NewFCFF2StageTwo-Stage FCFF Discount ModelThis model is designed to value a firm, with two stages of growth, an initialperiod of higher growth and a subsequent period of stable growth.For a richer version of this model, try the fcffginzu.xls spreadsheet.Assumptions1. The firm is expected to grow at a higher growth rate in the first period.2. The growth rate will drop at the end of the first period to the stable growth rate.The user has to define the following inputs:1. Length of high growth period2. Expected growth rate in earnings during the high growth period.3. Capital Spending, Depreciation and Working Capital needs during the high growth period.4. Expected growth rate in earnings during the stable growth period.5. Inputs for the cost of capital. (Cost of equity, Cost of debt, Weights on debt and equity)Inputs to the modelCurrent EBIT =$5,186.00Current Interest Expense =$118.00Current Capital Spending$2,152.00Current Depreciation & Amort'n =$1,228.00Tax Rate on Income =28.49%Current Revenues =$16,701.00Current Non-cash Working Capital =$3,755.00Chg. Working Capital =$499.00Last yearCash and Marketable Securities$500.00Value of equity options issued by firm =$1,500.00Book Value of Debt =$1,479.00$1,315.00Book Value of Equity =$12,941.00$12,156.00Weights on Debt and EquityIs the firm publicly traded ?Yes( Yes or No)If yes, enter the market price per share =$125.50(in currency)& Number of shares outstanding =993.57(in #)& Market Value of Debt =$1,822.00( in currency)If no, do you want to use the book value debt ratio ?No(Yes or No)If no, enter the debt to capital ratio to be used =(in percent)Enter length of extraordinary growth period =5(in years)Do you want to change the debt ratio in the stable growth period?NoIf yes, enter the debt ratio for the stable growth period =Costs of ComponentsDo you want to enter cost of equity directly?No(Yes or No)If yes, enter the cost of equity =(in percent)If no, enter the inputs to the cost of equityBeta of the stock =0.8Riskfree rate=5.30%(in percent)Risk Premium=5.50%(in percent)Enter the cost of debt for cost of capital calculation5.50%( in percent)Earnings InputsDo you want to use the historical growth rate?No(Yes or No)If yes, enter EBIT from five years ago =$800.00(in currency)Do you have an outside estimate of growth ?Yes(Yes or No)If yes, enter the estimated growth:12.50%(in percent)Do you want to calculate the growth rate from fundamentals?Yes(Yes or No)The following will be the inputs to the fundamental growth formulation:ROC =27.53%Reinv. Rate =38.37%Do you want to change any of these inputs for the high growth period?No(Yes or No)If yes, specify the values for these inputs (Please enter all variables)ROC =10.00%Reinv. Rate =100.00%Specify weights to be assigned to each of these growth rates:Historical Growth Rate =0.00%(in percent)Outside Prediction of Growth =0.00%(in percent)Fundamental Estimate of Growth =100.00%(in percent)Enter growth rate in stable growth period?6.00%(in percent)BetaW.
[Type text] [Type text] [Type text]
Part 1: Native American’s Forced Assimilation
Instructions: Watch the video
( https://www.vox.com/2019/10/14/20913408/us-stole-thousands-of-native-american-children) to get a history of assimilation in theUS. Then answer the following questions.
1.What was the purpose for the forced assimilation of Native Americans?
2.Name two strategies the US used to assimilate Native Americans and explain how each of these strategies worked.
Part 2: Keywords for Asian American Studie “Assimilation” (pp. 14-17) https://books.google.com/books?id=bo_dBwAAQBAJ&printsec=frontcover&dq=Keywords+for+Asian+American+Studie&hl=en&newbks=1&newbks_redir=0&sa=X&ved=2ahUKEwjsrcHi7OnnAhWnl3IEHeZyDKMQ6AEwAHoECAUQAg#v=onepage&q=Keywords%20for%20Asian%20American%20Studie&f=false
Instructions: Answer the following questions. Provide a passage from the reading (i.e., “Assimilation”) in addition to your response to support your responses.
1.What are the five different definitions or perspectives on assimilation? As you identify them, note which one you think is most accurate for the contemporary situation of assimilation.
2.According to Lisa Park, how is assimilation enforced in our society?
3.What are the criticism of assimilation?4.What does Lisa Park say is a unique experience of assimilation for Asian Americans? (p. 17)
Part 3: Assessing assimilation in our societyAnswer the following questions based on your observations, experiences, or insights.
1.Do immigrants have a duty to learn and adopt the local culture, or should they try to retain their native culture?
2.What does successful assimilation look like? What are some results of it?
3.What does unsuccessful assimilation look like? What are some results of it?
4.How does race fact into the process or act of assimilation?
Valuation outputBase year12345678910Terminal yearRevenue growth rate70.00%70.00%70.00%70.00%70.00%56.55%43.10%29.65%16.20%2.75%2.75%Revenues$ 1,328.70$ 2,258.78$ 3,839.93$ 6,527.88$ 11,097.40$ 18,865.58$ 29,534.07$ 42,263.25$ 54,794.31$ 63,670.99$ 65,421.94$ 67,221.04EBIT (Operating) margin-1.64%-0.23%1.18%2.60%4.01%5.43%6.84%8.26%9.67%11.09%12.50%12.50%EBIT (Operating income)$ (21.86)$ (5.21)$ 45.46$ 169.63$ 445.34$ 1,023.93$ 2,020.72$ 3,489.47$ 5,299.16$ 7,058.25$ 8,177.74$ 8,402.63Tax rate0.00%0.00%0.00%0.00%0.00%0.00%7.00%14.00%21.00%28.00%35.00%35.00%EBIT(1-t)$ (21.86)$ (5.21)$ 45.46$ 169.63$ 445.34$ 1,023.93$ 1,879.27$ 3,000.94$ 4,186.33$ 5,081.94$ 5,315.53$ 5,461.71- Reinvestment$ 659.64$ 1,121.38$ 1,906.35$ 3,240.79$ 5,509.35$ 7,566.30$ 9,027.79$ 8,887.27$ 6,295.52$ 1,241.81$ 1,877.46FCFF$ (664.84)$ (1,075.92)$ (1,736.72)$ (2,795.45)$ (4,485.42)$ (5,687.03)$ (6,026.85)$ (4,700.94)$ (1,213.58)$ 4,073.72$ 3,584.25Cost of capital10.03%10.03%10.03%10.03%10.03%9.63%9.22%8.81%8.41%8.
Estimating Cash Flows
This document discusses steps for estimating cash flows for DCF valuation, including:
1. Estimating current earnings and considering capital expenditures, depreciation, and working capital needs for future growth.
2. Measuring cash flows to the firm as EBIT(1-tax rate) - (Capex - Depreciation) - Change in working capital.
3. Updating earnings from financial statements and correcting for accounting treatments like operating leases and R&D expenses.
This document discusses key decisions in discounted cash flow valuation, including:
1) Choosing whether to discount cash flows to equity or the firm based on the firm's leverage.
2) Given cash flows to equity, whether to discount dividends or free cash flows to equity based on how dividends compare to free cash flows.
3) Choosing the appropriate discount rate of either the cost of equity or weighted average cost of capital depending on the cash flows.
4) Selecting a growth pattern such as stable, two-stage, or three-stage based on the firm's growth characteristics and life cycle stage.
This document discusses several valuation methods including comparable multiples, discounted cash flow analysis, and heuristic methods. It provides an overview of comparable multiples like P/E, price to book, and enterprise value to EBITDA. It then describes using a discounted cash flow approach including estimating free cash flows, determining an appropriate time horizon, and calculating the cost of debt and equity. The document emphasizes that discounted cash flow analysis accounts for synergies and specific company characteristics better than heuristic multiples which have limitations.
SAPM Growth Rates MBA Notes and Materialomkarkothule
The document discusses various methods for estimating company growth rates, including historical, analyst, and fundamental approaches. Historical growth can be calculated using arithmetic or geometric averages, and must account for factors like negative earnings, scale changes, and base year selection. Analyst estimates have limitations like sector focus and relationship bias. Fundamental growth estimates growth based on a company's reinvestment rate and return on capital. The document provides examples of calculating growth rates using various metrics and accounting for changing returns on capital over time.
This document provides an overview of financial planning and forecasting concepts. It discusses how financial managers prepare projected financial statements to assess future performance and financing needs. The key components of a financial plan are outlined, including sales forecasting, pro forma income statements, balance sheets, and cash flow statements. Methods for sales forecasting and preparing pro forma statements are explained. The concepts of internal growth rate, sustainable growth rate, and external financing requirements are defined and formulas are provided. The importance of financial planning and how balance sheet ratios may change over time are also summarized.
7.12Chapter 7 Problem 12a). Complete the spreadsheet below by esti.docxalinainglis
7.12Chapter 7 Problem 12a). Complete the spreadsheet below by estimating the project's annual after tax cash flow.b). What is the investment's net present value at a discount rate of 10 percent?c). What is the investment's internal rate of return?d). How does the internal rate of return change if the discount rate equals 20 percent?e). How does the internal rate of return change if the growth rate in EBIT is 8 percent instead of 3 percent?Facts and AssumptionsEquipment initial cost $$ 350,000Depreciable life yrs.7Expected life yrs.10Salvage value $$0Straight line depreciationEBIT in year 128,000Tax rate38%Growth rate in EBIT3%Discount rate10%Year012345678910Initial cost350,000Annual depreciation50,00050,00050,00050,00050,00050,00050,000EBIT28,00028,84029,70530,59631,51432,46033,43334,43635,47036,534Net present value @ 10%Internal rate of return
7.13Chapter 7 Problem 13In many financial transactions, interest is computed and charged more than once a year. Interest on corporate bonds, for example, is usually payable every six months. Consider a loan transaction in which interest is charged at the rate of 1 percent per month. Sometimes such a transaction is described as having an interest rate of 12 percent per annum. More precisely, this rate should be described as a nominal 12 percent per annum coumpounded monthly.Clearly, it is desirable to recognize the difference between 1 percent per month compounded monthly and 12 percent per annum compounded annually. If $1,000 is borrowed with interest at 1 percent per month compounded monthly, the amount due in one year is:F = $1,000(1.01)12 = $1,000(1.1268) = $1,126.80 This compares to F = $1,000(1+.12) =$1,120.00 for annual compounding.Hence, the monthly compounding has the same effect on the year-end amount due as the charging of a rate of 12.68 percent compounded annually. 12.68 percent is referred to as the effective interest rate. To generalize, if interest is compounded m times a year at an interest rate of r/m per compounding period. Then,The nominal interest rate per annum, or the APR = m(r/m) = r.The effective interest rate per annum,or the EAR = (1+r/m)m - 1.Consider a $100,000, 30 year, fixed-rate, 9 percent, home mortgage requiring monthly payments.a. The monthly interest rate on the mortgage is 9%/12 months = .75%. What is the APR on the mortgage?b. What is the EAR on the mortgage?c. The borrower's payment book will look something like the following. Complete the entries for the first 6 months.Outstanding Balance Beginning of MonthMonthly paymentInterest duePrincipal paymentOutstanding Balance End of MonthDate01-31$100,00002-2803-3104-3005-3106-30d. After paying on this mortgage for 15 years, what will be the remaining principal outstanding? e. Suppose after 15 years the borrower has the opportunity to refinance the remaining principal on the mortgage with a new 15-year mortgage carrying an interest rate of 7 1/8%. Refinancing will involve $250 in costs and "points.
This document provides an agenda and guidance for creating financial projections for T-Hub. It discusses both top-down and bottom-up approaches to projections and outlines over 50 items that should be included in a financial projection checklist, such as estimating costs, revenues, and key assumptions. The document also provides examples of financial statements and explains how the balance sheet, income statement, and cash flow statement relate to each other.
[Type text] [Type text] [Type text]
Part 1: Native American’s Forced Assimilation
Instructions: Watch the video
( https://www.vox.com/2019/10/14/20913408/us-stole-thousands-of-native-american-children) to get a history of assimilation in theUS. Then answer the following questions.
1.What was the purpose for the forced assimilation of Native Americans?
2.Name two strategies the US used to assimilate Native Americans and explain how each of these strategies worked.
Part 2: Keywords for Asian American Studie “Assimilation” (pp. 14-17) https://books.google.com/books?id=bo_dBwAAQBAJ&printsec=frontcover&dq=Keywords+for+Asian+American+Studie&hl=en&newbks=1&newbks_redir=0&sa=X&ved=2ahUKEwjsrcHi7OnnAhWnl3IEHeZyDKMQ6AEwAHoECAUQAg#v=onepage&q=Keywords%20for%20Asian%20American%20Studie&f=false
Instructions: Answer the following questions. Provide a passage from the reading (i.e., “Assimilation”) in addition to your response to support your responses.
1.What are the five different definitions or perspectives on assimilation? As you identify them, note which one you think is most accurate for the contemporary situation of assimilation.
2.According to Lisa Park, how is assimilation enforced in our society?
3.What are the criticism of assimilation?4.What does Lisa Park say is a unique experience of assimilation for Asian Americans? (p. 17)
Part 3: Assessing assimilation in our societyAnswer the following questions based on your observations, experiences, or insights.
1.Do immigrants have a duty to learn and adopt the local culture, or should they try to retain their native culture?
2.What does successful assimilation look like? What are some results of it?
3.What does unsuccessful assimilation look like? What are some results of it?
4.How does race fact into the process or act of assimilation?
Valuation outputBase year12345678910Terminal yearRevenue growth rate70.00%70.00%70.00%70.00%70.00%56.55%43.10%29.65%16.20%2.75%2.75%Revenues$ 1,328.70$ 2,258.78$ 3,839.93$ 6,527.88$ 11,097.40$ 18,865.58$ 29,534.07$ 42,263.25$ 54,794.31$ 63,670.99$ 65,421.94$ 67,221.04EBIT (Operating) margin-1.64%-0.23%1.18%2.60%4.01%5.43%6.84%8.26%9.67%11.09%12.50%12.50%EBIT (Operating income)$ (21.86)$ (5.21)$ 45.46$ 169.63$ 445.34$ 1,023.93$ 2,020.72$ 3,489.47$ 5,299.16$ 7,058.25$ 8,177.74$ 8,402.63Tax rate0.00%0.00%0.00%0.00%0.00%0.00%7.00%14.00%21.00%28.00%35.00%35.00%EBIT(1-t)$ (21.86)$ (5.21)$ 45.46$ 169.63$ 445.34$ 1,023.93$ 1,879.27$ 3,000.94$ 4,186.33$ 5,081.94$ 5,315.53$ 5,461.71- Reinvestment$ 659.64$ 1,121.38$ 1,906.35$ 3,240.79$ 5,509.35$ 7,566.30$ 9,027.79$ 8,887.27$ 6,295.52$ 1,241.81$ 1,877.46FCFF$ (664.84)$ (1,075.92)$ (1,736.72)$ (2,795.45)$ (4,485.42)$ (5,687.03)$ (6,026.85)$ (4,700.94)$ (1,213.58)$ 4,073.72$ 3,584.25Cost of capital10.03%10.03%10.03%10.03%10.03%9.63%9.22%8.81%8.41%8.
Estimating Cash Flows
This document discusses steps for estimating cash flows for DCF valuation, including:
1. Estimating current earnings and considering capital expenditures, depreciation, and working capital needs for future growth.
2. Measuring cash flows to the firm as EBIT(1-tax rate) - (Capex - Depreciation) - Change in working capital.
3. Updating earnings from financial statements and correcting for accounting treatments like operating leases and R&D expenses.
This document discusses key decisions in discounted cash flow valuation, including:
1) Choosing whether to discount cash flows to equity or the firm based on the firm's leverage.
2) Given cash flows to equity, whether to discount dividends or free cash flows to equity based on how dividends compare to free cash flows.
3) Choosing the appropriate discount rate of either the cost of equity or weighted average cost of capital depending on the cash flows.
4) Selecting a growth pattern such as stable, two-stage, or three-stage based on the firm's growth characteristics and life cycle stage.
This document discusses several valuation methods including comparable multiples, discounted cash flow analysis, and heuristic methods. It provides an overview of comparable multiples like P/E, price to book, and enterprise value to EBITDA. It then describes using a discounted cash flow approach including estimating free cash flows, determining an appropriate time horizon, and calculating the cost of debt and equity. The document emphasizes that discounted cash flow analysis accounts for synergies and specific company characteristics better than heuristic multiples which have limitations.
SAPM Growth Rates MBA Notes and Materialomkarkothule
The document discusses various methods for estimating company growth rates, including historical, analyst, and fundamental approaches. Historical growth can be calculated using arithmetic or geometric averages, and must account for factors like negative earnings, scale changes, and base year selection. Analyst estimates have limitations like sector focus and relationship bias. Fundamental growth estimates growth based on a company's reinvestment rate and return on capital. The document provides examples of calculating growth rates using various metrics and accounting for changing returns on capital over time.
This document provides an overview of financial planning and forecasting concepts. It discusses how financial managers prepare projected financial statements to assess future performance and financing needs. The key components of a financial plan are outlined, including sales forecasting, pro forma income statements, balance sheets, and cash flow statements. Methods for sales forecasting and preparing pro forma statements are explained. The concepts of internal growth rate, sustainable growth rate, and external financing requirements are defined and formulas are provided. The importance of financial planning and how balance sheet ratios may change over time are also summarized.
7.12Chapter 7 Problem 12a). Complete the spreadsheet below by esti.docxalinainglis
7.12Chapter 7 Problem 12a). Complete the spreadsheet below by estimating the project's annual after tax cash flow.b). What is the investment's net present value at a discount rate of 10 percent?c). What is the investment's internal rate of return?d). How does the internal rate of return change if the discount rate equals 20 percent?e). How does the internal rate of return change if the growth rate in EBIT is 8 percent instead of 3 percent?Facts and AssumptionsEquipment initial cost $$ 350,000Depreciable life yrs.7Expected life yrs.10Salvage value $$0Straight line depreciationEBIT in year 128,000Tax rate38%Growth rate in EBIT3%Discount rate10%Year012345678910Initial cost350,000Annual depreciation50,00050,00050,00050,00050,00050,00050,000EBIT28,00028,84029,70530,59631,51432,46033,43334,43635,47036,534Net present value @ 10%Internal rate of return
7.13Chapter 7 Problem 13In many financial transactions, interest is computed and charged more than once a year. Interest on corporate bonds, for example, is usually payable every six months. Consider a loan transaction in which interest is charged at the rate of 1 percent per month. Sometimes such a transaction is described as having an interest rate of 12 percent per annum. More precisely, this rate should be described as a nominal 12 percent per annum coumpounded monthly.Clearly, it is desirable to recognize the difference between 1 percent per month compounded monthly and 12 percent per annum compounded annually. If $1,000 is borrowed with interest at 1 percent per month compounded monthly, the amount due in one year is:F = $1,000(1.01)12 = $1,000(1.1268) = $1,126.80 This compares to F = $1,000(1+.12) =$1,120.00 for annual compounding.Hence, the monthly compounding has the same effect on the year-end amount due as the charging of a rate of 12.68 percent compounded annually. 12.68 percent is referred to as the effective interest rate. To generalize, if interest is compounded m times a year at an interest rate of r/m per compounding period. Then,The nominal interest rate per annum, or the APR = m(r/m) = r.The effective interest rate per annum,or the EAR = (1+r/m)m - 1.Consider a $100,000, 30 year, fixed-rate, 9 percent, home mortgage requiring monthly payments.a. The monthly interest rate on the mortgage is 9%/12 months = .75%. What is the APR on the mortgage?b. What is the EAR on the mortgage?c. The borrower's payment book will look something like the following. Complete the entries for the first 6 months.Outstanding Balance Beginning of MonthMonthly paymentInterest duePrincipal paymentOutstanding Balance End of MonthDate01-31$100,00002-2803-3104-3005-3106-30d. After paying on this mortgage for 15 years, what will be the remaining principal outstanding? e. Suppose after 15 years the borrower has the opportunity to refinance the remaining principal on the mortgage with a new 15-year mortgage carrying an interest rate of 7 1/8%. Refinancing will involve $250 in costs and "points.
This document provides an agenda and guidance for creating financial projections for T-Hub. It discusses both top-down and bottom-up approaches to projections and outlines over 50 items that should be included in a financial projection checklist, such as estimating costs, revenues, and key assumptions. The document also provides examples of financial statements and explains how the balance sheet, income statement, and cash flow statement relate to each other.
Fixed Capital Evaluation To Improve Business Growth Powerpoint Presentation S...SlideTeam
This document discusses evaluating fixed capital requirements to improve business growth. It includes an agenda covering assessing fixed capital performance, understanding needs for land, buildings, and machinery, and evaluating expansion and replacement needs. Techniques to be considered include net present value, internal rate of return, payback period. The implementation plan involves inventorying assets, assessing conditions, establishing maintenance plans, identifying failure impacts, and developing optimization and funding strategies. Software can help manage assets, reduce downtime, and provide project snapshots and depreciation methods. Dashboards can track asset values across categories.
The document discusses various approaches to measuring organizational performance, including firm survival, accounting measures, market-based measures, and economic value added (EVA). It provides definitions and formulas for key performance metrics like return on assets, market value added, EVA, and market-based measures. Both the strengths and weaknesses of different performance measurement approaches are outlined.
Financial Statement Analysis Project
Valuation
Valuation
The last step of the project is to valuate the company and determine the buy price
We are going to introduce two valuation systems:
Margin of Safety price
Buy price based on Owner Earnings
2
Margin of Safety (MOS) Price
Step 1: EPS Trailing 12 month (EPS TTM)
Sum of EPS from the most recent 4 quarters (from Yahoo Finance or 10-Q)
Step 2: Future Growth Rate (FGR) – Key Parameter
You have calculated annual growth rates of Book Value, EPS, CFO, and Sales per share
Use these growth rates to come up your estimate of FGR (you just need to ball park a FGR, and it will be a rough estimate)
Your estimated FGR should be <= Analysts’ forecast of future growth
Step 3: Future EPS=EPS TTM × (1+FGR)10
Projected EPS in 10 years
Margin of Safety (MOS) Price
Step 4: Future P/E Ratio= 2 × FGR
Should be capped at historical high P/E ratio
Step 5: Future Value= Future EPS × Future P/E Ratio
Projected firm value in 10 years
Step 6: Fair Price= Future Value ÷ 4
Company’s fair value today
We want our money to double up every 5 years
Step 7: MOS Price= Fair price × 50%
I can help you with analysts’ forecast of FGR and historical high P/E ratio, as it can be challenging for you to find out
Buy Price based on Owner Earnings
This is the valuation method Buffett uses and explained in his 1986 Letter to Berkshire’s shareholders
We think of businesses like many people think of a real estate investment – a money making machine based on net profits generated
One way to look at a business is by analyzing cash flow generated after certain expenses. If you can keep a good profit after expenses and expect it to continue in the future, you have a good deal.
Buffett defines this cash flow as “Owner Earnings.”
We are looking to buy a great company at a price that will earn a 10% return (=Owner earnings) every year
Compute Owner Earnings
Pretax Income
+ Depreciation and Amortization
+/- Changes in Accounts Receivable
+/- Changes in Inventories
+/- Changes in Accounts Payable
- Maintenance CapEx (Total CapEx with Growth CapEx taken out)
----------------------
= Owner Earnings
Maintenance CapEx
Maintenance CapEx is the money the company spent to replace worn out property and equipment for the last fiscal year.
In real estate, this is like replacement of roof, countertop, carpet, and furnaces, etc.
The money spent on acquiring more real estate properties is Growth CapEx.
Most companies, however, do not separately report maintenance CapEx.
So we need to read 10-K to help us identify the maintenance CapEx.
Entry Point
Now you have two buy prices calculated. If your company is a great company you would like to own for the next 10 years, wait now until an event puts the company on sale
Great companies are often priced high (e.g., Costco, Chipotle, Ulta), and we don’t chase the stock
An event is an incident that causes the company’s stock price to decline sharply and puts the comp.
There are 76 red xxx’s – each worth 1.18 points. You only need to.docxchristalgrieg
There are 76 red xxx’s – each worth 1.18 points. You only need to fill in where you see red xxx’s (big or small)
CHAPTER 1
THE McGEE CAKE COMPANY
1. The advantages to a LLC are: xxxx
The biggest disadvantage is: xxxx
2. .xxxx
C-2 CASE SOLUTIONS
3. .xxxx
CHAPTER 2
CASH FLOWS AND FINANCIAL STATEMENTS
Below are the financial statements that you are asked to prepare.
1. The income statement for each year will look like this:
Income Statement
2010
2011
Sales
xxxx
xxxx
Cost of goods sold
163,849
206,886
Selling and administrative
xxxx
xxxx
Depreciation
46,255
52,282
EBIT
$79,110
$90,584
Interest
10,056
11,526
EBT
$69,054
$79,058
Taxes (use the problem to figure
This amount out
xxxx
xxxx
Net income
$55,243
$63,246
Dividends(read the case to find out how much this is)
xxxx
xxxx
Addition to retained earnings
(this would be whatever the net income is less the dividends paid out)
xxxx
xxxx
2. The balance sheet for each year will be:
Balance Sheet as of Dec. 31, 2010
Cash
xxxx
Accounts payable
xxxx
Accounts receivable
xxxx
Notes payable
xxxx
Inventory
xxxx
Current liabilities
$60,832
Current assets
$72,651
Long-term debt
xxxxx
Net fixed assets
xxxxxx
Owners' equity
xxxxx
Total assets
$276,719
Total liab. and equity
$276,719
In the first year, equity is not given. Therefore, we must calculate equity as a plug variable. Since total liabilities and equity is equal to total assets, equity can be calculated as:
Equity = $276,719 – 60,832 – 103,006
Equity = $112,881
Balance Sheet as of Dec. 31, 2011
Cash
xxxx
Accounts payable
xxxx
Accounts receivable
xxxx
Notes payable
xxxx
Inventory
xxxx
Current liabilities
$68,121
Current assets
$100,834
Long-term debt
xxxx
Net fixed assets
xxxx
Owners' equity
Xxxx(see below)
Total assets
$349,459
Total liab. and equity
$349,459
The owner’s equity for 2011 is the beginning of year owner’s equity, plus the addition to retained earnings, plus the new equity, so:
Equity = $112,881 + 31,623 + 20,500
Equity = $165,004
3-6 are completed for you so you can answer the questions
3. Using the OCF equation: (
OCF = EBIT + Depreciation – Taxes
The OCF for each year is:
OCF2010 = $79,110 + 46,255 – 13,811
OCF2010 = $111,554
OCF2011 = $90,584 + 52,282 – 15,812
OCF2011 = $127,054
4.
To calculate the cash flow from assets, we need to find the capital spending and change in net working capital. The capital spending for the year was:
Capital spending
Ending net fixed assets
$248,625
– Beginning net fixed assets
204,068
+ Depreciation
52,282
Net capital spending
$96,839
And the change in net working capital was:
Change in net working capital
Ending NWC
$32,713
– Beginning NWC
11,819
Change in NWC
$20,894
So, the cash flow from assets was:
Cash flow from assets
Operating cash flow
$127,054
– Net capital spending
96,839
– Change in NWC
...
The document discusses several capital budgeting techniques for evaluating investments with unequal lives, including the equivalent annual cost method. It explains that this method allows comparison of projects with different lifetimes by calculating the constant annual cost of each option over their full lifetimes, so that the alternatives become comparable on an annual basis. The method involves repeating short-term projects to create a continuous chain that matches the longest-lived option, then computing the net present value of the chain to evaluate which has the lowest equivalent annual cost.
The document discusses several methods for evaluating capital investment decisions, including incremental cash flows, inflation adjustments, and investments with unequal lives. It provides an example of evaluating a bowling ball machine investment over 5 years using cash flows, depreciation, and net income. For investments with unequal lives, it recommends using the equivalent annual cost method to convert costs to equal annual amounts to facilitate comparison.
Compounded Annual Growth Rate or CAGR is a method to calculate year-over-year growth rate of an investment over a specified period of time.
We have made an attempt to explain the term ‘Compounded Annual Growth Rate’ by way of an interesting example. Do share it if you like it.
You can give us your valuable feedback at professor@tataamc.com
This chapter discusses the cost of capital, which includes the costs of the various components that make up a firm's capital structure: debt, preferred stock, and common equity. It also discusses the weighted average cost of capital (WACC), which is a weighted average of the costs of the various components used to finance the firm. The chapter provides methods for estimating the costs of each component as well as the weights to use in calculating the WACC. It also discusses adjusting the cost of capital for divisions within a firm to account for different risk levels.
Financial statement analysis involves analyzing financial documents like income statements, balance sheets, and cash flow statements to evaluate a business's performance and financial position over time and in comparison to industry averages. It provides information on profitability, liquidity, asset management, financial structure, and market value. For Walker Ltd, an investor is considering shares, so the summary evaluates the company's performance, position, and recommends purchasing shares based on acceptable ratios, strong industry prospects, sales growth, cash flows, and favorable return on equity compared to industry averages.
This document discusses various methods used for investment appraisal to assess whether investment projects are worthwhile. It describes payback period, accounting rate of return, internal rate of return, profitability index, and net present value. Net present value discounts future cash flows to account for the time value of money and allows comparison of projects. Internal rate of return identifies the discount rate that results in a net present value of zero. Investment appraisal helps firms evaluate projects and potential returns to determine which investments to make.
Capital Budgeting and Corporate Valuation discusses methods for evaluating capital investments and valuing companies. It outlines quantitative methods like net present value (NPV), internal rate of return (IRR), payback period, and profitability index that use discounted cash flow analysis and the time value of money. It also notes that qualitative factors like strategy, competition, and resources must be considered. Corporate valuation looks at book value, market value, liquidation value, replacement value, and discounted cash flow value based on future earnings.
The document discusses the price/sales ratio and its determinants. It provides formulas for calculating the price/sales ratio for stable growth firms and high growth firms using a dividend discount model. Key determinants of the price/sales ratio mentioned include profit margins, expected growth rates, payout ratios, and discount rates. An example is provided to illustrate calculating the price/sales ratio for Coca-Cola. The document also discusses the relationship between price/sales ratios and profit margins using regression analysis and examples.
This document discusses valuation principles and the valuation of corporations and stocks. It provides the following key points:
1. The primary goal of corporations is shareholder wealth maximization, which translates to maximizing stock price. Firms should behave ethically and have responsibilities to society.
2. Common stock represents ownership, with owners electing directors who hire management to maximize stock price.
3. Valuing a corporation involves discounting projected free cash flows at the weighted average cost of capital (WACC) to determine the value of operations, plus the value of non-operating assets.
4. Valuing stock involves discounting projected dividends at the cost of equity. The corporate value is divided among deb
This document provides an overview of long-term financial planning principles and processes. It discusses key concepts like financial goals, growth objectives, planning horizons, and worst-case/normal/best-case scenarios. Examples are given of real companies that failed to properly consider long-term planning, prioritizing growth over profitability. The document also demonstrates how to create pro forma financial statements by linking income statement and balance sheet items to sales forecasts and maintaining consistent ratios over time.
Investment appraisal is a means of assessing whether an investment project is worthwhile. It involves analyzing factors such as payback period, accounting rate of return, internal rate of return, profitability index, and net present value. Net present value discounts future cash flows to account for the time value of money and allows comparison of investments. Firms use these techniques to evaluate potential investments and determine which projects to pursue.
This document discusses various techniques for financial forecasting and projections. It provides an overview of preparing pro forma income statements and balance sheets using percentage of sales and budgeted expense methods. An example pro forma income statement and assumptions are presented. Key points covered are sales forecasting techniques, calculating external funding requirements for growth, and preparing other supporting financial projections like cash budgets and operating budgets.
This document discusses various methods for evaluating the profitability of potential investments and projects. It describes profitability, the need to consider alternative investments and returns, and minimum profitability standards. Key methods for evaluating project profitability discussed include total profit, return on investment, discounted cash flow, net present worth, capitalized costs, and payout period. The document provides examples of calculating return on investment both before and after taxes, and incorporating a minimum required profit. Overall it aims to explain the importance of profitability analysis and various quantitative techniques for assessing potential investments.
This document presents a financial statement analysis of Asian Paints conducted by MBA students for their professor. It includes an overview of Asian Paints as a leading paint company with global operations. The analysis examines Asian Paints' strong cash position, use of straight-line depreciation, calculations of basic and diluted EPS, sources of company information for analysis, and components of the cash flow statement such as operating cash flow and capital expenditures.
The document appears to be a table with two columns: "No. of Failures" and "Frequency". It seems to list the number of failures of something alongside their corresponding frequencies, but without more context or data in the table itself, it is difficult to determine what specifically is being counted or measured.
Nonclassified DataIn order to maintain transparency and et.docxhallettfaustina
Nonclassified Data
In order to maintain transparency and ethical standards of research, researchers may file a Freedom of Information Act (FOIA) request to obtain all nonclassified data on a subject. Why is this legislation important? Do you think it is working? Why or why not.
Crime Mapping
Crime mapping has been used for
intelligence-led policing
: using data, analysis, and criminal theory to guide police allocation and decision making. Give some examples of ways this is used in your community. Explain if it is working. What are some other ways that you think it should be used in your Community? Give examples and how it would be effective in policing.
Importance of Reviewing Communications
Describe a situation when you may have sent something electronically (email) or turned something in when the lack of review or proofreading was brought to your attention by yourself or others. Discuss any repercussions you faced due to the communication not being reviewed. Explain the importance of reviewing any form of communication prior to disseminating it.
Who Reviews Your Work?
In our everyday life (school, work, or home) we use some form of communication. Who reviews your communication before it is sent, or do you review the communication of others and your own? Describe how you would ensure the communication is “good to go” or ready to disseminate to others.
.
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Financial Statement Analysis Project
Valuation
Valuation
The last step of the project is to valuate the company and determine the buy price
We are going to introduce two valuation systems:
Margin of Safety price
Buy price based on Owner Earnings
2
Margin of Safety (MOS) Price
Step 1: EPS Trailing 12 month (EPS TTM)
Sum of EPS from the most recent 4 quarters (from Yahoo Finance or 10-Q)
Step 2: Future Growth Rate (FGR) – Key Parameter
You have calculated annual growth rates of Book Value, EPS, CFO, and Sales per share
Use these growth rates to come up your estimate of FGR (you just need to ball park a FGR, and it will be a rough estimate)
Your estimated FGR should be <= Analysts’ forecast of future growth
Step 3: Future EPS=EPS TTM × (1+FGR)10
Projected EPS in 10 years
Margin of Safety (MOS) Price
Step 4: Future P/E Ratio= 2 × FGR
Should be capped at historical high P/E ratio
Step 5: Future Value= Future EPS × Future P/E Ratio
Projected firm value in 10 years
Step 6: Fair Price= Future Value ÷ 4
Company’s fair value today
We want our money to double up every 5 years
Step 7: MOS Price= Fair price × 50%
I can help you with analysts’ forecast of FGR and historical high P/E ratio, as it can be challenging for you to find out
Buy Price based on Owner Earnings
This is the valuation method Buffett uses and explained in his 1986 Letter to Berkshire’s shareholders
We think of businesses like many people think of a real estate investment – a money making machine based on net profits generated
One way to look at a business is by analyzing cash flow generated after certain expenses. If you can keep a good profit after expenses and expect it to continue in the future, you have a good deal.
Buffett defines this cash flow as “Owner Earnings.”
We are looking to buy a great company at a price that will earn a 10% return (=Owner earnings) every year
Compute Owner Earnings
Pretax Income
+ Depreciation and Amortization
+/- Changes in Accounts Receivable
+/- Changes in Inventories
+/- Changes in Accounts Payable
- Maintenance CapEx (Total CapEx with Growth CapEx taken out)
----------------------
= Owner Earnings
Maintenance CapEx
Maintenance CapEx is the money the company spent to replace worn out property and equipment for the last fiscal year.
In real estate, this is like replacement of roof, countertop, carpet, and furnaces, etc.
The money spent on acquiring more real estate properties is Growth CapEx.
Most companies, however, do not separately report maintenance CapEx.
So we need to read 10-K to help us identify the maintenance CapEx.
Entry Point
Now you have two buy prices calculated. If your company is a great company you would like to own for the next 10 years, wait now until an event puts the company on sale
Great companies are often priced high (e.g., Costco, Chipotle, Ulta), and we don’t chase the stock
An event is an incident that causes the company’s stock price to decline sharply and puts the comp.
There are 76 red xxx’s – each worth 1.18 points. You only need to.docxchristalgrieg
There are 76 red xxx’s – each worth 1.18 points. You only need to fill in where you see red xxx’s (big or small)
CHAPTER 1
THE McGEE CAKE COMPANY
1. The advantages to a LLC are: xxxx
The biggest disadvantage is: xxxx
2. .xxxx
C-2 CASE SOLUTIONS
3. .xxxx
CHAPTER 2
CASH FLOWS AND FINANCIAL STATEMENTS
Below are the financial statements that you are asked to prepare.
1. The income statement for each year will look like this:
Income Statement
2010
2011
Sales
xxxx
xxxx
Cost of goods sold
163,849
206,886
Selling and administrative
xxxx
xxxx
Depreciation
46,255
52,282
EBIT
$79,110
$90,584
Interest
10,056
11,526
EBT
$69,054
$79,058
Taxes (use the problem to figure
This amount out
xxxx
xxxx
Net income
$55,243
$63,246
Dividends(read the case to find out how much this is)
xxxx
xxxx
Addition to retained earnings
(this would be whatever the net income is less the dividends paid out)
xxxx
xxxx
2. The balance sheet for each year will be:
Balance Sheet as of Dec. 31, 2010
Cash
xxxx
Accounts payable
xxxx
Accounts receivable
xxxx
Notes payable
xxxx
Inventory
xxxx
Current liabilities
$60,832
Current assets
$72,651
Long-term debt
xxxxx
Net fixed assets
xxxxxx
Owners' equity
xxxxx
Total assets
$276,719
Total liab. and equity
$276,719
In the first year, equity is not given. Therefore, we must calculate equity as a plug variable. Since total liabilities and equity is equal to total assets, equity can be calculated as:
Equity = $276,719 – 60,832 – 103,006
Equity = $112,881
Balance Sheet as of Dec. 31, 2011
Cash
xxxx
Accounts payable
xxxx
Accounts receivable
xxxx
Notes payable
xxxx
Inventory
xxxx
Current liabilities
$68,121
Current assets
$100,834
Long-term debt
xxxx
Net fixed assets
xxxx
Owners' equity
Xxxx(see below)
Total assets
$349,459
Total liab. and equity
$349,459
The owner’s equity for 2011 is the beginning of year owner’s equity, plus the addition to retained earnings, plus the new equity, so:
Equity = $112,881 + 31,623 + 20,500
Equity = $165,004
3-6 are completed for you so you can answer the questions
3. Using the OCF equation: (
OCF = EBIT + Depreciation – Taxes
The OCF for each year is:
OCF2010 = $79,110 + 46,255 – 13,811
OCF2010 = $111,554
OCF2011 = $90,584 + 52,282 – 15,812
OCF2011 = $127,054
4.
To calculate the cash flow from assets, we need to find the capital spending and change in net working capital. The capital spending for the year was:
Capital spending
Ending net fixed assets
$248,625
– Beginning net fixed assets
204,068
+ Depreciation
52,282
Net capital spending
$96,839
And the change in net working capital was:
Change in net working capital
Ending NWC
$32,713
– Beginning NWC
11,819
Change in NWC
$20,894
So, the cash flow from assets was:
Cash flow from assets
Operating cash flow
$127,054
– Net capital spending
96,839
– Change in NWC
...
The document discusses several capital budgeting techniques for evaluating investments with unequal lives, including the equivalent annual cost method. It explains that this method allows comparison of projects with different lifetimes by calculating the constant annual cost of each option over their full lifetimes, so that the alternatives become comparable on an annual basis. The method involves repeating short-term projects to create a continuous chain that matches the longest-lived option, then computing the net present value of the chain to evaluate which has the lowest equivalent annual cost.
The document discusses several methods for evaluating capital investment decisions, including incremental cash flows, inflation adjustments, and investments with unequal lives. It provides an example of evaluating a bowling ball machine investment over 5 years using cash flows, depreciation, and net income. For investments with unequal lives, it recommends using the equivalent annual cost method to convert costs to equal annual amounts to facilitate comparison.
Compounded Annual Growth Rate or CAGR is a method to calculate year-over-year growth rate of an investment over a specified period of time.
We have made an attempt to explain the term ‘Compounded Annual Growth Rate’ by way of an interesting example. Do share it if you like it.
You can give us your valuable feedback at professor@tataamc.com
This chapter discusses the cost of capital, which includes the costs of the various components that make up a firm's capital structure: debt, preferred stock, and common equity. It also discusses the weighted average cost of capital (WACC), which is a weighted average of the costs of the various components used to finance the firm. The chapter provides methods for estimating the costs of each component as well as the weights to use in calculating the WACC. It also discusses adjusting the cost of capital for divisions within a firm to account for different risk levels.
Financial statement analysis involves analyzing financial documents like income statements, balance sheets, and cash flow statements to evaluate a business's performance and financial position over time and in comparison to industry averages. It provides information on profitability, liquidity, asset management, financial structure, and market value. For Walker Ltd, an investor is considering shares, so the summary evaluates the company's performance, position, and recommends purchasing shares based on acceptable ratios, strong industry prospects, sales growth, cash flows, and favorable return on equity compared to industry averages.
This document discusses various methods used for investment appraisal to assess whether investment projects are worthwhile. It describes payback period, accounting rate of return, internal rate of return, profitability index, and net present value. Net present value discounts future cash flows to account for the time value of money and allows comparison of projects. Internal rate of return identifies the discount rate that results in a net present value of zero. Investment appraisal helps firms evaluate projects and potential returns to determine which investments to make.
Capital Budgeting and Corporate Valuation discusses methods for evaluating capital investments and valuing companies. It outlines quantitative methods like net present value (NPV), internal rate of return (IRR), payback period, and profitability index that use discounted cash flow analysis and the time value of money. It also notes that qualitative factors like strategy, competition, and resources must be considered. Corporate valuation looks at book value, market value, liquidation value, replacement value, and discounted cash flow value based on future earnings.
The document discusses the price/sales ratio and its determinants. It provides formulas for calculating the price/sales ratio for stable growth firms and high growth firms using a dividend discount model. Key determinants of the price/sales ratio mentioned include profit margins, expected growth rates, payout ratios, and discount rates. An example is provided to illustrate calculating the price/sales ratio for Coca-Cola. The document also discusses the relationship between price/sales ratios and profit margins using regression analysis and examples.
This document discusses valuation principles and the valuation of corporations and stocks. It provides the following key points:
1. The primary goal of corporations is shareholder wealth maximization, which translates to maximizing stock price. Firms should behave ethically and have responsibilities to society.
2. Common stock represents ownership, with owners electing directors who hire management to maximize stock price.
3. Valuing a corporation involves discounting projected free cash flows at the weighted average cost of capital (WACC) to determine the value of operations, plus the value of non-operating assets.
4. Valuing stock involves discounting projected dividends at the cost of equity. The corporate value is divided among deb
This document provides an overview of long-term financial planning principles and processes. It discusses key concepts like financial goals, growth objectives, planning horizons, and worst-case/normal/best-case scenarios. Examples are given of real companies that failed to properly consider long-term planning, prioritizing growth over profitability. The document also demonstrates how to create pro forma financial statements by linking income statement and balance sheet items to sales forecasts and maintaining consistent ratios over time.
Investment appraisal is a means of assessing whether an investment project is worthwhile. It involves analyzing factors such as payback period, accounting rate of return, internal rate of return, profitability index, and net present value. Net present value discounts future cash flows to account for the time value of money and allows comparison of investments. Firms use these techniques to evaluate potential investments and determine which projects to pursue.
This document discusses various techniques for financial forecasting and projections. It provides an overview of preparing pro forma income statements and balance sheets using percentage of sales and budgeted expense methods. An example pro forma income statement and assumptions are presented. Key points covered are sales forecasting techniques, calculating external funding requirements for growth, and preparing other supporting financial projections like cash budgets and operating budgets.
This document discusses various methods for evaluating the profitability of potential investments and projects. It describes profitability, the need to consider alternative investments and returns, and minimum profitability standards. Key methods for evaluating project profitability discussed include total profit, return on investment, discounted cash flow, net present worth, capitalized costs, and payout period. The document provides examples of calculating return on investment both before and after taxes, and incorporating a minimum required profit. Overall it aims to explain the importance of profitability analysis and various quantitative techniques for assessing potential investments.
This document presents a financial statement analysis of Asian Paints conducted by MBA students for their professor. It includes an overview of Asian Paints as a leading paint company with global operations. The analysis examines Asian Paints' strong cash position, use of straight-line depreciation, calculations of basic and diluted EPS, sources of company information for analysis, and components of the cash flow statement such as operating cash flow and capital expenditures.
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Importance of Reviewing Communications
Describe a situation when you may have sent something electronically (email) or turned something in when the lack of review or proofreading was brought to your attention by yourself or others. Discuss any repercussions you faced due to the communication not being reviewed. Explain the importance of reviewing any form of communication prior to disseminating it.
Who Reviews Your Work?
In our everyday life (school, work, or home) we use some form of communication. Who reviews your communication before it is sent, or do you review the communication of others and your own? Describe how you would ensure the communication is “good to go” or ready to disseminate to others.
.
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Example included and worksheet attached.
Use the
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You may collect the worksheets together as one document or you may submit a separate worksheet for each source.
.
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Nonprofit v Criminal Justice
Criminal justice organizations and nonprofit organizations have a lot of factors and/or characteristics that are similar as well as different. These types of organizations are out there for members of society to help those who are in need as well as gain that experience necessary to fulfill that spot they need within themselves and their life.
To start off, “nonprofit organizations occupy a unique third sector with diverse resource dependencies, arising mainly from private donations and labor, but subsidized by government exemption of certain public tax obligations to encourage charitable activity (Oelbrger, 2016)”. With that being said, a non profit organization, such as the Masonic family, which is a very controversial idea, raises money for those charities such as Shriners Hospital as well as military troops who are actively deployed. Not only this, but they also award their members with scholarships for doing good deeds around their community. I know this personally as my dad is an active Mason.
Criminal justice organizations have many goals as well. Their goals consist of helping those around their community and the country. One of the goals mentioned by the Department of Justice (2018) is to “prevent Crime, Protect the Rights of the American People, and Enforce Federal Law”. As criminal justice employees, they are putting their life on the line whereas daily to help serve their people. Whereas, nonprofit organizations are helping those in their community by serving them with needs that they have, that do not require putting their life on the line.
Both organizations however, are doing what they need to do to help support those around their community. They are both helping their community and those in need when it is needed. Between protection, or fundraisers, or support financially, these organizations do what they have to do to ensure that they are getting their name out there in a positive manner, of course.
.
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Noah DeWaal
Tuesday16 Jun at 15:38
Manage discussion entry
"Four Horsemen" describes the ways in which our world is slowly folding on itself. It categorizes the four horsemen as a wrongful banking system, escalating violence, an abundance of poverty, and deletion of the world's resources. All these topics are the signs that we have truly doomed ourselves as a nation and as a planet. The underlying kingpin here is money. Everyone, including the government, lives, and works to earn and spend money. There are a variety of different paths to obtain that currency and the banks are at the heart, banks that create this money out of thin air. The film starts by speaking of empires and power. Nations want to be in positions to be on top as a means of security and credibility. Top nations control our world and those who are not, strive to become one. From historic times to now, people and groups want to become the most powerful, and when they do, they obtain all the resources they can do benefit their empires and the leaders become wealthy and untouchable. There is usually one common factor within one's rise to power, and that is money. It earns resources and credibility which makes others become submissive to you. We are supposed to be living within a free market system where everyone has a fair piece of the pie, but that is rarely true today. The way the banks function and government spending only amasses debt that will in turn be paid by the American people. Some of these people live in poverty, meaning they cannot even live anymore. People are expected to pay more for items as the price level rises while many incomes are not following suit. This system leaves those who are poor behind making it nearly impossible for them to catch up. As stated before, government spending can leave a budget deficit that needs to be repaid. Most of these expenditures, however, are on war and violence. International affairs, terrorism, and national crime are all credible threats, and a lot of money goes into limiting it. The resources used to support these organization makes them more powerful and it has transitioned peacekeeping into utter force and violence. Here at home and abroad, war rages daily. From small to large scale conflict is being solved in horrific ways and many innocent people are dying along the way. At the root of all of it, is money and power. A lot of this is also politically inclined. We live in a society in which people are paid just to influence politicians to pass acts that will in turn create more money for people who already have a lot of it. Wealth drives our nation, without it, one is just swept under the carpet. People have worked way too hard to obtain wealth while those in control can create it like none other. This exponential growth has depleted Earth's resources and we are running out fast. With no resources, what is there to gain anymore. The Four Horsemen are the warning signs that our systems are heavily flawed and need to be chan.
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No Plagiarism
4-6 slides (excluding Title and Reference slides) with notes that are a minimum of 150 words per slide.
Leaders face many hurdles when leading in multiple countries. There are several examples of disastrous public relations fallout that have occurred when companies have outsourced work to other nations. When determining where to move offshore as a company, the leaders of the organization must make several decisions.
Using course theories and current multinational organizations that have locations in several countries, convey your own thoughts on the subject and address the following:
What leadership considerations must an organization weigh in selecting another country to open a location such as a manufacturing plant?
How might leaders need to change leadership styles to manage multinational locations?
What public relations issues might arise from such a decision?
How would you recommend such a company to demonstrate their social responsibility to their headquarters country as well as any offshore locations?
.
North American Philosophical Publications Prejudice i.docxhallettfaustina
North American Philosophical Publications
Prejudice in Jest: When Racial and Gender Humor Harms
Author(s): David Benatar
Source: Public Affairs Quarterly, Vol. 13, No. 2 (Apr., 1999), pp. 191-203
Published by: University of Illinois Press on behalf of North American Philosophical
Publications
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Public Affairs Quarterly
Volume 13, Number 2, April 1999
PREJUDICE IN JEST: WHEN RACIAL AND
GENDER HUMOR HARMS
David Benatar
central questions in the sparse literature on the ethics of humor
are: 1) What makes a piece of humor racist or sexist? 2) Are jokes
that embody negative racial and gender stereotypes necessarily racist
and sexist? Because these issues have tended to be discussed separately
it has not been noted that some answers to the first question render the
second question moot. My answer to the first question does not have this
effect. It will draw on an account of humor ethics that I provide and
defend against rival views of racist (and sexist) humor. I shall then
proceed to answering the second question.
An Account of Humor Ethics
How can humor be immoral? Briefly, the answer is that it is immoral
where it is intended to harm people or where there are good grounds for
expecting it to harm people, and where the harm in question is wrong-
fully inflicted. Following Joel Feinberg, I understand harm in terms of
negative effects on people's interests. However, my understanding of
harm is, in two ways, broader than the one for which he opts in his work
about the moral limits of the criminal law.1 Firstly, because in the cur-
rent context I have a more expansive interpretation of what interests
are, my understanding of harm includes what he calls hurts, offenses
and other disliked states which are insufficiently severe to warrant be-
ing termed harms for his purposes. Because I am concerned with the
morality of humor rather than with the moral limits of legally restrict-
ing it, the inclusion of less severe though nonetheless disliked states is
more appropriate. Secondly, for Professor Feinberg, a harm is some-
thing that is wrongfully inflicted. That definition is th.
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Resident of unstable regions through out the world, are without food, shelter, and medical care due to the preoccupation with control, whether through the government, military, or religious factions. The unstable governments within these regions are either unwilling or unable to care for the needs of their citizens or have taken away their ability to care for themselves. NGO's have the ability to provide for the needs of the people and help them sustain, if allowed.
In general, what is the impact of political and social instability on non-government organizations?
.
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This document discusses nonverbal communication and how it can differ from verbal communication. It prompts the reader to describe a scenario where what someone says verbally differs from their nonverbal cues, such as voice, volume, pitch, rate, pauses, variety, pronunciation, articulation, and dialect. The document also provides instructions for responding to peers in an online forum, including reflecting on concepts, providing an example, stating a takeaway, and properly citing sources in discussions that are at least 250 words.
No plagiarism Research paper should contains following content.docxhallettfaustina
No plagiarism
Research paper should contains following content
1) Abstract - Summarize the major elements of the paper
2) Introduction- provide context and rationale for the study
3)Materials- Describe the experimental design so it is reproducible
4) Methods -Describe the experimental procedures
5) Results-summarize the findings without interpretation
6)Discussion- interpret the findings of the study
7)Summary- summarize the findings
8)Acknowledge- give credits to those
9) References- list all scientific papers books and website that you cited
Paper should be in API Style
Requirements: 20 pages
.
NO PLAGIARISM MEET REQUIREMENTSCOMPLETE BY DEADLINE Wr.docxhallettfaustina
Shell Oil operated in Nigeria and faced accusations related to corruption, bribery, involvement in the death of an activist poet, and taking advantage of weak local regulations. The case study prompts the student to answer questions about factors contributing to high corruption in Nigeria, Shell's role in the poet's death and the impact, whether Shell took advantage of weak local oversight, and recommendations for ethical operations in societies with weak institutions. The response must be 650 words excluding the questions, follow APA style formatting, and include 3 scholarly references.
No plagiarism very important In a few short paragraphs, explain .docxhallettfaustina
No plagiarism very important
In a few short paragraphs, explain which cloud services you use (Google, Amazon, iCloud, Verizon, Microsoft One, Dropbox, etc) and what type of information you store (docs, photos, music, other files?). How much space do you have and what does this cost per month?
Need in word document with apa format with citations
.
No plagiarism very important Do you feel the benefits of cloud c.docxhallettfaustina
No plagiarism very important
Do you feel the benefits of cloud computing are worth the threats and vulnerabilities? Have we arrived at a point where we can trust external agencies to secure our most precious data? Please explain your answer.
Need responses to reply my teamates discusions
.
No plagiarism very important 5-CEHv9 Module 03 Scanning Networ.docxhallettfaustina
No plagiarism very important
5-CEHv9 Module 03 Scanning Networks.pdf
Select one network scanning software tool (there is a list in your required reading slides) and explain in detail how it works and how detects network vulnerabilities. Provide the site where you obtained your information and include that in your assignment write-up. (in word document).
Need citations
.
No plagiarism very importantNeed responses to my teamates discus.docxhallettfaustina
No plagiarism very important
Need responses to my teamates discussions
question:Social engineering is the art of manipulating people so they give up confidential information. The types of information these criminals are seeking can vary, but when individuals are targeted the criminals are usually trying to trick you into giving them your passwords or bank information, or access your computer to secretly install malicious software - that will give them access to your passwords and bank information as well as giving them control over your computer.
Explain a scenario where you or someone you know may have unknowingly given too much personal information to a stranger. How could this situation been avoided?
Reference Article Link:
https://www.webroot.com/us/en/resources/tips-articles/what-is-social-engineering
.
No More Backstabbing... A Faithful Scheduling Policy for Multi.docxhallettfaustina
No More Backstabbing... A Faithful Scheduling Policy for Multithreaded Programs
Kishore Kumar Pusukuri, Rajiv Gupta, Laxmi N. Bhuyan
Department of Computer Science and Engineering
University of California, Riverside
Riverside, USA 92521
[email protected], [email protected], [email protected]
Abstract—Efficient contention management is the key to
achieving scalable performance for multithreaded applications
running on multicore systems. However, contention manage-
ment policies provided by modern operating systems increase
context-switches and lead to performance degradation for
multithreaded applications under high loads. Moreover, this
problem is exacerbated by the interaction between contention
management policies and OS scheduling polices. Time Share
(TS) is the default scheduling policy in a modern OS such as
OpenSolaris and with TS policy, priorities of threads change
very frequently for balancing load and providing fairness in
scheduling. Due to the frequent ping-ponging of priorities,
threads of an application are often preempted by the threads
of the same application. This increases the frequency of
involuntary context-switches as wells as lock-holder thread
preemptions and leads to poor performance. This problem
becomes very serious under high loads.
To alleviate this problem, in this paper, we present a
scheduling policy called Faithful Scheduling (FF), which dra-
matically reduces context-switches as well as lock-holder thread
preemptions. We implemented FF on a 24-core Dell PowerEdge
R905 server running OpenSolaris.2009.06 and evaluated it
using 22 programs including the TATP database application,
SPECjbb2005, programs from PARSEC, SPEC OMP, and
some microbenchmarks. The experimental results show that FF
policy achieves high performance for both lightly and heavily
loaded systems. Moreover it does not require any changes to
the application source code or the OS kernel.
Keywords-Scheduling; priorities; contention; context-
switches
I. INTRODUCTION
The advent of multicore architectures provides an attractive
opportunity for achieving high performance for a wide
variety of multithreaded applications. However, exploiting
the system density, and the parallelism they offer, to improve
performance of multithreaded applications is a challenging
task. This is because multithreaded application performance is
sensitive to the implementations of synchronization primitives
and contention management policies. Therefore the key
to achieving high performance for multithreaded applica-
tions running on multicore systems is to use appropriate
synchronization primitives along with efficient contention
management policies. Contention management policies are
either based on spinning, or blocking, or a combination
of both. Spinning resolves contention by busy waiting,
therefore waiting threads respond to lock handoffs very
quickly. However, spinning threads can wastes CPU resources
and prevent the lock-holder thread from runnin.
No plagiarism very importantThere are many mobile platform vulne.docxhallettfaustina
No plagiarism very important
There are many mobile platform vulnerabilities listed in the readings from this week (slides 8, 9, and 10). Which do you feel is the greatest threat to users? Do you agree that people generally are not aware of the threats to their mobile devices?
Need responses to reply my teamattes and need references for all of them
.
No more than 10 slides, including title slide, providing executive s.docxhallettfaustina
No more than 10 slides, including title slide, providing executive summary of emergency response plan, actions taken prior to, during and post event.
This presentation is intended for high level executives of the company and should be brief but comprehensive.
See attachment for more information.
.
NO PLAGIARISM !Write 3 pages of descriptive essay about why you .docxhallettfaustina
NO PLAGIARISM !
Write 3 pages of descriptive essay about why you should visit and spend time in Denali National Park which is located in Alaska, USA.
Outline
1. Introduction
2. Reason 1 and explain, example
3. Reason 2 and explain, example
4. Reason 3 and explain, example
5. Reason 4 and explain, example
6. Reason 5 and explain, example
7. Conclusion
.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
MATATAG CURRICULUM: ASSESSING THE READINESS OF ELEM. PUBLIC SCHOOL TEACHERS I...NelTorrente
In this research, it concludes that while the readiness of teachers in Caloocan City to implement the MATATAG Curriculum is generally positive, targeted efforts in professional development, resource distribution, support networks, and comprehensive preparation can address the existing gaps and ensure successful curriculum implementation.
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
A Survey of Techniques for Maximizing LLM Performance.pptx
NewFCFF2StageTwo-Stage FCFF Discount ModelThis model is designed t.docx
1. NewFCFF2StageTwo-Stage FCFF Discount ModelThis model is
designed to value a firm, with two stages of growth, an
initialperiod of higher growth and a subsequent period of stable
growth.For a richer version of this model, try the fcffginzu.xls
spreadsheet.Assumptions1. The firm is expected to grow at a
higher growth rate in the first period.2. The growth rate will
drop at the end of the first period to the stable growth rate.The
user has to define the following inputs:1. Length of high growth
period2. Expected growth rate in earnings during the high
growth period.3. Capital Spending, Depreciation and Working
Capital needs during the high growth period.4. Expected growth
rate in earnings during the stable growth period.5. Inputs for the
cost of capital. (Cost of equity, Cost of debt, Weights on debt
and equity)Inputs to the modelCurrent EBIT =$5,186.00Current
Interest Expense =$118.00Current Capital
Spending$2,152.00Current Depreciation & Amort'n
=$1,228.00Tax Rate on Income =28.49%Current Revenues
=$16,701.00Current Non-cash Working Capital =$3,755.00Chg.
Working Capital =$499.00Last yearCash and Marketable
Securities$500.00Value of equity options issued by firm
=$1,500.00Book Value of Debt =$1,479.00$1,315.00Book
Value of Equity =$12,941.00$12,156.00Weights on Debt and
EquityIs the firm publicly traded ?Yes( Yes or No)If yes, enter
the market price per share =$125.50(in currency)& Number of
shares outstanding =993.57(in #)& Market Value of Debt
=$1,822.00( in currency)If no, do you want to use the book
value debt ratio ?No(Yes or No)If no, enter the debt to capital
ratio to be used =(in percent)Enter length of extraordinary
growth period =5(in years)Do you want to change the debt ratio
in the stable growth period?NoIf yes, enter the debt ratio for the
stable growth period =Costs of ComponentsDo you want to
enter cost of equity directly?No(Yes or No)If yes, enter the cost
of equity =(in percent)If no, enter the inputs to the cost of
equityBeta of the stock =0.8Riskfree rate=5.30%(in
2. percent)Risk Premium=5.50%(in percent)Enter the cost of debt
for cost of capital calculation5.50%( in percent)Earnings
InputsDo you want to use the historical growth rate?No(Yes or
No)If yes, enter EBIT from five years ago =$800.00(in
currency)Do you have an outside estimate of growth ?Yes(Yes
or No)If yes, enter the estimated growth:12.50%(in percent)Do
you want to calculate the growth rate from
fundamentals?Yes(Yes or No)The following will be the inputs
to the fundamental growth formulation:ROC =27.53%Reinv.
Rate =38.37%Do you want to change any of these inputs for the
high growth period?No(Yes or No)If yes, specify the values for
these inputs (Please enter all variables)ROC =10.00%Reinv.
Rate =100.00%Specify weights to be assigned to each of these
growth rates:Historical Growth Rate =0.00%(in
percent)Outside Prediction of Growth =0.00%(in
percent)Fundamental Estimate of Growth =100.00%(in
percent)Enter growth rate in stable growth period?6.00%(in
percent)BetaWill the beta to change in the stable period?No(Yes
or No)If yes, enter the beta for stable period =1.00Will the cost
of debt change in the stable period?No(Yes or No)If yes, enter
the new cost of debt =( in percent)Capital Spending,
Depreciation & Working CapitalDo you want all these items to
grow at the same rate as earnings ?Yes(Yes or No)If not, enter
the growth rates for each of the following items:Capital
SpendingDepreciationRevenuesHigh Growth6%6%6%(in
percent)Stable GrowthDo not enterDo not enter6%(in
percent)Do you want to keep the current fraction of working
capital to revenues?Yes(Yes or No)Specify working capital as a
percent of revenues:(in percent)Capital Spending and
Depreciation in Stable GrowthIs capital spending to be offset by
depreciation in stable period?No(Yes or No)Do you want your
reinvestment to be computed from fundamentals?YesReturn on
captial in perpetuity12%If no, do you want to enter capital
expenditure as % of depreciation120%(in percent)Output from
the programCost of Equity =9.70%Equity/(Debt+Equity )
=98.56%After-tax Cost of debt =3.93%Debt/(Debt +Equity)
3. =1.44%Cost of Capital =9.62%Current EBIT * (1 - tax rate)
=$3,708.51- (Capital Spending - Depreciation)$924.00- Change
in Working Capital$499.00Current FCFF$2,285.51Growth Rate
in Earnings per shareGrowth RateWeightHistorical Growth
=45.33%0.00%Outside Estimates =12.50%0.00%Fundamental
Growth =10.56%100.00%Weighted Average10.56%Growth Rate
in capital spending, depreciation and working capitalHigh
GrowthStable GrowthGrowth rate in capital spending
=10.56%Do not enterGrowth rate in depreciation =10.56%Do
not enterGrowth rate in revenues =10.56%6.00%Working
Capital as percent of revenues =22.48%(in percent)The FCFE
for the high growth phase are shown below (upto 10
years)12345Terminal YearEBIT * (1 - tax
rate)$4,100.25$4,533.38$5,012.26$5,541.73$6,127.13$6,494.75
- (CapEx-
Depreciation)$1,021.61$1,129.52$1,248.84$1,380.76$1,526.62$
2,875.14-Chg. Working
Capital$396.66$438.56$484.88$536.10$592.74$372.24Free
Cashflow to
Firm$2,681.99$2,965.30$3,278.54$3,624.87$4,007.78$3,247.38
Present
Value$2,446.69$2,467.82$2,489.13$2,510.62$2,532.30Growth
Rate in Stable Phase =6.00%FCFF in Stable Phase
=$3,247.38Cost of Equity in Stable Phase =9.70%Equity/
(Equity + Debt) =98.56%AT Cost of Debt in Stable Phase
=3.93%Debt/ (Equity + Debt) =1.44%Cost of Capital in Stable
Phase =9.62%Value at the end of growth phase
=$89,782.26Present Value of FCFF in high growth phase
=$12,446.56Present Value of Terminal Value of Firm
=$56,728.59Value of the firm =$69,175.15Cash and Marketable
Securities =$500.00Market Value of outstanding debt
=$1,822.00Market Value of Equity =$67,853.15Value of Equity
options issued by the company =$1,500.00Market Value of
Equity/share =$66.78
&C Two-Stage FCFF Discount Model
Page &p
4. Aswath Damodaran:
Enter the current EBIT for the firm. If your current EBIT is
negative, you will have to normalize EBIT.
Aswath Damodaran:
Enter the total interest expenses, corresponding to the dollar
debt that you enter below.
Aswath Damodaran:
Enter the current capital expenditures, including acquisitions
made. You might want to normalize this, if it is volatile.
Aswath Damodaran:
Enter the aggreate depreciation and amortization claimed by the
firm.
Aswath Damodaran:
Enter the effective tax rate if it is greater than 35%, or 35% if
the effective tax rate is lower.
Aswath Damodaran:
Enter aggregate revenues during the year.
Aswath Damodaran:
Non-cash WC = Inventory + Acc Rec - Acc Payable
Aswath Damodaran:
Enter the change in non-cash working capital from last year to
this year.
Aswath Damodaran:
Enter total interest-bearing debt. If you are capitalizing
operating leases, add them here.
Aswath Damodaran:
Enter the total shareholders equity.
Aswath Damodaran:
Enter the current market price per share.
Aswath Damodaran:
Enter number of shares in the same units as inputs above.
Aswath Damodaran:
If you can estimate the market value of the debt, enter that here.
Else, enter the book value of debt from above.
Aswath Damodaran:
You should almost never use the book value debt ratio. You can
5. try this, if you want, to see how much value will shift.
Aswath Damodaran:
In some cases, you might want to replace the current debt ratio
with the industry average debt ratio.
Aswath Damodaran:
Enter the length of the growth period. I will restrict you to 10
years.
Aswath Damodaran:
If your firm has leverage which is out of the industry norm, you
should generally say yes here.
Aswath Damodaran:
If you said yes to the previous question, you should enter the
industry-average or optimal debt ratio.
Aswath Damodaran:
Generally, you should try to input the beta below. You can
override this by inputting a cost of equity directly.
Aswath Damodaran:
Enter the cost of equity in percent terms, if you want to input it
directly.
Aswath Damodaran:
Enter the current beta for the firm. Use the bottom-up beta, if
you can get it.
Aswath Damodaran:
Enter the current long term government bond rate.
Aswath Damodaran:
Enter the risk premium for equities over riskfree investments.
You can use an implied or historical premium.
Aswath Damodaran:
The best way to do this is to use the firms's rating (actual and
synthetic) and estimate an appropriate interest rate by adding a
default spread to the long term treasury bond rate.
Aswath Damodaran:
If your firm has had a volatile or short history, you might want
to ignore the historical growth rate.
Aswath Damodaran:
Enter the EBIT from five years prior to the current year. Thus,
6. if the current year is 1998, look up earnings in 1993.
Aswath Damodaran:
Tough to get for operating income. You can look up analysts
estimates for EPS growth over next 5 years.
Aswath Damodaran:
If you are entering EPS growth, you should reduce it to reflect
the fact that operating income grows slower than EPS.
Aswath Damodaran:
You should try to do this, if you want an internally consistent
vauation.
Aswath Damodaran:
This is estimated using the inputs from above on EBIT and book
value of capital.
Aswath Damodaran:
Estimated from cap ex, working capital and EBIT estimated
above.
Aswath Damodaran:
Compare your firm's numbers to those of the industry. If they
look strange, you might want to change them below.
Aswath Damodaran:
Replace with a more reasonable ROC. Two possible choices -
the firm's average ROC over time, the sector's ROC or the firm's
cost of capital.
Aswath Damodaran:
Replace either with the firm's average reinvestment rate over
time or sector average.
Aswath Damodaran:
This defines the weight to be attached to the historical growth
rate. If earnings history has been volatile, input zero.
Aswath Damodaran:
Reflects how much you trust analysts to do a good job of
predicting expected future growth.
Aswath Damodaran:
Should be whatever is left over in terms of weight. The weights
have to add up to one.
Aswath Damodaran:
7. This is the growth rate after your high growth phase. Since it is
forever, it cannot be greater than 5-6%. If your firm might still
have growth potential at the end of high growth, go with the
upper end of the range. Else, go lower.
Aswath Damodaran:
If your beta currently is a high number (>1.20) or a low number
(<0.80), you will want to move it at least towards these limits -
1.20 for high beta, and 0.80 for low beta.
Aswath Damodaran:
Enter the beta for the stable period. Keep between 0.80 and
1.20.
Aswath Damodaran:
Generally, firms get more stable as they age. The cost of debt
should get lower for high risk firms.
Aswath Damodaran:
Enter the cost of debt for a safer firm. I would use an A rating
for riskier firms in stable growth.
Aswath Damodaran:
If you have a reasonable cap ex/depreciation ratio, relative to
the sector, answer yes. If not, enter no.
Aswath Damodaran:
If the capital expenditures currently are very high relative to
depreciation, set this to a lower number than the growth rate in
earnings and depreciation.
Aswath Damodaran:
If depreciation is higher than cap ex currently, set this growth
rate above the growth rate in cap ex.
Aswath Damodaran:
If margins are expected to improve over time, this rate will be
lower than the growth rate in earnings.
Aswath Damodaran:
If your firm's non-cash working capital as a percent of revenues
is close to industry average, say yes. Else, say no.
Aswath Damodaran:
Enter the industry average working capital as a percent of
revenues.
9. Copyright Conventions. Published in the
United States by Random House, Inc., New York, and
simultaneously in Canada by
Random House of Canada Limited, Toronto.
Owing to limitations of space, all acknowledgments of
permission to reprint material
are on pages 347-348, which constitute an extension of the
copyright page
Library of Congress Cataloging-in-Publication Data
Tannen, Deborah.
The argument culture: moving from debate to dialogue/Deborah
Tannen.
p. cm.
Includes index.
ISBN 0-679-45602-3
1. Persuasion (Rhetoric) 2. Debates and debating.
3. Dialogue analysis. I. Title.
10. P30!.5.P47T36 1998
808'.001-dc21 97-39276
Random House website address: www.randomhouse.com
1>.Ianufacrured in the United States of America on acid-free
paper
24689753
Firs( Edition
Book design by Caroline Cunningham
http:www.randomhouse.com
1
FIGHTING FOR OUR LIVES
rThis is not another book about civility. "Civility" suggests a
superfi-
cial, pinky-in-the-air veneer of politeness spread thin over
human re-
lations like a layer of marmalade over toast. This book is about
11. a
pervasive warlike atmosphere that makes us approach public
dia-
logue, and just about anything we need to accomplish, as if it
were a
fight. It is a tendency in Western culture in general, and in the
United
States in particular, that has a long history and a deep, thick,
and far-
ranging root system. It has served us well in many ways but in
recent
years has become so exaggerated that it is getting in the way of
solv-
ing our problems. Our spirits are corroded by living in an
atmosphere
of unrelenting contention-an argument culture.
The argument culture urges us to approach the world-and the-k-
people in it-in an adversarial frame of mind. It rests on the
assump-
tion that opposition is the best way to get anything done: The
best way
to discuss an idea is to set up a debate; the best way to cover
news is to
I
find spokespeople who express the most extreme, polarized
views and
present them as "both sides"; the best way to settle disputes is
litiga-
4 THE ARGUMENT CULTURE
l
12. tion that pits one pany against the other; the best way to begin
an
essay is to attack someone; and the best way to show you're
really
thinking is to criticize.
Our public interactions have become more and more like having
an argument with a spouse. Conflict can't be avoided in our
public
lives any more than we can avoid conflict with people we love.
One of
the great strengths of our society is that we can express these
conflicts
openly. But just as spouses have to learn ways of settling their
differ-
ences without inflicting real damage on each other, so we, as a
society,
have to find constructive ways of resolving disputes and
differences.
Public discourse requires making an argument for a point of
view, not
having an argument-as in having a fight.
The war on drugs, the war on cancer, the battle of the sexes,
politi-
cians' turf battles-in the argument culture, war metaphors
pervade
our talk and shape our thinking. Nearly everything is framed ~-
or arne in which winning or losing is the ~jp conce~!hese all
have their use elr place, but they are not the only way-and
often not the b~-toun~.!!r 'Yorld. Con:--
flict and opposition are as necessary as cooperation and
agreement, "
but the scale is off balance, with conflict and opposition over-
weighted. In this book, I show how deeply entrenched the
13. argument
culture is, the forms it takes, and how it affects us every day-
some-
times in useful ways, but often creating more problems than it
solves,
causing rather than avoiding dama~As a sociolinguist, a social
sci-
entist, I am trained to observe and explain language and its role
in
human relations, and that is my biggest job here. But I will also
point
toward other ways for us to talk to each other and get things
done in
our public lives.
THE BATTLE OF THE SEXES
My interest in the topic of opposition in public discourse
intensified
in the years following the publication of You Just Don't
Understand, my
book about communication between women and men. In the first
year
•I appeared on ~any television and radio shows and was
interviewed
for many print articles in newspapers and magazines. For the
most
part, that coverage 'as extremely fair, and I was-and remain-
in-
5 FIGHTING FOR OUR LIVES
14. debted to the many journalists who found my ideas interesting
enough to make them known to viewers, listeners, and readers.
But
from time to time--more often than I expected-I encountered
pro-
ducers who insisted on setting up a television show as a fight
(either
between the host and me or between another guest and me) and
print
journalists who made multiple phone calls to my colleagues,
trying to
find someone who would criticize my work. This got me
thinking
about what kind of information comes across on shows and in
articles
that take this approach, compared to those that approach topics
in
other ways.
At the same time, my experience of the academic world that had
long been my intellectual home began to change. For the most
part,
other scholars, like most journalists, were welcoming and
respectful
in their responses to my work, even if they disagreed on
specific
points or had alternative views to suggest. But about a year
after You
Just Don't Understal1d became a best-seller-the wheels of
academia
grind more slowly than those of the popular press-I began
reading
attacks on my work that completely misrepresented it. I had
been in
academia for over fifteen years by then, and had valued my
interac-
15. tion with other researchers as one of the greatest rewards of
aca-
demic life. Vhy, I wondered, would someone represent me as
having
said things I had never said or as having failed to say things I
had said?
The answer crystallized when I put the question to a writer who
I
felt had misrepresented my work: "Vhy do you need to make
others
wrong for you to be right?" Her response: "It's an argument!"
Aha, I
thought, that explains it. When you're having an argument With]
someone, your goal is not to listen and understand. Instead, you
use
every tactic you can think of-including distorting what your
oppo-
nent just said-in order to win the argument.
Not only the level of attention You Just D011't Understand
received
but, even more, the subject of women and men, triggered the
ten-
dency to polarize. This tendency to stage a fight on television or
in
print was posited on the conviction that opposition leads to
truth.
Sometimes it does. But the trouble is, sometimes it doesn't. I
was
asked at the start of more than one talk show or print interview,
"What is the most controversial thing about your book?"
Opposition
does not lead to truth when the most controversial thing is not
the
most important.
16. 6
'rrHEH*;;;;lf
TUE ARGUMENT CULTURE
The conviction that opposition leads to truth can tempt not only
members of the press but just about anyone seeking to anract an
au-
dience to frame discussions as a fight between irreconcilable
oppo-
sites. Even the Smithsonian Instimtion, to celebrate its 150th
anniversary, sponsored a series of talks billed as debates. They
invited
me to take part in one titled "The Banle of the Sexes." The
organizer
preempted my objection: "I know you won't be happy with this
title,
but we want to get people interested." This is one of many
assump-
tions I question in this book: Is it necessary to frame an
interchange as
a battle to get people interested? And even if doing so succeeds
in
capmring attention, does it risk dampening interest in the long
run, as
audiences weary of the din and begin to hunger for more
substance?
THOUGHT-PROVOKING
OR JUST PROVOCATIVE?
17. In the spring of 1995, Horizons Theatre in Arlington, Virginia,
pro-
duced two one-act plays I had wrinen about family
relationships. The
director, wanting to contribute to the reconciliation between
Blacks
and Jews, mounted my plays in repertory with two one-act plays
by
an African-American playwright, Caleen Sinnene Jennings. We
had
both written plays about three sisters that explored the ethnic
identi -
ties of our families Gewish for me, African-American for her)
and the
relationship between those identities and the American context
in
which we grew up. To stir interest in the plays and to explore
the par-
allels between her work and mine, the theater planned a public
dia-
logue between Jennings and me, to be held before the plays
opened.
As production got under way, I attended the audition of actOrs
for
my plays. After the auditions ended, just before everyone
headed
home, the theater's public relations volunteer distributed copies
of
the flyer announcing the public dialogue that she had readied
for dis-
tribution. I was horrified. The flyer announced that Caleen and I
would discuss "how past traumas create understanding and
conflict
between Blacks and Jews today." The flyer was trying to grab
18. by the
throat the issue that we wished to address indirectly. Yes, we
were
concerned with conflicts between Blacks andJews, but neither
of us is
an authority on that conflict, and we had no intention of
expounding
FIGHTING fOR OUR LIVES 7
on it We hoped to do our part to ameliorate the conflict by
focusing
on commonalities. Our plays had many resonances between
them. We
wanted to talk about our work and let the resonances speak for
them-
selves.
Fortunately, we were able to stop the flyers before they were
dis-
tributed and devise new ones that promised something we could
de-
.liver: "a discussion of heritage, identity, and complex family
relationships in African-American and Jewish-American culture
as
represented in their plays." Jennings noticed that the original
flyer
said the evening would be "provocative" and changed it to
"thought-
provoking." What a world of difference is implied in that small
change: how much better to make people think, rather than
simply to
"provoke" them-as often as not, to anger.
19. It is easy to understand why conflict is so often highlighted:
Writ-
ers of headlines or promotional copy want to catch attention and
at-
tract an audience. They are usually under time pressure, which
lures
them to established, conventionalized ways of expressing ideas
in the
absence of leisure to think up entirely new ones. The promise of
conJ
troversy seems an easy and natural way to rouse interest. But
seriOUS '
consequences are often unintended: Stirring up animosities to
get a
rise out of people, though easy and "provocative," can open old
wounds or create new ones that are hard to heal. This is one of
manyJ
dangers inherent in the argument culture.
FOR THE SAKE OF ARGUMENT
In the argument culture, criticism, attack, or opposition are the
pre-]
dominant if not the only ways of responding to people or ideas.
I use
the phrase "culture of critique" to capture this aspect. "Critique"
in
this sense is not a general term for analysis or interpretation but
rather a synonym for criticism.
It is the automatic nature of this response that I am calling
atten-
tion to-and calling into question. Sometimes passionate
opposition,
strong verbal attack, are appropriate and called for. No one
20. knows this
better than those who have lived under repressive regimes that
forbid
public opposition. The Yugoslavian-born poet Charles Simic is
one.
"There are moments in life," he writes, "when true invective is
called
L
THE ARGUMENT CULTURE8
for, when it becomes an absolute necessity, out of a deep sense
of jus-
tice, to denounce, mock, vituperate, lash ou in the strongest
possible
lal].illl!:lg~.~~t~pp~aud and endorse this view. There are times
when it is
fr;~cessary and right' to-fight~tC.r(reend your country or
yourself, to
jargue for right against wrong or against offensive or dangerous
ideas
,.
i~ actions.
What I question is the ubiquity, the knee-jerk nature, of
approach-
ing almost any issue, problem, or public person in an
adversarial way.
One of the dangers of the habitual use of adversarial rhetoric is
a
kind of verbal inflation-a rhetorical boy who cried wolf: The
legiti-
21. mate, necessary denunciation is muted, even lost, in the general
cacophony of oppositional shouting. What I question is using
opposi-
tion to accomplish every goal, even those that do not require
fighting
but might also (or better) be accomplished by other means, such
as .
exploring, expanding, discussing, investigating, and the
exchanging
of ideas suggested by the word "dialogue." I am questioning the
assumption that everything is a matter of polarized opposites,
the
proverbial "two sides to every question" that we think embodies
open-mindedness and expansive thinking.
In a word, the type of opposition I am questioning is what I call
"agonism." I use this term, which derives from the Greek word
for
"contest," ag011ia, to mean an automatic warlike stance--not the
literal
opposition of fighting against an attacker or the unavoidable
opposi-
tion that arises organically in response to conflicting ideas or
actions.
An agonistic response, to me, is a kind of programmed
,contentious-
ness-a prepatterned, unthinking use of fighting to accomplish
goals
that do not necessarily require it.
HOW USEFUL ARE FIGHTS?
Noticing that public discourse so often takes the form of
ht::ated ar-
guments--of having a fight-made me ask how useful it is in our
per-
22. sonallives to settle differences by arguing. Given what I know
about
having arguments in private life, I had to conclude that it is, in
many
cases, not very useful.
In close relationships it is possible to find ways of arguing that
re-
FIGHTING FOR OUR LIVES 9
suIt in better understanding and solving problems. But with
most ar-
guments, little is resolved, worked out, or achieved when two
people
get angrier and less rational by the minuterWhen you're having
an ar-1
gument with someone, you're usually not trying to understand
what
the other person is saying, or what in their experience leads
them to
say it. Instead, you're readying your response: listening for
weaknesseS
in logic to leap on, points you can distort to make the other
person
look bad and yourself look good. Sometimes you know, on some
back
burner of your mind, that you're doing this-that there's a kernel
of
truth in what your adversary is saying and a bit of unfair
twisting in
what you're saying. Sometimes you do this because you're
angry, but
sometimes it's just the temptation to take aim at a point made
23. along
the way because it's an easy target.]
Here's an example of how this happened in an argument between
a couple who had been married for over fifty years. The
husband
wanted to join an HMO by signing over their Medicare benefits
to
save money. The wife objected because it would mean she could
no
longer see the doctor she knew and trusted. In arguing her point
of
view, she said, "I like Dr. B. He knows me, he's interested in
me. He
calls me by my first name." The husband parried the last point:
"I
don't like that. He's much younger than we are. He shouldn't be
call-
ing us by first name." But the form of address Dr. B. uses was
irrele-
vant. The wife was trying to communicate that she felt
comfortable
with the doctor she knew, that she had a relationship with him.
His
calling her by first name was just one of a list of details she was
mar-
shaling to explain her comfort with him. Picking on this one
detail did
... not change her view-and did not address her concern. It
was just a
way to win the argument.
We are all guilty, at times, of seizing on irrelevant details,
distort-
ing someone else's position the better to oppose it, when we're
24. argu-
ing with those we're closest to. But we are rarely dependent on
these
fights as sources of information. The same tactics are common
when
public discourse is carried out on the model of personal fights.
And
the results are dangerous when listeners are looking to these
inter-
changes to get needed information or practical results.
LFights have winners and losers. If you're fighting to win, the
temp-
tation is great to deny facts that support your opponent's views
and to
10 THE ARGUMENT CULTURE
filter what you know, saying only what supports your side. In
the ex-
treme form, it encourages people to misrepresent or even to lie.
Ve
accept this risk because we. believe we can tell when someone
is lying.
The problem is, we can~
Paul Ekman, a psychologist at the University of California, San
Francisco, studies lying. He set up experiments in which
individuals
were videotaped talking about their emotions, actions, or
beliefs-
some truthfully, some not. He has shown these videotapes to
thou-
sands of people, asking them to identify the liars and also to say
25. how
sure they were about their judgments. His findings are chilling:
Most
people performed not much better than chance, and those who
did
the worst had just as much confidence in their judgments as the
few
who were really able to detect lies. Intrigued by the
implications of
this research in various walks of life, Dr. Ekman repeated this
experi-
ment with groups of people whose jobs require them to sniff out
lies:
judges, lawyers, police, psychotherapists, and employees of the
CIA,
FBI, and ATF (Bureau of Alcohol, Tobacco, and Firearms).
They
were no better at detecting who was telling the truth than the
rest of
us. The only group that did significantly better were members of
the
U.S. Secret Service. This finding gives some comfort when it
comes to
the Secret Service but not much when it comes to every other
facet of
public life.
TWO SIDES TO EVERY QUESTION
[ Our determination to pursue truth by setting up a fight
between two I sides leads us to believe that every issue has two
sides-no more, no
less: If both sides are given a forum to confront each other, all
the rel-
evant information will emerge, and the best case will be made
for
26. fi each side. But opposition does not lead to truth when an issue
is not
! composed of two opposing sides bur is a crystal of many sides.
Often
l....the truth is in the complex middle, not the oversimplified
extremesl
'Ve love using the word "debate" as a way of representing
issues:
the abortion debate, the health care debate, the affirmative
action de-
bate--even "the great backpacking vs. car camping debate." The
ubiquity of this word in itself shows our tendency to
conceptualize
l
FIGHTING FOR OUR LIVES 11
issues in a way that predisposes public discussion to be
polarized,
framed as two opposing sides that give each other no ground.
There
are many problems with this approach. If you begin with the
assump-
tion that there must be an "other side," you may end up scouring
the
margins of science or the fringes of lunacy to find it. As a
result,
proven facts, such as what we know about how the earth and its
in-
habitants evolved, are set on a par with claims that are known to
have
27. no basis in fact, such as creationism.
The conviction that there are two sides to every story can
prompt
writers or producers to dig up an "other side," so kooks who
state out-
right falsehoods are given a platform in public discourse. This
ac-
counts, in part, for the bizarre phenomenon of Holocaust denial.
Deniers, as Emory University professor Deborah Lipstadt
shows,
have been successful in gaining television airtime and campus
news-
paper coverage by masquerading as "the other side" in a
"debate."
Appearance in print or on television has a way of lending legiti-
macy, so baseless claims take on a mantle of possibility.
Lipstadt
shows how Holocaust deniers dispute established facts of
history, and
then reasonable spokespersons use their having been disputed as
a
basis for questioning known facts. The actor Robert Mitchum,
for ex-
ample, interviewed in Esquire, expressed doubt about the
Holocaust.
When the interviewer asked about the slaughter of six million
Jews,
Mitchum replied, "I don't know. People dispute that." Continual
ref-
erence to "the other side" results in a pervasive conviction that
every-
thing has another side-with the result that people begin to doubt
the
existence of any facts at all.
28. THE EXPENSE OF TIME AND SPIRIT
Lipstadt's book meticulously exposes the methods used by
deniers to
falsify the overwhelming historic evidence that the Holocaust
oc-
curred. That a scholar had to invest year~ of her professional
life writ-~I
ing a book unraveling efforts to deny something that was about
as well !
known and well documented as any historical fact has ever
been-
while those who personally experienced and witnessed it are
still ,
alive-is testament to another way that the argument culture
limits
'f16FtemfW
12 THE ARGUMENT CULTURE
lour knowledge rather than expanding it Talent and effort are
wasted
refuting outlandish claims that should never have been given a
plat-
1f9rm in the first place. Talent and ~ffort are also wasted when
individ-
uals who have been unfairly attacked must spend years of their
creative lives defending themselves rather than advancing their
work.
~The entire society loses their creative efforts. This is what
29. happened
/1
with scientist Robert Gallo.
Dr. Gallo is the American virologist who codiscovered the
AIDS
virus. He is also the one who developed the technique for
studying T-
cells, which made that discovery possible. And Gallo's work
was sem-
inal in developing the test to detect the AIDS virus in blood, the
first
and for a long time the only means known of stemming the tide
of
death from AIDS. But in 1989, Gallo became the object of a
four-year
investigation into allegations that he had stolen the AIDS virus
from
Luc Montagnier of the Pasteur Institute in Paris, who had
indepen-
dently identified the AIDS virus. Simultaneous investigations
by the
National Institutes of Health, the office of Michigan
Congressman
John Dingell, and the National Academy of Sciences barreled
ahead
long after Gallo and Montagnier settled the dispute to their
mutual
satisfaction. In 1993 the investigations concluded that Gallo had
done
nothing wrong. Nothing. But this exoneration cannot be
considered a
happy ending. Never mind the personal suffering of Gallo, who
was
reviled when he should have been heralded as a hero. Never
30. mind
that, in his words, "These were the most painful years and
horrible
years of my life." The dreadful, unconscionable result of the
fruitless
investigations is that Gallo had to spend four years fighting the
accu-
sations instead of fighting AIDS.
The investigations, according to journalist Nicholas Wade, were
sparked by an article about Gallo written in the currently
popular
spirit of demonography: not to praise the person it features but
to
bury him-to show his weaknesses, his villainous side. The
implica-
tion that Gallo had stolen the AIDS virus was created to fill a
re-
quirement of the discourse: In demonography, writers must find
negative sides of their subjects to display for readers who enjoy
seeing
heroes transformed into villains. The suspicion led to
investigations,
and the investigations became a juggernaut that acquired a life
of its
own, fed by the enthusiasm for attack on public figures that is
the cul-
ture of critique.
FIGHTING FOR OUR LIVES 13
METAPHORS: WE ARE WHAT WE SPEAK _ .. -_.._------------
---------
Perhaps one reason suspicions of Robert Gallo were so
31. zealously in-
vestigated is that the scenario of an ambitious scientist ready to
do
anything to defeat a rival appeals to our sense of story; it is the
kind
of narrative we are ready to believe. Culture, in a sense, is an
enVi!
ronment of narratives that we hear repeatedly until they seem
to'"
make self-evident sense in explaining human behavior. Thinking
0
human interactions as battles is a metaphorical frame through
which
we learn to regard the world and the people in it.
All language uses metaphors to express ideas; some metaphoric
words and expressions are novel, made up for the occasion, but
more
are calcified in the language. They are simply the way we think
it is
natural to express ideas. We don't think of them as metaphors.
Some-
one who says, "Be careful: You aren't a cat; you don't have nine
lives,"
is explicitly comparing you to a cat, because the cat is named in
words. But what if someone says, "Don't pussyfoot around; get
to the
point"? There is no explicit comparison to a cat, but the
comparison is
there nonetheless, implied in the word "pussyfoot." This
expression
probably developed as a reference to the movements of a cat
cau-
tiously circling a suspicious object. I doubt that individuals
using the
word "pussyfoot" think consciously of cats. More often than
32. not, we
use expressions without thinking about their metaphoric
implica-
tions. But that doesn't mean those implications are not
influencing us.
At a meeting, a general discussion became so animated that a
par-
ticipant who wanted to comment prefaced his remark by saying,
"I'd
like to leap into the fray." Another participant called out, "Or
share
your thoughts." Everyone laughed. By suggesting a different
phrasing,
she called attention to what would probably have otherwise
gone un-
noticed: "Leap into the fray" characterized the lively discussion
as a
metaphorical battle.
Americans talk about almost everything as if it were a war. A
book
about the history of linguistics is called The Linguistics Wars.
A maga-
zine article about claims that science is not completely
objective is ti-
tled "The Science Wars." One about breast cancer detection is
"The
Mammogram 'Var"; about competition among caterers, "Party
>.f.
"
33. THE ARGUMENT CULTURE14
Wars"-and on and on in a potentially endless list. Politics, of
course,
is a prime candidate. One of innumerable possible examples, the
headline of a story reporting that the Democratic National
Converi-
tion nominated Bill Clinton to run for a second term declares,
"DEMO-
CRATS SEND CLINTON INTO BATTLE FOR A 2D TERM."
But medicine is as
frequent a candidate, as we talk about battling and conquering
dis-
ease.
r:eadlines are intentionally devised to attract attention, but we
all use military or attack imagery in everyday expressions
without think-ing about it: "Take a shot at it," "I don't want to
be shot down," "He
~nt off half cocked," "That's half the battle." Why does it matter
that our public discourse is filled with military metaphors?
Aren't
they just words? Why not talk about something that matters-like
ac-
tions?
Because words matter. '''hen we think we are using language,
lan-
guage is using us. As linguist Dwight Bolinger put it
(employing a
military metaphor), language is like a loaded gun: It can be
fired in-
A tentionally, but it can wound or kill just as surely when
fired acciden-
34. tally. The terms in which we talk about something shape the
way we
think about it-and even what we see.
The power of words to shape perception has been proven by re-
searchers in controlled experiments. Psychologists Elizabeth
Loftus
and John Palmer, for example, found that the terms in which
people
are asked to recall something affect what they recall. The
researchers
showed subjects a film of two cars colliding, then asked how
fast the
cars were going; one week later, they asked whether there had
been
any broken glass. Some subjects were asked, "About how fast
were the
cars going when they bumped into each other?" Others were
asked,
"About how fast were the cars going when they smashed into
each
other?" Those who read the question with the verb "smashed"
esti-
mated that the cars were going faster. They were also more
likely to
"remember" having seen broken glass. (There wasn't any.)
'_j':-:" This is how language works. It invisibly molds our way
of thinking
about people, actions, and the world around us. Military
metaphors
train us to think about-and see--everything in terms of fighting,
conflict, and war. This perspective then limits our imaginations
when
we consider what we can do about situations we would like to
under-
35. stand or change.
FIGHTING FOR OUR LIVES 15
Even in science, common metaphors that are taken for granted
in-
fluence how researchers think about natural phenomena. Evelyn
Fox
Keller describes a case in which acceptance of a metaphor led
scien-
tists to see something that was not there. A mathematical
biologist,
Keller outlines the fascinating behavior of cellular slime mold.
This
unique mold can take two completely different forms: It can
exist as
single-cell organisms, or the separate cells can come together to
form
multicellular aggregates. The puzzle facing scientists was: 'Vhat
trig-
gers aggregation? In other words, what makes the single cells
join to-
gether? Scientists focused their investigations by asking what
entity
issued the order to start aggregating. They first called this
bosslike en-
tity a "founder cell," and later a "pacemaker cell," even though
no one
had seen any evidence for the existence of such a cell.
Proceeding
nonetheless from the assumption that such a cell must exist,
they ig-
nored evidence to the contrary: For example, when the center of
the
36. aggregate is removed, other centers form.
Scientists studying slime mold did not examine the
interrelation-
ship between the cells and their environment, nor the
interrelation-
ship between the functional systems within each cell, because
they
were busy looking for the pacemaker cell, which, as eventually
be-
came evident, did not exist. Instead, under conditions of
nutritional
deprivation, each individual cell begins to feel the urge to
merge with
others to form the conglomerate. It is a reaction of the cells to
their
environment, not to the orders of a boss. Keller recounts this
tale to
illustrate her insight that we tend to view nature through our
under-
standing of human relations as hierarchical. In her words, "We
risk
imposing on nature the very stories we like to hear." In other
words,
the conceptual metaphor of hierarchical governance made
scientists
"see" something-a pacemaker cell-that wasn't there.
Among the stories many Americans most like to hear are war
sto-
ries. According to historian Michael Sherry, the American war
movie
developed during World War II and has been with us ever since.
He
shows that movies not explicitly about war were also war
movies at
37. heart, such as westerns with their good guy-bad guy barrles
serrIed
with guns. High Noon, for example, which became a model for
later
westerns, was an allegory of the Second World War: The happy
end-
ing hinges on the pacifist taking up arms. Ve can also see this
story
line in contemporary adventure films: Think of Star U¥irs, with
its stir-
16 THE ARGUMENT CULTURE
ring finale in which Han Solo, having professed no interest in or
taste
for battle, returns at the last moment to destroy the enemy and
save
the day. And precisely the same theme is found in a
contemporary
low-budget independent film, Sling Blade, in which a peace-
loving re-
tarded man becomes a hero at the end by murdering the man
who has
been tormenting the family he has come to love.
PUT UP YOUR DUKES
If war provides the metaphors through which we view the world
and
each other, we come to view others-and ourselves--as warriors
in
battle. Almost any human encounter can be framed as a fight
between
two opponents. Looking at it this way brings particular aspects
38. of the
event into focus and obscures others.
Framing interactions as fights affects not only the panicipants
but
also the viewers. At a performance, the audience, as well as the
per-
formers, can be transformed. This effect was noted by a
reviewer in
The New York Times, commenting on a musical event:
Showdown at Lincoln Center. Jazz's ideological war of the last
several years led to a pitched battle in August betweenJohn
Lincoln
Collier, the writer, and wynton Marsalis, the trumpeter, in a
debate
at Lincoln Center. Mr. Marsalis demolished Mr. Collier, point
after
point after point, but what made the debate unpleasant was the
crowd's blood lust; humiliation, not elucidation, was the desired
end.
Military imagery pervades this account: the difference of
opinions
between Collier and Marsalis was an "ideological war," and the
"de-
bate" was a "pitched battle" in which Marsalis "demolished"
Collier
(not his arguments, but him). 'What the commentator regrets,
how-
ever, is that the audience got swept up in the mood instigated by
the
way the debate was carried out "the crowd's blood lust" for
Collier's
defeat.
39. " This is one of the most dangerous aspects of regarding
intellectual
interchange as a fight. It contributes to an atmosphere of
animosity
Ithat spreads like a fever. In a society that includes people who
express
'"-,,,~
FIGHTING FOR OUR LIVES 17
their anger by shooting, the result of demonizing those with
whom
we disagree can be truly tragic.
But do audiences necessarily harbor within themselves a "blood
lust," or is it stirred in them by the performances they are
offered? An-
other arts event was set up as a debate between a playwright and
a
theater director. In this case, the metaphor through which the
debate
was viewed was not war but boxing-a sport that is in itself, like
a de-
bate, a metaphorical battle that pitches one side against the
other in
an all-out effort to win. A headline describing the event set the
frame:
"AND IN THIS CORNER •.. ," fol1owed by the subhead "A
Black Play-
wright and White Critic Duke It Out." The story then reports:
the face-off between August Wilson, the most successful black
play-
40. wright in the American theater, and Robert Brustein, longtime
drama critic for The New Republic and artistic director of the
American Repertory Theatre in Cambridge, Mass. These two
heavyweights had been battling in print since lastJune ....
Entering from opposite sides of the stage, the two men shook
hands and came out fighting--or at least sparring.
Wilson, the article explains, had given a speech in which he
opposed
Black performers taking "white" roles in color-blind casting;
Brustein
had written a column disagreeing; and both followed up with
further
responses to each other.
According to the article, "The drama of the 'Vilson-Brustein
con-
frontation lies in their mutual intransigence." No one would
question
that audiences crave drama. But is intransigence the most
appealing
source of drama? I happened to hear this debate broadcast on
the
radio. The line that triggered the loudest cheers from the
audience
was the final question put to the two men by the moderator,
Anna
Deavere Smith: "What did you each learn from the other in this
de- ..Jr
41. bate?" The loud applause was evidence that the audience did not
[
crave intransigence. They wanted to see another kind of drama:
the ~_?
drama of change--change that comes from genuinely listening to
Y
someone with a different point of view, not the transitory drama
of
two intransigent positions in stalemate.
To encourage the staging of more dramas of change and fewer
of
"i$ii5Bi5i1iiiWI.
18 THE ARGUMENT CULTURE
intransigence, we need new metaphors to supplement and
comple-
ment the pervasive war and boxing match metaphors through
which
we take it for granted issues and events are best talked about
and
viewed.
MUD SPLATTERS
Our fondness for the fight scenario leads us to frame many
complex
human interactions as a battle between two sides. This then
shapes
the way we understand what happened and how we regard the
partic-
ipants. One unfortunate result is that fights make a mess in
42. which
everyone is muddied. The person attacked is often deemed just
as
guilty as the attacker.
The injustice of this is clear if you think back to childhood.
Many
of us still harbor anger as we recall a time (or many times) a
sibling or
playmate started a fight--but both of us got blamed. Actions
occur in
a stream, each a response to what came before. Vhere you
punctuate
them can change their meaning just as you can change the
meaning of
a sentence by punctuating it in one place or another.
Like a parent despairing of trying to sort out which child started
a
fight, people often respond to those involved in a public dispute
as if
both were equally guilty. When champion figure skater Nancy
Kerri-
gan was struck on the knee shortly before the 1994 Olympics in
Nor-
way and the then-husband of another champion skater, Tonya
Harding, implicated his wife in plannirig the attack, the event
was
characterized as a fight between two skaters that obscured their
dif-
fering roles. As both skaters headed for the Olympic
competition,
their potential meeting was described as a "long-anticipated
figure-
skating shootout." Two years later, the event was referred to not
as
43. "the attack on Nancy Kerrigan" but as "the rivalry surrounding
Tonya
Harding and Nancy Kerrigan."
By a similar process, the Senate Judiciary Committee hearings
to
consider the nomination of Clarence Thomas for Supreme Court
justice at which Anita Hill was called to testifY are regularly
referred
to as the "Hill-Thomas hearings," obscuring the very different
roles
played by Hill and Thomas. Although testimony by Anita Hill
was the
occasion for reopening the hearings, they were still the Clarence
FIGHTING FOR OUR LIVES 19
Thomas confirmation hearings: Their purpose was to evaluate
Thomas's candidacy. Framing these hearings as a two-sides
dispute
between Hill and Thomas allowed the senators to focus their
investi-
gation on cross-examining Hill rather than seeking other sorts
of ev-
idence, for example by consulting experts on sexual harassment
to
ascertain whether Hill's account seemed plausible.
SLASH-AND-BURN THINKING
t Approaching situations like warriors in battle leads to the
assumption
../I*-I'f
44. that intellectual inquiry, too, is a game of attack, counterattack,
and !
self-defense. In this spirit, critical thinking is synonymous with
Criti-I
cizing. In many classrooms, students are encouraged to read
some-
one's life work, then rip it to shreds. Though criticism is one
form of I
critical thinking-and an essential one-so are integrating ideas
from
disparate fields and examining the context out of which ideas
grew.
Opposition does not lead to the whole truth when we ask only
"What's wrong with this?" and never "Vhat can we use from
this in
building a new theory, a new understanding?" I ---
There are many ways that unrelenting criticism is destructive in
it-
self. In innumerable small dramas mirroring what happened to
Robert Gallo (but on a much more modest scale), our most
creative
thinkers can waste time and effort responding to critics
motivated less
by a genuine concern about weaknesses in their work than by a
desire
to find something to attack. All of society loses when creative
people
are discouraged from their pursuits by unfair criticism. (This is
par-
ticularly likely to happen since, as Kay Redfield Jamison shows
in her
book Touched with Fire, many of those who are unusually
creative are
also unusually sensitive; their sensitivity often drives their
creativity.)
45. If the criticism is unwarranted, many will say, you are free to
argue}
against it, to defend yourself. But there are problems with this,
too.
Not only does self-defense take time and, draw off energy that
would
better be spent on new creative work, but any move to defend
your-
self makes you appear, well, defensive. For example, when an
author
wrote a letter to the editor protesting a review he considered
unfair,
the reviewer (who is typically given the last word) turned the
very
fact that the author defended himself into a weapon with which
to at-
20 THE ARGUMENT CULTURE
tack again. The reviewer's response began, "I haven't much time
to
waste on the kind of writer who squanders his talent drafting
angry
letters to reviewers."
1 I The argument culture limits the information we get rather
than
broadening it in another way. When a certain kind of interaction
is
the norm, those who feel comfortable with that type of
interaction
are drawn to participate, and those who do not feel comfortable
with
46. it recoil and go elsewhere. If public discourse included a broad
range
I of types, we would be making room for individuals with
different
temperaments to take part and contribute their perspectives and
in-
sights. But when debate, opposition, and fights overwhelmingly
pre-
dominate, those who enjoy verbal sparring are likely to take
part--by
calling in to talk shows, writing letters to the editor or articles,
be-
. coming journalists-and those who cannot comfortably take part
in
Loppositional discourse, or do not wish to, are likely to opt out.
,
This winnowing process is easy to see in apprenticeship
programs
such as acting school, law school, and graduate school. A
woman who
was identified in her university drama program as showing
excep-
tional promise was encouraged to go to New York to study
acting.
Full of enthusiasm, she was accepted by a famous acting school
where
the teaching method entailed the teacher screaming at students,
goading and insulting them as a way to bring out the best in
them.
This worked well with many of the students but not with her.
Rather
than rising to the occasion when attacked, she cringed,
becoming less
47. able to draw on her talent, not more. After a year, she dropped
out. It
could be that she simply didn't have what it took--but this will
never
be known, because the adversarial style of teaching did not
allow her
to show what talent she had.
POLARIZING COMPLEXITY:
NATURE OR NURTURE?
Few issues come with two neat, and neatly opposed, sides.
Again, I
have seen this in the domain of gender. One common
polarization is
an opposition between two sources of differences between
women
and men: "culture," or "nurture," on one hand and "biology," or
"na-
ture," on the other.
21 FIGHTING FOR OUR LIVES
Shonly after the publication of You :Just Don't Understand, I
was
asked by a journalist what question I most often encountered
about
women's and men's conversational styles. I told her, "Whether
the dif-
ferences I describe are biological or culturaL" The journalist
laughed.
Puzzled, I asked wby this made her laugh. She explained that
48. she had
always been so certain that any significant differences are
cultural
rather than biological in origin that the question struck her as
absurd.
So I should not have been surprised when I read, in the anicle
she
wrote, that the two questions I am most frequently asked are
"Why do
women nag?" and "Why won't men ask for directions?" Her
ideologi-
cal certainty that the question I am most frequently asked was
absurd
led her to ignore my answer and get a fact wrong in her repon of
my
expenence.
Some people are convinced that any significant differences
between
men and women are entirely or overwhelmingly due to cultural
influ-
ences-the way we treat girls and boys, and men's dominance of
women in society. Others are convinced that any significant
differ-
ences are entirely or overwhelmingly due to biology: the
physical facts
of female and male bodies, hormones, and reproductive
functions.
Many problems are caused by framing the question as a
dichotomy: '*
Are behaviors that pattern by sex biological or cultural? This
polariza-
tion encourages those on one side to demonize those who take
the
other view, which leads in turn to misrepresenting the work of
those
49. who are assigned to the opposing camp. Finally, and most
devastat-
ingly, it prevents us from exploring the interaction of biological
and
cultural factors-factors that must, and can only, be understood
to-
gether. By posing the question as either/or, we reinforce a false
assumption that biological and cultural factors are separable and
pre-
clude the investigations that would help us understand their
interrela-
tionship. When a problem is posed in a way that polarizes, the
solution
is often obscured before the search is under way.
WHO'S UP? WHO'S DOWN?
Related to polarization is another aspect of the argument
culture: our iI'
obsession with ratings and rankings. Magazines offer the 10, 50,
or 100
best of everything: restaurants, mutual funds, hospitals, even
judges.
'·yr"S2;IPSiii"
22 THE ARGUMENT CULTURE
Newsmagazines tell us Who's up, Who's down, as in
NrUJsweek's "Con-
ventional Wisdom Watch" and Times "Vinners and Losers."
Rank-
50. ings and ratings pit restaurants, products, schools, and people
against
each other on a single scale, obscuring the myriad differences
among
them. Maybe a small Thai restaurant in one neighborhood can't
really
be compared to a pricey French one in another, any more than
judges
with a vast range of abilities and beliefs can be compared on a
single
scale. And timing can skew results: Ohio State University
protested to
Time magazine when its football team was ranked at the bottom
of a
scale because only 29 percent of the team graduated. The year
before
it would have ranked among the top six with 72 percent.
After a political debate, analysts comment not on what the
candi-
dates said but on the question "Who won?" After the president
deliv-
ers an important speech, such as the State of the Union Address,
expert commentators are asked to give it a grade. Like ranking,
grad-
ing establishes a competition. The biggest problem with asking
what
grade the president's speech deserves, or who won and who lost
a
campaign debate, is what is not asked and is therefore not
answered:
What was said, and what is the significance of this for the
country?
AN ETHIC OF AGGRESSION
51. In an argument culture aggressive tactics are valued for their
own
sake. For example, a woman called in to a talk show on which I
was a
guest to say, "When I'm in a place where a man is smoking, and
there's
a no-smoking sign, instead of saying to him 'You aren't allowed
to
smoke in here. Put that out,' I say, 'I'm awfully sorry, but I have
asthma, so your smoking makes it hard for me to breathe.
Would you
mind terribly not smoking?' Whenever I say this, the man is
extremely
polite and solicitous, and he puts his cigarette out, and I say,
'Oh,
thank you, thank you!' as if he's done a wonderful thing for me.
Why
do I do that?"
I think this woman expected me to say that she needs
assertiveness
training to learn to confront smokers in a more aggressive
manner. In-
stead, I told her that there was nothing wrong with her style of
getting
the man to stop· smoking. She gave him a face-saving way of
doing
what she asked, one that allowed him to feel chivalrous rather
than
FIGHTING FOR OUR LIVES
chastised. This is kind to him, but it is also kind to herself,
since it is
52. more likely to lead to the result she desires. If she tried to alter
his be-
havior by reminding him of the rules, he might well rebel: "Who
made you the enforcer? Mind your own business!" Indeed, who
gives
any of us the authority to set others straight when we think
they're
breaking rules?
Another caller disagreed with me, saying the first caller's style
was
"self-abasing" and there was no reason for her to use it. But I
persisted:
There is nothing necessarily destructive about conventional
self-
effacement. Human relations depend on the agreement to use
such
verbal conventions. I believe the mistake this caller was
making-a
mistake many of us make--was to confuse ritual self-effacement
with
the literal kind. All human relations require us to find ways to
get,y
what we want from others without seeming to dominate them.
Allow-
ing others to feel they are doing what you want for a reason less
hu-
miliating to them fulfills this need.
Thinking of yourself as the wronged party who is victimized by
a
lawbreaking boor makes it harder to see the value of this
method. But
suppose you are the person addicted to smoking who lights up
(know-
ingly or not) in a no-smoking zone. Would you like strangers to
53. yell at
you to stop smoking, or would you rather be allowed to save
face by
being asked politely to stop in order to help them out? Or
imagine
yourself having broken a rule inadvertently (which is not to
imply
rules are broken only by mistake; it is only to say that
sometimes they
are). Would you like some stranger to swoop down on you and
begin
berating you, or would you rather be asked politely to comply?
As this example shows, conflicts can sometimes be resolved
with-
out confrontational tactics, but current conventional wisdom
often
devalues less confrontational tactics even if they work well,
favoring
more aggressive strategies even if they get less favorable
results. It's as
if we value a fight for its own sake, not for its effectiveness in
resolv-
ing disputes.
This ethic shows up in many contexts. In a review of a
contentious
book, for example, a reviewer wrote, "Always provocative,
sometimes
infuriating, this collection reminds us that the purpose of art is
not to
confirm and coddle but to provoke and confront." This false di-
chotomy encapsulates the belief that if you are not provoking
and
confronting, then you are confirming and coddling-as if there
54. li
U&'1 i fEWN i c 7r .....
THE ARGUMENT CULTURE
weren't myriad other ways to question and learn. Vhat about
explor-
:ng, exposing, delving, analyzing, understanding, moving,
connecting,
integrating, illuminating ... or any of innumerable verbs that
capture
ther aspects of what art can do?
THE BROADER PICTURE
~The increasingly adversarial spirit of our contemporary lives is
fun-
damentally related to a phenomenon that has been much
remarked
upon in recent years: the breakdown of a sense of communiryJIn
this
spirit, distinguished journalist and author Orville Schell points
out
that in his day journalists routinely based their writing on a
sense of
connection to their subjects-and that this sense of connection is
missing from much that is written by journalists today. QJIite
the con-
trary, a spirit of demonography often prevails that has just the
oppo-
site effect: Far from encouraging us to feel connected to the
55. subjects,
it encourages us to feel critical, superior-and, as a result,
distanced.
The cumulative effect is that citizens feel more and more cur off
from
the people in public life they read about.
The argument culture dovetails with a general disconnection and
breakdown of community in another way as well. Community
norms
and pressures exercise a restraint on the expression of hostility
and
destruction. Many cultures have rituals to channel and contain
ag-
gressive impulses, especially those of adolescent males; In just
this
spirit, at the 1996 Republican National Convention, both Colin
Pow-
ell and Bob Dole talked about growing up in small communities
where everyone knew who they were. This meant that many
people
would look out for them, but also that if they did something
wrong, it
would get back to their parents. Many Americans grew up in
ethnic
neighborhoods that worked the same way. If a young man stole
some-
thing, committed vandalism, or broke a rule or law, it would be
re-
ported to his relatives, who would punish him or tell him how
his
actions were shaming the family. American culture today often
lacks
these brakes.
Community is a blend of connections and authority, and we are
56. losing both. As Robert Bly shows in his book by that tide, we
now have
FIGHTING FOR OUR LIVES
a Sibling Society: Citizens are like squabbling siblings with no
authority
figures who can command enough respect to contain and
channel
their aggressive impulses. It is as if every day is a day with a
substitute
teacher who cannot control the class and maintain order.
The argument culture is both a product of and a contributor-to
this 1
alienation, separating people, disconnecting them from each
other J
and from those who are or might have been their leaders_
WHAT OTHER WAY IS THERE?
~ PhilosopherJohn Dewey said, on his ninetieth birthday,
"Democracy
begins in conversation." I fear that it gets derailed in polarized
debate.
In conversation we form the interpersonal ties that bind
individu-
als together in personal relationships; in public discourse, we
form
similar ties on a larger scale, binding individuals into a
community. In
conversation, we exchange the many types of information we
need to
57. live our lives as members of a community. In public discourse,
we ex-
change the information that citizens in a democracy need in
order to
decide how to vote. If public discourse provides entertainment
first
and foremost-and if entertainment is first and foremost
watching
fights-then citizens do not get the information they need to
make
meaningful use of their right to vote. ]
Of course it is the responsibility of intellectuals to explore
poten-
tial weaknesses in others' arguments, and of journalists to
represent
serious opposition when it exists. But when opposition becomes
the
overwhelming avenue of inquiry-a formula that requires another
side to be found or a criticism to be voiced; when the lust for
opposi-
tion privileges extreme views and obscures complexity; when
our
eagerness to find weaknesses blinds us to strengths; when the
atmo-
sphere of animosity precludes respect and poisons our relations
with
one another; then the argument culture is doing more damage
than
good.
I offer this book not as a frontal assault on the argument
culture.
That would be in the spirit of attack that I am questioning. It is
an at-
tempt to examine the argument culture--our use of attack,
58. opposi-
tion, and debate in public discourse--to ask, What are its limits
as
THE ARGUMENT CULTURE
well as its strengths? How has it served us well, but also how
has it
failed us? How is it related to culture and gender? What other
options
do we have?
' I do not believe we should put aside the argument model of
public
Idiscourse entirely, but we need to rethink whether this is the
only way,
lor always the best way, to carry out our affairs. A step toward
broaden-
I ing our repertoires would be to pioneer reform by
experimenting
/ with metaphors other than sports and war, and with formats
other
, than debate for framing the exchange of ideas. The change
might be
as simple as introducing a plural form. Instead of asking
"What's the
other side?" we might ask instead, "What are the other sides?"
Instead
of insisting on hearing "both sides," we might insist on hearing
"all
V sides."
I' Another option is to expand our notion of "debate" to include
59. / more dialogue. This does not mean there can be no negativity,
criti-
! cism, or disagreement. It simply means we can be more
creative in our
ways of managing all of these, which are inevitable and useful.
In di-
alogue, each statement that one person makes is qualified by a
state-
ment made by someone else, until the series of statements and
qualifications moves everyone closer to a fuller truth. Dialogue
does
not preclude negativity. Even saying "I agree" makes sense only
against the background assumption that you might disagree. In
dia-
logue, there is opposition, yes, but no head-on collision.
Smashing
heads does not open minds.
i- There are times when we need to disagree, criticize, oppose,
and
attack-to hold debates and view issues as polarized battles.
Even co-
operation, after all, is not the absence of conflict but a means of
man-
~ aging conflict. My goal is not a make-nice false veneer of
agreement
or a dangerous ignoring of true opposition. I'm questioning the
auto-
matic use of adversariaI formats-the assumption that it's always
best
to address. problems and issues by fighting over them. I'm
hoping for a
broader repertoire of ways to talk to each other and address
issues