare of the society. Host Country Analysis In this part of the report we are going to discuss about the various factors that are affecting the firms growth or success in the host country. U.K is no doubt is the best foreign direct investment destination for the Indians but there are other several factors that hinder the growth of business in UK. We will discuss the Political factors first. There is political instability in UK as there is an issue of Britain leaving the European Union(Hunt 2016). Most of the revenue of Tata Motors comes from Jaguar Land Rover British luxury car, and if Britain exits from the European Union then there will a huge pressure on the revenue of the Tata Motors(Wolf 2016). Most of the Economists have even said that the exit of Britain from European Union will result in the fall of the shares of Tata Motors to 12%. There will be huge crisis of workforce, and the economy will surely fell apart, in addition to this there will be fiscal deficit all over(Markey 2017). Another Major Factor that is affecting the Tata Motors in Britain is that, Recession is UK. In the year 2010 the economy of Great Britain was hit by a great depression that lead to the loss of millions of jobs in Europe. Since then UK has not recovered from that depression fully. Even now the UK government has put several restrictions on the Visa applicants; they make thousands of verifications and conditions if someone wants to visit Britain. This depression affected the Indian Businesses operating in UK(Coppala 2015). Inflation would be another adding factor in this discussion; UK has the highest rate of inflation amongst the top world economies. The issue of exit from European union has pushed the rates to rise, the standard of living of the peoples are falling as the rates are going so high that it is becoming almost impossible for people to buy their daily needs products(Inflation. EU 2017). Now if we talk about if it is actually profitable to operate or set up a Multinational firm in UK then economical the answer would be a no. The reason being the already set up businesses in UK earn profits but these profits never go to the home country, they remain in host country and the owner use this profit in increasing the business in UK only, this is done to show the UK government or general public a feeling of social welfare that is not at all good for the home country(Prajapati 2009). The porters diamond theory is best suited here; the theory shows that how a government can make competitive advantage for itself by the factors available to them. This theory was created by Michael Porter. The porter theory is largely based upon the four factors and these are firm strategy, structure and rivalry, supporting industries and factor and demand conditions(Smith 2014). Firm strategy, structure and rivalry refer to the competition between the firms that leads to the innovation and new ideas of creating products that are totally new for the market. Supporting industries means that rise or fall with the rise or fall in the main industries that also leads to innovation of new technology. Demand conditions refer to the customer base of the country or a nation, the more the is the customer base the more will be the chances of new inventions and creativity. According to the porter diamond theory factor condition is the most important determinant in this theory. Factor conditions refers to the creation of those factors that the nation can built itself such as world class technology, skilled labor, infrastructure etc. The Great Britain has created the world class technology; they have skilled labor and the most powerful infrastructure(Scoth 2010). Foreign Entry Strategies Foreign entry strategies mean the medium through which the company entered the host country, market to sell its products. There are several entry strategies such as joint ventures, franchise, mergers, licensing etc(TradeStart 2017). Tata Motors used joint ventures entry strategy to touch the European market. For an automobile firm it is very easy to enter an international market if the organization joins its hand with the host organization. As the automobile market has so many entry barriers that a single new entrant just cant even think about entering the market alone. Same was done by Tata Motors they slowly and steadily capture many companies by buying significant shares in many automobiles of Europe and when the Tata Motors entered Europe they bought the British luxurious car brand known as Jaguar Land Rover. UK was the most suitable market for Tata Motors. SUV concept of cars came into light and its demand increased many times in a small period, Tata Motors wanted to cover this market and for that it had 3 main countries in its list these countries are US and Russia was also considered by the Tata Motors for their business operations but US had high trade barriers it was not easy for Tata Motors to enter the US automobile market all alone, plus the requirements in the SUV concept was so high that Tata being new in that market was not able to produce such high tech cars. Whereas Russia had many other restrictions, that were coming in the way of Tata Motors. UK, US Russia when compared together showed huge differences. UK was selected as it was the best destination for the Tata Motors to set up their manufacturing plant. This was the best way for Tata Motors to enter the Britain market(Leecooper 2013). As there are many advantages of this way entry, likewise there are many disadvantages too. The disadvantages are that the already created public image of the host companies, joint ventures sometimes ends up in huge losses that occur because of disputes in the partners, conflicts in ideas and thoughts etc. These could be some of the major disadvantages for the foreign entry strategies of a company. MNC Its Impact The multinational corporations have to face a number of challenges before setting up their business operations in a host country. These challenges are sometimes so complex and hard to face that few organizations leaves the race of setting up the business in most prominent countries and they go for underdeveloped economies. The challenges that Tata Motors has faced while setting up their business are, as under(Tayab 2013): Political Risk: One of the biggest issues that is faced by the Tata Motors is the issue of political risk into their business in UK. The Exit of Britain from European Union has become so important for Tata Motors that, if Britain exits from the European Union then it will result in the fall of the shares of Tata Motors by almost 12%. This fall will result in huge revenue losses and it might increase by the period of time as the political instability in Britain doesnt seem to end in near future. Tata being the owner of Jaguar Land Rover a British Luxurious car brand wants to influence the international automobile market by its overseas operation but the political instability in Great Britain is not Co-operating with the Tata Motors, the most renowned economists of world has even said that the exit of Britain from the European union will put a severe pressure on Jaguar Land Rover and it might have to be closed(Rahman 2015). Currency Fluctuations: Another biggest challenge for a multinational company is that of the currency fluctuations. The multinational corporations must prepare a strategy that will deal with such fluctuations. Sometimes the companies are spending in US dollars and earning in a currency which is comparatively low, hence such differences may occur loss on the accounts of the organization. United Nation has put the environmental issues at front and they want every multinational organization to take it into their consideration. Every organization that is thinking of expanding their business on an international level must consider the rules and regulation regarding environmental issues of that country. A business organization must follow all the environmental rules and regulations of the host company this will not only save the environment but will help them to connect with more and more customers which will ultimately increase the profitability of the organization. Tata Motor is a key global player that totally understand the problem of environmental issues and this the area where they need to further work upon, however they are already working and they put forefront all the environmental issues and have a dedicated team that works on bettering the environment for the coming generation(Berg 2008). Conclusion At the end of this report a detailed and a concise conclusion is provided. Multinational corporations are no doubts the organizations that are capable of influencing large economies, however there are certain challenges that can easily affect the existence of the most renowned multinational corporation. These challenges are sometimes so complex and difficult that most of the so called Multinational Corporation winds up their business and go back to their country of origin. So in order to cope up with these challenges a multinational organization must have the resources that will provide them an unconditional support, in addition to this all the multinational corporations are required to do research and analysis on the country that they wish to operate their businesses in. This Analysis will not only give the organization a paper of stats but a true and an actual condition of the various factors of that country that might affect the working of the organization. All the Multinational o rganizations are bound to follow the guidelines setup by the United Nations in regard to the environmental issues. Tata being a giant business organization understands this fully and complies all its working with the guidelines set up by the United Nations, There is no doubt that a business organization whether large or small if is operating on an international level have to deal with various issues, same is in the case of Tata, However Tata Motor in UK is doing well in its operation and its expected revenue for this year is around 30,000 crores. Last year Jaguar Land Rover seen a tremendous growth, which has never been seen by BMW or AUDI. Hence Tata Motors is doing exceptionally well in International Market. Bibliography Berg, B 2008, 'Guidelines Set up By United Nations', UnitedNations Journals, vol 1, no. 7, p. 50. Coppala, F 2015, 'Reason Why UK is going in Recession', Forbes, vol 1, no. 1, p. 1. Florein Wettstein 2009, Multinational Corporations and There Cultures, 2nd edn, Global Printing Press, Germany. Hunt, A 2016, 'Brexit', UK Top News, vol 1, no. 1000, p. 5. Inflation. EU 2017, viewed 12 Septemeber 2017, https://www.inflation.eu/inflation-rates/great-britain/historic-inflation/cpi-inflation-great-britain.aspx. Kapoor, R 2017, 'TATA MOTORS', Wall Streets Journals, vol 5, no. 10, p. 33, viewed 1 Jan 2016, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4712479/. Leecooper, M 2013, Selection of Market by TATA Motors, 5th edn, MB TV, London. Leonard, W 2016, 'The Great Theory of Liberalism'. Markey, A 2017, 'Global Affect of Britain Exit from EU', World Economies, vol 10, no. 2000, p. 35, viewed 2 july 2000, https://www.beerkens.info/files/globalisation.pdf. Prajapati, M 2009, '45 ways of Doing Business', United Europe Journals , vol 5, no. 13, p. 2. Rahman, A 2015, 'Challenges of MNC in International Market', London Times, vol 2, no. 50, viewed 15th March 2015, https://www.slideshare.net/osamarizvi/6-audit-techniques. Rodrik, D 2010, 'Globalization and Paradox', Business Weekly, vol 1, no. 500, pp. 59-107. Scoth, J 2010, Porter Diamond Theory, 2nd edn, Jolly Publishers, Massachusetts. Shekar, DM 2016, 'Achievements of TATA', in M Gupta (ed.), Business Studies, 4th edn, Kalyani Publishers, Delhi. Smith, AJ 2014, 'Competitve Review of Porter Diamond ', SmithJournals , vol 1, no. 1, p. 14. Spokesperson, TC 2016, 'Capabilities of TATA', Quorom, pp. 12-23. Tayab, MH 2013, 'Challenges faced by TATA Motors', in M Dutta (ed.), Commerce and Trade, 5th edn, Lucky Publishers, Delhi. TradeStart 2017, TradeStart.CA, viewed 5 July 2017, https://www.tradestart.ca/market-entry-strategies. WikiPedia 2017, viewed September 2017, https://en.wikipedia.org/wiki/Tata_Motors. Wolf, M 2016, 'Affect of Brexit on Tata', GoldIn Journals, vol 3, no. 120, p. 15.

Essay On Losing A Competition

Essay On Losing A CompetitionAn essay that reflects on a particular competition or loss in life would be expected to be good in terms of the topic it is going to be related to. A college essay on losing a competition would be a better choice as it is more meaningful, informative and does not contain negative and abusive remarks about a person. Losing a competition would also reflect that a person is determined to remain competitive in life by continuing to improve his skills and knowledge about the chosen topic and that he is optimistic of winning in the future.There are many components that go into making a college essay about losing a competition but it is the following statement that is the most important. In this kind of essay, the writer would be able to show his bravery, drive and perseverance in his chosen topic.The main point is that if one cannot write such a short statement, then he should not write a college essay about losing a competition. If the writer cannot determine what he should include, then he should limit his use of the words. In writing a college essay about losing a competition, the main idea of the essay should be what the person has lost and how the writer would not let such loss happen again. The writer should express his resolve to prevent such occurrences from happening again.Another thing that needs to be included in a college essay about losing a competition is that the writer should be honest about his losses. In order to avoid loss, the writer must be truthful in his writing. He should keep the reader interested in reading more about the subject. If the writer keeps the readers engaged, then the reader will be more likely to continue reading the rest of the article.In writing a college essay about losing a competition, the writer should write a great deal about the theme of the piece. The writer should include a lot of content about the theme and how his loss has impacted him and how he was able to continue being competitive. In doing so, the writer is able to express his true feelings on the topic in a perfect manner.The importance of writing a college essay about losing a competition is that the writer will be able to show his skills at completing the task of writing a college essay. A writer who has an ability to complete the task, would be able to create a masterpiece. However, one thing that he must remember is that he should do this assignment with his own unique ideas and perspectives. In his writing, he can showcase his skills and talents at writing a college essay.Also, in writing a college essay about losing a competition, the writer should write concisely about the topic. This is a necessity because many people may read his essay and will be eager to know how he lost his competition. Thus, the writer should make sure that he will write the piece in such a way that the content will not be too long and that he will be able to convey the topic he wants to talk about in a clear manner.Writing a coll ege essay about losing a competition should not be too difficult. It only requires effort and love for the subject matter. While completing the assignment, the writer should make sure that he will not be burdened by his thoughts because he is the one who is writing the article.

Essay on Why I Should Attend College

Essay on Why I Should Attend CollegeYou have written a very convincing essay on why I should attend college. But now, you are stuck between a rock and a hard place.A question like, 'Should I attend college?' can have two answers, in my opinion:The first answer is to go out and try to find a college that matches your skills and passions. You may be one of those college bound individuals that are always on the lookout for an easier path and an answer to your question 'should I attend college' could be 'Yes'. This approach is called, 'Go Do it Yourself.'The second answer is to not pursue the right college for you, but instead to instead stay home and do all the necessary things. The most common, of course, is the 'Leave it to Mom' approach. These individuals prefer a more simplistic answer, 'No'.So now, after you have written an excellent essay on why I should attend college, you are left with an indecisive answer. An answer that you believe to be wrong. Perhaps you will decide to go ah ead and get the degree you are dreaming of, or maybe you will continue on with your 'leave it to mom' approach.My advice is, don't let yourself be indecisive. Once you find the right college, you can be rest assured that it will bring you success, and your question will be answered definitively.Most colleges today offer a 'double major' which means you can take one of your major classes and double your grade, while getting involved in a more hands-on class. These are the days where if it sounds too good to be true, it probably is.Take time to analyze your choice of college, and figure out the best fit for you. Do your research, and find out what every college has to offer. When you choose a college, there is no better feeling than knowing that you did your homework and that you chose a great college.

Delta Essay Example

Delta Essay Delta Airlines traces its roots back to 1924, when Huff Daland Dusters founded the worldsfirst aerial crop dusting organization.In 1928 the company became Delta Air Service and on June 17, 1929, Delta began its airline service with thefirst passenger flights over a route stretching from Dallas, Texas to Jackson, Mississippi.Today Delta Air Lines transports more passengers worldwide than any other airline, through a vast worldwide route system.Some of its worldwide partners include Air Jamaica, British European, China Southern, Malaysia Airlines, and South African Airways.Since the founding of Delta Air Lines, they have stood for safe and reliable air transportation, distinctive customer service and hospitality from the heart.Deltas vision is to build on its traditions and to always meet their customers expectations while taking service to even higher levels of excellence.In 2001, 104 million passengers chose to fly Delta, more than any other airline in the world.Delta is dedicated to being the best airline in the eyes of their customers. They are determined to provide value and distinctive products to their customers, a superior return for investors and challenging and rewarding work for Delta people in an environment that respects and values their contributions. The events and challenges that Delta had to face in 2001 was unlike any they had to encounter in 2000 or for that matter unlike any in the history of aviation.Prior to September 11th, the slowing economy reduced the demand for air travel among both business and leisure passengers.The events of September 11 had an astronomical impact in the airline industry.Our nations aviation system was called to a halt and the skies became silent and empty.Passengers, crew members, and aircraft were grounded in unplanned destinations.Every airport in the nation was shut down within hours of the event.During the period when airports wer

Apply For College Essay Scholarships 2020

Apply For College Essay Scholarships 2020College essay scholarships are being offered to deserving students of today. This scholarship program is a great way to give money to a deserving student who needs it the most. There are many options for you to apply for when it comes to college essay scholarships. One of these ways is to search on the internet for different sources and then apply with them and get good information.You can get information on the internet by going to the official website of the scholarship program. This will help you in choosing a suitable site which can give you all the necessary information you need to know about the program. This scholarship application will also provide you with many other useful information that you will be able to use in your essay.When you search for essays, you should find out if there are any schools that will allow you to submit essays without having to write a personal essay. Once you find a school which allows this, you should then get all the required documents that you need for a perfect application.The essay should highlight your unique perspective on an interesting topic. If you are able to write an essay which has something to say, you will surely be awarded a scholarship. Besides, this essay will give you the best chance to get enrolled in the best college programs and colleges.You have to be very careful while you submit your essay as it will contain very important information about yourself. Make sure that you provide a good grade on the essay and show that you have put all your effort in writing it.Nowadays, more students are applying for these scholarship programs as the programs are free. The essays will have to be submitted according to the guidelines of the program. These scholarships will help you to further enhance your education.However, you should be very careful as there are some students who will try to cheat in order to get good grades. This is because they will get the chance to meet many other students from their different institutions. These kind of students are the ones who really need these scholarships the most.

Valuation by Discounted Cash Flow (DCF) Essay Example

Valuation by Discounted Cash Flow (DCF) Essay Example Valuation by Discounted Cash Flow (DCF) Essay Valuation by Discounted Cash Flow (DCF) Essay As shown in Exhibit A, the revenues for USG were projected to be $2. 1 billion in 1988. Revenues were then projected to grow at 4% to 7% for the next four years from 1989 to 1992. Revenues for the terminal year were projected to grow at 4. 5% to $2. 7 billion, largely based on inflation as well as with consistent growth rate. EBITDA for 1988 was projected to be $396 million, versus the actual of $531 for 1987. The significant drop in EBITDA was attributable to the restructuring expenses, coupled with the decrease in sales. EBITDA would then gradually increase to $617 million in 1992 with EBITDA margin of 24. 2%. With the same EBITDA margin as 1992, EBITDA for the terminal year was projected to be $645 million. Depreciation and amortization for the projected period were in the range of $71 million to $84 million, and $70 million for the terminal year. The Company would invest between $58 million and $121 million in capital expenditures for the projected period. The terminal years capital expenditures were assumed to be at the same level as depreciation, which amounted to $70 million. With a 36% tax rate, the debt-free net income increased from $200 million in 1988 to $349 million in 1992, with $368 million in the terminal year. Total free cash flow ranged from $248 million to $315 million for the projected period except for 1989 with $785 million primarily due to asset sales realized. As illustrated in Exhibit B, with a risk free rate of 8. 9%, risk free premium of 6. 0% and the beta of 1. 37, the cost of equity for USG was calculated at 17. 2% by using the CAPM equation. The cost of debt was 10. 97% based on the Baa bond rating. Taken into account the 36% tax rate and the debt weighting and equity (market) weighting of 28. 5% and 71. 5%, respectively, the weighted average cost of capital (WACC) was calculated to be 14. 3%. Based on the WACC of 14. 3% and the long-term growth rate of 4. 5%, the terminal value for USG was $3. 6 billion. By discounting each periods free cash flow by the WACC of 14. 3%, the sum of the present value of free cash flows for the 5-year period 1988 to 1992 was $1. 3 billion. The present value of the terminal value was $2. 0 billion, also by discounting it by the WACC. As such, the enterprise value for USG was $3. 3 billion ($1. 3 billion + $2. 0 billion). To calculate the stub value, total debt at closing has to be subtracted from the enterprise value. With the total debt at closing as high as $3.1 billion, the stub value was computed at $188 million, or $3. 65 per share. Therefore, the value per share of the leveraged recapitalization was considered to be approximately $45. 65 ($37 + $5 + $3. 65). However, this value might have been too optimistically represented because the debt on the Company was evidently too high and the $5 of junior subordinated debentures might only be worth $1 to $2 per share while the stub value might be diluted to almost nothing, or worthless. Valuation by Multiples From the information available in the case, the transaction P/E multiples in the building products industry were between 11.6x and 13. 4x, with a median of 12. 8x. Multiplying USGs projected 1988 EPS of $3. 46 by the median P/E multiple of 12. 8x gave a $44. 29 value per share. The trading P/E multiples in the building products industry were between 10. 4x and 15. 7x, with a median of 11. 6x. Multiplying USGs projected 1988 EPS of $3. 46 by the median P/E multiple of 11. 6x gave a $40. 14 value per share. Please refer to Exhibit C for more details. It can be concluded that based on the valuation by market multiples (averaging transaction and trading), USGs value per share was worth approximately $42.22. Advantages of Leveraged Recapitalization USGs leveraged capitalization was intended to provide shareholders with a significant distribution of cash and securities and permit them to retain their proportionate long-term equity interest in the Company. As in this case, shareholders would be receiving $37 in cash for each share of common stock, $5 in stated face amount of 16% junior subordinated pay-in-kind debentures, and one share in the newly recapitalized company. The purpose of leveraged capitalization for USG was to defend against the hostile takeover by Desert Partners. To finance the leveraged recapitalization, USG had to raise approximately $2. 5 billion; a majority of that would be used to pay the shareholders. The substantial increase in leverage would discourage outside bidders. In addition, USGs leveraged recapitalization represented a continuation for the Companys long-term decentralization program and an attempt to get each subsidiary to focus on growth opportunities with their specific markets. The Company proposed selling three subsidiaries which was expected to generate $519 million after taxes. The Company would also discontinue any products and distribution channels that failed to pass certain stricter investment criteria. USG would also reduce capital expenditures by up to $100 million per year and operating expenses by $70 million per year. Another good point of leveraged recapitalization is that it stimulates management to perform well as a company. It alerts the Company to cut costs and improve its overall operations. Since USG would be burden with a large amount of debt, it created pressures for the Company to execute its business model and hit performance targets in order to develop cash flow to service its debt. Further, as discussed above, relatively large issue of debt is intended to use for the payment of a large cash dividend to non-management shareholders, and for the repurchase of common shares. The end result is an increase in the ownership share of USGs management. A defensive leverage recapitalization might succeed by returning cash to shareholders that is close to or more than the takeover offer. In the case of USG, we will be discussing and comparing the USG leverage recapitalization value and the Desert Partners offer.