Comparison of The Crucible And Dont Ask, Dont Tell

In the most publicized gay bashing, the dead body of Adam R. Schindler Jr., an American naval radioman, was found battered and disfigured in a public toilet in a park in Japan where he had been serving [Sterngold]. After revealing his homosexuality to his peers in the army, he had been left unrecognizably mutilated and beaten to death. In response, in 1993, the Clinton administration initiated â€Å"Don’t Ask, Don’t Tell† [DADT] which meant that military officers could not investigate a soldier’s sexual preference without reason and a soldier should not voluntarily disclose it [McGowan 4]. Historically, the US military had never directly banned gays, only their actions of sodomy, but a change occurred during the World Wars after the Christian†¦show more content†¦Pre-DADT, everything was blamed on them, from ship explosions to natural disasters [Frank 31] thereby adding to the belief that gay men were hindrances to the military and inferior beings . Similarly, in Salem, the people first being accused of witchcraft were lower class, unchristian-like women such as Tituba, the slave, and Goody Osbourn, a midwife who had helped in the naissance of three newborn babies who all â€Å"shriveled in her hands† [Miller 47]. The stereotypical witch is based on them. They were not highly esteemed in town, and as women were given even less importance. The villagers were adamant about pursuing â€Å"witches† because they felt the same sentiment towards the suspects as they did towards the two women; they were destroying their ideal of a New Jerusalem. In result, the misconception of the cross-dressing, AIDS invested gay and the poor, unchristian female witch promotes the negative policies. The homophobic DADT and the persecution of witchcraft in The Crucible are established by religious influences in the government. Christian officials in present-day America view their opposition to homosexuality in the armed forces as  "part of a larger effort to preserve and expand the Christian character of the military and the nation† [Frank 35], believing that it is a â€Å"transgression against God and society† [Frank 3]. Though the ban is justified by the excuse that gays weaken the military, the true reasoning behind the policy isShow MoreRelatedThe Dramatic Effect of the First Act in Arthur Millers The Crucible1154 Words   |  5 PagesThe Dramatic Effect of the First Act in Arthur Millers The Crucible The Crucible is set in Salem in 1692. It is about a group of girls who are accused of witchcraft by the people of Salem, and they are put on trial for it. The story is centred on a man named John Proctor who is a farmer in the town, and it is about his affairs, his everyday ones and his sexual ones. There are many themes in The Crucible, deceit, religion, fear, guilt and the evading of peoples privacyRead More The Theme of Justice in The Crucible Essay3133 Words   |  13 PagesThe Theme of Justice in The Crucible The crucible was set in 1692 in Salem, Massachusetts. The play is based on true facts about events that actually took place. It is about a small secluded town that relies strongly on their religion to keep them feeling safe. Their enemy is the devil and they are always scared of the devil and constantly looking for signs that the devil is there. â€Å"We cannot leap to witchcraft. They will howl me out of Salem for such corruption in my house.† The fearRead MoreEssay on Abigail WIlliams and Iago: Master VIllains3493 Words   |  14 Pagesliterary work. Whether they exist as people, circumstances, or even nature, their purpose is to provide a problem to be solved by the â€Å"good guys†. Without villains, no piece of literature would be worth reading. 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Chad Murray also believed thatRead MoreHow To Write Literary Analysis4174 Words   |  17 Pagesor whether you’d recommend it to another reader. A literary essay also isn’t like the kind of book report you wrote when you were younger, where your teacher wanted you to summarize the book’s action. A high school- or college-level literary essay asks, â€Å"How does this piece of literature actually work?† â€Å"How does it do what it does?† and, â€Å"Why might the author have made the choices he or she did?† The Seven Steps No one is born knowing how to analyze literature; it’s a skill you learn and a processRead More The Crucible by Arthur Miller Essay4991 Words   |  20 PagesThe Crucible by Arthur Miller John Proctor says, Ill tell you whats walking Salem, vengeance is walking Salem. Discuss the real evil in Salem, who contributed to it and their motives who do you blame the most? John Proctor says, Ill tell you whats walking Salem, vengeance is walking Salem. 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Chapter 01 Gitman Free Essays

string(40) " in fact preserve value or earn income\." Part One Preparing to Invest Part One Includes Chapter 1Investment Environment Chapter 2Markets and Transactions Chapter 3Online Information and Investing Chapter 1 Investment Environment Outline Learning Goals I. Investments and the Investment Process A)Types of Investments 1. Securities or Property 2. We will write a custom essay sample on Chapter 01 Gitman or any similar topic only for you Order Now Direct or Indirect 3. Debt, Equity, or Derivative Securities 4. Low or High Risk 5. Short or Long Term 6. Domestic or Foreign B)The Structure of the Investment Process 1. Participants in the Investment Process 2. Government 3. Business 4. Individuals 5. Types of Investors Concepts in Review II. Investment Vehicles A)Short Term Vehicles B)Common Stock C)Fixed Income Securities 1. Bonds 2. Preferred Stock 3. Convertible Securities D)Mutual Funds E)Derivative Securities 1. Options 2. Futures F)Other Popular Investment Vehicles Concepts in Review III. Making Investment Plans A)Steps in Investing 1. Meeting Investment Prerequisites 2. Establishing Investment Goals 3. Adopting an Investment Plan 4. Evaluating Investment Vehicles 5. Selecting Suitable Investments 6. Constructing a Diversified Portfolio 7. Managing the Portfolio B)Considering Personal Taxes 1. Basic Sources of Taxation 2. Types of Income a. Ordinary Income b. Capital Gains and Losses 3. Investments and Taxes 4. Tax-advantaged Retirement Vehicles C)Investing Over the Life Cycle D)Investing in Different Economic Environments 1. Stocks and the Business Cycle 2. Bonds and Interest Rates Concepts in Review IV. Meeting Liquidity Needs: Investing in Short-Term Securities A)Role of Short Term Securities 1. Interest on Short Term Securities 2. Risk Characteristics 3. Advantages and Disadvantages of Short Term Investments B)Popular Short Term Investment Vehicles 1. Deposit Accounts 2. Federal Government Issues 3. Nongovernment Issues C)Investment Suitability Concepts in Review Summary Putting Your Investment Know-How to the Test Discussion Questions Problems Case Problems 1. 1Investments or Golf? 1. 2Preparing Carolyn Bowen’s Investment Plan Excel with Spreadsheets OTIS—Online Trading and Investment Simulator Key Concepts 1. The meaning of the term investment and the implications it has for individual investors. 2. Review the factors used to differentiate between different types of investments. . The importance of and basic steps involved in the investment process. 4. Popular types of investment vehicles, including short term vehicles, common stock, and fixed income securities such as bonds, preferred stock, and convertibles. 5. Derivative securities such as options and futures, and mutual funds. 6. Other popular investment vehicles such as real estate, tangibles and tax advantaged inve stments. 7. Investment goals including income, major expenditures, retirement, and sheltering income from taxes. The latter includes analysis of tax-advantaged retirement vehicles. . Building a diversified portfolio consistent with investment goals. 9. Sources of taxation, types of taxable income, and the effect of taxes on the investor. 10. Developing an investment program that considers differing economic environments and life cycle stages. 11. The use of short term securities in meeting liquidity needs. 12. The merits and suitability of various popular short term investment vehicles including deposit accounts and money market securities. Overview This chapter provides an overview of the scope and content of the text. 1. The term investment is defined, and the alternative investment opportunities available to investors are classified by types. 2. An examination of the structure of the investment process is presented. This section explains how suppliers and demanders of investment funds are brought together in the marketplace. 3. The key participants in the investment process—government, business, and individuals—are described, as are institutional and individual investors. 4. Returns are defined as rewards for investing. Returns to an investor take two forms—current income and increased value of the investment over time. In this section the instructor need only define return, since there will be another opportunity to develop the concept of return in Chapter 4, however providing information about recent investment returns is always well-received by students. 5. Next, the following investment vehicles available to individual investors are discussed: short term vehicles, common stock, fixed income securities, mutual funds, real estate, tangibles, tax-advantaged investments, and options and futures. The text describes their risk return characteristics in a general way. The instructor may want to expand on the advantages and disadvantages of investing in each, although they will be treated in greater detail in subsequent chapters. It is vital for any investor to establish investment goals that are consistent with his or her overall financial objectives. 6. Once the investment goals have been well specified, the investor can adopt an investment plan consistent with these goals, select suitable investments, build a diversified portfolio and manage it. 7. Personal taxes are discussed in terms of types of income and tax rates. The investment process is affected by current tax laws. Examples of tax shelters, especially tax-advantaged retirement vehicles, and tax planning are provided. 8. Once investment goals are established, it is important to understand how the investment process is affected by different economic environments. The chapter talks about types of investments—stocks, bonds, and tangibles—as they are affected by business cycles, interest rates, and inflation. 9. Liquidity is defined and short term securities that can be used to meet liquidity requirements are described. The discussion includes a look at short term interest rates and the risk characteristics of various short term securities. 0. The next section covers the various types of short term vehicles available to today’s investor. There is enough detail about everything from passbook accounts to money market funds to commercial paper that the students should get a good grasp of the differences between the vehicles. Producing information on current rates helps bring realis m into the classroom and enhances student perception of the lecturer as a knowledgeable instructor. Answers to Concepts in Review 1. An investment is any vehicle into which funds can be placed with the expectation of preserving or increasing value and earning a positive rate of return. An investment can be a security or a property. Individuals invest because an investment has the potential to preserve or increase value and to earn income. It is important to stress that this does not imply that an investment will in fact preserve value or earn income. You read "Chapter 01 Gitman" in category "Essay examples" Bad investments do exist. 2. (a)Securities and property are simply two classes of investments. Securities are investments, commonly evidenced by certificates, that represent a legal claim. For example, a bond represents a legal claim on debt, and a stock represents a proportionate ownership in the firm. An option, on the other hand, represents the legal right to either buy or sell an asset at a predetermined price within a specified time period. Property constitutes investments in either real property (land and buildings) or tangible personal property (Rembrandt paintings, Ming vases, or antique cars). (b)With a direct investment, an individual acquires a direct claim on a security or property. For example, an investment in one share of IBM stock directly provides the stockholder a proportionate ownership in IBM. An indirect investment provides an indirect claim on a security or property. For example, if you bought one share of Fidelity Growth Fund (a mutual fund), you are in effect buying a portion of a portfolio of securities owned by the fund. Thus, you will have a claim on a fraction of an entire portfolio of securities. (c)An investment in debt represents funds loaned in exchange for the receipt of interest income and repayment of the loan at a given future date. The bond, a common debt instrument, pays specified interest over a specified time period, then repays the face value of the loan (Chapters 8 and 9 cover bonds in detail). An equity investment provides an investor an ongoing fractional ownership interest in a firm. The most common example is an investment in a company’s common stock. We will study equity instruments in greater detail in Chapters 5 through 7. Derivative securities are securities derived from debt or equity securities and structured to exhibit characteristics different from the underlying securities. Options are derivative securities that allow an investor to sell or buy another security or asset at a specific price over a given time period. For example, an investor might purchase an option to buy Company X stock for $50 within nine months. d)Short-term investments typically mature within one year while long-term investments have longer maturities, like common stock, which has no maturity at all. However, long-term investments can be used to satisfy short-term financial goals. 3. In finance, risk refers to the chance that the return from an investment will differ from its expected value. The broader the range of possible values (dispersion), the greater the risk of the investment. Low risk investments are those considered safe with respect to the return of funds invested and the receipt of a positive rate of return. High risk investments are those which have more uncertain future values and levels of earnings. 4. Foreign investments are investments in the debt, equity, derivative securities of foreign based companies and property in a foreign country. Both direct and indirect foreign investments provide investors more attractive returns or lower-risk investments compared to purely domestic investments. They are useful instruments to diversify a pure domestic portfolio. 5. The investment process brings together suppliers and demanders of funds. This may occur directly (as with property investments). Most often the investment process is aided by a financial institution (such as a bank, savings and loan, savings bank, credit union, insurance company, or pension fund) that channels funds to investments and/or a financial market (either the money market or the capital market) where transactions occur between suppliers and demanders of funds. 6. (a)The various levels of government (federal, state, and local) require more funds for projects and debt repayment than they receive in revenues. Thus, governments are net demanders of funds. Governments also demand funds when the timing of their revenues do not match their expenditure. The term net refers to the fact that, while governments both supply and demand funds in the investment process, on balance they demand more than they supply. (b)Businesses also are net demanders, requiring funds to cover short and long term operating needs. While business firms often supply funds, on balance they also demand more than they supply. (c)Individuals are the net suppliers of funds to the investment process. They put more funds into the investment process than they take out. Individuals play an important role in the investment process—supplying the funds needed to finance economic growth and development. 7. Institutional investors are investment professionals who are paid to manage other people’s money. They are employed by financial institutions like banks and insurance companies, by nonfinancial businesses, and by individuals. Individual investors manage their own personal funds in order to meet their financial goals. Generally, institutional investors tend to be more sophisticated because they handle much larger amounts of money and they tend to have a broader knowledge of the investment process and available investment techniques and vehicles. 8. Short term investment vehicles are those which usually have lives of less than one year. These vehicles may be used to â€Å"warehouse† temporarily idle funds while suitable long term vehicles are evaluated. Due to their safety and convenience, they are popular with those wishing to earn a return on temporarily idle funds or with the very conservative investor who may use these short term vehicles as a primary investment outlet. In addition to their â€Å"warehousing† function, short-term vehicles provide liquidity- they can be converted into cash quickly and with little or no loss in value. This characteristic is very useful when investors need to meet unexpected expenses or take advantage of attractive opportunities. . Common stock is an equity investment that represents a fractional ownership interest in a corporation. The return on a common stock investment derives from two sources: dividends, which are periodic payments made by the firm to its shareholders from current and past earnings, and capital gains, which result from selling the stock at a price above the original purchase price. Because common stock offers a broad range of return-risk combinations, it is one of the most popular investment vehicles. Two sources of potential return are dividends and capital gain. 10. a)Bonds are debt obligations of corporations or governments. A bondholder receives a known interest return, typically semiannually, plus the face value at maturity. Bonds are usually issued in $1,000 denominations, pay semiannual interest, and have twenty to forty year maturities. Bonds offer fixed/certain returns, if held till maturity. (b)Preferred stock is very much like common stock in that it represents an ownership interest in a corporation. But preferred stock pays only a fixed stated dividend, which has precedence over common stock dividends, and does not share in other earnings of the firm. c)A convertible security is a fixed income security, either a bond or preferred stock, that has a conversion feature. Typically, it can be converted into a specifie d number of shares of common stock. Convertible securities are quasi-derivative securities as their market value would depend on the price of the common stock and the conversion ratio. (d)A mutual fund is a company that invests in a large portfolio of securities; whereas a money market mutual fund is a mutual fund which solely invests in other short-term vehicles. Investors might find mutual funds appealing because a large portfolio may be more consistent with their investment goals in terms of risk and return. As we will see later, a mutual fund offers the investor the benefits of diversification and professional management. Mutual funds do not offer fixed/certain returns. Mutual funds are quasi-derivative securities as their market value would depend on the price of the assets that make up the fund’s portfolio. (e)Options are derivative securities that provides holders the right to buy or sell another security (typically stock) or property at a specified price over a given time period. Factors like the time until expiration, the underlying stock price behavior, and supply and demand conditions affect the returns. (f)Futures represent contractual arrangements in which a seller will deliver or a buyer will take delivery of a specified quantity of a commodity at a given price by a certain date. Unlike an option, which gives the investor the right to purchase or sell another security, futures contracts obligate the investor to deliver or take delivery. Factors affecting returns on commodity contracts include changes in government policy, unpredictable weather, trade embargoes, and so on. 1. Before developing and executing an investment program, an investor must ensure the following: (1)Necessities of life such as funds for housing, food, transportation, taxes etc are fully provided for. (2)Investor is adequately insured against the losses resulting from death, illness or disability, property etc. (3)Establish Retirement Goals The seven steps in investing are as follows : (1)Meeting Investment Prerequisites: Providing for Necessities of life, adequate protection against losses, and Setting retirement Goals as iscussed above (2)Establishing Investment Goals: Investment goals are the financial objectives that one wishes to achieve by investing. Common investment goals are: †¢Accumulating retirement funds †¢Enhancing current income through interest income and dividends †¢Savings for major expenditure like home, education etc. †¢Sheltering income from taxes (3)Adopting an Investment Plan: A written document describing how funds will be invested is an investment plan. The more specific the investment goal, the easier it will be to establish an investment plan consistent with your goals. 4)Evaluating Investment Vehicles: In this step, the measures of risk and return are used to estimate the perceived worth of an investment vehicle. This process is called valuation. (5)Selecting Suitable Investments: This step involves careful selectio n of investment vehicles that are consistent with established goals and offer acceptable levels of return, risk, and value. (6)Constructing a Diversified Portfolio: Diversification is the concept of forming a portfolio using different investment vehicles to reduce risk and increase return. This concept is central to constructing an effective portfolio. 7)Managing the Portfolio: Portfolio management involves monitoring the portfolio and restructuring it as dictated by the actual behavior of the investments. 12. Investment goals are the financial objectives you wish to achieve by investing in any of a wide range of investment vehicles. Common investment goals are: (a)Enhancing current income means choosing investment vehicles that regularly pay dividends and interest that can provide all or some of the money needed to meet living expenses. This is a common goal of retired persons and sometimes an important part of a normal family budget. b)Saving for major expenditures includes money set aside for such things as the down payment on a home, college tuition, and even an expensive vacation. The amount of money needed and the time period over which one can save will determine the amount set aside and, frequently, the investment vehicle employed. (c)The single most important reason for investing is to accumulate retirement funds. The amount that must be set aside is determined by the level of expected expenditures, expected income from social security and other sources, and the amount of interest expected to be earned on savings. d)Sheltering income from taxes involves taking advantage of certain tax provisions that permit reduction of the income reported to the government or direct reductions in taxes. Investments in certain assets, such as real estate, may be attractive due to their tax advantages. 13. Federal income taxes are charged against all income individuals receive from all sources (with the exception of interest received on some bonds issued by state and l ocal governments). (a)Active (ordinary â€Å"earned†) income is the broadest category and includes income from wages, salaries, bonuses, tips, pension income, and alimony. It is made up of income earned on the job as well as most other forms of non-investment income. (b)Portfolio (investment) income is earnings generated from various types of investment holdings. For the most part, it consists of interest, dividends, and capital gains earned on most types of investments. Passive income is a special category that consists of income derived chiefly from real estate, limited partnerships, and other forms of tax shelters. (c)Capital gains are the profits earned on the sale of capital assets—pleasure, or investment. They are measured by the amount by which the proceeds from the sale of the capital asset exceed its original purchase price. Currently capital gains are taxed at the same rate as ordinary income. Capital gains are appealing to investors because they are not taxed until they are actually realized. (d)A capital loss is the amount by which the proceeds from the sale of a capital asset are less than its original purchase price. Up to $3,000 of net losses can be applied against ordinary income in any one year, with the unused portion carried forward to offset future income. e)Due to the opportunities and challenges created by the tax laws, tax planning is an important part of the investment process. Tax planning involves looking at an individual’s current and projected earnings and developing strategies that will defer or minimize the level of his or her taxes. Tax plans involve current income, capital gains, or tax-sheltered investments. For example, one strategy is to take losses as they occur and to delay taking profits. One deducts the losses and delays inclusion of profits in order to minimize current taxable income. f)In general, tax-advantaged retirement plans allow individuals to defer taxes on the contribution and/or portfolio earnings until some future date when retirement withdrawals take place. There are employer-sponsored plans, such as 401(k) accounts and individual-created plans, such as Keogh plans, and individual retirement accounts (IRAs). 14. (a)Young investors, ages 20 to 45, tend to prefer growth-oriented investments that stress capital gains rather than income. These investors have little investable funds, and capital gains are seen as the quickest way to build up investment capital. b)By middle-age, ages 45 to 60, there is a consolidation taking place as family demands and responsibilities change. While growth-oriented securities are still used, investing becomes less speculative. Quality-growth vehicles are employed, and more attention is given to current income. The foundation is being set for retirement. (c)As the investor moves into the retirement years, age 60 on, preservation of capital and current income become the principal concerns. High-quality stocks and bonds and money market instruments are used as the investor’s objective is to live as comfortably as possible from the investment income. During retirement one tries to reap the rewards of a lifetime of saving and investing. 15. The four stages of the economic/market cycle are recovery, expansion, decline, and recession. Recovery is the strengthening of the economy after a recession. Expansion reflects continued strength and optimism about economic growth. Decline involves a slowing-down of the economy after an expansion which may have been moving too fast. Then the cycle moves into recession, the economy contracts and pessimism reigns. Just as things look the worst, the recovery cycle begins again. a)Stocks and equity-related securities (such as mutual funds and convertibles) are highly responsive to the economic cycle. During recovery and expansion stock prices are up. As the decline approaches, stock prices begin to decline as well. Growth-oriented and speculative stocks tend to do especially well in an expanding economy. (b)Bonds and other fixed-income securities are sensitive to movements in interest rates. Bond p rices also move in the opposite direction of interest rate changes. This means that if interest rates are expected to rise, bond prices would fall, and bonds would not be a good place to hold investment funds. Interest rates generally shift with the economic cycle. Rates rise during normal recovery and fall during economic declines. 16. An asset is liquid if it can be converted to cash (sold) easily and quickly, with little or no loss in value. You would want to hold liquid assets as emergency funds or to accumulate funds for some specific purpose. IBM stock is not considered a liquid investment even though it can be easily sold. As with stocks in general, you can never be sure that, when funds are needed, you can quickly sell the stock without taking a loss. 17. Purchasing power risk for short-term investments occurs when the rate of return on these investments falls short of the inflation rate. This generally happens to fixed-rate investments such as passbook savings accounts. Most other short-term investments have managed to provide rates of return about equal to the inflation rate when one looks at these short-term rates over long periods of time. Default (nonpayment) risk is very small with most short-term investments. The deposits in banks and other federally-insured savings institutions are protected up to $100,000 per account by agencies of the federal government. U. S. Treasury Bills are perfectly safe and sometimes called a risk-free investment. Commercial paper and repurchase agreements are extremely safe, based upon past experience, even though there have been rare instances of problems. These latter two instruments are also not insured. Money market mutual funds have also had an exceptionally safe history. Of course, the safest money market funds are those which invest solely in government securities and are virtually default-risk free. 18. Passbook savings accounts and NOW accounts (a checking account), offered by banks, generally pay a low rate of interest and have no minimum balance. Passbook savings and NOW accounts are primarily used by investors as savings accounts, providing the investor with a highly liquid pool of funds. MMDA’s are bank deposit accounts with limited check-writing privileges. Central asset accounts are comprehensive deposit accounts and combine checking, investing and borrowing activities. MMDAs and asset management accounts are more likely used by investors to earn a competitive short-term return while maintaining liquidity. Each type of account, except for asset management accounts, is insured. All but the passbook account typically require a minimum balance which varies. 19. a)Series EE savings bonds are accrual-type securities, which means that interest is paid when the bond is cashed, on or before maturity, rather than periodically over the life of the bond. The purchase price of all denominations is 50% of the face value. The interest rate paid is variable. The higher the rate of interest being paid, the shorter the period of ti me it takes for the bond to accrue from its discounted purchase price to its face value (b)U. S. Treasury bills are short-term (less than one year) debt obligations of the federal government. T-bills are exempt from state and local income taxes, and federal taxes are deferred. They are regarded as the safest, but generally lowest-yielding of all investments, and, the secondary market for T-bills is highly liquid. (c)Certificates of deposits (CDs) are savings vehicles in which funds must remain on deposit for a specified period. Premature withdrawals incur interest penalties. Because of the requirement that they remain on deposit, CDs are less liquid than T-bills, but they are convenient to buy and hold, offer highly competitive returns, and have federal insurance protection. (d)Commercial paper is unsecured short-term debt issued by corporations with very high credit standings. The secondary market for commercial paper is very limited and yields are comparable to yields on large-denomination CDs. Typically only larger institutions deal directly in this market because the denominations range from $25,000 to the more commonly issued $100,000. Commercial paper is not federally insured. (e)Banker’s acceptances are short-term credit arrangements between business firms and banks. Firms use banker’s acceptances to finance transactions, most often involving firms in foreign countries or firms with unknown credit capacities. Banker’s acceptances typically are denominated in $100,000 units, are low-risk securities, and have active secondary markets. Yields are slightly below CD yields and commercial paper, and above T-bills. (f)Money market mutual funds (MMMF) pool capital of many investors and invest it exclusively in high-yielding, short-term securities, such as T-bills, large CDs, commercial paper, and other similar securities. Because these high-yielding securities are in denominations of $10,000 to $1 million, the MMMF makes them available to individual investors. MMMFs are convenient, offer check writing privileges, and yields are based on the ability of the fund manager to invest in various short-term securities. Although they are not federally insured funds, their default risk is nearly zero because the securities they invest in are very low risk and the fund is relatively diversified. Suggested Answers to Investing in Action Questions Test Your Investment IQ (p. 4) How high is your Investment IQ as measured by the quiz? Answer: The average score was only 37 %, or well less than half. Remember that this is just one of many instruments that could be used to measure Investment IQ. For example, another assessment tool would be essay-oriented explanations of a specified investment’s strengths and weaknesses. Lessons For Investment Success (p. 15) (a)Why is it important to start investing now? Answer: One should start investing now in order to take advantage of compounding. A $1,000 amount invested for ten years at 7. 2 percent will double. The same amount invested at the same rate for twenty years will quadruple. Instead of just adding another $1000, you earn an extra $1000 from interest being earned on interest. Furthermore, there will never be an â€Å"ideal time† to invest. Terrorist threats, economic concerns, and alternative uses for the money are always with us. Studies have shown it is more important to invest than to pick the right security. Money not invested is likely to be spent and not provide future benefits. (b)Why is it a good idea to diversify? Answer: Diversifying allows you to spread out the risk that a unique firm or industry event will have a devastating impact on your investment. It is important to diversify across types of assets and nations. Suggested Answers to Discussion Questions 1. a)Since you fall into the category of a young investor, your key investment goals should be to purchase a house and save for the education of your children. Appropriate investments should focus on the education of your children. (b)You should consider the effects of taxes when investing, especially the tax relative treatment of capital gains and dividends. Your focus should be on maximizing the after-tax return on your investments. (c)Since you have a relatively long investment horizon, it is appropriate to focus on higher-risk investments such as common stocks in your portfolio. . Short-term vehicles play an important part in your investment program. Most importantly they will provide a pool of reserves that can be used for emergencies such as replacing cars, appliances and clothing that wear out over time. Savings or Investment VehicleMinimum BalanceYieldFederal InsuranceMethod and Ease of Withdrawing Funds (a)Passbook savings accountNone0. 5% to $4. 0%, depending on economyYes, up to $100,000 per depositIn person or through teller machines; very easy (b)NOW accountNo legal minimum, but often set at $500 or $1,000At or near passbook ratesYes, up to 100,000 per depositUnlimited check- writing privileges (c)Money market deposit account (MMDA)No legal minimum, but often set at $2,500Slightly above passbook ratesYes, up to $100,000 per depositLimited check- writing privileges (d)Asset management accountTypically $5,000 to $20,000S imilar to MMDAsYes, up to $100,000 in banks, varies elsewhereLimited check- writing privileges (e)Series EE savings bondInitial deposit is 50% of face valueAbout two percent above passbook savings accountNo, but Federal government issuePenalty of 3 months interest for early withdrawal (f)U. S. Treasury ill$25Slightly above passbook and NOW accounts No, but Federal government issueSecondary market exists (g)Certificate of depositTailored to investor needsSlightly above asset management accountNo, but as secure as most bank savings and checking accountsPenalty for early withdrawal (h)Money market mutual fundNo legal minimumSlightly below passbook savings accountNo, but has invested in a variety of government and bank issuesMay take a few days to receive check from fund Solutions to Problems 1. (a)Goal$250,000 $31,500 at 8% for 15 yrs. 100,000 Additional requirement$150,000 b)Annual deposit: ? ? $5,524. 50 2. (a)Tax on Allens’ income of $130,000. Looking at the joint tax return rate, we find ? (10% ? $14,000) ? [15% ? ($56,800 – $14,000] ? [25% ? ($114,650 – 56,800] ? [28% (130,000 – 114,650)] ? $1,400 ? [15% ? $42,800] ? [25% ? $57,850] ? [28% ? 15,350] ? $1,400 ? $6,420 ? $14,462. 50 ? $4,298 ? $ 26,580. 50 Tax on Zell’s income of $65,000. Looking at the joint tax return rate, we find ? ($10% ? $14,000) ? [$15% ? ($56,800 – $14,000)] ? [25% ? ($65,000 – $56,800)] ? $1,400 ? [15% ? $42,800] ? [25% ? $8,200] ? $1,400 ? $6,420 ? $2,050 ? 9,870. (b)Allan makes twice as much as Zell. Ratio of Allen’s total tax to income is ($26,580. 50/130,000) ? 20. 45% Ratio of Zell’s total tax to income is ($9,870450/65,000) $ ? 15. 18% Hence higher income earners pay a higher proportional of their income as tax. 3. (a)$50,000. 00/$50. 00 ? 1,000 shares of stock. (b)1,000 shares ? $2. 00 ? $2,000. 00 per year before tax. $2,000. 00 ? 0. 85 ? $1,700. 00 after tax. (c)($1,700. 00 ? 10) ? $50,000. 00 ? $67,000. 00. (d)$ 50,000. 00 ? 0. 05 ? $2,500. 00 per year before tax. $2,500. 00 ? 0. 67 ? $1,675. 00 after tax. (e)($1,675. 0 ? 10) ? $50,000. 00 ? $66,750. 00. (f)They should purchase the stock. Even though the annual interest from the bonds is more than the dividend income from the stock, after taxes the Pangs will have more money from the dividend income than from the interest income. 4. Cash FlowAmountRateTax (a)Interest$1,00028%$280 (b)Dividends$3,00015%$450 (c)LT Cap Gains$2,00015%$300 (d)ST Cap Gains$2,00028%$560 Solutions to Case Problems Case 1. 1? Investments or Golf? This case illustrates the many facets of the investment process; it involves much more than common stock. The authors recognize the value of physical education and emphasize the importance of sports, but a course in investments offers the student a lifetime of financial benefits. Thus, our arguments for selecting the investments course should not be interpreted as a negative statement on physical education, but rather as a positive discussion of the merits of investments. (a)The term investments refers to the process of identifying, evaluating, selecting, and monitoring the placement of funds with a view of preserving or increasing value and/or earning a positive return. Judd has simply identified one investment vehicle stock). He will not know how to evaluate other vehicles, select investments, or monitor them without a course in investments. In addition to looking at his own investments, a course in investing will give Judd a new perspective on the role of investments in the economy. He will learn that as an investor, he is actually supplying funds to government and business which will enable the continued strength and growth of the general economy. (b)Clearly, Judd has ignored short term securities, bonds, options, commodities and financial futures, mutual funds, real estate, tangibles, tax shelters, and limited partnerships. Each one of these vehicles offers another risk reward relationship that may meet certain unique investment requirements that cannot be met by common stock alone. (c)Judd does not have the knowledge needed to carry out the investment process described in question 2. Knowing about common stocks is not the same as understanding investments. There is no reason whatsoever to assume that common stock is the best investment available to Judd. Besides, the investment decision has to be compatible with his goals. Since Judd is just starting his career, in all probability he will not want to choose risky investments. Stocks are far riskier than, say, an investment in CDs. There are other considerations too. Does Judd have plans for the future when he will need the money? If so, is it a short term or a long term need? Answers to these questions will help determine whether he should make short term or long term investments. In summary, to gain an understanding of the investment decision and management process, Judd should pass up the golf course in favor of the investments course. Case 1. 2? Preparing Carolyn Bowen’s Investment Plan This case allows students to evaluate a proposed investment plan aimed at achieving certain retirement goals. a)The amount currently available to Carolyn includes $60,000 from the proceeds of the life insurance and $37,500 from her savings account, or a total of $97,500. At 6 percent compounded annually, her money will be worth: If she retires at age 62 (7-year investment): $97,500 1. 504 $146,640 ? $112,500 (house) ? $259,140 If she retires at age 65 (10-year investment): $97,500 ? 1. 791 $174,622. 50 ? $127,500 (house) ? $302,122. 50 (The future-value interest factors can be found in Appendix B, Table B. 1. ) (b)Value of Carolyn’s assets at 62 ? value of savings account ? alue of house: $146,640 ? $112,500 ? $259,140 Similarly, value of assets at 65 ? $174,622. 50 ? $127,500 ? $302,122. 50 Carolyn’s annual income at age 62 would be $259,140/12. 659 ? $20,470. 81 Carolyn’s annual income at age 65 would be $302,122. 50/11. 118 ? $27,174. 17 (c) Annual Retirement Income Age 62 RetirementAge 65 Retirement Annual S. S. Pension Fund Benefits$16,308. 00$20,256. 00 ?Annuity Income20,470. 8127,174. 17 Total Annual Retirement Income$36,778. 81$47,430. 17 (d)Carolyn needs $45,000 per year (before taxes) of retirement income. Without considering the change in her tax status upon retirement, she will not satisfy this goal if she retires at age 62. At age 65 she meets her requirement. The nature of tax legislation and the reduction in Carolyn’s tax liability upon retirement may make retirement at age 65 viable. (e)Carolyn’s plan is extremely conservative and low risk. The returns from the plan are very secure and probably assured. Carolyn can be confident that the accumulated worth of her investments will be available to her at retirement. Her plan to retire at age 65 meets her retirement -income goal. Carolyn’s plan offers low risk and low return.. Through only a slight increase in risk, she might improve her return on investment and have more â€Å"cushion† to allow for inflation and unexpected expenditures. Carolyn could purchase highly rated bond, CDs, and other blue chip security investments. In this manner, her risk aversion would be satisfied, and she would earn a higher return on her investments. This should permit more likely achievement of her retirement-income objectives. Therefore, with very little increase in risk, Carolyn could invest her funds in vehicles that will increase the probability that she will meet or surpass her requirement of an annual retirement income of $45,000. How to cite Chapter 01 Gitman, Essay examples

Repositioning Strategy of Nestle in Portugal-MyAssignmenthelp

Question: Discuss about theRepositioning Strategy of Nestle in Portugal. Answer: Introduction Nestle is a company that aims to be the leader in nutrition, health and wellness product in the world. However, the company has a weak presence in the Portugal with respect to the yogurt market. The consumers in the modern day are looking for products that will prove to be beneficial for their health as well as provide nourishment and taste to them. It is necessary for the company to position its brands in a way, which will help the company to become the fastest growing segment in the recent market of Portugal (Nestle 2013). The company needs to take advantage of its strengths with regards to the technological advancements that it has so that it can follow the current market trends and customer preferences. The company produces a low-fat content yogurt product known as Sveltesse Balance for the Portuguese market. it is a fat free nutraceutical yogurt product that helps in fat burning metabolism and stronger bones for the customers who consumes it. The launch of this product will help the company to attract more of the Portuguese population as majority of them suffers from rheumatic and other bone related diseases due to overweight issues (Sousa 2014). Market Overview One of the most dynamic markets in Portugal is related to the yogurt market. This has happened due to the continuous innovation process by the different brands to capture the market of the country. The country is showing a recent rise in the consumption of yogurt and in 2007 it was seen that around 427 million was raised, which amounted to more than 154 kilograms of yogurt being sold. This showed that the yogurt consumption has increased by 5 percent from the previous year (Oliviera-Brochado, Marques and Mendes 2015). The yogurt market in the country is differentiated in to major segments such as health, adult drinks, low fat content, indulgence and children. The health segment of the yogurt products, which are also known as nutraceutical products constitute around 26 percent of the market share and is considered to be the most sold product in the Portuguese market. The adult drinks section consists around 19 percent of the market share as it does not add any additional value to the customer apart from its easy to use technique. Products such as Yoggi, Danup and Adagio are examples of health drinks. The low-fat content products comprise of the yogurts that are free from fat content and can be in liquid and solid form such as Sveltesse, which constitute up to 14 percent in the market. the indulgence segment consists of 11 percent of the total market and the design of the products are done in such a way that it grabs the attention of the customers. Products such as Vida Receita Cremosa is an example of indulgence product. The child segment delivers the products that have nuitritional value such as Nesquik and Yoco. This segment comprises of 15 percent of the total market (Magrico 2013). Consumer Behavior It is highly unlikely that the customers will follow the consumer decision process model that comprises of seven steps as the purchase requires involvement at the minimum level. The consumers will not start a process of gathering information to find out the characteristics of the different brands that are available in the country. The consumers will not even switch their brands depending on the taste or from hearing from others. These chances are highly unlikely to happen. The consumers receive information about the yogurt brands through passive advertising such as a commercial in the television, newspaper and magazine advertisements and in-store advertisements. The consumer does not evaluate the information that is provided through the advertisements but simply remembers the information. The consumers on visiting the stores may remember the advertisement and buy the product and if it serves the purpose the customer will again try to purchase the same product (Mendes 2013). Thus, the behavior of the consumer follows three important steps such as they become aware of the product through the ads, which help them in making a decision to purchase the product so that the satisfaction level can be determined. This further helps the customers to repeat their purchase of the same brand if it reaches the satisfaction level (Moura 2014). The consumers who purchase Sveltesse Balance, a product of the Nestle company for the first time will categorize themselves in a problem-solving situation. The new product will help in changing the existence of brand and may cause the customer to limit their choices in the decision-making process. The consumer forms a pre-conceived notion about the various factors that are provided by the brand and examines it based on the first trial. The advertisement about the product will inform the consumers about the fat control in the body and protect the conditions of the bone. This will help the company in selling the brand if the consumers are concerned about their body condition, which will influence their decision of buying the product. The major trend can be seen that on an average the consumption of yogurt is around thrice per day for the company, which is during the snacks, breakfast and mid-afternoon meals. This will help the company to sell more of its products (Buriti and Saad 2014) . Competitors The Portuguese market consist of many companies that sells yogurt in the market. it is seen that Danone; a French company leads the market with respect to the yogurt products along with Nestle who has av48 percent share in the market. Another competitor of Nestle is Lactogal who has a strong reach in the adult dink and low-fat segment. The major brands of the competitors are Adagio and Mimosa Magro by Lactogal and Actimel, Corpos, Danacol and Activia are the major products of the Danone company (Guine et al. 2016). The main problem in the product by the company was with the image and packaging of the product. The packaging was considered as old-fashioned with respect to Danone, which made the consumers assume that the product is of inferior quality, which caused as lack of awareness among a large base of consumers (Costa e Silva and Saraiva 2016). Target Market and Positioning Strategy Target Market The product will target the consumers that are on the lookout for fat-free yogurts but are enriched with nutrients that will help in improving the health of the consumers. The major buyers of this product would be the women who are conscious about their health and care about their looks and conditions of their body so that they can lead an active life. The company will stand to their expectations and provide them with a product that will act as a healthy snack and can be taken at home or even while working in the office (Moura, Branco and Camoesas 2015). Positioning The product, Sveltesse Balance will be under the category of less fat content yogurt. This brand will compete with other fat free products such as Mimosa Magro and Adagio and health brands like Actimel and Activia. The product of Nestle will be different from the competitors as it will have heathy nutrients in the product, which will curb down body fat as well as help in strengthening the bones in the body of the customers in the Portuguese market (Paulo 2016). Repositioning Marketing Strategy The product has to be launched in a new way as it is seen that the competitors have gained an advantage due to various reasons in the Portuguese market. The packaging of the product is not up to the standards, which has seen a drop in the sales of the product. The target audience for the product needs to be changed so that it can cater to all sections of customers in a community (Coelho do Vale and Verga Matos 2015). IMC Strategy The product needs to follow the model that has been laid down by Rossiter and Percy, which will help to create awareness through proper advertising strategy. The sale of yogurts mainly happens through supermarkets and most of the choices of the customers are taken impulsively. This will help in the point-of-purchase (PoP) displays that will help the brand to get recognized amongst the customers (Schlegelmilch 2016). This will help the product as the customers will be on the lookout for the brands in the supermarkets. The use of advertisements is necessary as the customers will associate the product that they had seen in the commercials and newspapers. The PoP can be increased by offering gift coupons along with the product so that the customers on continuously buying the product may get discounts from the company. This will help in maintaining a loyal customer base for the company (De Mooij 2013). The attitude of the brand needs to influence the purchase decision of the customer so that they will feel motivated in trying out the product. It is seen that the process of buying yogurt is a low-involvement process, it is therefore necessary for the brand to motivate the customers in purchasing the product and avoid the bone related diseases and weight control issues. The key for the success of the brand will be to use the informational strategy (Wang 2013). Recommendations Thus, it can be recommended that the company has to reposition its brand again in the Portuguese market because of the strong competition that it is facing from the other yogurt brands. The company needs to relaunch its products with a strong packaging system that will have contrasting colors to attract the attention of the customers at the first instance. This will help the company in selling of more products that its rivals. The packaging needs to be easy to use so that the customers can consume the product whenever they like and the product needs to fresh for a longer period of time than its rivals. This will help the company in gaining a competitive advantage over the other brands in the market. The target audience for the product should not stick to only adult women as majority of the consumers in the modern world are becoming conscious about their health. The product needs to be available to young generation as well so that they can prevent the diseases from an early age. The positive point about the product needs to be informed to the consumers such as the low-fat content and the early prevention of rheumatic and bone related diseases amongst the people of the country. The extensive use of promotional strategies needs to be adopted by the company so that the brand Sveltesse Balance can stand out amongst the rival brands. The use of intensive advertisements in online and print media must be done so that the consumers can remember about the product while going to the supermarket to purchase the product. Apart from that, the PoP promotion will encourage the customers in trying out the product as on purchasing the product they will get enrolled for a monthly trial at the aerobic classes that the company would undertake so that they become aware of their health. This strategy would be beneficial for the company as the consumers are concerned about their health and would try the brand for the first time. Conclusion Therefore, it can be concluded that the repositioning of the marketing strategy by Nestle for the bran d Sveltesse Balance needs to be on an urgent basis so that it can regain its spot in the Portuguese market. the target market for the product needs to be revised so that it will help the brand to reach to more number of consumers. The use of promotional strategies need to be done via online methods so that the young generation who are in the social networking sites can learn more about the product. The PoP promotion needs to be done extensively so that the brand can have maximum reach in the market. the supermarkets and the grocery stores that are available locally needs to inform the customers about the product being available in their stores so that the consumers can purchase it. Reference List Buriti, F.C. and Saad, S.M., 2014. Chilled milk-based desserts as emerging probiotic and prebiotic products.Critical reviews in food science and nutrition,54(2), pp.139-150. Coelho do Vale, R. and Verga Matos, P., 2015. The impact of copycat packaging strategies on the adoption of private labels.Journal of Product Brand Management,24(6), pp.646-659. Costa e Silva, S. and Saraiva, L., 2016. Understanding Changes on the Country-of-origin Effect of Portugal.Studia Universitatis Babe-Bolyai Oeconomica,61(3), pp.3-19. De Mooij, M., 2013.Global marketing and advertising: Understanding cultural paradoxes. Sage Publications. Guin, R.P., Rodrigues, A.P., Ferreira, S.M. and Gonalves, F.J., 2016. Development of Yogurts Enriched with Antioxidants from Wine.Journal of Culinary Science Technology,14(3), pp.263-275. Magrio, P.M.A., 2013.Danone: lets rebrand DanUp: enhancing brand-consumer personality congruence(Doctoral dissertation). Mendes, P.M., 2013.The decision making process of consumers in relation to private labels: the specific case of yogurts in Portugal(Doctoral dissertation). Moura, A., Branco, M. and Camoesas, M., 2015, June. NESTL, A GLOBAL FIRM AND ITS CUSTOMER RELATIONSHIPS. InIMC 2015 International Management Conference 26th June 2015(p. 96). Moura, A.D.O.P.C., 2014.Consumer emotions, perceived image and behavioral intentions toward Portuguese gastronomy(Doctoral dissertation, Department of Social and Organizational Psychology (DEPSO), ISCTE-IUL). Nestle, M., 2013.Food politics: How the food industry influences nutrition and health(Vol. 3). Univ of California Press. Oliveira-Brochado, A., Marques, S.H. and Mendes, P., 2015. Psychographic determinants of private-label adoption: a feasibility study in the Portuguese yogurt market.Encontros Cientficos-Tourism Management Studies,11(1), pp.136-145. Paulo, M., 2016.How to reach a sustainable internationalization in the agro-food sector?(Doctoral dissertation). Schlegelmilch, B.B., 2016. Global Marketing Ethics and CSR. InGlobal Marketing Strategy(pp. 195-220). Springer International Publishing. Sousa, P.A.P.C., 2014.A marketing plan for an enter into a healthy category: The launch of Lactalis Nestl bifidus yogurt(Doctoral dissertation). Wang, J., 2013.Consumption of added sugars and development of metabolic syndrome components among a sample of youth at risk of obesity(Doctoral dissertation, McGill University).