Financial Management Essay Example

Financial Management Essay Example Financial Management Essay Financial Management Essay Financial Management Name: Course: Instructor: : Instructor: Date: Financial Management A stock split happens when a company decides to multiply its number of shares by a certain number in order to bring down the market price of its shares (Kimmel, Weygandt Kieso, 2008). For instance, if a company wants to have its shares of stock selling at below $50, but the market price rises for the shares to around $100, the company could approve a 2-for-1-split, which would mean that the number of shares would be doubled. However, the size of the assets, liabilities and retained earnings will not change, as well as the number of shareholders. Therefore, this will not mean that shareholders wealth will be doubles as the shares are doubled. Rather, the number of their shares will double, but the value will remain the same since the price will be reduced by the same proportion (Kimmel, Weygandt Kieso, 2008). In the example provided, it the company declared a 2-for-1 split, a shareholder with 1000 shares will have 2000 shares. 1000 shares will go at $100 before the split, making it $100,000 worth of stock. After the split, the shareholder will have 2000 shares, going for $50, thus, the value will remain the same, at $100,000 worth of stock. The point is usually to reduce the price of shares (Accounting Coach, 2012). For XYZ Company, the split of 5-for-1 will result in the following way. The price for common stock currently at par is $5. Value of total shares $20,000,000 Number of shares == $20,000,000 $5 == 4,000,000 shares of common stock In a split of 5-for-1, the number of shares will be multiplied by 5. Resulting number of shares after the split == 4, 000, 000 ? 5 == 20, 000,000 shares. The price for each share after the split == $ 20,000,000 20,000,000 == $1 The resulting stockholders’ equity section will look as shown below Common stock ($ 1 par) == $20,000,000 Retained earnings == $ 176,000,000 Total equity ==$ 196,000,000 After the split, the value of equity does not change, since the price of shares drops to $1, to maintain the value of shares even after the split. For a shareholder with 10,000, before the split they had a total value of $50,000. After the split, his number of shares multiplied by 5 to 50,000 shares. Their price dropped to $1, thus, keeping the value of his shares at $50,000. References Accounting Coach. (2012). Stock Splits and Stock Dividends. Retrieved from accountingcoach.com/online-accounting-course/17Xpg05.html#stock-splits-dividends Kimmel, P.D., Weygandt, J.J. Kieso, D.E. (2008). Accounting. Hoboken, N.J: John Wiley and Sons.

Writing Topics for an Essay Developed With Analogies

Writing Topics for an Essay Developed With Analogies An analogy is a kind of comparison that explains the unknown in terms of the known, the unfamiliar in terms of the familiar. A good analogy can help your readers understand a complicated subject or view a common experience in a new way. Analogies can be used with other methods of development to explain a process, define a concept, narrate an event, or describe a person or place. Analogy isnt a single form of writing. Rather, its a tool for thinking about a subject, as these brief examples demonstrate: Do you ever feel that getting up in the morning is like pulling yourself out of quicksand? . . .(Jean Betschart, In Control, 2001)Sailing a ship through a storm is . . . a good analogy for the conditions inside an organization during turbulent times, since not only will there be the external turbulence to deal with, but internal turbulence as well . . ..(Peter Lorange, Leading in Turbulent Times, 2010)For some people, reading a good book is like a Calgon bubble bathit takes you away. . . .(Kris Carr, Crazy Sexy Cancer Survivor, 2008)Ants are so much like human beings as to be an embarrassment. They farm fungi, raise aphids as livestock, launch armies into wars, use chemical sprays to alarm and confuse enemies, capture slaves. . . .(Lewis Thomas, On Societies as Organisms, 1971)To me, patching up a heart thatd had an attack was like changing out bald tires. They were worn and tired, just like an attack made the heart, but you couldnt just switch out one heart for another. . . .(C. E. Murphy, Coyote Dreams, 2007) Falling in love is like waking up with a coldor more fittingly, like waking up with a fever. . . .(William B. Irvine, On Desire, 2006) British author Dorothy Sayers observed that analogous thinking is a key aspect of the writing process. A composition professor explains: Analogy illustrates easily and to almost everyone how an event can become an experience through the adoption of what Miss [Dorothy] Sayers called an as if attitude. That is, by arbitrarily looking at an event in several different ways, as if if it were this sort of thing, a student can actually experience transformation from the inside. . . . The analogy functions both as a focus and a catalyst for conversion of event into experience. It also provides, in some instances not merely the To discover original analogies that can be explored in a paragraph, essay, or speech, apply the as if attitude to any one of the 30 topics listed below. In each case, ask yourself, What is it like? Thirty Topic Suggestions: Analogy Working at a fast-food restaurantMoving to a new neighborhoodStarting a new jobQuitting a jobWatching an exciting movieReading a good bookGoing into debtGetting out of debtLosing a close friendLeaving home for the first timeTaking a difficult examMaking a speechLearning a new skillGaining a new friendResponding to bad newsResponding to good newsAttending a new place of worshipDealing with successDealing with failureBeing in a car accidentFalling in loveGetting marriedFalling out of loveExperiencing griefExperiencing joyOvercoming an addiction to drugsWatching a friend destroy himself (or herself)Getting up in the morningResisting peer pressureDiscovering a major in college