Market Value Of The Firm Finance Essay - Free Essay Example

Sample details Pages: 24 Words: 7225 Downloads: 2 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? The corporate market value is the value of a company as an enterprise and it derives this value from the underlying equity share. In this sense, business or corporate valuation is about  measuring the continuing  value of a  companys business. An organization employs different types of funding to run a business smoothly. Don’t waste time! Our writers will create an original "Market Value Of The Firm Finance Essay" essay for you Create order This is what capital structure is all about, that is, the composition of different types of financing employed by a firm to acquire resources necessary for its operations and growth and it primarily comprises of long-term debt, preferred stock, and net worth. Most of the companies raises fund by equity or debt. So this strategic decision is very important as it will have an impact on the market value of the firm. The corporate value of a company is of great significance when it is on the stock market as is has a direct impact on the price of the shares on sale. Higher market value will imply a higher share price which will procure many advantages to the company. First, it shows that the company is doing well and will give potential buyers a sense of confidence in the company. They will feel more confident in investing in the company instead of elsewhere. Second, the higher price of the shares will give the company a bigger capital for funding. An increase in funding will give the company the possibility to aim bigger and achieve much more in terms of profitability. In the paragraph above, I explained the relationship between equity financing and market value but, as mentioned previously, capital is about funding by equity and/or debt. And financing with debt has also its advantages, namely in terms of the tax shield arguments. Tax shield is a reduction in taxable income for a company gained through claiming acceptable deductions such as interest, or depreciation. These deductions decrease the companies taxable income for a given year or postpone income taxes into future years. Tax shields differ from country to country, and their advantages will depend on the companies overall tax rate and cash flows for that given tax year. 1.1 Tax Shields A  tax shield  is a legal way of decreasing income with the purpose of sheltering it from  taxation. In that sense a  tax  shield is the same as a  tax deduction, except that a  tax  shield can also include rescheduling of income to future years. Any firm is entitled to use a tax shield. For example, donations to charity can be employed as a tax shield, as can business losses, interest on many business loans, and  depreciation. There are two types of tax shields that may be considered as a legal method to reduce the tax burden, namely debt tax shields (or interest tax shields) and non-debt tax shields. Debt tax shield is a reduction in  tax liability  coming from the ability to  deduct  interest payments from ones  taxable income. An interest tax shield may encourage a company to  finance  a project through  debt  because  dividends  paid on   stock  issues are never deductible. Companies are able to use debt to their advantage. When a company needs to raise capital, they have two options. They can sell stocks and shares or take on debt. Selling stocks and shares means they need to pay dividends to their shareholders. Taking on debt is advantageous because the company can write off the interest payments on their income taxes. Debt in this instance is less risky and more profitable than selling equity. DeAngelo and Masulis (1980) were among the original ones to point to the significance of non-debt tax shields, mainly tax credits and depreciation, for capital structure relevance. There is also evidence, principally in the accounting literature that U.S. companies have been taking a host of other or newer tax shields as shown through examples in Bankman (1999), Desai (2003), Manzon and Plesko (2002), and Mills, Newberry and Trautman (2002). Non-debt tax shelters are a very crucial aspect of tax shields as they procure the same advantages as debt tax shield but they do not generate the same bad effects, like financial instability, on economic activity. 1.2 Problem Statement Debt tax shield is a very important factor as it can be detrimental to companies which choose to ignore it. Debt tax shield can be used as a strategic tool to reduce voluntarily earnings before tax so that the tax expense too decreases. In other words, it encourages the use of debt financing which can have both a positive and a negative impact on the market value of the company. So debt tax shield can be said to have somehow a connection with the corporate valuation process of firm. This connection is what this study is going to be based on and how the calculation of market value is going to be affected by the debt tax shield factor. 1.3 Objectives of Study Capital structure is a combination of debt and equity. As it was pointed out by Modigliani and Miller, a primary advantage of debt is the tax shield effect. The objective of this research is to evaluate and assess the tax shield argument in the corporate capital structure decisions, particularly with the listed firms of Mauritius. The following aims can be attached to this study: Understand the importance of the market value of a firm. Assess the significance of the tax shield argument. To distinguish between debt and non-debt tax shields. To identify the effects of tax shields on the market value of the firm. 1.4 Significance of Study The listed firms in Mauritius will find this study important in such a way that these companies can design their future strategies to use debt tax shield effectively without causing any negative impact on their market value. The study will give the opportunity to these listed firms to be able to see the connection of various variables like debt tax shield, debt, or profitability on their market value. This research will impose companies to embark upon the right management of debt tax shield to help eliminate its negative impacts on market value. This dissertation will be of paramount importance to anyone looking for a clear explanation on the tax shield argument and its impact on the market value of a company. 1.5 Format of Study 1.5 1 Chapter 1 Introduction This chapter gives an overview of what the dissertation will consist of. The topic has been identified and the research objectives of the study have been set up. In addition, the reason why the study of the tax shields argument is worthwhile to have been pointed out. 1.5.2 Chapter 2 Literature Review The literature review shall begin with an introduction followed by a brief overview on capital structure decisions. There shall be discussions on the different tax shields associated with corporate capital structure decisions. This chapter will consist of two parts, one being the theoretical review which summarises all the previous literature reviews done on the topic. The second part is the empirical evidence which is about all the information acquired by the means of previous researches and analysis done on the subject by authors. 1.5.3 Chapter 3 Research Methodology This chapter provides an illustration of how the study has been conducted and the precautions taken to ensure reliable and valid results. Moreover, the hypotheses to be tested will be formulated in this chapter. 1.5.4 Chapter 4 Analysis and Findings Regression analysis will display the findings and shall be presented and analysed with reference to the literature review. The findings shall be discussed and those data that are in par or contradictory shall be highlighted to be further discussed. 1.5.5 Chapter 5 Conclusion The chapter has given an overview of what the whole dissertation shall comprise and what is to be investigated. The conclusion of this study shall be pointed out along with the recommendations that are deemed to be the solution to the problems found out. The chapter shall provide further insight on the topic that has been investigated. 2.0 Literature Review 2.1 Market Value of the Firm Valuation theories have been comprehensively studied by various accounting researchers. Although, empirically there has been not a clear-cut winner, it appears that this area of examination is going in the path of performance based examinations to evaluate valuation. Torrez, Campus, Al-Jafari, and Jumah (2006) used Arbitrage Pricing Models (APM) and Capital Asset Pricing Model (CAPM) as methods to estimate the value of companies. Benninga and Sarig (1997) recommended using more than just only one valuation method to evaluate the corporate value. It was advised to utilise more than one technique because there is a great uncertainty in relation to estimation of corporate value as it implicates predicting future returns of the firm, and if the various techniques give similar outcomes it implies that the estimation of corporate value is sensible. On the other hand, Kemsley and Nissim (2002) found that the value of the company is a strong, constructive function of debt, and there have b een similar studies on this relationship. One worth pointing out is the study done by Sharma (2006) which suggested a direct correlation between the value of firms and financial leverage. So the market value of a firm is also somehow connected to the firms capital structure. Capital structure is mostly defined as the particular blend of debt and equity that a business uses to finance its activities. An optimal capital structure will produce the greatest income to the shareholders without adding supplementary cost to them and, at the same time, will increase the value of the corresponding company. 2.2 Tax Benefits Associated with Debt In 1963, the authors acknowledged the effect of taxes on corporate capital structure. Modigliani and Millers (1963) Proposition-II tried to give an answer to the problem of why when the debt ratio was boosted there was an increase in rate of return that resulted. It specified that the increase in expected rate of return spawned by financing with debt is accurately counterbalanced by the risk acquired, despite the consequences of the choice of financing mix. The selection of capital structure became so important as it will have a significant impact on the market value of the company. The most important motive that prompts companies to increase debts is owing to the tax benefits that arise from the tax discounts caused by making interest payments on debt. In considering the corporate income tax, they explored the question of the tax benefits generated by the use of debt capital as a source of funding such that interest payments, considered as an expense, are deducted from the calcula tion of taxable income. Thus, the value to be paid on taxes and increasing the free cash flow of the company is reduced. The fact that tax can be deducted on interest payments is considered as a major advantage of debt, and this tax deductibility on companies interest payments supports the use of debt. As a result, by using debt, forecasted tax liability of companies could be subtracted and thus amplify its after-tax cash flow, provoking more profitable commerce to exploit the greater level of debt for the interest of augmenting their debt tax shield. Using debt decreases a firms expected tax liability and increases its after-tax cash flow, making profitable firms employ more debt to increase the value of their debt tax shield. However, Taggart (1985) contends that corporate debt enjoys a net tax advantage when corporate tax rates exceed marginal personal tax rates. This violates the earlier Modigliani- Miller conclusion regarding corporate income tax, making corporate tax deduction s at least partially offset by additional personal tax liabilities of the acquiring debt holders. Miller (1977) concludes that personal income taxes paid by investors in corporate debt just offset the corporate tax shield provided that the firm pays the full statutory tax rate. Green, Murinde and Suppakitjarak (2002) examined that tax policy has a vital impact on the capital structure choices of companies. Corporate taxes permit companies to remove interest on debt in calculating taxable profits. This recommends that tax benefits gained from debt would direct companies to be entirely financed through debt. This advantage is generated as, like mentioned before, the interest payments related with debt are tax deductible and while payments connected with equity, like for example dividends, are not tax deductible. Consequently, this tax effect supports debt use by the company, as more debt raises the holders after tax proceeds (Modigliani and Miller, 1963; Miller, 1977). MacKie-Mason (1990) examined the tax consequence on corporate financing choices and offered proof of significant tax effect on the option between equity and debt. He ended by adding that alterations in the quantity of tax paid on a supplementary unit of income for any corporation should have an impact on financing decisions. Graham (1999) ended that on the whole, taxes do influence corporate financial choices, but the degree of the consequence is generally not large. Miller (1977) and Myers (2001) argue that being the supply of debt for all the firms increases, investors with better tax brackets have to be lured to take hold of corporate debt and to gain more of their revenue in the shape of interest instead of any profits on the disposition of capital assets. Interest rates climb as to a greater extent debt is issued, so firms face augmenting charges associated with debt compared to equity-related expenses. The tax advantages resulting from the issuance of more debt may be counteracted by the significant tax on interest income. Eventually it may be that it is the trade-off that concludes the final impact of taxes on the use of debt (Miller, 1977; Myers, 2001). Myers and Majloof (1984) examined the behaviour of corporate financing and argued that bankruptcy cost cannot be disregarded and the capital structure is trade-off between corporate tax benefit and bankruptcy cost, named as trade-off theory. It forecasts that a desirable objective debt percentage is to create the supreme value of the company. The tax trade-off model forecasts that profitable companies will make use of additional debt given that they are further prone to have a greater tax weight and little bankruptcy risk. Followers of the trade-off theory believe that debt-equity financing decision is a trade-off between interest tax shield and the cost of financial distress. The trade-off theory demonstrated that the companies should amplify their debt level until the occurrence of agency costs and bankruptcy costs from debt are simply indemnifying its tax gains, which is called the optimal level. And according to this trade-off theory, value-maximising organisations choose the level of debt by balancing tax benefits of debt against the cost associated with debt such as bankruptcy and agency costs (Gwatidzo and Ojah, 2009). Baxter (1967) and Altman (1984) argued that firms attain optimal capital structure- where benefits from tax shield equalled the cost of financial distress. The companys tax benefit from leverage is the present value of tax discounts generated by paying interest which are tax deductible on leverage in place of dividend compensations made to investors. The present value in general is obtained from the stage in which the risk related with the tax benefit is the equivalent of the risk of leverage that engenders the tax benefits. Nonetheless, the impact of interest tax benefit is based on the constitution of the tax system put into operation by every nation. Research undertook by Adedeji (1998) and Ashton (1989) disclosed that the tax system in UK does not encourage firms to use debt as much the classical tax system does in US. Compared with the UK tax regimen, the US tax system allows firms to sustain a loss for the year to carry-back or carry-forward such losses. 2.3 Tax Benefits Associated with Non-Debt Factors In addition, the allocation of debt would be altered by the presence of alternate non-debt tax benefits like, for example, development expenses, depreciation, investment tax credit and allowances for research. Debt interest tax shields are not the sole technique of minimising corporate tax weights. The existence of non-debt tax shields offers a substitute (and most probably less expensive) way of minimising income taxes and could be used to alleviate the advantage of debt tax shields (Cloyd, 1997). Without a doubt, there is a variety of non-debt tax shields, like for example investment tax credits and accelerated depreciation (Allen and Mizuno, 1989). Non-debt tax shield is described as a percentage of total yearly depreciation to total assets. There are various reasons for why do companies would rather choose alternative tax shields to debt. The first and foremost reason is that many tax shields are not as expensive as debt, because debt generally requires expensive interest payme nts. Various tax shields do not demand any supplementary expenses for the company. Another factor that favours non-debt tax shield to be rather considered is the cost to the company linked with debt covenants. These debt covenants are expected to create greater transaction costs for some companies. Lastly, tax shields usually take advantage of the provisions in the accounting rules that permit the company to decrease taxes without having an impact on the income statement. DeAnglo and Masulis (1980) explained that firms with tax deductions for depreciation and investment tax credits can consider these deductions as a substitute for the tax shield. They concluded that the positive tax shield alternate suggests that the anticipated marginal corporate tax advantage declined as leverage is added to the capital structure. Given that the cumulative tax discounts from an additional unit of debt declined with augmenting non-debt tax discounts, therefore greater leverage will be further expen sive for a company with elevated level of non-debt tax discount. Subsequently, it would have an impact on the actions of managers to increase not as much of debt when the firm already utilized a significant quantity of non-debt tax discount. From this point, it was disclosed that there is an adverse correlation between debt and non-debt tax discount. Debt is thus more expensive for firms with a high level of non-debt tax shield because the marginal tax discounts from an extra unit of debt reduces with augmenting non-debt tax benefits. Bradley, Jarrell and Kim (1984) were in the midst of the initial ones to experiment for the tax effects put forward by DeAngelo and Masulis (1980). They did a regression on company-specific debt-to-value ratios on non-debt tax shields and they discovered that debt is positively correlated to non-debt tax shields, on the contrary to the forecast in De Angelo and Masulis (1980). Bradley et al. (1984) make use of depreciation and investment tax credits, r esearch and development, and advertising expenses as their alternatives for non-debt tax shield. As Graham (2003) draws attention to, if a company invests greatly and takes loans to invest, an optimistic relation between such alternatives for non-debt tax shield and debt may result. In recent times, Shivdasani and Stefanescue (2010) demonstrated that pension assets and liabilities also operate as tax shields and pension contributions are about a third of those from interest payments. 2.4 Empirical Evidence According to the theoretical point of view, the increased use of debt will result in an augmentation of income as firms will pay tax less. But this tax benefit is traded off against the possibility of sustaining cost like agency costs or bankruptcy costs. Now lets turn to the empirical evidence with regard to a variety of tax-related features of capital structure decisions. What we can take note on previous researches undertaken is that there is a small amount of empirical investigations that may be regarded as to be direct experiments of the tax shield model of debt. Givoly, et al. (1992) examined the impact of the TRA (Tax Reform Act) of 1986 on the alterations in leverage in US companies. They experimented and found solutions that maintained the tax shield based hypothesises of capital structure decisions. Kemsley and Nissim (2002) used cross-sectional regressions in their study to approximately calculate the worth of the debt tax shield. They distinguished that debt is po ssibly related with the value of procedures along non-tax aspects and used reverse regressions to moderate the impact of this relationship. After that, they found that the value of the company is a strong, constructive function of debt. Additionally, they found the approximate worth of the net debt tax shield is undeniably linked to time-series deviation in constitutional tax rates and it is without fail linked to cross-sectional deviation in approximated company level marginal tax rates. Moreover, the outcomes are strong to the utilization of interest expense to compute debt. Singh and Hamid (1992) utilize information from nine developing countries from multiple sites all around the globe. They discovered that differences in tax and legal factors and other institutional aspects (like degree of development of financial markets or accounting practices) are the causes of all the dissimilarities in the scales of the determinants of capital structure. Their facts indirectly provided a backing for the tax model in the capital structure decisions. Booth, et al. (2001) considered if capital structure theory is moveable to different countries which have diverse institutional constitutions. They discovered that debt ratios are adversely connected to taxation. They accredited their apparently peculiar verdict to the likelihood that the tax rate measure utilized in their research is covering for profitability instead of the tax shield, which meant that the higher the tax rate the greater the profitability. Antoniou, et al. (2002) utilize archive data from Germany, Britain, and France and got mixed outcome, which showed that institutional planning and national customs have a say in capital structure decisions. Frank and Goyal (2004) carried out experiments and put forward that their evidence is reliable with the trade-off theory; however they did not find backing for market timing theories or the pecking order. Kim and Wu (1988) as well as Mandelker and Rhee (198 4) provided empirical evidence that leads to a trade-off between debt tax shields and investment. Barakat, M.H. and Rao, R.P. (2003) found that companies working in Arab states use much more debt when these states have a corporate tax system in position compared to those working in countries where there is no proper corporate tax system. In a current analysis, Cespedes et.al (2009) gave explanation to the actions of companies in Latin America enveloping seven countries. They encountered that ownership oriented companies favored equity financing because of higher bankruptcy costs and inferior tax shields. Afza T. and Hussain A. (2011) provided evidence that the companies of the automobile segments with big asset structure have a preference for debt financing to gain with the advantages of tax shield. Boquist and Moores (1984) results did not back the tax shield theory at the company level but, on the other hand, they did discover feeble proof in support of the hypothesis at the indus try level. Bartholdy and Mateus (2008) took a look at small and medium sized firms in West European which are, nonetheless, just engaged in their domestic markets and they stated that there are economically imperative and significant outcomes of local taxes on debt ratios. Desai et al. (2004a) as well as Altshuler and Grubert (2003) have been the initial ones to observe balance sheet information of foreign associates of multinational companies. Both works empirically corroborate a considerable effect of local tax rates on associate leverage of multinationals based in the U.S. Whilst Altshuler and Grubert (2003) utilize statutory tax rates in their experiments, Desai et al. (2004a) make use of median effective tax rates described as foreign income taxes settled over foreign pre-tax profits for every nation. Breaking off the totality of leverage into internal and external debt, Altshuler et al. (2003) only discovered considerable tax impacts on internal debt ratios. Whereas Desai e t al. (2004a) stated considerable effects for both sorts of debt. Mintz and Weichenrieder (2005) examined the effect that host-country taxes have on the capital structures of associates of German multinationals, and they also discovered a positive tax effect on total debt. In addition, they discovered greater tax elasticity if an auxiliary is totally-possessed by the German parent firm. Additionally, Mintz and Weichenrieder (2005) provided explanation for various sources of debt. They could only corroborate a considerable favourable tax effect on internal debt, whilst they were not capable to discover an arithmetically significant tax effect of the home country taxes on external debt funding of overseas associates of German parent firms. Bà ¼ttner et al. (2006) made use the similar information set but, compared to Mintz and Weichenrieder (2005), do take into consideration the cross-section tax variations and do not completely manage for unmonitored country-specific consequences. Bà ¼ttner et al. (2008) demonstrates that during the previous decades, the number of countries that put a ceiling on the tax deductibility of interest payments related with debt financing has considerably augmented. Recent studies examine the consequences of thin-capitalization regulations on debt financing. Consequently, Bà ¼ttner et al. (2008) investigate the efficiency of thin-capitalization regulations in OECD and European countries on financing with debt of subsidiaries of German multinationals. The end results put forward that thin-capitalization regulations cause a decrease in internal debt and efficiently get rid of the reason to utilize such loans for tax planning. When utilizing the tax variation between various host countries of a multinational group, they discovered a positive impact of host-country taxes on both external as well as internal debt. Ruf (2008) also reassesses the effect of host-country taxes on financial choices of associates held by German parent corporations. He makes use of various explanations of the financial leverage and discovers that the positive effect of host-country taxes on debt financing is mostly an outcome of the scarcity of retained earnings at high-tax places in place of an incentive to make use of supplementary debt as a tax shield. In addition, he presents empirical evidence that an elevated corporate income tax rate augments the likelihood of multinationals setting up a finance firm in the respective country which then bears considerable quantities of debt. The empirical evidence concerning non-debt tax shields has given in miscellaneous outcomes. We can take the example of Bennett and Donnelly (1993), Saa-Requejo (1996), Wiwattanakantang (1999), De Miguel and Pindado (2001), Ozkan (2001) and Ngugi (2008) who have authenticated the forecast of DeAngelo and Masulis (1980) that non-debt tax shields are a replacement for debt. Titman and Wessels (1988) too did not find any proof to support the association between leverage and non-debt tax shields. On the other hand, Bradley et al. (1984), Barclay, Smith and Watts (1995) and Boyle and Eckhold (1997) gave proof recommending that non-debt tax shields have a positive effect on a companys leverage. Huang and Song (2006) carried out an empirical research in China and discovered that non-debt tax shields are positively linked to company leverage, which is unfailing with the result of Bradley et al. (1984). Chang et al. (2009) also corroborated the positive link between non-debt tax shields and leverage for Compustat- listed non-financial companies. Quite the opposite, Scott (1977) and Moore (1986) argue that companies with considerable non-debt tax shields must also have significant collateral assets which can be utilised to secure debt. From a theoretical point of view, it has been argued above that a secured debt carries less risk than an unsecured debt. Therefore, still theoretically, one could also argue for a positive link between non -debt shield and leverage. But in fact, the empirical tests of the non-debt tax shield effect on debt policy again are found to be mixed. For example, Shenoy and Koch (1996) found a negative connection between non-debt tax shield and leverage, while Gardner and Trcinka (1992) find a positive one. This disagreement is not astonishing because of two major causes presented by Barclay and Smith (2005). First of all, companies with high non-debt tax shields have greater quantity of tangible assets in their balance sheet. And this offers an amplified probability to mount up more debt. For that reason, non-debt tax shields might not only be a alternative for low taxes, but somewhat a proxy for low incurring costs related with debt. Secondly, companies with tax loss carry forwards are over and over again in financial distress. Therefore, the market value of equity for such companies is worn down in that way rising the debt ratio. Consequently, it is not obvious whether tax loss carry forwar ds are a dependable alternative for non-debt tax shields. Graham and Tucker (2006) utilise a matched pairs approach to recognize tax effects on the capital structure selection. They measured up to the use of debt financing of companies which are contracted in aggressive tax preparation and of companies which do not apply these arrangements. They discovered proof that non-debt tax shields engendered by the tax shelters work as an alternate for debt. Their sample, which consisted of 76 companies, the 38 companies utilizing tax shelters obtain debt ratios that are more than 5 percent inferior than those of other companies which are not engaged in that kind of tax preparation. SayÃÆ'„ ±lgan, Karabacak, and Kà ¼Ãƒ §Ãƒ ¼kkocaoglu (2006) carried out an empirical experimenting to analyze the impact of company specific determinants on the capital structure decisions of Turkish companies, using dynamic panel data methodology. Their sample covered 123 Turkish manufacturing companies which are listed on the ISE (Istanbul Stock Exchange) and their analysis was based on year-end inspections of ten successive years running from 1993-2002. In their study, they used the panel data methodology and non-debt tax shields was one of the six variables which were analyzed as the company specific characteristics of the corporate capital structure. The empirical results on the capital structure determinants of the Turkish companies revealed that non-debt tax shields are negatively related with the leverage ratio. A few authors, like for example Givoly, et al. (1992) or Graham (1996), found a negative link between the companys level of debt and the amount of non-debt tax shield, supporting DeAngelo and Masulis (1980) substitutability hypothesis. And many others, like Bradley, et al. (1984) and Bathala, et al. (1994), found a positive link between the companys level of debt and the amount of non-debt tax shield. A positive connection disagrees with the conventiona l substitutability argument between debt tax shield and non-debt tax shield. Harris and Raviv (1991) speculated that leverage is positively linked to non-debt tax shields. The positive connection is argued away by suggesting that non-debt tax shield is an instrumental variable for debt collateral, that is, non-debt tax shield is taking up the collateral effect of debt, which thus means that the higher the non-debt tax shield, the higher the collateral value of assets. And in connection with the consequence of personal taxes, only a restricted quantity of analysis was encountered in many review of the literature. Among the few studies encountered, Givoly, et al. (1992) discovered that personal taxes have a negative impact on the companys leverage while Graham (1996) observed that the relative taxation of equity and debt at the personal level has no impact on debt. Chaplinsky and Niehaus (1993) used the percentage of depreciation cost plus investment tax credits to total assets to cal culate non-debt tax shields and the experiment prove that leverage is negatively linked with non-debt tax shields. Thomas W. Downs (1993), in his study, examined whether financing with debt is crowded out by depreciation tax shields. This crowding-out theory is asserted on the supposition that as non-debt tax deductions augment, the incentive to rely on debt tax shields reduces. His analysis computed the non-debt tax shields as the discounted value of expected tax depreciation deductions. When the discounted depreciation tax shield is scaled by either discounted income before tax or total assets, and subsequently the ratio is related to market based leverage measures, the estimates indicate that crowding-out does not occur; the estimated coefficients are almost always positive and statistically significant. The results showed that companies with relatively high depreciation tax shields also tend to have high leverage ratios. The explanation for this is that companies garnering a substantial proportion of cash flow from depreciation have substantial collateral assets, which are financed at a lower interest rate and possess a greater debt capacity, and the greater debt capacity is exploited as companies maintain a capital structure with significantly more debt than otherwise. 2.5 Conclusion By adding more debt, a company amplifies its value through the markets awareness of lower bankruptcy costs and greater tax benefits. But any best possible capital structure at a top to bottom debt financing is obviously unsuited with monitored capital structures, so some results initiated a substantial investigation attempt to recognize the costs of financing with debt that would counterbalance the corporate tax benefit. Robichek and Myers (1965) argue that the detrimental result of bankruptcy costs on debt will prevent companies from having the yearning to acquire more debt. The general result is that the mixture of debt related costs (such as agency costs and bankruptcy costs) and the tax gain of debt creates the most favourable capital structure which will not be entirely debt funded, as the tax benefit is traded off against the possibility of sustaining the costs. 3.0 Data and Methodology According to John W. Best (2002) research method may be defined as systematic and objective analysis and recording of controlled observations that may lead to development of organizations, principles and possibility ultimate control events. This chapter describes the research methodology used in the present study. Firstly, we describe the rationale of the methodology, which justifies the choice of research approach and research strategy adopted to assess the impact of tax shields on the market value of a firm. Next, the data collection techniques are explored with a view to explain the types of data to be used. Finally, the chapter stresses on the measures adopted to ensure validity and reliability of data gathered. 3.1 Research Objectives The aim of this study is to know whether the market value of companies are affected by the tax benefits associated with debt factors and if so, to what extent, and how it can be a used as a tool for better future strategic decisions. This study aims at better helping the companies in Mauritius, more specific the listed firms in the official market, to better understand the theory and impact of tax shields. Find the best model to estimate debt tax shield. Collect all the data required from the annual reports of the listed firms in Mauritius. Analyse how far average profitability and debt can affect the corporate market value. Analyse the impact of debt tax shield on the market value of a firm. 3.2 Research Hypothesis As a general rule, to identify the truth of a given hypothesis, some data or evidence is gathered with a supposition that this evidence set was engendered from the hypothesis. Hypothesis testing is an arithmetic decision making process with regard to an uncertain hypothesis. The aim is to test the statistics to determine the possibility that a given hypothesis is accurate. The hypothesis testing will reveal the correlation between the variables and through this statistical method, a more concise and lucid evaluation can be obtained. First hypothesis: Ho: There is no significant relationship between the market value of the firm and operating income. H1: There is a positive relationship between the market value of the firm and operating income. Second hypothesis: Ho: There is no significant relationship between the market value of the firm and level of debt. H1: There is significant relationship between the market value of the firm and level of debt. Third hypothesis: Ho: There is no significant relationship between the market value of the firm and total assets. H1: There is no significant relationship between the market value of the firm and total assets. Fourth hypothesis: Ho: Debt tax shield has no impact on the market value of the firm. H1: Debt tax shield has an impact on the market value of the firm. 3.3 Data Collection The purpose of gathering information is to meet objectives. According to Phipps (2001), data gathering must be easy, meaningful, and clearly related to the current study. Data collection can be of primary and/or of secondary type. Secondary data have been used for the study. 3.3.1 Secondary Data Often the information that an organization needs to solve its problem already exists in the form of secondary data, or data that have been collected for some purpose other than the question at hand (Churchill, 1996). Housden (2003) further adds to it stating that secondary data is also called desk research because it is usually accessible from a desk via intranet or online or in hard copy. 3.3.2 Advantages of Secondary Data Secondary data  can assist or conduct the researcher in looking for or deciding on a better research problem; for this reason a duplication of a parallel problem may be made using a different locale or a different set of respondents. Secondary data can also ensure that there is no duplication of an investigation already made as it may also serve as a basis of comparison. It also helps in the formulation of specific questions, assumptions, framework, methods, sampling techniques, implications, and conclusions. Secondary data may also be used to verify the researchers own findings and may save money and time if on target. 3.4 Sample Data The sample of companies used in this dissertation was drawn from the Stock Exchange of Mauritius since it included the lists of all listed companies in Mauritius. Twenty listed firms have been included for which the financial statements have been analysed for the period of 2007-2011. The companies that have been chosen to be included to this study needs to have the following requirements, that is, it must have filed accounts for the period of the study and that it does not have inconsistent financial data for more than four accounting periods. For that reason, a number of companies have been rejected for which data was not available for the whole period, either because they have missing values for more than four years or were newly formed. Since all the listed firms in this sample have the same financial year, this eliminates the twisting impact of dissimilar reporting periods and seasonality patterns. 3.5 Regression Model Following Modigliani and Millers equations to value debt tax shield, I have come to two distinct equations that forms the foundation for two opposite approaches for observing the value of debt tax shields. These approaches are the forward and reverse approach. For this study, we will be taking these approaches into consideration only for mathematical purposes as each approach has its advantages and drawbacks and each of these drawbacks could cause errors that could bias the estimates. So using both equations from the forward and reverse approach, we can now develop a linear empirical equation to better analyse the value of debt tax shield. This empirical equation that we are going to estimate is: In the equation, stands for the market value of the company, determined as the book values of debt added with the market value of equity. FOI symbolizes average operating income over the subsequent five years. TA represents total assets and D represents debt. In the model above, I follo wed Fama and French (1998) by deflating all the variables in the equation by total assets (TA), and also like Fama and French (1998), I have not deflated the intercept. By the use of an undeflated intercept basically switches the variables into ratios. 3.6 Variables Having already instituted the foundation of the theoretical point of view of this study, which is also relevant to the way to which the evidence was brought together will be considered, it is now essential to reflect upon how the evidences will be gathered to back the arguments that were put forward in this dissertation. In this model, there are four main variables that each are linked to one another. These are the market value of the firm (VL), Total Assets (TA), Average Operating Income (FOI), and debt (D). The average value of each item was considered for the purpose of ratio computation and analysis. 3.6.1 Market Value of Firm We must start with the Modigliani and Millers stylised setting in which there are no personal tax effect, no financial distress costs form debt and only one constant corporate tax rate. So given this setting, we can use the following tax adjusted valuation model to calculate market value of the company: In the above equation, stands for the market value of the company which equals to the market value of debt added to the market value of equity. D symbolizes the market value of debt, stands for the market value of the listed company, and t stands for the tax advantage from a dollar of debt. Thus, here is used as an estimate for debt tax shield. In this model, the market value of a firm is the dependant variable, so I will put forward the impact that the independent variables will have on the market value of its corresponding companies. 3.6.2 Total Assets (TA) Total assets comprises of all assets of a firm. An asset may be described as any items of ownership which can be converted into cash. The total assets data figures were all collected from each of the companies balance sheets obtained from their respective annual reports. Most of the researches done to find the connection between total assets and market value of firm showed that they have a positive relationship. Market value of a firm and total assets reacts symmetrically to the changes in one another. For example, an increase in total assets would result in a consequent increase in the market value of the company. But theres also the possibility that an increase in debt may increase total assets but also decrease market value due to the higher risk of financial distress. 3.6.3 Average Operating Income (FOI) In finance and accounting, operating income or earnings before interest and tax (EBIT) is the companys measure of profitability that excludes income tax expenses and interest. I measured FOI as the average operating income for the last five years starting from 2007 to 2011. Requiring five years of data permits us to obtain growth trends in operating income that we could not analyse by minimally using single-period-ahead operating earnings. The relationship between operating income and market value has been quite unanimous as the majority asserted that there is a positive link between operating income and market value due to the fact that increases in operating profit would result in an increase in the share price of the company and therefore an increase in the market value of the company. 3.6.4 Debt (D) In this equation, I measured debt by excluding operating liabilities, which characteristically do not engender explicit tax-deductible interest expense. By removing operating liabilities from our measurement of D (and consequently), it permits me to uphold the MM relationship. In the model that I have chosen, the debt variable will be used as a proxy for debt tax shield. Debts effect on market value will give us an estimate of the impact of debt tax shield on market value of the company. The relationship between debt and market value has been subject to many debates. Many researchers asserted that there is a negative relationship between debt and market value due to the fact that an increase in debt would automatically mean a decrease in market value as explained earlier and it would also result in a decrease in profits after tax and therefore a fall in the share price. But some researchers provide proof that debt may also have a positive link with market value as an increase in de bt would result in an increase in earnings per share (EPS), which would cause an increase in the market value of the firm. 3.7 Limitation of Study On the whole, the research work proved to be a very enriching experience, however there were some limitations worth pointing out. In the model that is being used for this dissertation, the variables represent ratios, so there also the possibility of biasness. To some degree, FOI/TA is a defective control for market value of equity over total assets () and is correlated to D/TA. So this bias will be negative.

Children With Hiv At An Early Age - 1513 Words

7.5 If I accompany a doctor to tell the child’s parents that their child has AIDS, I might be nervous and definitely feel empathetic. I have had several close friends get diagnosed with HIV at an early age. I would put myself in the parent’s shoes and try to think about how they are going to feel once they find out their child has AIDS. Prior to the meeting I would have find a non see though folder and try to collect some information that might be helpful to the parents such as counseling opportunity’s, more information about AIDS and how others have cope with their situation. I would also ask if the hospital chaplain could be on standby or accompany me us. Having a chaplain present can be very helpful because some people are religious and†¦show more content†¦7.7 If I learned that several people received a higher raise then me at my job, I would be extremely angry. Regardless of the amount, I would want an explanation. However I still have a job to do. I would complete the meeting with my client and try to calm my self down with positive self-talk. I would say things like, I know I better than this, don’t be angry, being angry is for the weak. For me just doing positive self talk is not enough for me when I am angry I would also have to squeeze a ball or do pushup. My favorite coping skill is to exercise, when I am finished exercising I am always to tired to be angry. In fact I would think hat it would be best for me to approach my supervisor another day. I think a more appropriate day would be on a Monday, when my supervisor is back from spending time with his family. Through my experience I have realized that if I want to have a effective conversation, having that conversation with someone on a Friday is not the best idea. Normally p eople are only focused on going home and being with their family on Fridays. I think that the least effective skill for me to use is journal writing because it just makes me even angrier that I am writing. I do not like to write or even type, but it is a necessity to studying in America so it something that I have to do but not want to do. 7.8 1) Preliminary notes July 26 2015 Presenting Concerns: Parents of a twelve year old boy are

Woolworths Strategic Management for Supermarket - myassignmenthelp

Question: Discuss about theWoolworths Strategic Management for Supermarket Industry. Answer: Introduction Woolworths supermarket is an Australia supermarket store chain ran and owned by Woolworths Limited. Founded in 1924, Woolworths is the leading supermarket in the supermarket retail industry in Australia commanding 39% of the market share with Coles as its main competitor who is ranked second regarding the market share. Woolworths operates about 1000 stores in Australia. Till lately, the Australian supermarket and retail industry were dominated by only two giant companies Woolworths and Coles with a joint market share of 72.5% (Knox 2015, pp. 109). However, over the recent past years, there has been an emergence of other supermarkets such as IGA and Aldi who command market shares of 10.3% and 9.5% respectively. It is important to note that the entrance of the new supermarket and retail outlets is posing a significant challenge to Woolworth with the main problem being the stiff competition being witnessed in the market (Madsen and Walker 2015, pp. 115). Therefore, the primary aim of this report is to analyse the strategies being put in place by Woolworths to counter competition and remain the leading chain store in Australia. Moreover, the report will also put in place the recommendations and what is to be done for Woolworths to stay at its current position in Australian supermarket industry. Macro-Environmental Analysis The analysis of macro-environmental factors impacting on Woolworths and the whole Australian retail industry can be best analysed by majorly looking at PEST analyses of the Australian business environment (Ho 2014, pp. 6480). These factors may include economic factors, legal, political, technological, social and demographic changes. The political conditions in Australia affect the retail industry to a more prominent level. For example, Australia's Federal Government has launched a competition policy which limits the companies' chances of eliminating their competitors (Starkie 2016, pp. 110). Companies such as Woolworths and Coles have been put into stiff competition from other small retailers struggling to thrive in the retail industry in Australia. Therefore, Woolworths faces a challenge from the competing small retailers like IGA and Aldi to maintain their leading market share. Woolworths performance will be profoundly affected by the drop in the economic market conditions with Australia. In the recent past, Australia has witnessed a fall in the economic activities which will profoundly affect the operations of Woolworths (Perera and Reddy 2017, pp. 92). Also, variations in the rate of currency exchange and the fall in the value of the Australian dollar have also affected the Woolworths operations to a greater extent. The growth in technology is also affecting Woolworths daily operation. The global technological advancement and use of technology its daily process, there has been a significant improvement in the way Woolworths operates and conducts its activities. For instance, the introduction of green refrigeration technology has helped the supermarket to store that perishable good for a long time. Therefore, technology is impacted positively by Woolworth's operations. It is crucial to note that Woolworth's operations are profoundly affected by the society where it operates in. The companies like Woolworths need to attain high societal development which includes being socially responsible by undertaking societal initiatives (Perera and Reddy 2017, pp. 92). A company like Woolworths needs to win the hearts of the people living around it by being socially responsible to them. By doing so, the company will increase its brand awareness as well as customer loyalty (Payne and Frow 2013, pp. 308). Thus, Woolworths need to look at their strategies and establish whether they are favouring the society and what is meant to be spent in such activities. Some of the legal regulations put across by the government to help in the provision of the way companies operate in Australia have profoundly affected Woolworths (Starkie 2016, pp. 110). For example, the introduction of a carbon tax and regulation by Australian Competition and Consumer Competition has changed the way the organisations operate across the economy. Moreover, the need to run within the stipulation of a fair policy has highly affected Woolworths since their main competitors have a chance of ousting them in the market if they do not remain keen. Industry Analysis The Porter Five Forces strategic is an analytical tool can be used to assess the current position of the total retail and supermarket industry in Australia (Grant 2016, pp. 250). It entails all the factors that affect the performance conditions of the production as a whole (Dawson 2014, pp. 160). The use of Porter Five Forces analytical tool can be applied in the analysis of Australian retail industry is discussed in the subsequent sections. The bargaining power of consumers in Australian retail industry is one of the forces discussed under the Porter Five Forces analytical tool. The availability of a vast number of supermarkets such as Woolworths, Coles, IGA and Aldi has led to the growth in the level of consumer bargaining power since they have a variety of options to choose from regarding essential items they want. The threat of new entry is another force under the Porter Five Forces. The entry of new players in the retail industry has not highly affected the existing since larger firms have made it exceedingly difficult for new players to enter the industry (Porter and Heppelmann 2014 pp. 78). It, therefore, concluded that the overall threat of new entry had been reduced to minimal. Bargaining power of suppliers is another crucial force in the Porter Five Forces. The bargaining power of suppliers in the Australian retail industry is moderate. Since the industry is concentrated, some of the big players like Woolworths and Coles have a majority of the market share (Knox 2015, pp. 109). Rivalry among existing firms is another force within the Australian retail industry (Porter and Heppelmann 2014 pp. 78). In Australia, there are significantly high levels of rivalry due to the existence of few significant competitors. Such competitors in the Australian retail industry include supermarkets like Woolworth, Wesfarmers, ASDA, and Coles. The threat of Substitute is last, but a strong force of the Porters Five Forces used to analyse the situation of the Australian retail industry. The consumption of the daily retail products among consumers in Australia is highly essential. The consumers seem to have a limited range of option to select from making it difficult for them to get alternatives (Hubbard et al. 2014, pp. 265). It is understood that the threat of substitute is significantly lower due to lack of alternative retail products. Therefore, consumers lack the choice and thus stick to the available retail products for consumption. From the analysis of Porter five forces above, the Australian Industry has offered a high attractiveness for key players such as Woolworths. The most important reasons for the high attractiveness were due to lack of alternative substitutes for consumable retail products as well as higher barriers to entry for the new players in the industry (Bishop et al. 2013, pp. 45). Company Analysis To keep up with the competition, Woolworths has adopted an integrated competitive strategy. It is argued that their integrated competitive approach has been achieved through its efficient supply chain to minimise operational costs, a well-differentiated brand image and awareness to keep it different from others regarding quality and also combining cost leadership with various elements to compete (Wells 2013, pp. 70). Considering the above mentioned macro-environmental factors, Woolworths has the following resources and capabilities to help it achieve its objectives and strategies. Woolworth has got a highly efficient and effective network of distribution which is both a capability and a resource. The company adoption of technology in its logistics helped to company improves its supply network saving many costs associated with manual distribution operations. The benefits derived from the cost-saving aspect are the best resource for the company. The chain of distribution is also highly complicated to copy by other rivals. Therefore, the supply chain covered here has helped Woolworths to maintain its position as the leading company in the Australian retail industry (Cavusgil et al. 2014, pp. 150). Woolworths has maintained its brand reputation as the best supplier of quality consumer products among the people in Australia. The company engaged in positive consumer experiences through its quality assessment strategy and substantial investment in advertising. As mentioned earlier, the company has been involved in product and service differentiation to the customer satisfaction. Thus, Woolworths has maintained it a strong brand reputation which is hard to a copy-the aspect which made it the leading retail supermarket in Australia. The company also has an effective and efficient top management. Despite the fact that the fluctuation in the currency exchange rate and the fall in the value of their currency has not hindered the growth of Woolworth's initiatives (Perera and Reddy 2017, pp. 92). The increase can be attributed to the efficient top management which was a factor that has enabled the supermarket to compete with other to achieve a considerable market share in the Australian retail industry. Therefore, the company has an outstanding human resource with experienced managers who are committed to delivering. Competitor Analysis The competitor analysis seeks to look at the environment in which the company is operating in and who are main competitors in the market share (Madsen and Walker 2015, pp. 116). Being a leading retail outlet among the supermarkets in Australia, Woolworths has some competitors ad discussed in the next paragraph. In the supermarket and retail industry offering consumer products, there are four key players namely Woolworths, IGA, Aldi and Coles. It is noted that some of the new players like IGA and Aldi have been opening their stores across the country posing more threat to the Woolworths. However, Woolworth has been able to maintain its position as the leading supermarket in Australia beating all it rival initiatives (Perera and Reddy 2017, pp. 92). Nevertheless, with the introduction of legislation such as fair policy in Australia, the upcoming player like Aldi and IGA are producing a stiff competition for Woolworths. Hence, the company has decided to counter the competition using its resources and capabilities as discussed in our previous section of company analysis. As the porter five forces maintain, Woolworth has kept it various strategies like use of effective supply chain to support its position ahead of the four main competitors in the Australian retail industry (Williamson et al. 2013, pp. 185). Moreover, the entrance of new threats in the market makes it difficult for new players to enter the market. Strategy Analysis Woolworths has achieved a significant position the leading retail outlet in the Australian retail industry due to its well-structured strategies. Some of the plans have been integrated into the company's operations to give it a competitive advantage (Grant 2016, pp. 257). For instance, in its growth plans, the company has its operations growth strategies in place. Some of the strategies developed by Woolworths include the extension of leadership in all the companys market segments, employee relations and customer satisfaction, tacking the growth of the company through evaluation, maintenance of brand reputation, and corporate social responsibility among others (Payne and Frow 2013, pp. 305). Most of the strategies have worked due to the availability of enough resources and capabilities within the company as discussed in the company analysis. For instance, the company has competent top management which has contributed to better operations within the organisation due to better employee relations (Eden and Ackermann 2013, pp. 197). The strong brand reputation has been maintained through massive investment on advertising, and this has worked very well for the company. As discussed earlier, corporate social responsibility has helped in the growth of the company, and therefore the company has taken this strategy very seriously by participating in societal initiatives and development to win the consumer loyalty (Porter and Heppelmann 2014, pp.80). Policies such as effective supply are not enough in assuring enough competition and should be supported by robust competitive strategies. Brand reputation might not necessarily mean the company has a competitive advantage through sale s and thus they should make sure they deal with actual sales leading to increasing revenues. Recommendations Due to the changing environment in the Australian retail industry, Woolworths is required to follow a particular proposal for growth and maintain its dominant position and market share. As noted that the profitability and attractiveness of the Australian market will fall soon, Woolworths is recommended to diversify their business to more profitable industries. The supermarket is also encouraged to invest more in advertising to create an everlasting Woolworths brand in the consumer minds. Woolworths should also reframe their strategies to be in line with political conditions in the country especially the fair price policy. Due to changes in the consumer preferences and trends, the Woolworths should also engage in continuous innovation for it to address these changes effectively. The chain store should also participate in enhancing and supporting their skilled employees through training to sharpen their skills and improve their levels of productivity. Conclusion A strategic analysis of the Australian retail industry was done paying more critical attention to Woolworth's chain store. The investigation focused on the strategies to be put in place by the company to counter competition and falling nature of the falling attractiveness and profitability of the Australian retail industry. However, we have noted that the company has to be the best due to its commitment to aligning itself to the environmental factors impacting on its operations and performance. Moreover, the paper has covered the recommendations and the adjustments to be made by Woolworths to counter future challenges, maintain its market share and keep up with the dynamic consumer demands and social trends. References Bishop, J., Kent, C., Plumb, M. and Rayner, V., 2013. The resources boom and the Australian economy: a sectoral analysis.RBA Bulletin, pp.39-50. Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L., 2014.International business. Pearson Australia pp.135-165. Dawson, J., 2014.The Marketing Environment (RLE Marketing). Routledge pp. 156-165. Eden, C. and Ackermann, F., 2013.Making strategy: The journey of strategic management. Sage pp. 190-201. Grant, R.M., 2016.Contemporary strategy analysis: Text and cases edition. John Wiley Sons pp. 245-260. Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic analysis.European academic research,2(5), pp.6478-6492. Hubbard, G., Rice, J. and Galvin, P., 2014.Strategic management. Pearson Australia pp. 255-277. Knox, M., 2015.Supermarket monsters: The price of Coles and Woolworths' dominance(Vol. 6). Black Inc., pp. 104-112 Madsen, T.L. and Walker, G., 2015.Modern competitive strategy. McGraw Hill pp.109-120. Payne, A. and Frow, P., 2013.Strategic customer management: Integrating relationship marketing and CRM. Cambridge University Press pp. 302-310 Perera, T. and Reddy, W., 2017. Improving Australian Commercial Property Market Forecasting by Mapping Structural Changes in Built Environment. InAUBEA 2017(pp. 87-100). Australasian Universities Building Education Association. Porter, M.E. and Heppelmann, J.E., 2014. How smart, connected products are transforming competition.Harvard Business Review,92(11), pp.64-88. Rothaermel, F.T., 2015.Strategic management. McGraw-Hill Education pp24-45. Starkie, D., 2016.Aviation markets: studies in competition and regulatory reform. Routledge pp. 102-117. Wells, G. ed., 2013.Sustainable business: Theory and practice of business under sustainability principles. Ed.ward Elgar Publishing pp. 67-77. Williamson, D., Cooke, P., Jenkins, W. and Moreton, K.M., 2013.Strategic management and business analysis. Routledge pp. 178-190.

Shadow by Michael Morpurgo Essay Example

Shadow by Michael Morpurgo Paper The novel ‘Shadow’ by Michael Morpurgo has shown different acts of bravery where people fight for things they love. An important idea that is expressed throughout the novel is that people will fight for anything they love or want badly enough. This idea is important because in today’s society we learn to fight for what is right and fight things for things we love. Three events that we see that portrayed this idea are when Aman and his mother are at the police checkpoint going to Kabul, when Aman stated that he is fed up with the injustice he is dealing with in Afghanistan, and when Matt told Grandpa about taking Aman’s story to the media. I think that this is an important book to read because it teaches us how single help of a stranger can have a big impact on other people whether its just listening to their stories or being there for them. We learn that in this novel the Taliban and the police have the ability to hurt or to kill whoever they want and we also learnt that friendships can help you go through difficult situations. â€Å"One of the stones hit her and she ran off That made me really angry, angry enough to be brave† this quote was when they were travelling and they getting close to Kabul and they see a police checkpoint and then the police started to throw rocks at the dog and then the dog got hit and ran away and then Aman started swearing at them and then the dog came back and then the dog went for them and she was snarling, barking and managed to bite one of the police in the leg. This event shows how Aman and Shadow will do anything to protect each other and keep each other safe. Ive read an article about a relationship between a boy and his dog. Haatchi a dog with three legs and Owen with a rare genetic condition and the article was about how Haatchi was an inspiration to Owen. Owen is very insec ure with his condition and never interacted with strangers and hasnt met anyone with other disabilities but when he s We will write a custom essay sample on Shadow by Michael Morpurgo specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Shadow by Michael Morpurgo specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Shadow by Michael Morpurgo specifically for you FOR ONLY $16.38 $13.9/page Hire Writer

Nabopolassar Babylonian King

Nabopolassar Babylonian King Definition: Nabopolassar was the first king of the Neo-Babylonian Empire, ruling from November 626 - August 605 B.C. He had been general in a revolt against Assyria after the Assyrian king Assurbanipal died in 631. Nabopolassar was made king on November 23, 626*. In 614, the Medes, led by Cyaxares ([Uvakhshatra] king of the Umman Manda), conquered Assur, and the Babylonians under Nabopolassar joined forces with them. In 612, in the Battle of Ninevah, Nabopolassar of Babylonia, with the assistance of the Medes, destroyed Assyria. The new Babylonian empire incorporated Babylonians, Assyrians, and Chaldeans, and was an ally of the Medes. Nabopolasars empire extended from the Persian Gulf to Egypt. Nabopolassar restored the temple of the sun god Shamash st Sippar, according to Civilizations of Ancient Iraq. Nabopolassar was the father of Nebuchadnezzar. For information on the Babylonian Chronicles which has source material on the Babylonian king, see Livius: Mesopotamian Chronicles. * The Babylonian Chronicle, by David Noel Freedman The Biblical Archaeologist  © 1956 The American Schools of Oriental Research Also,  see  A.T. Olmsteads History of the Persian Empire. Examples: The Nabopolassar Chronicle, which was published by C. J. Gadd in 1923, covers the events around the time of the fall of Ninevah. It is based on a cuneiform text in the British Museum (B.M. 21901) that is known as the Babylonian Chronicle.

Stewart’s Calculus 8th Edition, Section 1.1, Question 3

Stewart’s Calculus 8th Edition, Section 1.1, Question 3 SAT / ACT Prep Online Guides and Tips This posts contains aTeaching Explanation. You can buyCalculus by Stewarthere. Why You Should Trust Me:I’m Dr. Fred Zhang, and I have a bachelor’s degree in math from Harvard. I’ve racked up hundreds and hundreds of hours of experienceworking withstudents from 5thgradethroughgraduate school, and I’m passionate about teaching. I’ve read the whole chapter of the text beforehand and spent a good amount of time thinking about what the best explanation is and what sort of solutions I would have wanted to see in the problem sets I assigned myself when I taught. Question:The graph of a function f is given.Page in 8th Edition: 19 Short Answers: f(1) = 3 f(-1) ~ -.3 f(x)=1 for x = 0 or 3 f(x)=0 for approximately x=-0.6 The domain of x are real numbers between -2 and 4 (or [-2,4], and the range are real numbers between -1 and 3, or [-1,3]. f is increasing on the interval [-2,1) Homework Answer:Same as Short Answers. Motivated Answers: The question is giving you the graph of the function f. This means that to figure out what f(x) is, we need to look at the y-value of the graph at x. To figure out f(1), we can take put a ruler vertically (up down) on the graph when x=1 and see how high the graph is, which is the same thing as the y-value of the graph. We can count boxes on the graph paper to see the y-value is 3. Just like a), we put a ruler vertically at x=-1, and the graph seems to show a y-value of about -.3 (it could be -0.2 or -0.5, but that’s our best guess by eyeballing it). This means f(-1)~-0.3 The question wants us to find all values of x where f(x)=1. Since 1 is the output of f, and the output means to y-values, we can take a ruler, put it horizontally at 1, and look at where the ruler hits the graph. We see the rule hits the graph two times, once when x is 0, and another time when x = 3. We do the same thing as c), but put the ruler horizontally at 0, which happens to be the x-axis. The graph hits the ruler at x=-.6 approximately. You have to find the domain and range of f. The domain of any function is all valid inputs, or stated the same way, all valid x-values. We can see from the graph that the graph spans the x-range of -2 though 4 (we can count boxes). To write this in interval notation, we write the range is [-2,4]. We use solid brackets here because the graph seems to include the endpoints.The range of f is all valid outputs of f. Stated the same way, these are all valid y-values of the graph. We can see the graph spans the y-range of -1 through 3, or [-1,3]. If you look at the graph you can see that f seems to be increasing throughout the first part of it, from x-values of -2 to 1. Writing this in interval notation, we get [-2,1). We use a parenthesis ) instead of bracket ] because at the point 1, the function is no longer increasing. Video Solution: Get full textbook solutions for just $5/month. PrepScholar Solutions has step-by-step solutions that teach you critical concepts and help you ace your tests. With 1000+ top texts for math, science, physics, engineering, economics, and more, we cover all popular courses in the country, including Stewart's Calculus. Try a 7-day free trial to check it out.

Marketing Management Essay Example | Topics and Well Written Essays - 2000 words - 6

Marketing Management - Essay Example Exchange relationships are commonly utilised as marketing strategies with the aim of ensuring that a business establishes viable links and contacts with customers, rather than focusing on making on-the-spot sale. The use of this form of relations in marketing commonly results in relationship marketing as a business strategy, whose success is based on the fulfilment of the promises made to customers. A business must maintain commitment to the promises made to customers as a way of satisfying their needs, while still keeping their promises. The role of customer service representatives in this marketing strategy is critical to its successful application. A business must maintain a continuous relationship with the client as a way of retaining the customers by gaining their trust. Organisations commonly focus on delivering value to customers as a way of nurturing the existing relationship between them and the business. This approach of marketing is basically focused on attracting retaining and extending good and services to the desired customers. Marketing metrics refer to elements that can be used to measure the effectiveness of the marketing strategies employed by an organization in achieving desired marketing objectives. A sales manager might consider reporting the following two metrics to ABC Services; This can be defined as the cost incurred in convincing a customer to purchase services and products from a company. The costs considered include the product costs and the various costs involved in research and marketing before reaching the customer. This metric could be relevant to the company as it can be able to determine the markets in which to venture. While the market analysis might be critical, other factors like the value of customers to the company can also be established. This is essential in determining the amount of resources that a business can use to gain customers. This is a metric

Structural Concept Essay Example | Topics and Well Written Essays - 500 words - 1

Structural Concept - Essay Example The piles will be generated using continuous beams originating from standard non-stop beam components linked to the node of elements through flows also called non-linear springs. This type of technology mixes in-situ soils together with cementitious materials in the process of forming a vertical stiff inclusion in the soil structure. The process entails rotating the mixing tool downwards to the designed depth. On reaching the appropriate depth, the construction engineer reverses the rotation of the mixing tool and starts withdrawing it at a standardized rate (Nelson 2005). The engineer forces into the ground agents that include slaked lime, quicklime, fly ash, and cement during advancement and withdrawal of the mixing tool. Other agents commonly referred to as binders introduced in the entire process in form of either wet slurry or dry powder. This technology shares familiar elements with the deep mixing technology with differences appearing in very high-pressure fluids that are applicable in the jet grouting technology in the process of eroding subsurface soil particles and used in mixing them with cement. This technology applies hydraulic energy to erode the soil as well as mix or replace the eroded soil with an engineered grout of water and cement in the process of forming a solidified in-situ component. Various subsurface geometries apply in the process of installing Jet Group elements. The tools for performing jet grouting remains special but many contractors are available and can help in continuing with technology. Engineers erect gadgets as close as possible to existing structures of embankment such as railways to strengthen resistance of the embankment and prevent failures from stability. They are made of few compacted meters of material with a height of one to two meters (Nelson 2005). They are also cost effective compared to other structures. However, its ability to reduce vibration and settlements is very low. In

Philosophy And Modernity Essay Example for Free

Philosophy And Modernity Essay The conflict between Philosophy and Modernity is a never ending topic. Each of the terms is individually supported by the corresponding generations. But those who support modernity, at least at some point of life will surely support philosophy. That is the power of philosophy. Let us take a mishap as example that shows us how these two issues conflict with each other. The terrorist attacks of September 11 still haunt the minds of Americans unnerved by the enormity of the crime. We need to know what could have inspired someone to do such a thing. It is bad enough to experience such a monstrous event; to feel it is inexplicable, an act with no conceivable motive, only adds to the sense of unreality. What is the source of this hostility? What ideas, values, and attitudes give rise to it? Lewiss observation contains the seeds of the two leading schools of thought about the answer to this question. Both schools place Islamist hatred of the USA in a larger cultural and historical context. Both are plausible, and in many respects they are compatible. But they differ in what they see as the essential terms of the ongoing conflict, and in their implications for the future. One school holds that the war on terror reflects an underlying conflict between Islam and the West as civilisations. Each is united, as a civilisation, by the loyalty of its people to a narrative of their past, a common religion, and shared ideas, values, and ways of life. The current tensions between Islam and the West are only the latest of the conflicts that have occurred over the centuries. The USA is a particular object of hostility now because it is the most powerful Western country. Those who reject modernity are to be found in every nation and civilization. The second school holds that terrorists hostility is directed at the principles and values of the West. On this view, what they hate is not the West as a society or a civilisation per se, but rather the culture of modernity. Modernity was born in the West, in the seventeenth and eighteenth centuries, but it is not inherently tied to the history or customs of any one society. It is a constellation of universal values the secular culture of reason, science, individualism, progress, democracy, and capitalism that have spread worldwide in different forms and to varying degrees. By the same token, those who reject modernity, who fear and wish to destroy it, are to be found in every nation and civilisation. And invariably they hate the USA as the fullest, most persuasive, and thus most dangerous embodiment of that culture. There are as many battles within civilisations as between them. Muslims saw military success as a mark of Allahs favour. As Seyyed Hossein Nasr, a prominent Iranian philosopher and historian, observes, During the first twelve centuries of its historic existence, Islam lived with the full awareness of the truth and realisation of Gods promise to Muslims that they would be victorious if they followed His religion. Such verses as There is no victor but God, which adorns the walls of the Alhambra, also adorned the soul and mind of Muslims. In the sixteenth and seventeenth centuries, however, the tide turned. The scientific and industrial revolutions vastly increased the wealth and the military power of the West. After the defeat of the Ottoman Empire in World War I, the Middle East was taken over by European nations and broken up into colonies and protectorates. Today, despite decolonisation, the countries of this region remain poor and backward by comparison not only with the West but also with the booming economies of East Asia. Oil revenue has showered wealth on the region, but economic growth has been held back by layers of regulations, wasteful government enterprises and investments, not to mention corruption. Because of their strategic location, Middle Eastern countries were pawns of the Cold War but were rarely true partners or friends of either power. Now, Muslims feel they are at the mercy of a global economy driven by Western capitalism. They feel invaded by Western popular culture, which they regard as morally decadent. Israel is the salt in all these wounds a nation of people who came from the West, tore a patch of land from Islam, turned it into a vibrant, wealthy economy, and acquired the military prowess to defeat its Arab neighbours. The result of all this, is a feeling of humiliation a growing awareness, among the heirs of an old, proud, and long-dominant civilisation, of having been overtaken, overborne, and overwhelmed by those whom they regarded as their inferiors. Having tried to take on Western ways, with dismal results, they are increasingly drawn to the idea that the solution is a return to the pure Islamic faith that reigned in the days of their former greatness. The clash-of-civilisations school doubtless represents part of the truth of the matter. But it is not the whole truth, and not the fundamental truth. Its chief shortcoming is that it exaggerates the extent of agreement in outlook, values, ideas, and loyalties among people who share the common history and culture that define a civilisation. In fact, there are as many battles over these issues within civilisations as between them especially in the West. The hijackers target was a temple of modernity. At the level of fundamental philosophical principles, however, the Enlightenment period was much more important as a turning point in the West, and in a way created a new civilisation. Anti-modernism Modernity was born in the West in a radical transformation of its past. The world of the Middle Ages, built around the world-view of Christian Scholasticism, was a society of religious philosophy, feudal law, and an agricultural economy. Out of this soil, the Renaissance and Enlightenment produced a substantially new society of science, individualism, and industrial capitalism. When we examine the wider context of Islamic terrorism, it is clear that a hatred of modernity is its driving force. The cultural foundation of this new society, if we state it as a set of explicit theses, was the view that reason, not revelation, is the instrument of knowledge and arbiter of truth; that science, not religion, gives us the truth about nature; that the pursuit of happiness in this life, not suffering in preparation for the next, is the cardinal value; that reason can and should be used to increase human wellbeing through economic and technological progress; that the individual person is an end in himself with the capacity to direct his own life, not a slave or a child to be ruled by others; that individuals have equal rights to freedom of thought, speech, and action; that religious belief should be a private affair, tolerance a social virtue, and church and state kept separate; and that we should replace command economies with markets, warfare with trade, and rule by king or commissar with democracy. It is therefore misleading to call our civilisation Christian, even though that remains the largest religion in terms of adherents. The West may still be a culture of Christians, by and large, but it is not a Christian culture anymore. It is a secular culture. And that is what the Islamists hate most about us. The al-Qaeda hijackers did not target the Vatican, the capital of Western Christianity whose leaders launched the Crusades. They did not attack the British Foreign Office, which directed colonial policy in the Middle East after World War I. They attacked the World Trade Centre, the proud symbol of engineering audacity and global commerce, where businesses from scores of countries (including many Muslim countries) worked in freedom and peace, creating wealth and investing in material progress. Their target, in short, was a temple of modernity. The culture of modernity is not a Western good but a human good Modernity meant people changing their relationship with both the world and themselves. For the first time, through science, they realised that many things, such as certain weather patterns or illnesses, were not a matter of fate. The social order no longer seemed impossible to change either. Revolutions could sweep away despots and people could improve their living standards. The threat posed by the Islamist terrorists derives not from their Islamic background but from the ideas, values, and motivations they share with anti-modernists everywhere-including in the West. In that regard, they have not merely assaulted our civilisation. They have attacked civilisation as such. Civilisation is the condition a society attains when it emerges from prehistoric barbarism and begins to apply intelligence systematically to the problems of human life, by creating technologies of production like farming, technologies of cognition like writing, and technologies of social order like cities and law. The culture of modernity is one of these permanent contributions the most important. Though Western in origin, it is not a Western good but a human good. It has vastly expanded our knowledge of the world; brought a vast increase in wealth, comfort, safety, and health; and created social institutions in which humans can flourish. Anti-modernism is not simply loyalty to pre-modern stages of civilisation on the part of people who have not yet discovered reason and individualism. It is a postmodern reaction by people who have seen modernity and turned against it, who hate and wish to destroy it. This is a profoundly anti-human outlook, and there can be no compromise with it. As we take aim at the terrorists who have attacked us, we must also take intellectual aim at the ideas that inspire them.

The Code of Chivalry in The Once and Future King Essay -- Once and Fut

The Code of Chivalry in The Once and Future King      Ã‚  Ã‚   T.H. White's novel The Once and Future King presents a code of chivalry that outlines the expected knightly behavior of the time. This particular code stresses loyalty to one's liege, love and respect toward women, and absolute devotion to justice. At the height of Arthur's kingdom, this code was widely accepted by all. However, as Arthur's kingdom begins to decline, the code of chivalry begins to hold less importance among the people. The fall of Arthur's kingdom is directly related to the absence of the code of chivalry in the behavior of the Knights of the Round Table. Sir Lancelot betrays Arthur when he has an adulteress affair with Guenever. Sir Lancelot also disrespects women when he leaves Elaine to be with Guenever in Camelot. King Arthur himself is disloyal to justice when he allows Guenever to be rescued by Lancelot.    The love triangle of Arthur, Lancelot, and Guenever is a constant theme throughout every account of the Arthurian legend. Geoffrey Ashe's The Arthurian Handbook states that "We may say that these knights are expected to serve their King..."(81). The revelation of the affair finally comes when Sir Agravaine shouts, "'Traitor Knight! Sir Lancelot, now art thou taken'"(White 569). Lancelot was summoned to Queen Guenever's bedroom, and Sir Agravaine is finally exposing the affair and gaining revenge on Lancelot for unhorsing him many times in the past. The two people that Arthur trusts most are Guenever and Lancelot. Arthur is well aware of the affair between the two, but chooses to pretend that nothing is going on. Due to this naivety, Arthur earns the disrespect (and even hatred) of Agravaine and Mordred, who eventual... ...misuse of justice make way for Mordred and his ideas to take root in Camelot. All of these actions eventually lead to Arthur chasing Lancelot and waging war upon him, while Mordred takes over in Camelot. This symbolizes that there is no middle ground between good (Arthur) and evil (Mordred). As good dissipates, evil always grows stronger. However, the same goes for evil dissipating and good rising to power. Given the time period in which T.H. White wrote (post World War II), White is speaking of the downfall of Hitler and the rise of a new order in Europe.    Works Cited Ashe, Geoffrey. The Arthurian Handbook. New York, USA: Garland Publishing, 1988 Morris, Rosemary. The Character of King Arthur in Medieval Literature. Cambridge: Brewer Publishing Co., 1982 White, T.H.. The Once and Future King. New York: Penguin Putnam, 1987   

Emerging Technology Essay

The purpose of this paper is to summarize the advantages of computers/software and the use of computer technology in investigations. Summarize the disadvantages to law enforcement with respect to the advancements of computers. Real cases will be researched in order to understand how computers can be utilized in criminal activities, as well as a case that the use of a computer was beneficial to the prosecution in a criminal case. A final conclusion paragraph will address my personal subjective opinion as to whether these technologies, in an overall sense are a benefit or hindrance to law enforcement efforts. Introduction Since computers have become such a big part of our lives it is no surprise that even criminals now know how to hack into large computer networks. Obtaining electronic evidence may be one of the most difficult types of evidence to recover. Another issue is authenticating this evidence; however with the help of legal standards this evidence is admissible in court today. Even though computers are the most dominant form of technology that is used in a variety of situations, there are set backs to everything and computers are no exceptions as this paper will explain (Forensic Science, n.d.). The Advantages of Computers and the Use of Computer Technology in Investigations In order to paint an accurate picture of the advantages of computers and technology relating to investigation we must start as close to the beginning as possible. This would be when President Johnson in his State of the union Address to Congress in 1968. This is where the President made the announcement â€Å"to bring the most advanced technology to the war on crime in every city and country in America† (Northrop, 1993). It was less than ten months when the congress along with the President, put into law the Omnibus Crime Control and Safe Streets Act of 1968. This law created the Law Enforcement Assistance Association (LEAA), to handle and deliver on the promise of the President of technological assistance. During the next ten years the LEAA contributed meanly $50 million to state and local government criminal justice and law enforcement agencies for crime fighting. Otherfederal agencies like the FBI matched the funding as well as local and state governments themselves (Northrop, 1993). To demonstrate the usefulness of computers by police in the fight against crime, this pare to the paper will refer to results from a comprehensive repeated-measures field study that looked specifically at how useful computers are to police in the fight against crime. The study focused on a particular class of computer use, which was the searches for vital information because this is the bulk of computer activity for officers and are valued by the police in their fight against crime. Between 1976 and 1988 the data did â€Å"show a clear improvement in both the use of and benefits from such systems† (Northrop, 1993). The only drawback is that â€Å"the investment in search systems and the promise they hold for improving police effectiveness is badly constrained by inadequate training of patrol officers and detectives† (Northrop, 1993). However, there is a very simple solution to this small glitch and that is to create an adequate training system and put all officers through that training program (Northrop, 1993). The most notable problem facing officers was the chronic lack of information. This spans the range from the police chiefs shortage of information on how to use the departments limited resources to the patrol officers uncertainty over whom to stop and question regarding suspicious behavior. In the 1970’s and early 1980’s, this problem was addressed using a multi-facade management approach and there were big payoffs. The problem of improving how information was provided to police officers in the street or to the detective working a case was harder to fix. They soon realized the only way to specific individuals or cases was the existing records. However, the only means of utilizing those records was to look them up (Northrop, 1993). From utilizing computers in cars so officers could run a license plate and social security number to see if there are any warrants out for the person they stopped, to more advances such as carrying cell phones, GPS tracking systems in cars, crime mapping tools, information sharing between state and local law enforcement, to even sharing information across countries. Technology has come a long way in helping officers and other agents within the criminal justice system do their job. Just a bit more about the advantages of the things mentioned above and time to move on. The most interesting thing is Geographic Information Systems (GIS), which has become a most important tool for law enforcement agencies. GIS, othermapping software and desktop computers now are capable of mapping and data analysis that is way above and beyond what used to be possible with backroom mainframe computers (Rubley, 2011). Another great advancement is the widespread use of everyone using mobile devices. Many officers now use two to three cell phones. The invention of apps has made it easy for everyone to tap a button and instantly retrieve valuable information. Information that used to take several steps to obtain using a browser is now at the officer’s fingertips. Mobile technology is evolving all the time and it is evolving fast, even in the past few years the government has been able to identify a suspect through a facial recognition app on the iPhone, look up a potential jurors social media profile during voir dire, and now they even have real time data streaming to mobile devices which can provide information on a fugitive or get instant news feeds. There is no doubt that computers and technology have taken law enforcement to a whole new level (Rubley, 2011). What Disadvantages Face Law Enforcement with Respect to the Advancements of Computers? One big disadvantage is that there is such a high volume of information being exchanged daily on the internet and while this is a convenient thing for most of us, there are also criminals taking advantage of the opportunity. There is corporate fraud, theft, intellectual property disputes, and even breach of contract and asset recovery issues. These are some of the situations that use computers to commit the crime and use computer forensics to solve the crime (n.a., 2009). An additional disadvantage is making sure that the digital evidence is going to be admissible in court. Since data can be modified very easy, the analyst must be able to comply with the standards of evidence required by law. The analyst must make sure their investigation is fully documented and accounted for. Another real disadvantage is the cost of retrieving the data. Computer forensic experts are hired by the hour and the process of analyzing and reporting the data can take up to 15 hours depending on the nature of the case (n.a., 2009). Other disadvantages are really the same ones facing all users of technology. If the system is down there is no information that can be retrieved. If the user is not trained in using the technological equipment at his/her disposal then this will be a waste of time. If the input of information is incorrect which sometimes occurs because of human error, then that will cause a problem for officers in the long run. The Case Chosen to be researched where the Computer was used to Aid in the Commission of a Crime. 3 NJ Students Charged in School Computer Hacking On April 14, 2010, in Haddonfield N.J. three students hacked into one of the top preforming High Schools. They are now facing charges for attempting to change their grades once they were into the system. The three students are boys, ages 14, 15, and 16 but because they are minors their names have not been released. The Boys were found out when a staff member found one of the boys using keystroke capture software on one of the computers at the school in an attempt to steal a teacher’s password. That student then implicated the others in this crime. The boys were charged with illegally obtaining information and were released to their parents (Associated Press, 2010). This is a wonderful example of how people, who might never have committed a crime in their lives, get ideas about computers as if this is not a crime. They get on the internet, explore places and things that are illegal and never think twice about it because they are either in their own home and feel protected, or they feel that it is easier to get away with computer related crimes and take their chances. There is too much technology and it is dangerous in the wrong hands. People need to realize that especially crime on the internet will always be solved sooner or later because what you do on a computer leaves a print forever that can never be erased. Research Case Where a Computer was Beneficial to the Prosecution in a Criminal Case In this case a woman age 45, named Sonia Martin, from Nigeria and Chicago, Illinois was â€Å"manager of a Chicago cell in one of the most sophisticated and organized computer hacking and ATM cash out schemes ever perpetrated† (U.S. Attorney’s Office, 2012). On August 12, 2012 she was sentenced to serve two years and six months in a federal prison on charges of conspiracy to commit wore fraud. She will also serve five years of supervised release and $89,120.25 in restitution fees (U.S. Attorney’s Office, 2012). According the United States attorney Yates, in November of 2008 a group of hackers obtained unauthorized access into the comp uter system of a company called WorldPay US, Inc., then known as RBS WorldPay, which is a payment processor in Atlanta. The hackers were very sophisticated and used some daring techniques to compromise the data encryption that WorldPay used to protect the customers data on payroll debit cards. These are used by more and more companies to pay their employees. This is convenient for employees as they can use the debit card right away or use it to withdraw their salaries right from an ATM (U.S. Attorney’s Office, 2012). Once they were in, hackers raised the balances and ATM withdraw limits on the compromised accounts. â€Å"They then provided a network of lead â€Å"cashers† with 44 debit card account numbers and their PIN numbers, which they used to withdraw more than $9 million from over 2,100 ATM;s in at least 280 cities worldwide, including cities in the United States, Russia, Ukraine, Estonia, Italy, Hong Kong, Japan, and Canada† (U.S. Attorney’s Office, 2012). The whole thing, $9 million dollars, took less than 12 hours to pull off on November 8, 2008 (U.S. Attorney’s Office, 2012). Throughout the cash out the hackers monitored these fraudulent ATM withdraws in real-time from inside the computer systems of WorldPay. Once the transactions were complete the hackers sought to destroy data stored on the card processing network so they could cover up this illegal activity. WorldPay discovered the unauthorized activity and reported the breach (U.S. Attorney’s Office, 2012). Sonia Martin was working with one of the lead cashers and supervised a cashing crew in Chicago. Martin was given PIN codes, and payroll cards, and then manufactured counterfeit debit cards based on that information. So she handed out cards to her underlings that she recruited and supervised. Together they all withdrew approximately $80,000 from various ATM’s around Chicago, during the early morning hours of November 8, 2008. Martin’s primary addres s is Nigeria (U.S. Attorney’s Office, 2012). This case was investigated by special agents of the federal bureau of investigations. Other who helped provide assistance included; numerous domestic and international law enforcement partners and WorldPay immediately reported the crime and substantially assisted in the investigation (U.S. Attorney’s Office, 2012). Conclusion My belief is that the new technology and computers have really given law enforcement some spectacular tools to do their job. I feel that technology has aided in the increase of incarcerations. Anytime criminals can be taken off the streets or even out of the darkness of their homes where they are committing crimes, this is a good thing. Yes there are some disadvantages that can also be dealt with. The problems of officers being unaware of how to use some of this modern technology can be cured by sending them to some training programs. All officers need to be aware of what evidence to collect when it is possibly on a computer and the chain of custody that this type of technology requires. As technology advances, unfortunately so will the crime that is being committed with that technology. Officers everywhere must be able to respond to these crimes effectively. This is why it is so important for every department to keep up with the fast paced computer technology, cell phone technology and any other technology that will aid in catching the bad guy. References Associated Press. (2010). 3 NJ students charged in school computer hacking. Retrieved June 6, 2013, from abclocal.go.com: http://abclocal.go.com/wpvi/story?section=news/technology&id=7386890 n.a. (2009). Advantages and Disadvantages of Computer Forensics . Retrieved June 9, 2013, from anushreepatil.ewebsite.com: http://www.anushreepatil.ewebsite.com/articles/advantages-and-disadvantages-of-computer-forensics.html Northrop, A. (1993). Police of Computers. Retrieved June 10, 2013, from Center for Research on Information: http://www.escholarship.org/uc/item/71x0h7hb#page-2 Rubley, S. (2011). How Has Mobile Evolved to Help the Investigative Community . Retrieved June 9, 2013, from Blog.Thomson Ruters.com: http://blog.thomsonreuters.com/index.php/how-has-mobile-evolved-to-help-the-investigative-community/ U.S. Attorney’s Office. (2012, August 12). Sentencing in Major International Cyber Crime Prosecution . Retrieved June 9, 2013, from FBI.gov: http://www.fbi.gov/atlanta/press-releases/2012/sentencing-in-major-international-cyber-crime-prosecution