Aldous Huxleys Brave New World and Political and Social Ideas :: essays research papers

The characters in Aldous Huxley’s Brave New World represent certain political and social ideas. Huxley used what he saw in the world in which he lived to form his book. From what he saw, he imagined that life was heading in a direction of a utopian government control. Huxley did not imagine this as a good thing. He uses the characters of Brave New World to express his view of utopia being impossible and detrimental. One such character he uses to represent the idealogy behind this is Bernard Marx.   Ã‚  Ã‚  Ã‚  Ã‚  Bernard Marx is a character that represents those that are different from the norm, a character still relevant in today’s culture. He is an archetype of those that are looked down upon as different. He signifies those that look and/or think uniquely. Bernard is the outcast who longs to belong.   Ã‚  Ã‚  Ã‚  Ã‚  Bernard is pretty high up in the social system in Brave New World. He is an Alpha Plus at the top of the caste system and he works in the Psychology Bureau as a specialist on hypnopaedia. Bernard, though, is flawed according to his culture on the inside and out. “’He’s so ugly!’…’And then so small.’ Fanny made a grimace; smallness was so horribly and typically low-caste’'; (46). Bernard’s looks pushed him to be an outsider. His physical insufficiencies cause him to be different mentally. The way that he thinks and acts is different then that of the cultural norm. “’They say he doesn’t like Obstacle Golf.’…’And then he spends most of his time by himself – alone’'; (44). The way that Bernard acts is so different then everyone else in the world in which he lives. In Brave New World being alone is a rare occurrence, and sports are something that everyone participates in. Bernard also thinks of women and relationships differently. Though promiscuity is a normalcy in Brave New World, Bernard sees relationships as a personal thing and does not think of a woman as someone to just have. “’Talking about her as though she were a bit of meat.’ Bernard ground his teeth. ‘Have her here, have her there. Like mutton. Degrading her to so much mutton’'; (45). Bernard gets angry hearing others talking so casually about sexual relations with a woman. Bernard goes against the grain in the way he looks, acts and thinks. He does not follow the cultural standard and is therefore despised and teased, and is labeled a freak.

Power of a Woman (the Colour Purple)

The Power of Women Every country on earth is affected by a common issue – discrimination. Discrimination is the prejudicial treatment of different categories of people or things, especially in regards to race, age, or sex. Such an issue began to affect the world in the seventeenth century, and has continued till this day. African Americans were first targeted by the Caucasian race due to the significant difference within their skin tone. In the Colour Purple by Alice Walker, people are faced with several types of discrimination: sexism, domestic abuse and racism. Discrimination is one of the most devastating events that mankind may have to potentially face. In the seventeenth century, sexism was leading this era. Women were not thought of very highly and were often taken advantage of. Till this day there are still sexist comments being targeted towards women. This social issue in society plays a large role, which dictates the opinions and views of when perceiving a gender . In the novel, The Colour Purple there is a very sexist setting, causing frequent beatings, the stereotypes based on African American women, and the thoughts and feelings towards them. Throughout this novel many different strong women are mistreated, the strongest of them all being – Cellie. Sexism played a large part in women’s lives, as they were judged upon a woman’s beauty, clothing and children. When young Cellie was sold and married to an older man, she did not know the devastating events that her life would bring. Cellies husband makes her cook, clean, take care of his kids, shave him and have sexual intercourse with him. Cellie accepted the stereotypes that were presented to her and she was obligated to think that the way she was treated was acceptable â€Å"When a women marry she spose to keep a decent house and family† p47. When Cellie says this she is sharing her thoughts on how a married woman should act and her place in the home. This forces Cellie to be prejudice and think that all men are horrible and sexist. There comes a time in every strong woman’s life, that hurtful words are said about appearance, imagine and behaviour. This young woman was told every single day by all the men in her life how ugly she was. She was reminded every single day about her flaws, this lead to the down fall in her self- esteem issues. Her husband never showed her love because he thought she was â€Å"too black† to actually love or even respect. The reason why Cellie’s father sold her and not her younger sister was because she was too pretty for any man, and young Cellie was not. She was reminded every day of her flaws. â€Å"He black as tar, nappy-headed, got legs like baseball bats, and I hear she got that nasty women's disease†. This quote is said to Cellie by her father in law while they are having a family dinner. Cellie begins to feel embarrassed because her whole family begins to laugh and agree. Sexism is a type of discrimination, and is still an issue in today’s society. Thousands of homes have been affected by domestic violence. The conformational battle between spouses, ex spouses and children has been affecting society for a long time. Each year thousands of females are beaten by their husbands, fathers, or even their brothers. Before Cellie married, she was harassed by her own father. He would rape her and give her cruel and unusual punishments. She thought she had no options and had to endure the pain that her father had infused upon her. Cellie did not know that the pain she was enduring from her father was against the law, because she had been surrounded in this environment her entire life and it was all she knew. Cellie did not understand that being raped by her father and getting her daughter taken away from her was against the law. â€Å"He [Pa] never had a kine word to say to me. Just say You gonna do what your mammy wouldn’t. First he put his thing up gainst my hip and sort of wiggle it around. Then he grab hold my titties. Then he push his thing inside my pussy. When that hurt, I cry. He start to choke me, saying You better shut up and git used to it. I don’t never get used to it. And now I feels sick every time I be the one to cook† p1. Cellie’s father was physically violent and he caused extensive emotional damage by not showing respect for his daughter, he treated her like she was his personal slave and he never said a kind word to her. She was under her father’s influence as she was not able to tell anyone about the events that were taking place in her home and the way she was being treated. Cellie struggled her whole entire life in search for happiness. When Cellie was sold and married to a man, she was glad because she was unconfined from her father and his cruelty. Her husband had no intension of loving her, he not only physically abused her but he was verbally abusive as well. He ordered her to take care of all the housework- because she is a female and he insisted that she look after his kids. If Cellie refused and defied her husband she was severally punished. It is common for any human being that is put forth in these traumatizing events to lose respect for themselves, forget how to live life as well as love. Cellie’s life has always been full of sorrow and darkness, until a miracle occurred. Cellie met a powerful women who changed her perspective in life, and reminded her how to laugh, have fun and stand up for herself. She found the courage to stand up for herself and get a divorce from her husband. â€Å"I curse you, he say what you mean? I say until you do right by me everything you touch will crumble† p122. Cellie realized that a woman does not need a man to survive and that woman can live their lives the way they want to. She managed to establish self respect and obtain higher self esteem. Racism is the discrimination of different races and is the thought of one race or color of skin has more physical and mental abilities than another. Why do we think such things of other people? Is it really right to think of people differently because of the color of their skin? In the seventeenth century it was considered tolerable to be divided by the colour of your skin. Caucasian’s were known to be successful store owners and filthy rich. Whereas people from the African American decent were slaves or small store owners and were considered poor. The Caucasian decent at the time were the wealthiest and always wanted the cleanest African Americans to be their slaves and take care of all their household chores. If an African American refused to become a slave then they were forced to become on and had to endure cruel and unusual punishments. In the novel, another powerful women Sofia is taken away from her family and friends to become a slave. She was a slave for the most powerful woman, Sofia had chosen to stand up for herself and say that she did not want to be the mayors wife’s slave, she had even slapped her for asking, Sofia was then put into jail. Once she was released from jail, she was sent to the mayor’s house to become their slave, once again and now became their property. â€Å"Miss Millie finger the children some more, finally look at Sofia and the prizefighter. She look at the prizefighter car. She eye Sofia wristwatch. She say to Sofia, All your children so clean, she say, would you like to work for me, be my maid? Sofia say, Hell no. She say, What you say? Sofia say, Hell no. Mayor look at Sofia, push his wife out the way. Stick out his chest. Girl, what you say to Miss Millie? Sofia say, I say, Hell no† p137. Any African American woman would be honoured to work for a wealthy Caucasian family but Sofia was unwilling and had enough self respect not to degrade herself. Sofia is standing up for herself, her children and her beliefs, but she is thrown into jail to be beaten and come out a scared black women. Sofia’s children do not become slaves or â€Å"maids†, but one of Sofia’s punishments was that she was not allowed to see or even speak to her family. One Thanksgiving Day, Sofia was rewarded for being a good slave and was allowed to go visit her family with one condition, Miss. Mille would have to drive her there and back to make sure she would not run away. When they got there Miss. Mille was not able to turn off her car, so Sofia’s brother had tried to help, but Miss. Mille got scared and thought she was being sexually abused. Miss. Mille had forced Sofia to drive her home and she was never to come back to see her family again. â€Å"Come on Cellie, let’s go these people are going to hurt me and your the only one I trust† p150. Even though Sofia’s brothers were only trying to help Miss. Millie, she was scared because they were â€Å"black† she was being racist and stereotyped that all â€Å"black† people were not decent individuals. Racism played a very important role in African American families; it broke them apart and/or made them stronger. It had broken bonds and made African Americans live through memories they have of each other. Discrimination is a social issue that still influences people all around the world. This issue has many different aspects and people are affected and treated by it differently. The novel The Colour Purple is a historical novel that involves many different forms of discrimination: sexism, racism and domestic abuse. Discrimination is affecting many people around the world and we need to put an end to it, putting an end to it is the only way we will be able to change the world!

Sten Gun in World War II

The Sten submachine gun was a weapon developed for use by British and Commonwealth forces during World War II, while the Lee-Enfield Rifle was the standard issue. It takes its name from the last names of its designers, Major Reginald V. Shepherd and Harold J. Turpin, and Enfield. Intended to be simple to build, the Sten was employed across all theaters of the conflict and was retained by many militaries for several decades after the war. The Sten also saw extensive use by resistance groups in Europe during the conflict and its easy to construct design permitted some to produce their own variations. Development During the early days of World War II, the British Army purchased large numbers of Thompson submachine guns from the United States under Lend-Lease. As American factories were operating at peacetime levels, they were unable to meet the British demand for the weapon. Following their defeat on the Continent and the Dunkirk Evacuation, the British Army found itself short on weapons with which to defend Britain. As sufficient numbers of Thompsons were unavailable, efforts moved forward to design a new submachine gun that could be built simply and cheaply. This new project was led by Major Reginald V. Shepherd, OBE of The Royal Arsenal, Woolwich, and Harold John Turpin of the Design Department of the Royal Small Arms Factory, Enfield. Drawing inspiration from the Royal Navys Lanchester submachine gun and the German MP40, the two men created the STEN. The weapons name was formed by using Shepherd and Turpins initials and combining them with EN for Enfield. The action for their new submachine gun was a blowback open bolt in which the movement of the bolt loaded and fired the round as well as re-cocked the weapon. Design Problems Due to the need to quickly manufacture the Sten, construction consisted of a variety of simple stamped parts and minimal welding. Some variants of the Sten could be produced in as few as five hours and contained only 47 parts. An austere weapon, the Sten consisted of a metal barrel with a metal loop or tube for a stock. Ammunition was contained in a 32-round magazine which extended horizontally from the gun. In an effort facilitate use of captured 9 mm German ammunition, the Stens magazine was a direct copy of one used by the MP40. This proved problematic as the German design utilized a double column, single feed system that led to frequent jamming. Further contributing to this issue was the long slot along the side of the Sten for the cocking knob which also allowed debris to enter the firing mechanism. Due to the speed of the weapons design and construction it contained only basic safety features. The lack of these led to the Sten having a high rate of accidental discharge when hit or dropped. Efforts were made in later variants to correct this problem and install additional safeties. Sten Gun Cartridge: 9 x 19mm ParabellumCapacity: 32-round detachable box magazineMuzzle Velocity: 1,198 ft./sec.Weight: approx. 7.1 lbs.Length: 29.9 in.Barrel Length: 7.7 in.Rate of Fire: 500-600 rounds per minuteSights: Fixed peep rear, post frontAction: Blowback-operated, open bolt Variants The Sten Mk I entered service in 1941 and possessed a flash hider, refined finish, and wooden foregrip and stock. Approximately 100,000 were produced before factories switched to the simpler Mk II. This type saw the elimination of the flash hider and hand grip, while possessing a removable barrel and shorter barrel sleeve. A rough weapon, over 2 million Sten Mk IIs were built making it the most numerous type. As the threat of invasion eased and production pressure relaxed, the Sten was upgraded and built to a higher quality. While the Mk III saw mechanical upgrades, the Mk V proved to be the definitive wartime model. Woman worker poses with finished Sten submachinegun, 1942. Library and Archives Canada Essentially a Mk II built to a higher quality, the Mk V included a wooden pistol grip, foregrip (some models), and stock as well as a bayonet mount. The weapons sights were also upgraded and its overall manufacture proved more reliable. A variant with an integral suppressor, dubbed the Mk VIS, was also built at the request of the Special Operation Executive. On par with the German MP40 and U.S. M3, the Sten suffered the same problem as its peers in that its use of 9 mm pistol ammunition severely restricted accuracy and limited its effective range to approximately 100 yards. An Effective Weapon Despite its issues, the Sten proved an effective weapon in the field as it dramatically increased the short-range firepower of any infantry unit. Its simplistic design also allowed it to fire without lubrication which reduced maintenance as well as made it ideal for campaigns in desert regions where oil could attract sand. Used extensively by British Commonwealth forces in Northern Africa and Northwest Europe, the Sten became one of the iconic British infantry weapons of the conflict. Both loved and hated by troops in the field, it earned the nicknames Stench Gun and Plumbers Nightmare. American officer and French partisan with a Sten crouch behind an auto during a street fight in a French city, 1944. National Archives and Records Administration The Stens basic construction and ease of repair made it ideal for use with Resistance forces in Europe. Thousands of Stens were dropped to Resistance units across occupied Europe. In some nations, such as Norway, Denmark, and Poland, domestic production of Stens began in clandestine workshops. In the final days of World War II, Germany adapted a modified version of the Sten, the MP 3008, for use with its Volkssturm militias. Following the war, the Sten was retained by the British Army until the 1960s when it was fully replaced by the Sterling SMG. Other Users Produced in large numbers, the Sten saw use around the world after World War II. The type was fielded by both sides of the 1948 Arab-Israeli War. Due to its simple construction, it was one of the few weapons that could be produced domestically by Israel at that time. The Sten was also fielded by both the Nationalists and Communists during the Chinese Civil War. One of the last large-scale combat uses of the Sten occurred during the 1971 Indo-Pakistani War. On a more notorious note, a Sten was used in the assassination of Indian Prime Minister Indira Gandhi in 1984.

Regarder - French Verb Conjugations

Solution Of Water Pollution - 1025 Words

Water pollution is a major global problem which is the pollution of seas, lakes, rivers, swamps†¦ The pollution is made of storm and rainwater, sewage water and industrial waste. In developing countries, 70% of the waste dumped into waters are coming from industries. More than 80% of sewage from sewage treatment plants pollutes rivers and lakes without being treated first. 43% of Americas rivers and lakes are too polluted for fishing, swimming, or aquatic life. 1.2 trillion gallons of sewage water and industrial waste are released into US waters every year. Water pollution can also be in the form of solid waste. 3) Causes of this issue The first cause is the atmospheric deposition. Water pollution mostly doesnt begin in the†¦show more content†¦Iraq released over 300 million gallons of oil on purpose in the Persian Gulf to be offensive in the Gulf War. My fifth cause is sewage and wastewater. Households, industrial and agricultural practices make wastewater that pollutes lakes and rivers. Sewage is the word used for water that contains feces, urine, and other waste. People produce sewage and wastewater because they don’t know about helping the environment and they think that they’re doing nothing wrong and that’s why we need to alert them about this issue or sometimes there are storms and the government can only handle a certain amount of water so they don’t know what to do. Sewage water is pretty degradable and most of it is broken down in the environment which pollutes. The last cause is solid waste. Solid waste happens when people throw their trash (Water bottles, chip bags or plastic bags..) on the floor and the rain washes it down to sources of water. Or, before America used to put all their trash in a boat, sail it into the ocean and then dump it into the water! People cause solid waste because it’s cheaper from them. 4) Effects of water pollution The effects that atmospheric deposition has on water pollution is that when acid rain rains on water habitats (rivers and lakes) aquatic lives are hurt. Lakes and streams become acidic and the pH value goes down because the water and its soil cant block the acid rain enough to neutralize it. Frogs can tolerate high levelsShow MoreRelatedSolution Of Water Pollution1036 Words   |  5 Pagessurface has been covered by water, and less than a third is taken up by land. Water pollution has increased dramatically affecting our food system including, drinking water, and our environment.Water pollution is generally caused by human activities but may also be caused by natural resources. Before the 19th century Industrial Revolution, people in the industrialized environment believed that the oceans were too big to be polluted, so the problem of the water pollution has dragged along with it.Read MoreThe Effects Of Water Pollution On The World And It Requires Solutions1395 Words   |  6 Page sWater pollution is one of the most undesirable environmental problems in the world and it requires solutions. Textile industries produce a lot of wastewater, which contains a number of contaminants, including acidic or caustic dissolved solids, toxic compounds, and any different dyes, many of these dyes are carcinogenic, mutagenic, and toxic to human beings, fish species, and microorganisms. Hence, their removal from aquatic wastewater becomes environmentally important. There are several methodsRead MoreGlobal Water Pollution: Causes, Impacts, and Solutions Essay530 Words   |  3 PagesWater pollution has become a huge problem in many countries all over the world. It is known that water is a very significant factor in life, but if this water becomes contaminated, it will be very dangerous for the humanity and wildlife. Pollution is defined as to make fetid or unclear and dirty (American College Dictionary). So, water pollution means the change in the water composition to be dirty or unclear. This essay will examine the causes of water pollution, the effect of that issue in lifeRead MoreEssay On Water Pollution1493 Words   |  6 PagesProblem Water Pollution In my community, water pollution can often become a very serious problem. Pollution from sewage spills, storm runoff, road salt, and The Issue The problem in my community that I chose to research is the issue of water pollution. Water pollution can start by sewage spills, storm runoff, road salt, marine dumping, oil pollution, and underground leaks. In my community these factors can combine to pollute the water, turning it undrinkable and unusable. Water Pollution Who DoesRead MorePoison Water Essay1030 Words   |  5 PagesPoison Water The consequence of polluting the earth is constantly ignored by human beings. Pollution is dangerous and harmful to both living things and the environment. Chemical waste, fertilizer and numerous additional are one of the most important affect which is leading us to damaging possessions of water pollution, Pollution should be condensed in order to make available a cleaner environment and generate healthy living environment and habitat for all life forms on earth. Water pollution alsoRead MoreWater Pollution Is Bad For The Environment1252 Words   |  6 PagesPollution, of any kind is bad for the environment, but water pollution is bad for the environment and affects people. Our water quality is affecting positano and it s people. The article â€Å"Whale Facts† state s â€Å" Water pollution has become a growing concern over the last century as more and more waste is being disposed of in our oceans, rivers and lakes.†(Whale Facts). Water pollution is taking over our oceans, rivers, and lakes which are our primary drinking source. All the water that we drinkRead MorePoint Source Pollution Essay1248 Words   |  5 PagesLiterature Introduction Pollution has been an ongoing program that dates back thousands of years and consists of air, noise, water, light, soil, thermal, and radioactive forms (causes). This research paper will concentrate on water pollution, types, causes, and solutions to deal with what possibly will lead to an inevitable destruction of our environment, leading to water ways that cannot sustain life. Life cannot exist without clean, or non-polluted water. Since our drinking water and a lot of our foodRead MoreHealth Effects Of Air And Water Pollutants1269 Words   |  6 PagesHealth effects of air and water pollutants are major environmental issues that need to be better understood and controlled in the United States and globally. This issue is so important for many reasons, but for this discussion it is being identified to give a voice to the urgency to the world to pay attention to how our environment is failing into a catastrophic level of decline because of these types of pollutants. In order to overcome the pollutants there needs to be a call to action. We needRead MoreThe Effects Of Pollutants On The Worst Drinking Water873 Words   |  4 Pagesworst drinking water? Unfortunately, let me tell yes that Houston occurs the fourth place of the ten cities with drinking water issue after Pensacola, Riverside (California), Las Vegas, Riverside County (California), and Reno. Houston is the fourth large cities of the United States. It drains many water sources such as the Trinity River, the San Jacinto Rivers and Lake Houston. These water sources provide the drinking water that we use throughout the city. The quality of this water tested by TexasRead MoreWater Pollution : The Slow Demise Of A Community1552 Words   |  7 PagesWater Pollution; the Slow Demise of a Community Water is essential to all life. Plants need water, people need water, other animals need water; the point being that life depends on water. For thousands of years we can see that humans all have settled near bodies of water. This allowed them to have water for drinking, coking, and cleaning as well as a very efficient mode of transportation. We must be very careful to protect our waters because they are necessary for life. In this essay I will discuss

Emotional Intelligence and Effective Managerial Leadership Free Essays

Emotional Intelligence is the study of emotions and their impact upon the work environment. This definition must allow for external factors. Hughes writes an effective leader will have impact upon their team and this is â€Å"apparent in the growing interest over the past decade in topics like the leader’s genuineness, authenticity, credibility and trustworthiness† (3). We will write a custom essay sample on Emotional Intelligence and Effective Managerial Leadership or any similar topic only for you Order Now A leader’s reflection of these attributes is found in their level of connectedness with employees. As a result leaders are more interested in mentoring and training their team rather than focusing on output of numbers or turn around time. These qualities are a good indicator for selecting a potential manager. This development in team building allows for â€Å"providing people opportunities to learn from their work rather than taking them away from their work to learn† (Hughes 4). Emotional Intelligence relies upon the fact the leader will be able to have a competent level of interaction with the employee. It reflects successful leadership by allowing for complex relationships for team members by recognizing relationship building, capacity of visions and personal development. Emotional Intelligence for a leader means being able to read people, be read and allow for open dialogue. A corporation wants to hire someone emotionally intelligent because they have an understanding of the harmony between personal and professional personalities. To provide effective managerial leadership, one must display a certain level of Emotional Intelligence. It has been found â€Å"today business leaders rank Emotional Intelligence capabilities as critical to the success of today’s leaders† (Business Executives 1). Employees look up to management for guidance. By displaying Emotional Intelligence, the leader defines the boundaries for the team and creates an atmosphere for building relationships. This in turn creates stronger teams. In today’s company, the role of management also involves leadership within a team structure. A leader with a high level of Emotional Intelligence knows outside factors play a role in professional demeanor and have found a way to balance such behaviors. Also they are challenged by this balance and have a competitive edge. It is resilience, Hughes explains â€Å"that allows individuals to take difficult experiences in their lives and use them as opportunities to learn† (12). There is a level of change involved with studying Emotional Intelligence. The leader comprehends change as a constant everyday factor. The leader’s role is to sell the idea of change, commitment and expectations. A leader must also display curiosity, have guts and be a dominant force. Bennis reflects, there are two kinds of people â€Å"those who are paralyzed by fear, and those who are afraid but go ahead away. Life is not about limitation but options† (185). By understanding emotions, one can improve their own filtering of surroundings and enjoy greater success through relationships. Finally, competition is brutal and the global market continues to shrink due to communication technologies. It is important in leadership to embrace change and stick to a vision. By having Emotional Intelligence one can â€Å"recognize the physical and mental signs of our feelings/emotions before we can act on them meaningfully and constructively† (Eby Ruin par 20). How to cite Emotional Intelligence and Effective Managerial Leadership, Essay examples

Nike Cost of Capital solution free essay sample

Kimi Ford, a portfolio manager for the mutual-fund management group NorthPoint, was reviewing the financials of Nike Inc. to consider buying shares for the NorthPoint Large-Cap Fund that she managed. A week prior, Nike Inc. held an analysts’ meeting to share their 2001 fiscal results and develop a strategy to revitalize the company. II. Background of Firm Nike’s revenues since 1997 had grown from $9 billion, while net income had fallen $220 million. A study written by Douglas Robson printed in Business Week revealed that Nike’s market share in the U. S. athletic shoe industry had fallen from 48 percent to 42 percent since 1997. In addition, supply-chain issues and the effects of a strong dollar negatively affected revenues. In the meeting, management planned to increase revenues by developing athletic-shoe products in ranges varying between $70-$90 and push their apparel line. Nike’s executives expressed that the company would still continue with a long-term revenue growth target of 8-10 percent and earnings-growth target above 15 percent. III. Statement of Situation After reading all the analysts’ reports, Kimi Ford decided to develop her own discounted-cash-flow forecast to achieve the investment decision for her mutual fund. The forecast showed that at a 12 percent discount rate, Nike’s stock price was overvalued at $4. 82 per share. She created a sensitivity analysis, which revealed that Nike’s stock was undervalued at discount rates of less than 11. 7 percent. The results concluded from the sensitivity analysis made Kimi Ford unsure of her decision on Nike stock; she proceeded to ask Joanna Cohen to estimate Nike’s weighted average cost of capital. IV. Constraints on Solution Cohen calculated a weighted average cost of capital of 8. 4 percent by using the capital asset pricing model for Nike Inc. Cohen’s calculations are incorrect because she used the book value for both debt and equity. When calculating cost of capital, the market value of debt and equity must be used. The market value of equity is found by multiplying the stock price of Nike Inc. by the number of shares outstanding. V. Possible Solutions The analyst team calculated Nike Inc. cost of capital by using two different models and approaches and then choosing the best one based on confidence in the data. Market Value of Equity = (Stock Price * # Shares Outstanding) E = ($42. 09 * 271. 5) E = ($11,427. 44) The above calculation of market value of equity is much higher than the book value of equity that Cohen used of $3,494. 50. In addition, for market value of debt, Cohen uses the book value instead of using the discounted value of long-term debt. The market value of debt is calculated by adding the present portion of long-term debt, notes payable, and long-term debt discounted at Nike’s accepted coupon rate. Market Value of Debt = (Present LT Debt + Notes Payable + LT Debt) D = ($5. 40 + $855. 30 + $435. 9) D = ($1,296. 60) With these calculations, the weight of debt and equity of Nike and the company can be calculated. Once these weights are calculated, the company’s capital structure can be concluded. Weight of Debt = (Debt / Debt + Equity) W = ($1,296. 60 / $1,296. 60 + $11,427. 44) W = (10. 19%) Weight of Equity = (Equity / Debt + Equity) E = ($11,427. 44 / $1,296. 60 + $11,427. 44) E = (89. 80%) In addition, another issue is finding the correct costs of debt and equity in order to find the correct calculation of WACC. Cohen used the 20-year yield on U. S. Treasuries of 5. 74% as the risk free rate, which is correct given the debt was valued over 25 years and there is no given yield for that amount of time. Calculating the market risk premium requires using the two historical equity risk premiums given for a time period from 1926 to 1999: Geometric mean and arithmetic mean. The arithmetic mean is better for a one-year estimated expected return. Considering the 20-year yield on U. S. Treasuries of 5. 9, using the geometric mean is the best choice because it is for a longer time. To use the CAPM approach, a beta for Nike Inc. had to be decided on. To account for significant beta changes, using the average beta of . 80 was the best choice. This was decided on because using the YTD beta of . 69 was showing the past and not a good reflection of potential revenues. In addition, the average beta of . 80 will better show increases in market share. Cost of debt was calculated by the yield to maturity on 20-year Nike Inc. debt with a 6. 75 percent coupon semi-annually. The cost of debt was calculated as follows: PV = -937. 61 N = 40 Pmt = 33. 75 FV = 1000 I/Y = 3. 67% semi-annually (YTM) = 3. 67% * 2 = 7. 34% After-tax cost of debt = . 0734 x (1-. 38) = . 0455 or 4. 55% The cost of equity was calculated as follows: K(e) = Rf + Beta * (MRP) K(e) = 5. 74% + . 8 * 5. 90% K(e) = 10. 46% Using the values from calculating the weight and cost of both debt and equity, the cost of capital is determined to be 9. 86 percent. Using the WACC formula, the analysts’ team came to a different conclusion than Ms. Cohen. WACC = Wd*Kd (1-T) + WeKe = . 1019*. 0734 (1-. 38) + . 8980*. 1046 = 9. 86% The next model that the analysts’ team used to calculate the cost of capital was the dividend discount model. This model assumes that the company pays a substantial dividend. This model was rejected because Nike Inc. does not pay a substantial dividend. DDM = [Do (1+g)/Po] + g DDM = [. 48(1+.055)/42. 09] + . 055 DDM = 6. 70% . The final model used to compute the cost of capital was the earning capitalization model. The analysts’ team chose to reject this model because it does not take growth into account. ECM = E1/Po ECM = 216/42. 09 ECM = 5. 31% VI. Recommendation The analysts’ team found the weighted average cost of capital by using CAPM, finding a discount rate of 9. 86 percent. The WACC calculation difference of 1. 46 percent was higher than what Ms. Cohen calculated ofat 8. 40 percent. At a discount rate of 12 percent, Ms. Ford calculated Nike’s equity value per share at $37. Which is undervalued from the present market share of $42. 09. Using the discount rate of 9. 86 percent the analysts’ team estimated an equity value higher than Ms. Ford’s. The estimate of $44. 11 equity value per share overvalued(? ) the present value by $2. 02. This data concluded that Nike Inc. should not be added to the NorthPoint Large-Cap Fund at this time because the stock is overvalued. She should watch the company closely because Nike Inc. has growth potential that would be beneficial to her fund. Nike Inc’s. management has plans for the future that if successful could provide the company with abundant revenues.