Critique of Artificial Intelligence Essay Example for Free

Study of Artificial Intelligence Essay Writer John Markoff composed the article â€Å"Computer Wins On ‘Jeopardy!’: Trivial, It’s Not†. He talks about how the super PC â€Å"Watson† vanquished the unsurpassed victor of â€Å"Jeopardy!† Ken Jennings. The writer, all through the article, concurs that the supercomputer â€Å"Watson† was a reasonable match against Ken Jennings. I can't help contradicting Markoff for numerous reasons. This was not the slightest bit a reasonable match in light of the fact that the PC had an exceptional capacity to respond to inquiries at super speeds. Likewise, the PC approaches every single accessible inquiry and the capacity to answer them. This was not the slightest bit a reasonable fight between the PC and Ken Jennings. The author’s fundamental thought of this article is principally to state how the supercomputer was a reasonable match between the two. The PC has approaches to respond to addresses that people have no chance to get of doing. The PC can respond to inquiries in practically no time and even milliseconds when the inquiry is posed. It has a super speed capacity to address these inquiries, which gives no an ideal opportunity for the contender to try and get an opportunity to respond to the inquiries given. Along these lines, when the contender has no an ideal opportunity to try and have an endeavor to respond to the inquiry, its absolutely impossible to win. â€Å"Watson† is keen to such an extent that pretty much every inquiry that is posed, he answers effectively. Since I don’t concur with Markoff’s proclamation about â€Å"Watson†, I don’t think his contention is legitimate. The explanation I don’t accept his contention and focuses are legitimate is that a PC that has amazing and brutal like capacities is clearly going to win in an opposition of speed and information. Ken Jennings got no opportunity against this PC. All in all, if a human gets no opportunity against a machine, how might anybody call this a reasonable battle? Presently, Markoff defined his terms plainly and explicitly portray his purposes behind why he thinks what he thinks, so I do give him acknowledgment for that. In any case, I can't help contradicting his contention. I can't help contradicting a large portion of Markoff’s see about the opposition between the PC and Jennings. His central matter of the reasonable rivalry is absolutely undebatable. â€Å"Watson, then again, doesn't foresee the light, however has a weighted plan that permits it, when it is profoundly certain, to hitâ the signal in as meager as 10 milliseconds, making it difficult for people to beat† (Markoff 212). This announcement made by Markoff demonstrates this was not the slightest bit workable for Jennings to beat the super PC. The PC can buzz in at astonishing rates as meager as 10 milliseconds, which is route quicker than some other human might buzz in. In addition, the PC is modified with so much data, that it would no doubt have the option to vanquish Jennings, in light of the insight of this machine the makers customized into it. By and large, I don't accept that this piece distributed by John Markoff is in at any rate substantial. Markoff does anyway prevail with regards to convincing individuals his thoughts and portraying his thoughts and contentions explicitly. He works superbly with his contention and expressing what he thinks. I don't concur with his contention however. My response to this piece is really shocked on the grounds that I don't know how anybody could believe that a PC contending with an exceptionally astute human was reasonable by any stretch of the imagination. The shortcoming of this entry is presumably how it very well may be difficult for somebody to see how a PC can figure out how to achieve this, yet the qualities are acceptable portrayal and articulation of the section. In spite of the fact that he contends very well of his focuses, I not the slightest bit concur with his contention that the fight among â€Å"Watson† and Ken Jennings was reasonable.

Songhai Empire

Beffa 4 The Songhai Empire Alex Beffa Global History April 9, 2012 Beffa 3 The Songhai, otherwise called the Songhay, was the last, yet in addition the biggest and most noteworthy realm of western Africa somewhere in the range of 1000 and 1600 ce. I The past realm was the Mali domain. Songhai was only a customer state at the port of Gao, which was a significant exchanging port for trans-Saharan exchange particularly since it is situated on the Niger waterway. At the point when the Mali domain began to decrease in the 14 th century, the Songhai ruler proclaimed autonomy. I The Songhai domain was the most flourishing west African realm for some reasons however significant ones are: the lords Sunni Ali and Muhammad Ture just as the vanquishing of the city of Timbuktu. Sunni Ali became ruler in 1464. He didn't sit around time holding back to start growing. Not long after coming to control, he went to overcome the extraordinary exchanging port of Timbuktu from the Tuareg plunderers. After Timbuktu was his, Sunni Ali's armed forces went south to the port of Jenne. In 1480, he assaulted the Mossi states south of the Niger river.He had a solid military foundation which helped him become a standout amongst other conquerers and pioneers in African realm history until this point. His best resource was his maritime abilities which is for the most part likely why he ordinarily vanquished ports along the Niger stream. One of his significant headways was the production of an administration. This permitted the Songhai to be a more concentrated realm than the past domains of Ghana and Mali. To help get the Muslim help, Sunni Ali professed to be a Muslim, however he never really left the old customary religions as far as anyone knows because of the conviction that it was the wellspring of his extraordinary powers in battle.In 1492, after a fruitful victory, as indicated by some oral conventions, Sunni Ali suffocated while crossing the Niger waterway. Still others won't acknowled ge this hypothesis, demanding that he kicked the bucket in fight. His rule was from 1464-1492. At the point when Sunni Ali kicked the bucket, one of his children named Sunni Barou dominated. iii Unfortunately, in contrast to his dad, Sunni Barou didn't profess to be Muslim yet rather grasped the old convention. This didn't go over very well with the Muslim people group in the domain. Not long in the wake of taking the seat, Sunni Barou was toppled by an extremely unwavering muslim named Muhammad Ture.Born around 1440, he was a merciless Beffa 4 executioner. He even need so far as to dispose of the remainder of Sunni Ali's relatives. With respect to his method of overseeing, the Islamic religion assumed a major job. He accepted that the spread of islam was significant for two reasons. One, he was a faithful muslim and felt that everybody ought to be. What's more, second, he considered Islam to be an approach to bring together the domain. He sorted out his own organization with 10 for tunes and a manager for each. This permitted him to govern adequately over a tremendous empire.To lower odds of an insubordination, Muhammad Ture would not permit the rulers of the vanquished to keep their capacity yet rather he would supplant them with individuals from his own family. In 1495, Muhammad chose to make a journey to Mecca. In contrast to different rulers, he had the option to leave for significant stretches of time because of how fantastically stable his administration was. After his excursion, he wanted to grow the domain. At the point when Sunni Ali had kicked the bucket, a great number of the states Sunni Ali had vanquished had announced independence.It was dependent upon muhammad to reassert the Songhai’s power over these domains. He had no issue with going on a practically consistent military triumph for near two decades. Like Sunni Ali, Muhammad Ture likewise extended the naval force. After a military life like that, he was fortunate to be around to encoun ter mature age. In 1528 Muhammad was so very much matured that he had lost the drive to proceed with the victories. Likewise he started to go daze, so his child Farimundyo Musa dominated. Farimundyo Musa changed his name to Askia Musa which is the place the Askia line comes from.Askia Musa was killed in 1531 by one of his siblings. Since Muhammad Ture was Islamic and instruction is a major piece of Islam, Muhammad clearly bolstered training. The University of Timbuktu was one of the primary colleges in the entirety of Africa. It pulled in numerous researchers, predominantly Islamic. Exchange carried thriving to the Songhai Empire just as these different advances. iv Timbuktu was, a significant exchanging spot, yet in addition an instructive capital. It bigly affected the Songhai empire.By overcoming this significant port right off the bat in the Songhai realm's life, it set up a kind of establishment. By controlling this port alongside a couple of other key urban communities, they f undamentally overwhelmed the trans-Saharan exchange. Timbuktu Beffa 3 was established by wanderers of the Tuareg in the mid 12 th century. In its initial days, Timbuktu was believed to be mediocre compared to other significant exchanging ports for trans-Saharan exchange, for example, the urban communities of Ghana or Walata in light of the fact that they were increasingly noteworthy. It didn't take long to change individuals' minds.Timbuktu and its sister city Jenne, which was additionally before long vanquished by the Songhai, were in much better situation to the gold field than Walata. Another factor in the ascent of timbuktu was the wanderer Middle Easterners that had been attacking trains along the western courses. Thus, more individuals had been taking the eastern courses through Timbuktu. At last, likely the most signif icant reason timbuktu was such a significant port, Timbuktu was on a point where three significant trans-Saharan courses went: the Mauritanian, Taghaza salt st reet, and the course to In Salah by method of Arawan. Two of the most significant imports and fares of the Songhai realm were salt and gold, however different things included slaves, ivory, cotton textures, grains, and ostrich quills. vi To Timbuktu specifically, the significant ones were gold, salt, slaves, and kola nuts. The salt originated from the salt mines in the Sahara. The gold originated from Bure, Bambuk, and Akan. The others, kola nuts and slaves were kinda of wide spread, originating from a few spots and popular at some more. Normally as a significant exchanging port, Timbuktu had social diffusion.Islamic thoughts were passed around particularly when Muhammad Ture was in power. vii In 1591 a Moroccan power ousted the last lord of the Songhai domain, hence finishing the rule of the best western African realm somewhere in the range of 1100 and 1600. viii They took the capital at Gao and afterward proceeded onward to timbuktu. ix It would bode well that exchange would be th e Songhai's strong point since when the Mali domain was still in power, the Songhai was a significant exchanging spot at the city of Gao. What's more, the large accentuation on having an extraordinary naval force would likewise bode well considering they are situated on the Niger river.The significant explanations behind such a colossal and flourishing domain were the efficient government, joined with remarkable rulers, and failing to have a monetary emergency since they vanquished urban areas like Timbuktu and Jenne directly from the earliest starting point. Beffa 4 Bibliography Fritze, Ronald. â€Å"Timbuktu. † In World History: Ancient and Medieval Eras. ABC-CLIO, 2004-. Gotten to April 16, 2012. http://ancienthistory. abc-clio. com/. Insoll, Timothy A. â€Å"Trade and Empire. † Archeaology 53, no. 6 (november 2000): 48 MAS Ultra-School Edition, Ebscohost (got to February 5, 2012). Page, Willie F.Encyclopedia of African History and Culture. USA: A Learning Source Bo ok, 2001 William, Oscar. â€Å"Songhai Empire. † In World History: Ancient and Medieval Eras. ABCCLIO, 2004-. Gotten to February 5, 2012. http://ancienthistory. abcclio. com/search/show/601432? terms=songhai World History: Ancient and Medieval Eras, s. v. â€Å"Africa, 3000 BCE-1500 BCE,† air conditioning cessed February 4, 2012. http://ancienthistory. abcclio. com/search/show/588506? terms=medieval+africa+songhai World History: Ancient and Medieval Eras, s. v. â€Å"Askia dynasty,† got to April 16, 2012. http://ancienthistory. bc-clio. com/. World History: Ancient and Medieval Eras, s. v. â€Å"Muhammad Ture,† got to April 15, 2012. http://ancienthistory. abc-clio. com/. World History: Ancient and Medieval Eras, s. v. â€Å"Sunni Ali,† got to April 8, http://ancienthistory. abc-clio. com/. 2012. I Oscar William. â€Å"Songhai Empire. † In World History: Ancient and Medieval Eras. ABC-CLIO, 2004-. Gotten to February 5, 2012. http://ancienthi story. abc-clio. com/search/show/601432? terms=songhai ii World History: Ancient and Medieval Eras, s. v. â€Å"Sunni Ali,† got to April 15, 2012. http://ancienthistory. abc-clio. om/. iii World History: Ancient and Medieval Eras, s. v. â€Å"Sunni Ali,† iv World History: Ancient and Medieval Eras, s. v. â€Å"Muhammad Ture,† got to April 15, 2012. http://ancienthistory. abc-clio. com/. v Ronald Fritze. â€Å"Timbuktu. † In World History: Ancient and Medieval Eras. ABC-CLIO, 2004-. Gotten to April 16, 2012. http://ancienthistory. abc-clio. com/. vi World History: Ancient and Medieval Eras, s. v. â€Å"Muhammad Ture,† vii Fritze viii World History: Ancient and Medieval Eras, s. v. â€Å"Askia dynasty,† got to April 16, 2012. http://ancienthistory. abc-clio. com/. ix Fritze

The Kite Fight in The Kite Runner Essay Example

The Kite Fight in The Kite Runner Essay A kite flying noticeable all around, abruptly gets struck and chop somewhere near another kite. This is a normal movement in the city of Kabul. It is called kite battling. Amir’s life in The Kite Runner by Khaled Hosseini, is spoken to by the large kite battling competition in Kabul that Amir and Hassan make a decent attempt to win. The main thing that relates Amir’s life to the large kite battle is the manner by which Hassan remains by Amir’s side and causes him in the kite battle (his kite sprinter), simply like for the duration of Amir’s life Hassan is continually waiting with Amir. Regardless of whether Hassan isn't there genuinely, his quality despite everything crosses Amir’s mind ordinarily. Hassan lives inside Amir all through his entire life. One instance of when Hassan springs up in Amir’s mind is the point at which he is going out he says, â€Å"Earlier that morning, when I was sure nobody was looking, I accomplished something I h ad done twenty six years sooner: I planted a fistful of folded cash under a mattress,† (Hosseini 242). Indeed, even twenty after six years Amir is as yet considering what he did to Hassan’s life and eventually his own. Amir continually is pondering what he did to Hassan and his father, and how extraordinary it would be in the event that he had not put the cash and watch under his sleeping pad. During the kite battle Hassan stays by Amir for each second of the battle, much the same as Hassan remains in Amir’s mind for as long as he can remember. To add to the contention Hassan was additionally still with Amir when Rahim Khan comes to converse with Amir and says, â€Å"Ali was sterile, Rahim Khan said. No he wasn’t. He and Sanaubar had Hassan, didn’t they? They had Hassan.. No they didn’t, Rahim Khan said,† (Hosseini 222). Hassan was all along Amir’s sibling. This was after Hassan had kicked the bucket as well, so even past the gr ave Hassan was all the while influencing Amir. In addition to the fact that amir was influenced by this, he at long last associated the entirety of the specks to things like why Baba always remembered Hassan’s birthday, or why Baba appeared to like their Hazara worker the same amount of as

Term Paper Online - 3 Options For Term Paper Online

Term Paper Online - 3 Options For Term Paper OnlineAs the term paper online becomes more popular, it is important to know that there are various ways to do this online. Some of the methods include using a paperless tool such as Google Docs, using a journal format of writing online, and using an online web application.Using paperless software for term papers is one method of doing this. There are various free options that can be used to avoid having to buy a paper to put in your classroom. Of course, it is up to you to determine which software to use.If you are going to use the Google Docs option to do term paper online, you will need to have an internet connection. If you choose to write your term paper with a journal format, you will need to make sure that the journal format is something that is available online as well. If the term paper online solution is using an online application, you will need to find out whether or not the online application is compatible with your operating system. If it is not, you will have to download the application to your computer before using it.The online tool, you will want to consider using for term paper online is Google Docs. This tool has built-in features that allow you to manage your assignments online. One of the things you will want to consider is the ability to 'add' files to your project. Of course, it is important to make sure that this feature is available before using this tool.Another way to do term paper online is to use a journal format for your term paper. This type of paper is generally easier to work with and requires less typing. The disadvantage is that there is no easy way to add files to a journal format, but it is easier to manipulate your project and also to incorporate changes that you make.The third way to do term paper online is to use an online web application. Although these applications are less common, there are some good ones that can make online work easy. Many of the online web applications h ave built-in resources that can make it easier to complete projects, including tasks, and deadlines.Although term paper online has become increasingly popular, there are still ways to do this. Make sure that you research the options that are available before making your decision.

Abortion For Against - 1334 Words

Abortion: For? Against? Since the legalization of abortion in 1973, over 57 million unborn children have been killed, more than the entire population of Spain! (Guttmacher) I strongly disagree with abortion, no one should be able to kill the baby/babies growing inside of a woman. It takes innocent lives of unborn human beings that are, living, unique babies with a heartbeat! There are many things that can go wrong when having or thinking about having an abortion, such as it is damaging to relationships and families, there are many harsh ways to abort a baby, which can cause some problems also, and it could cause emotional damage to one. Whenever a family member dies, everyone is affected. It would be no different than a harmless child losing their lives. The thought of it never really goes away. It is always there, in the back of your mind, waiting for the chance to pop back up again. Even with time it will never ease, the thought of what you did. It compounds tragedy. Sometimes, th e circumstances of a woman becoming pregnant, aren’t so great. Maybe she was raped or the baby has been diagnosed with a defect or complications. Although, one tragedy is not to be answered with another. They must now be forced into a spur of the moment decision, to take the life a child instead of giving them a chance to defy the odds. After an abortion, the rate of marital breakups and relationship dissolution is anywhere from 40 to 75 per cent, often related to the breakdown of intimacyShow MoreRelatedAgainst Abortion Essay1320 Words   |  6 PagesAgainst Abortion Abortion has been one of the many controversial topics being an issue in America, and it has been in some parts of world today. People say that abortion is big business, meaning that today it can give America lots of money for all the young girls getting pregnant and making them abort. Teenpregnancy.org, a site managed by the National Campaign to Prevent Teen and Unplanned Pregnancy, says that there are 750,000 teen pregnancies annually in America. Some of these pregnancies occurRead MoreArguments For And Against Abortion1590 Words   |  7 PagesArguments for and Against Abortion The battle over whether to legalize or ban abortion in the United States has greatly increased in recent years; the moral, ethical and legal had been a continuous fight in our society. The abortion issue is also the most passionate and debatable in the United States to whether allow one to have free will over their body or have the government make that decision. Furthermore, it is one of the leading debates in political races. In this society everyone has aRead MoreAbortion Argument Against Abortion749 Words   |  3 PagesDoes a women’s right to choose to have an abortion outweigh a baby’s right to be born? The controversy at hand is whether the rights of a women outweigh the rights of a baby, and whether a mother should be given the rights to pursue a procedure like an abortion. To clarify an abortion is a medical procedure that ends a pregnancy in which a doctor uses a vacuum and suction to suck out a fetus from the uterus. The issue is whether the fetus who has th e potential to be a rational, productive human beingRead More Against Abortion Essay1916 Words   |  8 PagesAgainst Abortion   Ã‚  Ã‚  Ã‚  Ã‚  Why is it that by 21 days into the fetal development the babys heart begins to beat, but yet in most peoples eyes the baby is still not technically alive That heart beat means nothing, it doesnt represent a human person whom God has created in his own image and has had a plan for that baby ever since the beginning of time. To most people that statement isn?t allowing women and their families freedom of choice. And yet that baby isnt given any say in its freedomRead MoreAgainst Or Forward About Abortion1749 Words   |  7 PagesMiriam Ochoa English 1 Professor Pelonis June 2 , 2016 Against or Forward about Abortion Today’s society consists of many health concerns, unresolved, and controversial issues. Many of these issues can be viewed in relation to one’s morals, ethics, and religious beliefs. This creates a society that is divided by opposing viewpoints. The 2012 Merriam-Webster dictionary defines abortion as, â€Å"The termination of a pregnancy after, accompanied by, resulting in, or closely followed by the deathRead MoreArguments Against Abortion Essay1286 Words   |  6 PagesThe debate on whether abortion should be legal, or illegal has become a controversial topic that has divided the nation into two. The group of people who don’t see anything wrong with the issue refer to their group as pro-choice supporters. Their main belief about abortion is that because a woman’s body belongs to herself it should be up to her on whether she wants to keep a baby or not. Those who are against abortion and feel it should be illegal think of themselves as pro-life sup porters. TheyRead MoreOutline Of The Laws Against Abortion1376 Words   |  6 PagesOutline Title – Laws against Abortion Complete the sentence The Purpose of this Paper is . . . The purpose of this paper is to show how the states are creating laws to try and prohibit abortions and how these laws are putting unnecessary hardships on the women trying to receive them. Introduction Abortion is a controversial topic within the United States; states are allowed to make different laws in regards to the topic but must not go against the 14th amendment of the constitution. Many lawsRead MoreBiblical Argument Against Abortions1513 Words   |  7 PagesEthics February 2, 2013 Rational Argument Against Abortions Biblical Argument Against Abortions In this paper, I will discuss arguments against abortions. The first sets of arguments I will discuss are biblical arguments. That being said, I must begin by acknowledging that the Bible doesn’t say anything about abortion directly. Abortion was so unthinkable to an Israelite woman that there was no need to even mention it in the criminal code. Why was abortion an unthinkable act? First, children wereRead MoreThe Main Barrier Against The Abortion1799 Words   |  8 PagesAbortion has always been a controversial topic for several decades. In Latin America, there is approximately a triple abortion rate when compared to those who live in Western Europe (Sedgh et al., 2016). This is because of a pervasive unspoken belief, contraception and highly restrictive abortion laws (Dzuba, Winikoff and Peà ±a, 2013). Women who resort to private and unsafe methods to end unexpected or unwanted pregnancies could expose themselves to the risk of complications and fatality ratio. TheRead Mor eArgument Against Abortion On Demand934 Words   |  4 PagesIn this essay I shall argue against abortion on demand. By abortion on demand I mean the taking of life, of the fetal life, and how a woman could enter her doctor s office or local women s health clinic and ask, or â€Å"demand†, to have an abortion, she would then be able to get the next available appointment to do just that. There are several different reasons why one may be pro-life. A few arguments against abortion may include how abortion should not be used as another form of contraception, and

The Presidency of James Madison - 1497 Words

President James Madison held the white house office from 1808-1816. During his tenure he had to deal with the ramifications of his policies from when he was Secretary of State under Thomas Jefferson and The War of 1812. These two major points are what shaped most of his presidential terms. It was his second term that helped with the postwar expansion of America and the split in the Democratic Party system. It was also during his second term that he helped America gain it’s economic independence from Great Britain. After his terms of office were over he retired home to his plantation and joined an university council to help settle disputes about issues among the states such as the freed slaves. James Madison ran for president in election 1808. In this election the Democratic Republican competed against Charles C. Pinkney from South Carolina and Rufus King from New York. Anti-Madison newspapers were printed out immediately, with the Federalist Party’s directing, criticizing Madison and his Belief in the Embargo Act which he helped to shape in 1807. However, by early December few had doubts on who would emerge as victorious in the election campaign. So when Madison won by a devastating landslide, 144 votes to Pinkney’s 44, few were surprised by the outcome. Madison’s public favor had multiple high and low points throughout his career. Like other presidents who entered office in unfavorable times, Madison was criticized for everything he did the moment he entered office. FromShow MoreRelatedA Birth Of A Legend1663 Words   |  7 PagesIt was a birth of a legend; it did not start with â€Å"once up one a time† because the story was not a fiction, but the man himself was like a fictional hero. Father of a nation. James Madison born in Port Conway Virginia, from James Madison and Eleanor Rose Conway in 1751. He was youngest of twelve kids, and only seven of them could made through adulthood. His father was a tobacco planter having more than 4,000-acre land and many slaves. Life was not generous and compassionate when it came to his healthRead MoreThe Life Of James Madison Essay1418 Words   |  6 Pages The Life of James Madison Madison Williams Central High School November 9, 2015 3rd Period  Abstract In my paper I will state and explain the least known aspects of James Madison. James Madison contributed to some of the most simple and complex events that have not been recognized. For his job well done, I am willing to make those aspects known. The Life of James Madison James Madison, also known as â€Å"The Father on the Constitution†, contributed to quite a few intellectual eventsRead MoreA Perfect Union By Catherine Allgor Essay1488 Words   |  6 PagesUnion by Catherine Allgor describes the life of Dolley Madison starting with her first marriage to John Todd whom she only married because her bed-ridden father told her to. Although the marriage to John was a happy marriage it was soon brought to an abrupt end when the yellow fever hit; killing Dolley’s husband and younger son. The newly widowed Dolley took many trips into town and soon she caught the attention of Congressman James Madison who fell so madly in love with her. This attraction ledRead MoreJames Madison : The First President Of The United States991 Words   |  4 Pages James Madison was the smallest elected president of the United States; he measured 5 feet 4 inches and weighing less than 100 pounds. He was born on March 16, 1751 in Port Conway, Virginia. Madison Jr. was born in a family where tobacco planting was the main resource of income. His father James Madison Sr., owned a huge tobacco plantation with his mother Nelly Conway. Madison was the oldest of 10 children, and as a young kid he suffered from psychosomatic, epilepsy, and voice impairmentRead More1998 Dbq Essay1116 Words   |  5 PagesHour Although Republicans and Federalists were characterized as having particular views towards the implementation of the Constitution, the Jefferson and Madison presidencies prove that even though virtually they believe one thing, realistically they could very possibly act another way. Following the making of the Constitution, James Madison brought forth the warning of political factions or parties as we know today in one of his many inputs into the Federalist Papers. As the Constitution was offeredRead MoreThe Life and Accomplishments of James Madison995 Words   |  4 PagesJames Madison was born in Port Conway, Virginia on March 16th, 1751. Madison received an education at the college of New Jersey and graduated in 1771. He studied Latin, geography, and Philosophy. In 1774 he joined the local committee of safety which was a patriot group that monitored the actions of the local militia. Two years later Madison became a delegate in the Virginia convention and took part in the framing of the Virginia constitution. During the general election for delegates in the stateRead MoreEssay The Creation of the American Republicn - James Madison1169 Words   |  5 PagesThe Creation of the American Republicn - James Madison James Madison prided himself on his knowledge from books and theories. Madison was born into a class of Virginia planters. His father was the wealthiest landowner in Virginia and it was known that Madison would lead a financially secure life. This factor helped him in his pursuit of education. He gained opportunities to go to elite schools because of his status. Madison was ambitious and he graduated from the College of New Jersey a year earlyRead MoreBiography of James Madison: The Father of the Constitution Essay991 Words   |  4 Pages James Madison,widely known as the â€Å"Father of the Constitution† was born on March 16,1751 in Port Conway,Virginia. He was born into a wealthy family. His father,James Madison Sir.,gained wealth from inheritance and his mother’s, Kelly Conway, side of the family were also rich as her father made a living by being a tobacco merchant. A surprising fact that,despite coming from a such preposterous family, James was rather ill as a child. Madison was a victim to psychosomatic and as well as stress-inducedRead MoreTo What Extent Did The Presidencies Of Jefferson And Madison Reduce The Tensions Of The 1790s?1167 Words   |  5 PagesCaiser Bravo Rigg APUSH 6 October, 2015 To what extent did the presidencies of Jefferson and Madison reduce the tensions of the 1790s? The presidency of George Washington was a difficult pair of terms to follow. John Adams tried to follow the precedent that the first president had set, but the second president only managed to polarize the nation among two parties: the Federalists and the Anti-Federalists. Although his decisions are today looked at with mixed feelings, at the time John Adams fellRead MoreThe Founding Fathers : Virginia1589 Words   |  7 PagesIn March of 1751, James Madison was born in Port Conway, Virginia to Nellie and James Madison. Once he reached eighteen, Madison attended the College of New Jersey, more commonly known today as Princeton (â€Å"James Madison’s Biography†). During this time period, it was strange for a man to go beyond the colony for his education (â€Å"The Founding Fathers: Virginia†). However, Madison went against the social norm, which ultimately gave him an advantage by broadening his understandings of all the different

English Language Colleges and Universities

Question: Discuss about theEnglish Language for Colleges and Universities. Answer: Introduction The language assessment or language testing refers to the field, which study about the first, second or other languages taught in schools, colleges or universities. According to Jenkins Leung, (2013), the part of applied linguistic focuses on the assessment of the language used in the workplace context or in the citizenship, immigration and asylum contest. In general, the assessment helps the students in the schools or colleges to analyse their learning and improvement. In this essay, the language test has been evaluated through a classroom-based assessment to assess the improvements in the students understanding of skills and communication. It has two main priorities that indicate the overall impact of the learning procedures followed in the classroom. The study has discussed the various processes of language testing to analyse the students capacities and improvements to test their language learning process (Cohen, 2014). Therefore, the purpose of the classroom-based assessment has been disclosed to set the objectives of the study and then the role of teachers or assessors has been evaluated to analyse the overall testing process. Discussion The purpose of classroom-based assessment is to test the learning improvement of the students in a class whether the study procedure is helping them to improve their understanding about the lessons in class. According to Kaplan, (2015), assessments are required to develop the skills of the students about what they had learnt from the lessons in class. These assessments can be conducted in various manners and every process has its own pros and cons. Therefore, it is the responsibility of a teacher to decide which assessment process should be best for the students to measure their improvement. There are other purposes of this classroom-based assessment. It helps to inform and guide the teachers about the teaching and learning processes, helps students to set their learning goals and motivate the students for improving their skills. In thus study, the essential objectives are to analyse the effect of lessons taught in the classes on students, to evaluate their improvement in classes, t o analyse the benefits of the learning processes and to assess the effectiveness of teaching procedures in classes. Therefore, the study is focussing on the purpose of the assessments to meet these objectives. There are some processes or assessments instruments for assessing the learning improvements of the students. The students can be accessed through the activities of quizzes, writing assignments, tests and many more, which have the facility to get the outcome instantly. Therefore, this kind of assessments has proved to be effective as the teachers can easily identify the drawbacks of the students through this. As opined by Yu, (2014), the language can be learnt through formal, informal, assessed, not assessed, structured, unstructured, fun, arduous, and essential and hobby or interest. The formal setting can be in the kindergartens, language centres, schools, clubs, universities, workplaces, short courses and TAFES. In these settings, the students can be accessed through the school like environment where the content is almost set from earlier. The processes of assessments also are formal in these settings and the students are assessed based on the qualifications and accreditations. On the other hand, the informal setting is the called in the setting of homely environment where the students can learn with their family or friends or in a homely ambiance (Richards Rodgers, 2014). In these cases, the assessment process follows the interest of the students who are learning from various practical incidents rather than the formal contents that have set before. The assessments in this case will find out the effectiveness of the learning in the outcome of social connectedness and life skills. There can be another type of assessment, which focuses on the interest or fun or hobby of the learner to analyse their improvements. Therefore, the processes in which the improvement can be analysed properly of a students is perfect for the students to assess them. There are some classroom-based assessments such as, alternative, educational, authentic, informal, formative and statutory (Bygate, Swain Skehan, 2013). All these assessment processes have their individual importance. The quiz is one of the assessments processes that help to improve the practice of regular lessons through a fun activity. The teachers to reduce the stress level of the students between classes can use it. As quiz is considered as a fun game rather learning, therefore, the students find it more interesting to participate. However, it is a fun game; the teacher can assess the improvements of the students from this classroom-based assessment procedure. Apart from this, there are many ways to assess the students in classes with fun activities like quiz. Likewise, debate competition can also be used to analyse the understanding of the students about the language-based subjects such as English. On the other hand, the writing assignments can be very helpful for the students to assess their learning. If the students cannot understand the subject properly, then they cannot develop the content in writing to explain their understanding (Kunnan, 2013). Therefore, it can be used as an assessment program to analyse the students improvements through assessment. General class tests also can be the assessment process for understanding the improvement in a frequent manner. Although it is a formal process, which the students have to face in the classes and the teachers think, it can be the most effective process to assess a students whether he or she is able to learn the language in a proper way or not. Therefore, in this case the teachers have to play a crucial role to develop the questions based on which it can be analysed the students improvements. All these processes are helpful to meet the objectives in this study to get the benefit of the purposes of classroom-based assessments for language testing. There are some language assessment approaches to conduct this classroom-based assessment such as, Discrete-point testing approach, Communicative Testing Approach, Integrative Testing Approach and Performance testing approach (Knig et al., 2014). The Discrete-point testing approach is the process that can assess the students understanding about the components of language. Any language can be divided into its component parts and can be tested through the assessments like reading, writing, speaking, listening, phonology, lexicon, syntax and morphology. This discrete point tests are aiming to achieve a high reliability factor by testing a large number discrete items. In the Communicative Testing Approach, the students communication level on a particular language is tested through the teachers or assessors. In this case, the test should be conducted through the processes of listening, speaking, writing and reading. In the testing procedure, the teachers can assess the students in involvin g them into various pretending situations to test their communication levels in that Language. Therefore, it can be considered as the performance based testing approach for the language assessment. Along with this, the approach of Integrative Testing helps to put back the language skills, which were taken out from the language with discrete items (Richards Schmidt, 2013). Additionally, it helps to assess the capacity of a learner to understand the capability of the person to communicate through the language, which they are learning. Apart from this, there is another approach Performance testing approach to evaluate the performance level of learner after learning the language. The performance level can be accessed through the various testing processes to assess their improvements. According to McLaughlin, (2013), this approach has some principles such as, in this process the teachers have to state the overall goal of the performance and to analyse the performance level they have to evaluate the performance checking process and then can test the performance. This process will help the assessors to understand the improvement of the students. All these are some important approaches that help the assessors to analyse the students improvement in the learning process. The role of the assessor or the teacher plays a crucial part in the process of classroom-based assessment. The teachers have to serve internal and external responsibilities to complete the assessments processes. Monitoring the assessment processes, keeping records of the progress of students and giving the results to other teachers as well as parents and students, selection, certification and meeting statutory requirements are the main responsibilities of an assessor. As per the point of view of some of the eminent scholars, assessment is the systematic procedures based on which one individual student has been tasted as per the knowledge, skills and competencies. Only teaching and learning process is not enough for evaluating the minds of students. Students should be tasted time to time in order to know their learning progress. Teachers have to play a major role in the entire process of assessment (Allen et al., 2013). While dealing with the students within a classroom, teachers should gather detailed information regarding the problems and obstacles of the students. Based on those issues an ideal teacher should proceed for enhancing the mental skills and development of students. However, this particular essay has provided an in-depth understanding about the role of teachers for arranging the entire process of assessment effectively. As stated by Astin (2012), assessment is one of the most effective ways of data collection procedure based on which the teachers can evaluated the growth and the progress of the students. After conducting an entire class, the students may not be able to understand that the teachers have conveyed in the classroom (Reschly Christenson, 2012). Therefore, assessment is the only way, based on which teachers can get an in-depth overview about the learning improvement of every individual student equally. Before, conducting an assessment the teachers generally tend to take an effective remedial class (Treagust, 2012). In this particular class, every student within the classroom is allowed to throw any questions related to their study. This particular class is considered as interactive session where the students have to play a major role along with the teachers. After clarifying the doubt to the students, teachers tend to take an effective interaction with them. Teacher intends to ask some o f the basic questions to the students based on which they can evaluate whether students have understood or not. After conducting the remedial session, the entire process of assessment is started so that students can carry good marks. At the time of this assessment, teachers have to follow some of the major factors (Brown, Bull Pendlebury, 2013). The teachers should follow the expression of every individual student on how they are feeling comfortable with the assessment questions. If any individual students are followed uncomfortable with the assessment paper, the teacher should note the name of this individual as soon as possible. After the end of the session this particular students should be taken an effective interview session in order to know the problems individually. At the same time, some of the major factors should be taken into consideration. At the time of conducting the assessment, teachers should maintain strictness at the assessment hall. Students should not discuss with each other at the time of assessment session. All the solutions should be conducted at the own competency of the students (Crisp, 2012). However, after conducting the entire process of assessment, teachers should evaluate the data about the performance of students. The students who have performed well in the entire session should not be highlighted. Teachers should enjoy the success the achievement of student learning process. In the assessment, the students who have failed to provide an effective feedback should get more guidance and training from the teachers. The role of an ideal teacher in this particular case should be more vital (Falchikov, 2013). At the very first stage, teacher should identify the student who has failed to perform well in the assessment after collecting data. After identifying this individual, the teacher should make an effective session in order to know the problem. A friendly environment should be needed to deal with such kinds of students (Treagust, 2012). Teachers while making the face-to-face interaction should maintain a polite and humble approach to the students so that the students do not hesitate to share their point of views. The role of an ideal teacher should be providing equal respect and dignity to the students from different culture and background (Healey, 2014). While dealing with the different kinds of learners, the teachers tend to come into close contact with students from various attitudes. However, it has been observed that the students have faced immense difficulties and challenges for maintaining their learning process due to the family background. As a result, those students fail to communicate properly with the teachers at the classroom (Imrie et al., 2014). These are the major problems, due to which students fail to provide their best performance in the assessment. The teacher should deal with those students especially. One of the major roles of an ideal teacher is to provide equal priority and response to the students of every culture and background. Arranging parents teacher meeting is also been considered as one of the most effective initiatives for improving the future growth of the students. The mental and learning growth of a student is highly dependent on the family background of a particular student. After collecting sufficient data and information from the assessments, the teacher should make an effective interaction with the parents individually (Piech et al., 2013). Teachers should give an in-depth overview regarding the growth and the success of an individual. The students who have provided negative feedback on the assessment need guidance that is more effective. Therefore, parents would have to take a major initiative regarding the factor as well, so that their children can get a successful future. The role of an eminent teacher in this case is not only to convince the students, but also to make the parents understand on how their children can grow their mental skill and ability (Reschly Christenson, 2012). The paren ts should provide a good environment to their children so that they can get a sufficient time for continuing their study. Conclusion The intention of this study is to analyse the purpose of classroom-based assessment and the various processes to find the importance or usefulness of the assessment. The usefulness of these procedures has been analysed and the role and responsibilities of the assessors has been evaluated to understand the importance of language test through classroom-based assessment. However, the entire essay has provided an in-depth understanding about the importance of assessment for improving the future growth of the students. At the same time the role of teachers have also been provided equal priority in this particular study. Reference List Allen, J., Gregory, A., Mikami, A., Lun, J., Hamre, B., Pianta, R. (2013). Observations of effective teacher-student interactions in secondary school classrooms: Predicting student achievement with the classroom assessment scoring system-secondary.School Psychology Review,42(1), 76. Astin, A. W. (2012).Assessment for excellence: The philosophy and practice of assessment and evaluation in higher education. Rowman Littlefield Publishers. Brown, G. A., Bull, J., Pendlebury, M. (2013).Assessing student learning in higher education. Routledge. Bygate, M., Swain, M., Skehan, P. (2013).Researching pedagogic tasks: Second language learning, teaching, and testing. Routledge. Cohen, A. D. (2014).Strategies in learning and using a second language. Routledge. Crisp, G. T. (2012). Integrative assessment: reframing assessment practice for current and future learning.Assessment Evaluation in Higher Education,37(1), 33-43. Falchikov, N. (2013).Improving assessment through student involvement: Practical solutions for aiding learning in higher and further education. Routledge. Healey, M. (2014, February). Students as partners in learning and teaching in higher education. InWorkshop Presented at University College Cork(Vol. 12, pp. 15-00). Imrie, B. W., Cox, K., Imrie, B. W., Miller, A., Miller, A. (2014).Student assessment in higher education: a handbook for assessing performance. Routledge. Jenkins, J., Leung, C. (2013).English as a lingua franca. John Wiley Sons, Inc.. Kaplan, C. S. (2015).Secondary Foreign Language Teachers Cognitions and Practices Related to Classroom-Based Student Assessment(Doctoral dissertation, The Ohio State University). Knig, J., Blmeke, S., Klein, P., Suhl, U., Busse, A., Kaiser, G. (2014). Is teachers' general pedagogical knowledge a premise for noticing and interpreting classroom situations? A video-based assessment approach.Teaching and Teacher Education,38, 76-88. Kunnan, A. J. (2013).Validation in language assessment. Taylor Francis. McLaughlin, B. (2013).Second language acquisition in childhood: Volume 2: School-age Children. Psychology Press. Piech, C., Huang, J., Chen, Z., Do, C., Ng, A., Koller, D. (2013). Tuned models of peer assessment in MOOCs.arXiv preprint arXiv:1307.2579. Reschly, A. L., Christenson, S. L. (2012). Jingle, jangle, and conceptual haziness: Evolution and future directions of the engagement construct. InHandbook of research on student engagement(pp. 3-19). Springer US. Richards, J. C., Rodgers, T. S. (2014).Approaches and methods in language teaching. Cambridge university press. Richards, J. C., Schmidt, R. W. (2013).Longman dictionary of language teaching and applied linguistics. Routledge. Yu, G. (2014). Book review: Classroom-Based Assessment in the School Foreign Language Classroom.Language Testing,31(2), 264-267.

Human Resource Management (HRM) in a Multinational Enterprise

Comparison between Domestic and International HRM The practices of international HRM and domestic HRM involve a number of commonalities. For instance, personnel planning, staffing, recruitment, selection, evaluation and development as well as remuneration are practices carried out by both domestic and international HRM. However, the operations of domestic HRM involve employees within the border of a single nation whereas international HRM encompasses three categories of nationals (Farndale Paauwe, 2005).Advertising We will write a custom essay sample on Human Resource Management (HRM) in a Multinational Enterprise specifically for you for only $16.05 $11/page Learn More In other words, international HRM utilizes the services of personnel from the parent nation where the corporation is headquartered. Additionally, global HRM deals with employees from host countries where the corporation’s subsidiary offices are located. Moreover, international HRM utilizes other third countries’ personnel as sources of labor, research as well as development. Despite the commonalities in the practices of domestic and international HRM, two main differences exist in their practices. The differences arise from the complications in operations of international HRM and the employment procedures of personnel from different nations. Considering the complexities of operations in different countries, Multinational Enterprises (MNE) must identify and comprehend the best ways of managing the geographically dispersed personnel within foreign subsidiaries in order to have control of both domestic and foreign employees as well as gain international competitive edge (Farndale Paauwe, 2005). In other words, international HRM practices are more complex compared to domestic HRM due to a number of reasons. First, the international HRM tackles international taxation, coordinates foreign currencies and exchange rates. Further, the HR of an MNE manages the concerns of workers from different cultures as opposed domestic HR managers who only manage employees of a single country. Moreover, international HRM practices must adhere to external concerns in its foreign subsidiaries including local codes of conduct, religious beliefs and providing employment opportunity to the natives. Regarding the employment of diverse national groups of employees, international HRM must follow the set regulations concerning the recruitment of personnel. For instance, employees who work abroad and are United States nationals must remit annual income taxes to the government. In addition, the HR manager of MNE must incorporate the diverse cultures of employees in the operations. Standardization of HRM Practices The integration of international HRM practices through the imposition of parent practices to the subsidiaries of the MNEs is driven by two main factors. First, strategic aspects are invaluable drivers of standardizing HRM practices of MNEs. In other wo rds, the international corporations have to function within the framework of global circumstances.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More For instance, the MNEs carry out operations within the peripheral perspectives of the industry as well as inter-organizational connections and agreements. Such aspects influence the practices of international HRM and the aims of the multinational enterprise (Harzing Ruysseveldt, 2004). Second, the organizational context is another important driver for standardization of HRM practices. In essence, the unique and diverse culture of MNEs and the institutional environment of the firms are widely thought-out to determine the explicit HRM practices in different states. Additionally, the organizational structures including exports and sales of subsidiaries affect HRM practices. The adoption of a worldwide corporate culture by an MNE has numerous advant ages. For example, in situations where high capital ventures are to be remunerated, the HR executives are supposed to utilize the business culture and lingo of the host nation. Additionally, the adoption of the international corporate culture for each subsidiary prevents the elimination of the corporation’s protected market niche due to changing regulations of the host countries. The Role of Subsidiary For multinational enterprises to gain competitive edge in operations, the coordination and integration of the firms’ dispersed organizational units is critical. As such, the subsidiary is capable of achieving local receptiveness as well as international incorporation (Dowling et al., 2013). In other words, a subsidiary is critical in the operations of MNE because it function together with the firm’s headquarters to achieve optimal output. The subsidiary performs a number of roles. In fact, the subsidiary acts as integrated player, implementer, local innovator as w ell as global pacesetter. As an integrated player, the subsidiary is tasked with the responsibility of coming up with useful information that can be utilized by the organization to realize optimal performance. Regarding the role of an implementer, the subsidiary undertakes the creation of individual knowledge and depends heavily on the data from sister ancillaries in performing the directives of the parent firm (Caldwell, 2003). The role of global innovator is where the subsidiary acts as the source of information and knowledge for other auxiliaries. Regarding the local innovator, the subsidiary has the full responsibility of developing appropriate expertise and proficiency in the important functional sections. In general, the subsidiary provides the coordination mechanisms and location competencies that enable the parent firm to achieve the overall strategic roles.Advertising We will write a custom essay sample on Human Resource Management (HRM) in a Multinational Enterprise s pecifically for you for only $16.05 $11/page Learn More Factors that Drive Localization of HRM Practices for MNE Adjusting HRM activities according to the norms and values of a host nation is significant for the success of MNEs (Farndale Paauwe, 2005). The major factors that drive localization of HRM practices for a multinational enterprise are the cultural and institutional environments. To begin with, the cultural environment of an organization affects the way in which the employees of the firm share diverse ways of life including common values, attitudes and behaviors transmitted through a gradual dynamic process over time (Dowling et al., 2013). In other words, culture influences work and HRM practices in a number of ways. For example, culture affects the remunerations conduct including the diverse anticipations of the executive and junior staff relations as well as performance. Additionally, in an organizational culture in which performance is based on incorporated personal social relations, equilibrium of inherent and extrinsic remunerations is often valued. On the contrary, a MNE whose work culture is based on individual autonomy and segregation, extrinsic rewards are normally emphasized. Institutional culture also ensures humane orientation of employees, collectivism in the organization as well as gender egalitarianism to minimize discrimination based on sex. Generally, the HRM practices of the MNE are invaluable in enhancing cohesion between subsidiaries through the adoption of the local norms and values (Dowling et al., 2013). Second, the institutional environment is significant in determining the performance as well as anticipations in subsidiaries. In other words, institutional norms and values such as attributes of education system and industrial relations are important HRM practices. For instance, in recruitment and selection processes, education qualifications are always considered. Further, the scope of labor legislati on and its regency of codification, which is another important institutional factor influences HRM practices through creating codes of conducts that are concerned with equal payment for equivalent job and the determination of minimum wages (Harzing Ruysseveldt, 2004). In general, the institutional environment affects the staffing decisions of MNE. Localization of HRM practices has a number of advantages. First, localization saves on expert costs in terms of salaries and other benefits. The costs of hiring experts are high since the firm has to cater for the expenses of international assignments. As such, the firm utilizes local personnel whose packages are less considered to expert salaries and benefits. Second, localization of HRM practices also utilizes the talents of the local people through recruitment and selection into various work positions.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Impact of Culture and Institutional Environment Cultural as well as institutional aspects dictate the manner in which the management of human resources within multinational enterprises is conducted. As such, the MNE operating in the international market must recognize and comprehend the social outline entrenched in international culture to overcome the bottlenecks associated with the customs (Harzing Ruysseveldt, 2004). Recruitment and Selection Recruitment refers to the process of attracting individuals with suitable qualifications to apply for jobs whereas selection is picking the best-suited individuals for positions within an organization from the list of applicants. Culture and institutional environment influences the recruitment and selection of employees within an organization in a number of ways. As such, the firm must consider external and internal aspects in such process. Therefore, several steps must be adhered to in the recruitment and selection process to meet the requ irements of the organization’s culture as well as the institutional environment. For instance, transparency, fairness and qualification requirement must be considered in the process. Additionally, organizations must eliminate the stereotypes of disrespect and lack of recognition during the process. Further, the comprehensive structured screening method allows the interviewees to elucidate the comprehension of job specifications and how to deal with the obstacles that may be encountered in the execution of their functions (Farndale Paauwe, 2005). Training and Development Training and development are important aspects of HRM. The cultural and institutional environments greatly influence training and development of employees in a number of ways. First, development and training must incorporate the norms and values of employees. In addition, MNEs must undertake the institutional management aspects such as formulating policies, offering funds for execution as well as putting up v arious governing bodies to attain the required strategic goals (Dowling et al., 2013). The management of multinational enterprises believes that future growth and development depends largely on quality training and education system. Therefore, all subsidiaries must rely on the trained personnel from the local public training institutions. As such, nations must ensure that training and education of personnel are geared towards the needs of the industry. Further, MNE should adhere to the institutional requirements of quality training and appropriate education system as an integral part of labor force during the process of production. Therefore, human resource development programs such as training and career development form the foundation of enhancement and mobilization of human capabilities to meet the demands of the labor market (Farndale Paauwe, 2005). Compensation Culture and institutional frameworks have greater impact on compensation. Compensation and reward system of an organi zation remains to be one of the important factors that contribute to the improved work performances among employees. Compensation directly affects performances of employees and remains critical in the attainment of the organization’s goals. Therefore, cultural and institutional aspects have to be considered when deciding on the best compensation strategy (Dowling et al., 2013). In other words, employees have diverse values and norms that organizations have to put into consideration while determining effective rewards. Essentially, employees will consider compensation as effective when the types of rewards meet their primary objectives. Often, the central argument is that fair rewards system satisfies the needs of employees, motivates and improves performances. Moreover, the most excellent compensation practices take into account internal institutional processes such employees’ performance management practices as well as competitiveness. Internal balance in the compensa tion practices and design implies the organization’s activities and practices that ensure the attainment of goals. On the other hand, external institutional aspects such as competitiveness encompass compensation practices in relation to industrial standards or regulatory framework. In most cases, compensation practices follow the regulatory frameworks set by the industry or legal authority. However, the MNE must ensure that its compensation practices are geared towards enhancing employee’s motivation and attaining set institutional goals as well as norms and values in order to gain competitive advantage (Caldwell, 2003). In other words, compensation practices must be aligned with the employee’s general productivity as well as motivation. Task Distribution Within the workplace, variation in the workforce may arise from cultural orientations including race, religion and intellectual heritage. Moreover, diversity in the workplace may result from institutional chara cteristics that include education background of the personnel. In essence, variations found within the personnel emphasizes structure component of the organization. Therefore, HRM managers should be capable of understanding the effects of these dimensions on the work performance, success as well as motivation when distributing tasks. Most importantly, the HRM managers should comprehend how cultural and institutional dimensions bring about diversity in the workplace and the way they affect interactions of workers in the process of task distribution (Caldwell, 2003). Further, culture and institutional environments initiate structures that take into consideration all the dimensions of diversity in the workforce during task distribution. Conclusion In summary, the practices of international HRM and domestic HRM involve a number of commonalities include personnel planning, staffing, recruitment, selection, evaluation and development as well as remuneration. Despite the commonalities in t he practices of domestic and international HRM, two main differences exist in their practices. The differences arise from the complications in operations of international HRM and the employment procedures of personnel from different nations. Additionally, localization and standardization of HRM are practices are critical in the management of MNE. Further, for multinational enterprises to gain competitive edge in operations, the coordination and integration of the firms’ dispersed organizational units is significant. Moreover, Culture and institutional frameworks have greater impact on compensation and reward system of an organization remains to be one of the important factors that contribute to the improved work performances among employees. References Caldwell, R. (2003). The changing roles of personnel managers: old ambiguities, new uncertainties. Journal of Management Studies, 40(4), 983-1004. Dowling, P. J., Festing, M. Engle, A. D. (2013). International human resource m anagement: managing people in a multinational context. North Way, UK: Cengage Learning EMEA. Farndale, E. Paauwe, J. (2005). The role of corporate HR functions in multinational corporations: The interplay between corporate, regional/national and plant level. Center for Advanced Human Resource Studies, 5(10), 8-25. Harzing, A. Ruysseveldt, J. (2004). International human resource management. London:Sage. This essay on Human Resource Management (HRM) in a Multinational Enterprise was written and submitted by user Jude Boyer to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Answers to Questions About Articles

Answers to Questions About Articles Answers to Questions About Articles Answers to Questions About Articles By Mark Nichol 1. I found the follow information about the indefinite article a in The Oxford Advanced Learner’s Dictionary: â€Å"used before uncountable nouns when these have an adjective in front of them, or phrase following them. For example, â€Å"a good knowledge of French†; â€Å"a sadness that won’t go away.† I dont understand the information. The dictionary says that the a is used before uncountable nouns when these have an adjective in front of them. But, as far as I know, the indefinite article a cannot be used in front of uncountable nouns. Does the information mean that we can always use the indefinite article a in front of uncountable nouns that have an adjective in front of them? Is it a rule? Mass, or noncount, nouns can be preceded by the indefinite article a when they are modified by a preceding adjective or a subsequent phrase: For example, though you would refer to bravery as courage, not â€Å"a courage,† you can write of â€Å"an uncommon courage† and â€Å"a courage like no other.† However, the passage from the resource you mentioned refers only to the possibility of the former type of usage, not to its ubiquity; it is rare. 2. Something I would like some clarification on is the use of a or an before the word holistic. I have been taught an, but this doesn’t seem to make sense to me, as there are many instances when a word beginning with h is preceded by a rather than an. Are you able to shed some light on this? Use a or an before a word that begins with the letter h depending on whether the h is pronounced: â€Å"a historic occasion,† but â€Å"an honest mistake.† 3. I don’t know what to do with the names of institutions when they call themselves a name with the in the title for example, â€Å"the Open Door.† In the middle of a sentence, do you have to capitalize the? Would you say, â€Å"We met at The Open Door†? The direct article should be lowercase even when it is integral to an entity’s name (as in â€Å"the American Automobile Association,† when it would not be referred to, minus the, as American Automobile Association†), but many entities insist on capitalizing it as part of a branding identity. (And it’s best to do so for indirect articles, as in, for example, the name of a community center called A Place for Teens.) If you work for the Open Door or it’s giving your organization money or other consideration and management at the Open Door wants the name treated as â€Å"The Open Door,† treat it as â€Å"The Open Door.† Otherwise, style it â€Å"the Open Door.† Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Grammar category, check our popular posts, or choose a related post below:Useful Stock Phrases for Your Business EmailsRules for Capitalization in TitlesComment, Suggestion, and Feedback

Critical Thinking 2 Speech or Presentation Example | Topics and Well Written Essays - 1000 words

Critical Thinking 2 - Speech or Presentation Example All the sectors are related and affect each other. a) For each unit change of an independent variable, the change in the quantity of Chevys sold or demanded is equivalent to the coefficient of the variable. Therefore; a unitary change in the following independent variables will cause a corresponding change in quantity demanded by; The increase in the price of tickets resulted into increased profits in the short-run. However, in the long-run, profits declined owing to the fact that in the long-run, the customer is not willing to purchase the ticket at an increased price. a) These goods conform to the law of demand. This is because the law of demand states that an increase in the price of a commodity would lead to decrease in its demand as consumers would be less willing to purchase the commodity at a higher price, thus leading to a negative price elasticity of demand. On the other hand, an increase in consumer’s income would lead to an increase in demand of the commodity as consumers are able to consume more of the commodity, thus leading to a positive income elasticity of

Starbucks Case Study Example | Topics and Well Written Essays - 4750 words

Starbucks - Case Study Example The first Starbucks store was established in the 1971 in Seattle by three friends Jerry Baldwin, Gordon Bowker and Zev Siegl. These three individuals were high school teachers of English and History. They got their inspiration to open their own coffee shop from a Dutch business man named Alfred Peet (Coffee, 2014). The Starbucks as we know today is quite different from what it was during the time of its inception. At first the store only sold raw coffee beans and coffee machines and equipments, which changed over a decade as the company also started to sell coffee drinks. A decade later the company appointed Howard Schultz as the head of retail operations. He was overwhelmed by the idea of espresso bars in Italy and asked the owners to apply the concept of coffee house in Seattle. This experiment was quite successful and it marked the beginning of the famous Starbucks coffee beverages. Howard found a company named Il Giornale, which later on acquired Starbucks (Starbucks, 2011). The acquisition of Starbuck was financially supported by a lot of local investors and the name of the company was officially changed to Starbuck Corporation. The company decided to make geographical diversification and opened up stores in Vancouver and Chicago. By 1987, the total number of Starbucks outlet was 17, which increased to 55 by 1989 and 84 in the next year. In the year 1992, the company went public and it was able to expand its business from the $27 million gathered from the stock prices (Grant, 2013).

One of the major characteristics that Beowulf and Hamlet Essay Example for Free

One of the major characteristics that Beowulf and Hamlet Essay One of the major characteristics that Beowulf and Hamlet share is the fact that they both rid Denmark of a treacherous monster who poses a serious threat to the land. Beowulf uses his warrior-like skills to fight and conquer a physical monster who literally haunts the swamps outside the state and plagues it with murderous acts. Hamlet’s monster is also one who commits murderous acts, though this is in the form of his uncle Claudius who kills the King (Hamlet’s father) and usurps the Danish throne. The two men, Hamlet and Beowulf, are thrown into these battles as youth, and both take on the challenge willingly. In fact, Beowulf travels from Geatland specifically to meet the challenge of fighting Grendel. Hamlet too takes it upon himself to kill Claudius as soon as he finds out that this man has been the agent of his father’s death. Another characteristic that both Hamlet and Beowulf share is their death and the method in which this occurs. Both are defeated in their final efforts at ridding their homelands of the evil that had infiltrated. In fact, both die though their efforts are successful. Beowulf dies at the hand of the final monster (the dragon) whom he succeeds in slaying, but who also deals Beowulf a deathly blow that eventually kills him. Hamlet also has a similar experience in that, while he is able to slay Claudius by the end of the play, he is caught with a poisoned sword and eventually expires after all his enemies have died. The two characters die by peripheral (yet fatal) blows given them during the melee. Both show bravery by continuing to fight even while they are mortally wounded. Eventually, both succumb to the serious wounds they have acquired, yet they die in the victory of knowing they have defeated their enemies. Beowulf and Hamlet also differ in many ways, one of which is the character that they show throughout the play. While Beowulf displays a warrior-like character, Hamlet shows himself to be fearful and awkward in acting out the desires of his heart. Beowulf is eager to come to the aid of the King of Denmark, and he pauses only to partake of the feast given in his honor before he sets out to kill Grendel. When he encounters the monster, he loses no time in indecision but immediately performs the actions necessary to kill the beast. In fact, Beowulf fights three ferocious beasts throughout the story with the same vivacity and fierceness. Hamlet differs from Beowulf in his character, and he displays the tendency to employ a much more subdued and stealthy course of action. Though he too determines to defend the honor of Denmark’s (former) king by killing his murderer, he demonstrates a greater portion of dalliance and indecision than does Beowulf. When he gets his first chance to kill Claudius, his idle thoughts concerning the condition of Claudius’ heart (while praying) leads him to forfeit that chance and allow Claudius to live. He fails in his pursuits far more than Beowulf does too, because in his second attempt to kill Claudius, he ends up killing Polonius instead. In these ways, Hamlet shows himself to lack self confidence in a manner that is vastly different from Beowulf the ready warrior. Beowulf and Hamlet show differences in the tenure of their lives and the fulfilment of their royal destinies. Hamlet, unlike Beowulf, fails to ascend to the throne to which he is heir. He dies before the throne falls vacant and also fails to prove King Claudius a usurper in any effort to gain his rightful place on the throne. Beowulf, on the other hand, is able to spend fifty years as ruler of his Geat kingdom. In addition to this, Beowulf differs from Hamlet in his ability to live out his live and to attain old age. He is able to demonstrate his strength as a ruler for many years and to gain the respect of his subjects. Hamlet, who dies young, is unable to do any of this. He is never able to command the subjects over whom he was destined to rule precisely because of the fact that his life ends tragically in his youth. Therefore, while both men perform in the role of princes during their youth, Beowulf becomes promoted to the level of king while Hamlet dies with all his potential. Works Cited Beowulf. The Harvard Classics, Volume 49. Frances B. Grummere (Trans. ) 1910. P. F. Collier Son, 1993. Shakespeare, William. Hamlet. London: Penguin, 1994.

Michelangelo :: Essays Papers

Michelangelo2 Michelangelo was pessimistic in his poetry and an optimist in his artwork. Michelangelo's artwork consisted of paintings and sculptures that showed humanity in it's natural state. Michelangelo's poetry was pessimistic in his response to Strazzi even though he was complementing him. Michelangelo's sculpture brought out his optimism. Michelangelo was optimistic in completing The Tomb of Pope Julius II and persevered through it's many revisions trying to complete his vision. Sculpture was Michelangelo's main goal and the love of his life. Since his art portrayed both optimism and pessimism, Michelangelo was in touch with his positive and negative sides, showing that he had a great and stable personality. Michelangelo's artwork consisted of paintings and sculptures that showed humanity in it's natural state. Michelangelo Buonarroti was called to Rome in 1505 by Pope Julius II to create for him a monumental tomb. We have no clear sense of what the tomb was to look like, since over the years it went through at least five conceptual revisions. The tomb was to have three levels; the bottom level was to have sculpted figures representing Victory and bond slaves. The second level was to have statues of Moses and Saint Paul as well as symbolic figures of the active and contemplative life-representative of the human striving for, and reception of, knowledge. The third level, it is assumed, was to have an effigy of the deceased pope. The tomb of Pope Julius II was never finished. What was finished of the tomb represents a twenty-year span of frustrating delays and revised schemes. Michelangelo had hardly begun work on the pope's tomb when Julius commanded him to fresco the ceiling of the Sisti ne Chapel to complete the work done in the previous century under Sixtus IV. The overall organization consists of four large triangles at the corner; a series of eight triangular spaces on the outer border; an intermediate series of figures; and nine central panels, all bound together with architectural motifs and nude male figures. The corner triangles depict heroic action in the Old Testament, while the other eight triangles depict the biblical ancestors of Jesus Christ. Michelangelo conceived and executed this huge work as a single unit. It's overall meaning is a problem. The issue has engaged historians of art for generations without satisfactory resolution. The paintings that were done by Michelangelo had been painted with the brightest colors that just bloomed the whole ceiling as one entered to look.

Revisiting Cost of Capital in Commercial Banks

CHAPTER 1: INTRODUCTION 2 Background Capital Structure decision remains one of the corporate strategies to corporate managers because it affects firm’s value. This research is conducted within the commercial banks. In many research journals and articles the cost of capital is the expected rate of return of capital in investor’s investment. Weighted average cost of capital is considered as required rate of return in the company. Component of cost of capital are; long-term debt, preferred stock, and common stock. Each must have minimum return.We analyze from previous research articles that the banks should not focus on historical cost but on new cost, because in order to invest and rise, new cost of capital is used to make decisions. Level of interest rates, tax rates are two of the factors that affects cost of capital in the commercial banks. Interest rates apply on debt and equity. It is the most important factor for investors. Cost of debt affects by the level of inter est rates and also the cost of equity. As described in many articles, if interest rates increases the cost of debt increases, which increases the cost of capital.So, the raising of capital delayed till interest rate become favorable. This shows how the interest rate can be a source effective measure of the cost of capital. Similarly, if the tax rates increases, the cost of debt decreases, which decrease the cost of capital as it affects the after tax cost. The cost of capital directly and totally linked with capital structure. Capital structure influence the value of the banks, firm, company potentially by reflects the financing strategy. And capital structure should consider tax strategies.We found from different articles that the most important capital structure decisions are when the expected tax rates goes higher. The basic function of capital structure is to minimize the cost of capital and risk. Interest is tax deductable. The deductibility of interest payments provides influe nce for value. Higher the tax rate, the greater impact of deductibility of interest potentially on the after-tax cost of debt. These are the proved facts that are evaluated in previous researches. According to this research we are trying to find what role these factors play in commercial bank’s capital structure.It is necessary for top management of any business institutions to ascertain the banks or firms relevant cost of capital. From the banks’ perspective, the cost of each source of capital reflects the level of return because it is affected by certain factors like tax rates, interest rates, dividends etc. as the time period changes, the level of return also changes. In its simplest form, the capital structure decision is the selection by firm management of debt-to-equity ratio for the firm. Cost of Capital is perhaps the most fundamental and widely used concepts in financial economies.Managers of banks or corporation and also regulators employ the weighted average cost of capital for investment decisions. The WACC and the tax rates are endogenous to the firm’s debt policy. The interest rates affect the cost of debt as increasing debt increasing interest payments. We also derive the sources of capital structure that which source is better for the commercial banks and how the interest rates, tax rates brings variation in the cost of debt and the dividends and growth rates affects the cost of equity that totally affect the weighted average cost of capital.Our methodology allows us to value the government tax rates and interest rates that affect cost of debt. We specify numerically the affects of the variations in the factor like interest rates, tax rates and dividends, thus providing useful conceptual framework for the tax and interest policy debates that influence cost of capital of debt and equity. Finally we come to analyze that cost of debt increase or decrease by variation in the interest rates and tax rates and that help in the est imation of WACC that show that whenever the WACC decreases, it results in an increase in the profit that is useful for any organization or commercial banks. . Problem statement (Revisiting the cost of capital in the commercial bank) The problem statement of this research proposal includes re-examine the cost of capital in commercial banking sector of Pakistan and also to evaluate the direct and indirect association of the factors that affects weighted average cost of capital and how this variation (increase or decrease) can affect the profit and also the capital structure -debt and equity- of the commercial banks. 2. Research objectives While doing research planning, we analyze that the cost of capital considers the factors affecting decision making.The following object of the research comes into play: ? We will find out the factors which creates the variation (increase or decrease) on cost of capital and their effect on the capital structure decision making. ? To analyze the after effects of these factors on capital structure. ? To examine up to how much extent they are controllable or not from bank’s perspective. 3. Significance The importance of this research paper is that, the relation between the different determinants of the costs of capital creates different impact on the different commercial banks by affecting capital structure of that commercial bank.We know that as the weighted average cost of capital decreases, it increases the profit n the Commercial Banks. Risk associated with cost of capital and capital structure taking needs to b looked at differently in the case of the commercial banking institutes. This research sheds new light on how the cost of capital computed in the case of commercial banks. Also the relationship between the cost of capital and capital structure is investigated. This research has another importance as banking system has a vital role to play in the economic development of a nation. A healthy economy requires a sound banking system.This research states that how banks applies different techniques that enhance their performance and also affect the decision making of the Mangers regarding their capital. In this research, the main finding of the paper suggests that the commercial bank should focus on reducing the cost of capital that maximizes the profit. According to our findings, it is concluded that each banks has its policies of financing. Each bank takes decision of selecting capital structure for minimizing their cost, risk factor differently that occupies good financial position in market.Factors that have impact on cost of capital as well as on capital structure are tax rates, interest rates, dividends payout, risk of default and other like market fluctuation, corporate governance. This research plays a vital role by showing the significant contribution of Commercial Banks while equating debt to equity ratio. It also shows the understanding of the performance of Banks by evaluating weighted average cost of capital. The main findings of the paper suggest that private commercial banks should focus on reducing the cost of capital which can magnify the returns to their stockholders.Finally this research paper would also help the students in academics in understanding the relation between the factors and the cost of capital and also their after affects that create impact on the weighted average cost of capital. 4. Limitation Time constraint of this semester is the issue for this study as we have limited time in this semester as compared to the actual time required for the research. By being in banks we will acquire interviews approximately 15 -30 minutes with questionnaire because of the time given by the Mangers of Finance Division.The information given by the managers is also limited because it difficult for them to provide all necessary information as they are bound by the policies of the commercial bank. 1. 6 Report Structure Chapter 1 represents the introduction of res earch topic its background, problem statement, objectives of research that set, significance of this research and limitations. This chapter gives brief information about the topic pervious information, the scope of research and its benefits, the target of the research. And also provides the basic information that already conducted by different authors researchers.Chapter 2 deals with the literature review and conceptual framework. In this portion you will find the different views of different researchers related to this research topic cost of capital in commercial banks including capital structure importance its link with cost of capital, and factors that affect cost of capital. This portion also gives the direction and relevant information which is very helpful in proceedings the research. Conceptual framework helps in determining the relationships of factors with WACC.Chapter 3 provides the detail of methodology that is adapted to proceedings the research. This portion gives expla nation of research type, method, sample size, instruments that is used in finding and collecting the data. Chapter 4 gives the analysis of data that is collected through the questionnaire, interviews and calculating the WACC of commercial banks that chosen with assumptions, and research findings that proves the hypotheses that is set. Chapter 5 includes the conclusion of research findings and literature review findings.Also gives the recommendations. Finally Appendix attach to our research that contain Questionnaire. CHAPTER 2: LITERATURE REVIEW AND CONCEPTUAL FRAMEWORK 1 Literature Review 2 Capital structure (Khadka 2005) has analyses in his research that the firms meet their operational needs by raising their funds and this can be done through the capital structure that involves the two major sources of debt and equity. There should be an appropriate balance between debt and equity as it has effects on the risk and return of the shareholders of the company.If there are reasonable proportions of debt and equity in the capital structure of the firm, it maximizes the shareholders wealth while minimizing the cost of capital and that could be considered as the optimal capital structure. (John J. Pringle, Jun. , 1974) Since banks are private economic units, it is reasonable to suppose that shareholder interests will influence, if not control, managerial decisions. Capital is an important managerial decision variable and that it plays an important role in the financial management of the individual bank. Groth 1997) said that the selection of capital structure affects the cost of capital. Carefully selection of capital structure is more important. Banks and companies consider more conservative capital structure with sensitivity to cyclical effects of economy. It involves in dividing not in sharing. If payments of dividend are not deductible and if interest is tax deductible on debt then capital structure is important. Barton and Gordon (1987) Financing and capital s tructure choices are among the several key decisions made by firm managers.Yet the study of these questions has been generally neglected by strategy researchers. Several scholars have noted that the issues involved are concerned with fundamental choices ‘which should support and be consistent with the long- term strategy of the firm. Balakrishnan and Fox (1993) said that by selecting suitable financing, a ‘firm's ability to manage its relationship with lenders thus becomes a key source of competitive advantage. Capital is a critical resource for all firms, the supply of which is uncertain. This uncertainty enables the suppliers of finance to exert ontrol over the firm. Stearns (1986) and Mizruchi (1993) estimate the cost of equity capital use a dividend discount model (DDM) methodology and earnings estimates. They find that the cost of equity capital for large U. S publicly traded companies ranged between 10% and 12% during 1979-1995, depending on the assumptions used wi th the DDM approach. Interestingly, Myers and Borucki (1994) obtain the same range of estimates for the cost of equity capital of a limited sample of U. S. utility companies using a DDM-type method.Bruner (1998) and Weaver(2001) surveying large corporation and confirm about WACC methodologies. Both authors find that there is a significant difference exists in estimating the equity capital component of the firm. Some uses CAPM while other uses different methods. 4 Cost of capital Cost of capital is the minimum required rate of return by investors in firm’s securities. It occupies an important role in the theory of financial management and in the investment decision making as it provides criteria for allocation of the capital that what a firm pays for its capital like debt, preferred stock and equity.Cost of Capital is related with the level of risk associate with existing and new assets and investments. (Khadka 2005) Modigliani and Miller (1958) proved that firms cost of capit al is independent of capital structure as it has no effect on the capital structure. The traditional belief of Modigliani and Miller (1963) is that the cost of capital can affect capital structure as in this belief they said that the personal taxes may include that brings variation in the cost of capital and hence affects the capital structure of the company. Khadka 2005) states that there is an empirical relationship between the cost of capital with capital structure, the size of the firm, growth of the firm, dividend payout ratio and liquidity of underdeveloped economy like Nepal but the major focus was the relationship of the leverage with the cost of capital where he conclude that negative beta shows that there is a negative relationship of cost of capital with the leverage as cost of capital decreases with the use of the leverage and this is done by the tax deductibility of the interest charges in the Nepalese firms.Cost of capital is the expected rate of return of capital in i nvestor’s investment. On debt, the amount of interest is paid is called cost of debt. Whereas cost of equity is equivalent to the risk free rate of interest plus risk premium for business risk. (Groth 1997). 5 Factors that affects cost of capital Groth (1997) further said that risk is one of the factors that affect the cost of capital which determines the expected risk of cash flow in the asset side of the bank. Business risk is that when bank and companies cash flow are not able to meet its operating expenses.Risk is linked to economic changes. And it would be at risk to business risk when change in economy occurs and when financing is done by totally with equity. Cost of equity influenced by business risk. Equity holder’s risk has not accepted by the creditors and preferred stock holder if present. If increase in business risk occurs then it decreases the financial risk and the optimal D/E ratio, and increases the cash flow uncertainty of asset side. Financial risk i s that when bank and companies cash flow are not able to meet its financial obligations. If firm finances through debt, then it has financial risk.Tax rates and interest rates are also factors. Interest payment expected deductibility give opportunity for value. If the tax deductibility is realized by the company then stockholders get the expected benefit of the tax deduction. Jorgenson and Landau (1993) or Bond and Devereux (2003) analyses that the government’s choice of the corporate tax rate is an important factor with respect to the investment decision made by shareholders and it is well known that the existence of corporate taxes distort this investment decision away from the social optimum . John J. Pringle, Jun. (1974) said that the traditional function of risk-bearing, capital is important in adjusting the maturity structure of liabilities. Risk is a function of uncertainty regarding future events, e. g. , earnings, losses on loans and securities, fluctuations in depos its, conditions in the financial markets, etc. Cost of equity increases if the financial risk become high. The cost of equity and debt increases with the increase in debt. The deduction of tax and its benefit is an expected benefit, to allow deduction of interest; the pre-tax EBIT income must be large.On after tax cost of debt, there is the greater the impact of interest deductibility, if the tax rate s higher. John R. Graham, (2003) analyze that the appropriate cost of capital in the presence of personal taxes does not depend directly on either the dividend payout rate or the tax on dividends. Equity shares have a market value lower than the difference between the reproduction cost of a firm's assets and the market value of its debt obligations. Because of this capitalization, it need not be true that an economy without risk or uncertainty would have no equity financing.Groth (1997) said that asymmetry of effects is that the expected return to stockholder will goes up, if in place of some equity; some debt is used. The good or bad leveraging effects are asymmetry if interest is tax deductable. The inability to realize the interest deduction result in an asymmetry effect on expected return to stockholder. Weighted average cost of capital become low with the cost of capital high, if the debt capital increase in proportion. Cost of equity increases with the cost of debt.If the cost of components high the weighted average cost of capital increases and reason is that shareholder prefer to use of debt when expected value of tax benefit is attractive as compared to the added financial risk associated with the debt. The Demanded rate of increase in cost of debt and equity, effects on value of the expected increase in tax benefit of using more debt. Interest rate affects the cost of debt. It involves the risk components that have the probability of default on the debt. Meziane (2006) in his article said that a company pays interest which is treated as an expense for t ax purpose and therefore it is tax deductable.Company will be bankrupt, if default on payment of interest to bank present by company. Equity financing cannot create a tax advantage because dividends are paid after interest and tax. Interest is paid on debt before tax deduction, whereas, dividend is paid after tax benefit. So, the cost of equity is high then cost of debt. Debt financing becomes attractive when tax is deductable from interest. Banks use cost of capital for decisions, a weighted average interest on debt. Bank should select D/E ratio for which the cost of capital fluctuate with the degree of debt finance is minimized.The D/E ratio is considered as one of the way of financing. (Alan J. Auerbach, aug. 1979). William F. Coffin and Sean Collin (2006) said that in the mid of 1990, a trend towards higher B/S debt in which low cost interest rate, lending level reduced by commercial banks and increase payback period for borrowers, a stable banking system. Cost of capital become low that could lower by the management in down market through viewing current corporate governance themes, taking action on giving management training with respect to capital market issues of today and advanced planning to identify the potential investors. Cost of capital and Corporate Governance Ramly and Rashid said corporate governance is also the factor that affects the cost of capital. CG directly affects the cost of equity, And indirectly with beta. This means poor performance of manager created through weak rights, thus increase cost of capital. Strong (weak) shareholders right associated with increase (decrease) cost of equity capital. CG generate liquidity problem in which investor high the sell price and decrease the buy price which can high the transaction cost and also affects the COEC.Thus, the CG creates strong mechanism on COEC and provides positive shareholder value for firm. It has also reducing effects on cost of capital. Banks and other financial institutes have negative influence on CG. Hennart, (1994) Both classes of suppliers (debt holders and equity holders) have governance abilities. The level of governance ability varies between the two and the optimal selection of the type of financing depends on the nature of resources of the firm. Seth, (1990) financing choices have the potential to affect performance by changing the level of governance costs. Importance and difficulties of WACC Denis Boudreaux (1995) in his article uses the buildup model for the cost of equity capital by estimating cost of equity capital for capital budgeting analyses. He said that whenever there is a need to determine the value of the firm, the cost of capital must be estimated. He said that the cost of debt of closely held firm is much higher that the publicly traded organization because of the loans or debt borrowed by the closely held firms including the commercial banks.He further said that the public traded firms have the low risk whereas a huge risk factor is involved in the closely held businesses. Experts have recognized that the exploitation of debt and equity can enhance the corporate value in 1940s. Later in the years, five concept developed on this area(1) early gearing leverage model; (2) the model of Modigliani and Miller (MM); (3) Capital Asset Pricing Model(CAPM); (4) Arbitrage Price Theory (APT); and (5) Gordon Model Shubbar and Alzafiri, (2008). Unless a firm can gain in excess of its cost of capital, it will not add value to its investor’s wealth.Company’s cost of capital is expressed by the weighted average of the cost of individual sources of capital employed. Bruner et. al. , (1998). For a firm using common stock (equity) and bond (debt) financing, with re and rd as the cost of equity capital and the cost of debt capital, the WACC is expressed the following equation: WACC = r = wd rd (1 ? t) + we re Where, wd (weight (proportion) of debt) = (value of debt/value of debt and value of equity), we (weight (pr oportion) of equity) = (value of equity/value of debt and value of equity), wd + we = 1, and t = tax rate on corporate income.The component costs, re and rd, as well as the weights are based on market values: re is frequently calculated as the risk free rate plus a risk premium, based on the capital asset pricing model, and rd reflects the market rates on the firm’s outstanding debt and on the rd of similar firms. The standard treatment includes (1? t) in the WACC calculation to reflect the deductibility of interest payments in the calculation of the corporate tax on the firm’s income statement: the interest cost of debt, by this procedure, is reduced.Also, to avoid double counting the tax â€Å"advantage† of debt, the interest payments are not calculated in the prospective cash flows. This is the textbook treatment in calculating a firm’s cost of capital. (Miller2006) Evaluating a firm’s weighted average cost of capital has its importance to the m anagers who estimate investments projects for capital budgeting purposes or to the investor whose desire is to assess the overall riskiness and expected return from a company’s activities for valuation purposes. (Miller 2006).Fama and French (1997, 1999) analyse that few difficulties arise because there is some uncertainty in evaluating a firm’s (or banks) cost of capital. This uncertainty is a sort of risk faced by the firm when projecting a project’s cash flow. Bruner, Eades, Harris, and Higgins, (1998) also analyze that there is wide variation in estimating WAAC by different methods. This is due to the manager’s differences in firms cost’s of equity capital that helps in investment decision making. 8 Conceptual Framework DV= DEPENDENT VARIABLE IV= INDEPENDENT VARIABLE MV=MODERATE VARIABLE 9 Conceptual HypothesisHo: WACC increases with increase in interest rates and decreases with decrease in interest rates. H1: WACC increases with decrease in ta x rates and decreases with increase in interest rates. H3: Cost of debt increases with increases in interest rate and decreases with decrease in interest rates. H4: Cost of debt increases with decrease in tax rates and decreases with increase in interest rates. CHAPTER 3: RESEARCH METHODOLOGY 10 Type of Research Research can be defined as the search for knowledge, or as any systematic investigation, with an open mind and facts, usually using a scientific method.Our research is empirical research, which tests the feasibility of a solution using empirical evidence. This research comprises of both the qualitative and quantitative research method for the data analysis. Firstly we search for the secondary data in order to know and understand the analysis of the previous researcher that how they work and create different perspective for the Weighted Average Cost of Capital than we include the researches of the previous researcher in the literature review of this research in order to creat e relation and direction between the previous researches with our research. 1 Sampling Technique Sampling Technique used in our research is Random Sampling in which we chosen from a population for investigation. In this method we chose from managers in the Commercial Banks and estimates obtained from the random sample in order to solve our queries related to WACC. 12 Sample Size The Sample Size is comprises of 5 Commercial Banks of Karachi. More than the given sample size is not possible because of the time of this semester and also the little difficulty in finding the appointments with the Mangers of Finance Departments. 3 Instruments Questionnaire includes 12 question given to the Managers of the Commercial Banks in order to analyses the perception of the manager that how each individual differs in their perception for the factors that affects the weighted average cost of capital. Most of them include five point likert scales. Other than questionnaire, the balance sheet of 2009 of each bank is used to estimate the WACC for the year and evaluate how the factors like tax rates, interest rates affect WACC. 14 Data CollectionThis research has been carried out to evaluate the correlation between the factors of cost of capital like tax rates, interest rates and the WACC that how these factors affect the WACC in the commercial banks. The selected five banks include: Allied Bank Limited (ABL), Habib Bank Limite(HBL), Muslim Commercial Bank(MCB), Alfalah Bank and Soneri Bank Limited. Descriptive Data Analysis is taken place in order to estimate WACC. This study employs after-tax cost of debt and equity in order to estimate WACC for selected banks. The procedure of calculating after-tax cost of debt and cost of equity has been stated here.The cost of debt measures the cost of borrowing funds of the firm. In calculating the after-tax cost of debt of each bank for the year 2009 by the following formula: After-tax cost of debt = pre-tax cost of debt (1 – tax rate) The cost of equity evaluated through the given formula: Cost of equity = Gordon growth model =(Do (1 + g))/ (market price per share)] + g) Finally the Weighted Average Cost of Capital calculated by WACC = (Weighted average cost of debt) + (weighted average cost of equity) CHAPTER 4: DATA ANALYSIS 15 QUESTIONNAIRE ANALYSIS Banks normally prefer financing through debt plus equity. 1% of the commercial banks use both (debt and equity) as their sources of finance while remaining 29% of the banks prefer debt for their investment. Only exploitation of equity is not preferred by any banks because through debt finances, the banks gain and improves profit. [pic] Equity sources liable bank to pay dividend, 71% of the banks says that the dividend payment increases the cost of capital while the other 14% said that it decrease the cost of capital and the remaining said that dividend payment has no such impact on the cost of capital. [pic] 5% of the commercial banks said that by using tax shield , cost of capital decreases as it decreases cost of debt and also impact interest rates. While 14% said that it has no such impact like some of Islamic bank like Meezan Bank. [pic] 71% of the sample size agreed that the Cost of capital has positive impact on the capital structure by using both sources of finance while 15% disagree and other 14% are highly disagree. That means most of the commercial banks are in the favor of Ho that the using both sources improves the profit of the commercial bank. [pic] 7% agrees and 28% strongly agrees that the risk factor of the default increases as there is an increases liabilities when bank finance through debt while only 10% of the sample size disagree to this fact but still they have profit by increasing their liabilities. [pic] Approximately 86% of the commercial banks agree from the fact that the fluctuation in the interest rate affects Cost of Capital and also the Capital Structure of their banks while other says that there is no as such im pact of the interest rates but from secondary data we analyze that interest rate is the factor that affects the cost of capital and the capital structure. pic] 71% of the managers agrees that as low dividend payout affects the reputation of their bank, similarly high dividend payout and dividend growth also affect the capital structure decision whereas 29% of the managers said that high dividend has no such impact on the cost of capital and on investment decision. [pic] 100% of the sample size agrees that cost of capital highly impact the investment decision in the commercial bank that also affects capital structure decision making and increases the profit if the weighted average cost of capital is low. [pic] 5% of the sample size agrees that the cost of capital has a huge impact on the level of risk because the maximization of the profit in the commercial bank is truly based on cost of capital and its other factors. [pic] 57% of the sample size agree that the taxes bring variation in the cost of capital in commercial bank while the other denied that taxes has no such affects on cost of capital but many researches has proved that taxes highly affects the cost of capital. [pic] 100% of the managers agree that weighted average cost of capital reduces as there is reduction in the net financial debt.It can be explained by the fact that if the cost of debt remains same but there is variation in the weightage of the debt. The lower weightage reduces the WACC of the commercial bank. [pic] While the method used for the cost of equity varies in different banks. 15% uses the CAPM, 42% uses the Gordon Growth Model whereas the remaining percentage uses both the CPM and Gordon Growth Model method when they finances through the equity. [pic] 16 DESCRIPTIVE ANALYSIS 17 Allied Bank Limited WACC = (Weighted average cost of dbt) + (weighted average cost of equity)WACC = (interest (1-tax)) + (Do (1 + g))/ (market price per share)] + g) COST OF EQUITY: |YEAR |2005 |2006 |2007 |20 08 |2009 | |DIVIDEND/SHARE |2. 5 |2. 5 |3 |3. 5 |4 | |GROWTH |0% |0% |20% |16. 66% |(14. 28%) | Average growth=4. 476% Cost of equity = Gordon growth model =(Do (1 + g))/ (market price per share)] + g) Cost of equity =4(1+0. 4476)/59. 11+0. 04476 = 11. 54% | |g |Growth Rate |4. 476% | | |Do |Last Dividend |4 | | |MP |Market Price |59. 11 | | | | | | COST OF DEBT: Interest Rate = 9. 619% Tax rate = 32. 4% Weighted average cost of debt after tax = 0. 09619(1-0. 324)Weighted average cost of debt after tax =6. 503 % WEIGHTED AVERAGE COST OF CAPITAL: | |AMOUNT |%AGE COMPONENT |COST |WACC | | |Thousand |(a) |(b) |(a*b) | | |(000) | | | | |DEBT |39,457,216 |0. 0055 |0. 650 |0. 00036 | |EQUITY |7,110,007,580 |0. 9945 |0. 1154 |0. 11476 | |TOTAL |7,149,464,796 | | |0. 11512 or 11. 51% | ANALYSIS In order to prove our research hypotheses, we find different relation between the interest rates, cost of debt and WACC; we assume different variation in the interest rates as it is the independent v ariable that affects the WACC hich is the dependent variable. In 2009, the interest rate of ABL was 9. 619%, we assume two different rates in which one is greater than 2009 rate i. e. 15% and other is less than 2009 interest rate i. e. 7. 00%. As the interest rates increases, it also increases the cost of debt that results in the increase in the weighted average cost of capital. Hence, hypotheses Ho and H3 of our research has proved by this analysis because as the interest rate decreases to 7. 00%, the cost of debt also declines which result in decreases in the WACC and vice versa. INTEREST |COD |WACC | |7. 00% |4. 73% |11. 50% | |9. 62% |6. 50% |11. 51% | |15. 00% |10. 14% |11. 52% | pic] For the relation between the taxes rates, cost of debt and WACC. We find different variations among them. Tax rates are the independent variable so they create different affects on WACC as it is dependent variable. In 2009, ABL has the tax rate of 32. 40%. Similarly we assume one tax rate greater than 32. 4% and another is less than 32. 4% in order to prove our hypothesis. From the following analysis, we come to know that as the tax rates increases, it decreases the cost of debt that results in the decrease in the weighted average cost of capital.Hence, hypotheses H1 and H4 of our research have proved by this analysis. |TAX RATES |COD |WACC | |30% |6. 73% |11. 84% | |32. 40% |6. 50% |11. 51% | |35% |6. 25% |11. 50% | [pic] 8 Habib Bank Limited (HBL) WACC = (Weighted average cost of debt) + (weighted average cost of equity) WACC = (interest (1-tax)) + (Do (1 + g))/ (market price per share)] + g) COST OF EQUITY: |YEAR |2005 |2006 |2007 |2008 |2009 | |DIVIDEND/SHARE |1. 5 |1. 48 |1. 48 |3. 01 |0. 30 | |GROWTH |0 |-1. 333% |0 |103. 378% |-90. 033% | Average growth=2. 4024%Cost of equity = Gordon growth model =(Do (1 + g))/ (market price per share)] + g) Cost of equity = 0. 03 (1+0. 024)/40. 9+0. 024 = 2. 475% | |g |Growth Rate |2. 4024% | | |Do |Last Dividend |0. 03 | | |MP |Ma rket Price |40. 90 | | | | | | COST OF DEBT: Interest Rate = (LIBOR+1. 75) = 18. 65% Tax rate = 37. 2% Cost of debt after tax = 18. 65 (1 – 0. 3732) Cost of debt after tax = 11. 69% WEIGHTED AVERAGE COST OF CAPITAL: | |AMOUNT |%AGE COMPONENT |COST |WACC | | |Thousand |(a) |(b) |(a*b) | | |(000) | | | | |DEBT |33,536,837 |0. 786 |0. 169 |0. 0912 | |EQUITY |9,108,000 |0. 214 |0. 0246 |0. 0053 | |TOTAL |42644837 | | |0. 0965 or 9. 65% | ANALYSIS We find different relation between the interest rates, cost of debt and WACC in order to prove our research hypothesis. We assume different variation in the interest rates as it is the independent variable that affects the WACC which is the dependent variable.In 2009, the interest rate of HBL was 18. 65%, we assume two different rates in which one is greater than 2009 rate i. e. 20% and other is less than 2009 interest rate i. e. 12. 00%. As the interest rates increases, it also increases the cost of debt that results in the increase in the weighted average cost of capital, this can easily proved by given table and you can also find this relation through the given graph. Hence, hypotheses Ho and H3 of our research has proved by this analysis because as the interest rate decreases to 12%, the cost of debt also declines to from 11. 69% to 7. 2% and which result in decreases in the WACC from 9. 65% to 6. 44% and vice versa. |INTEREST |COD |WACC | |12% |7. 52% |6. 44% | |18. 65% |11. 69% |9. 65% | |20% |12. 536% |10. 38% | pic] Tax rates are the independent variable so they create different affects on WACC as it is dependent variable. In 2009, HBL has the tax rate of 32. 40% that having COD 6. 503% and a WACC of 11. 51%. Similarly we assume one tax rate greater than 32. 4% and another is less than 32. 4% in order to prove our hypothesis. From the following analysis, we come to know that as the tax rates increases, it decreases the cost of debt that results in the decrease in the weighted average cost of capital. Henc e, hypotheses H1 and H4 of our research have proved by this analysis. Tax rates |COD |WACC | |30% |6. 73% |11. 84% | |32. 4% |6. 503% |11. 51% | |35% |6. 25% |11. 50% | [pic] 19 Muslim Commercial Bank (MCB)WACC = (Weighted average cost of debt) + (weighted average cost of equity) WACC = (interest (1-tax)) + (Do (1 + g))/ (market price per share)] + g) COST OF EQUITY: |YEAR |2005 |2006 |2007 |2008 |2009 | |DIVIDEND/SHARE |4. 5 |5. 1 |5. 6 |6 |6. 8 | |GROWTH |0 |13. 33% |9. 8% |7. 14% |13. 33% | Average growth=8. 72%Cost of equity = Gordon growth model = (Do (1 + g))/ (market price per share)] + g) Cost of equity=6. 8(1+0. 0872)/189. 79+0. 0872 =12. 62% | |g |Growth Rate |8. 72% | | |Do |Last Dividend |6. 8 | | |MP |Market Price |189. 79 | | | | | | COST OF DEBT: Interest Rate = 12. 75% Tax rate = 33. 07% Cost of debt after tax = 12. 275 (1 – 0. 3307) Cost of debt after tax = 8. 216% WEIGHTED AVERAGE COST OF CAPITAL: | |AMOUNT |%AGE COMPONENT |COST |WACC | | |Thousand (000) |(a ) |(b) |(a*b) | |DEBT |44,662,088 |0. 0221 |0. 0822 |0. 0018 | |EQUITY |1,972,537,950 |0. 778 |0. 1262 |0. 1234 | |TOTAL |2,017,200,038 | | |0. 1252 or 12. 52% | ANALYSIS From many different previous researches, we find different relation between the interest rates, cost of debt and WACC. We assume different variation in the interest rates as it is the independent variable that affects the WACC which is the dependent variable. In 2009, the interest rate of MCB was 12. 28%, we assume two different rates in which one is greater than 2009 rate i. . 11. 6% and other is less than 2009 interest rate i. e. 14. 90% in order to find the after affects of these changes. Remaining other things constant, as the interest rates increases, it also increases the cost of debt that results in the increase in the weighted average cost of capital, this can easily proved by given table and you can also find this relation through the given graph. Hence, hypotheses Ho and H3 of our research has proved by t his analysis because as the interest rate decreases to 11. 6%, the cost of debt also declines to from 8. 22% to 7. 6% and which result in decreases in the WACC from 12. 52% to 12. 51% and vice versa. |INTERSET RATES |COD |WACC | |11. 60% |7. 76% |12. 51% | |12. 28% |8. 22% |12. 52% | |14. 90% |9. 97% |12. 6% | [pic] For the relation between the tax rates, cost of debt and WACC. We find different variations among them. Tax rates are the independent variable so they create different affects on WACC as it is dependent variable. In 2009, MCB has the tax rate of 33. 07%. Similarly we assume one tax rate greater than 33. 07% and another is less than 33. 07% in order to prove our hypothesis. From the following analysis, we come to know that as the tax rates increases, it decreases the cost of debt that results in the decrease in the weighted average cost of capital.Hence, hypotheses H1 and H4 of our research have proved by this analysis. |TAX RATES |COD |WACC | |30% |8. 59% |12. 53% | |33. 07% |8. 22% |12. 52% | |40% |7. 36% |12. 50% | pic] 20 Al-falah Bank Limited WACC = (Weighted average cost of debt) + (weighted average cost of equity) WACC = (interest (1-tax)) + (Do (1 + g))/ (market price per share)] + g) COST OF EQUITY: |YEAR |2005 |2006 |2007 |2008 |2009 | |DIVIDEND/SHARE |0. 5 |1. 25 |1 |2. 25 |2. 25 | |GROWTH |0 |150% |-20% |125% |0 | Average growth=51%Cost of equity = Gordon growth model =(Do (1 + g))/ (market price per share)] + g) Cost of equity = 2. 25(1+0. 51)/26. 13+0. 51 = 64% | |g |Growth Rate |51% | | |Do |Last Dividend |2. 25 | | |MP |Market Price |26. 13 | | | | | | COST OF DEBT: Weighted average Interest Rate = 6. 406%.Tax rate = 34. 84% Cost of debt after tax = 0. 06406 (1 – 0. 3484) Cost of debt after tax = 4. 174% WEIGHTED AVERAGE COST OF CAPITAL: | |AMOUNT |%AGE COMPONENT |COST |WACC | | |Thousand (000) |(a) |(b) |(a*b) | |DEBT |18,687,600 |0. 00138 |0. 0417 |0. 000057 | |EQUITY |13,491,562,500 |0. 986 |0. 64 |0. 639104 | |TOTAL |13,5 10,250,100 | | |0. 639 or 63. 9% | ANALYSIS Many different researches have concluded that different variation in the interest rates as it is the independent variable that affects the WACC which is the dependent variable. In 2009, the interest rate of Alfalah Bank was 6. 404%, we assume two different rates in which one is greater than 2009 rate i. e. 8. 6% and other is less than 2009 interest rate i. . 4. 6% in order to find the after affects of these changes. Remaining other things constant, as the interest rates increases, it also increases the cost of debt that results in the increase in the weighted average cost of capital, this can easily proved by given table and you can also find this relation through the given graph. Hence, hypotheses Ho and H3 of our research has proved by this analysis because as the interest rate decreases to 4. 6%, the cost of debt also declines to from 4. 174% to 2. 997% and which result in decreases in the WACC from 63. 914% to 63. 0% and vice versa. |I NTEREST RATES |COD |WACC | |4. 6% |2. 997% |63. 90% | |6. 406%. |4. 174% |63. 914% | |8. 6% |5. 604% |63. 918% | [pic] For the relation between the taxes rates, cost of debt and WACC.We find different variations among them. Tax rates are the independent variable so they create different affects on WACC as it is dependent variable. In 2009, Alfalah has the tax rate of 34. 84%. Similarly we assume one tax rate greater than 34. 84% and another is less than 34. 84% in order to prove our hypothesis. From the following analysis, we come to know that as the tax rates increases, it decreases the cost of debt that results in the decrease in the weighted average cost of capital. Hence, hypotheses H1 and H4 of our research have proved by this analysis as they are negatively correlated. TAX RATES |COD |WACC | |25% |4. 805% |63. 917% | |34. 84%. |4. 174% |63. 9% | |40% |3. 844% |63. 915% | [pic] 21 Soneri Bank Limited ANALYSISSoneri Banks has following interest rates and tax rates, which affe ct WACC in the same manner as it affects other commercial Banks. In 2009, it has interest rate of 12. 63% that has the cost of debt 8. 54% and the WACC is of 0. 37%. Variation in the interest rates brings following changes and hence proves our research. |INTEREST RATES |COD |WACC | |11. 60% |7. 84% |0. 35% | |12. 3% |8. 54% |0. 37% | |14. 60% |9. 87% |0. 43% | [pic] Tax rates posses the same affect. As tax rates increases, it has negative relation with the COD and WACC that proves the hypothesis H1 and H4 of our research as in 2009, the tax rate was 32. 34%, when it decrease, the COD increases which also increases WACC and again inversely proportional when Tax rate increase. TAX RATES |COD |WACC | |25% |9. 47% |0. 41% | |32. 34% |8. 54% |0. 37% | |40% |7. 57% |0. 33% | [pic] CHAPTER 5: CONCLUSION AND RECOMMENDATION 1. ConclusionAccording to past related researches, there should be a suitable balance between debt and equity as it has effects on the risk and return of the sharehold ers of the bank. If there are reasonable proportions of debt and equity in the capital structure, it maximizes the shareholders wealth while minimizing the cost of capital and that could be considered as the optimal capital structure. Factors like Interest payment expected deductibility give prospect for value. If the tax deductibility is realized by the bank then stockholders get the expected benefit of the tax deduction.If firm finances through debt, then it has financial risk. And if through equity, then it has business risk. The cost of capital can affect capital structure that the taxes bring variation in the cost of capital and hence affect the capital structure of the banks. Cost of equity increases if the financial risk become high. The cost of equity and debt increases with the increase in debt. On after tax cost of debt, there is the greater the impact of interest deductibility, if the tax rate s higher. Weighted average cost of capital become low with the cost of capital high, if the debt capital increase in proportion.Cost of equity increases with the cost of debt. If the cost of components high the weighted average cost of capital increases and reason is that shareholder prefer to use of debt when expected value of tax benefit is attractive as compared to the added financial risk associated with the debt. The Demanded rate of increase in cost of debt and equity, effects on value of the expected increase in tax benefit of using more debt. Interest rate affects the cost of debt. It involves the risk components that have the probability of default on the debt.In this research, the main finding of the paper suggests that the commercial bank should focus on reducing the cost of capital that maximizes the profit. According to our findings, it is concluded that each banks has its policies of financing. Each bank takes decision of selecting capital structure for minimizing their cost, risk factor differently that occupies good financial position in market . Factors that have impact on cost of capital as well as on capital structure are tax rates, interest rates, dividends payout, risk of default and other like market fluctuation, corporate governance.These factors differently affect the cost of capital and capital structure of each commercial bank. Some banks agree that tax brings variation in the capital structure as the use of taxes decreases the cost of debt but some banks strongly disagree, like Islamic bank Meezan and Alfalah,. These Islamic banks have no such interest rate risk. Tax impacts on cost of capital increases cost of capital agrees by majority of commercial banks, and disagrees by some commercial banks. Dividend impacts on cost of capital increases cost of capital agrees by some banks, and disagrees by some banks.Interest rate brings effects on increase in cost of capital as the interest rate increases the cost of debt also increases but some banks strongly disagreed. Other factors like market fluctuation also influen ce interest rate to increase. And sometimes sudden increase in interest rates influence market. Due to this, all factors differently impact on cost of capital variation (increase and decrease) and capital structure decision making. We have estimated Weighted Average Cost of Capital (WACC) of commercial banks in order to find the effects of cost of capital and their factors on profit and capital structure decision making.We analyze from computing WACC with different assumptions that; †¢ The interest rates increases (decreases), it also increases (decreases) the cost of debt that results in the increase (decreases) in the weighted average cost of capital. Hence, hypotheses Ho and H3 is verify. †¢ The tax rates increases (decreases), it decreases (increases) the cost of debt that results in the decrease (increases) in the weighted average cost of capital. Hence, hypotheses H1 and H4 is verify. The cost of capital improves the profit and capital structure decision making in wh ich other factors also takes part to maximize the profit in the commercial banks. . Recommendations Cost of capital plays a central role in valuation, portfolio selection, and capital budgeting. Therefore, measuring and validating the cost of capital has been the subject of much research. †¢ For reducing cost of capital of bank, we recommend that proportion of debt plus equity financing is better although debt increases risk of default as most of the commercial banks prefer debt financing. Because, debt financing provides tax benefit under suitable market conditions and reduces WACC. †¢ Through equity financing banks give dividend which increases their reputation in market.In short, payment of dividend gives market position. And it is also important because in terms of financial ratios, equity financing shows bank more strong as compared to debt or liabilities. †¢ Adopt an optimal capital structure to improve shareholder value. Capital structure is part of a bank†™s package of financial policies, which include dividend policy and amount of debt and equity claims issued which improves share holder wealth and reduces WACC. Conventional thinking in the area of finance has also assumed that a certain amount of debt in the capital structure is a good thing. Interest rates are high in Pakistan.The following reforms looked-for from the Government of Pakistan (GOP): †¢ Allow and encourage consideration of financial institutions to reduce disintegration in the financial sector. †¢ Strengthen legal and judicial reform laws to allow financial institutions to foreclose on guarantee to reduce risk in the case of unpaid loans without going through lengthy court proceedings. CHAPTER 7: AREA OF FURTHER STUDIES After performing this research we have concluded that the researches on the Weighted Average Cost of Capital in Banks are less or there is no proper research that has taken place for the Commercial Banks.There should be more researches on the factor that are affecting WACC in the commercial banks as its proper estimation maximizes profit. It is found with the help of weightage there is a huge impact on the cost of capital that may be a source of further studies for the commercial bank because proper weightage of debt and equity can improves or enhances the profit of commercial banks. The WACC affects the profit or Capital Structure decision making that has direct affect on the reputation of the commercial banks. CHAPTER 8: REFERENCES †¢ Nadeem A.Sheikh and Zongjun Wang, June 2010, International Journal of Innovation, Management and Technology, Vol. 1, No. 2, Financing Behavior of Textile Firms in Pakistan, pg 130-135 †¢ Khadka, H Bahadur,2006. Leverage and the Cost of Capital. The Journal of Nepalese Business Studies,Vol. III, No1: 85-91 †¢ Modigliani, F. and Miller, M. H. 1963. Corporate Income Taxes and the Cost of Capital: A Correction. American Economic Review: 433-443. †¢ Shubber, K. and Alza firi, E. (2008). â€Å"Cost of capital of Islamic banking institutions: an empirical study of a special case†, International Journal of Islamic and Middle Eastern Finance and Management, Vol. No. 1, pp. 10-19 †¢ Bruner, R. F. , Eades, K. M. , Harris, R. S. , Higgins, R. C. (1998). â€Å"Best practices in estimating the cost of capital: survey and synthesis†, Financial Practice and Education, Spring/Summer, pp. 13-28. †¢ Miller, R. A. (2006). â€Å"The weighted average cost of capital is not quite right†, The Quarterly Review of Economics and Finance, 49 (2009) 128–138 †¢ Jorgenson, Dale W. and Ralph Landau (1993). Tax Reform and the Cost of Capital – An International Comparison. Washington, D. C. : Brookings Institution. †¢ Fama, E. F. , and K.French, 1997, Industry costs of equity, Journal of Financial Economics 43, 153-193. †¢ Fama, E. F. , and K. French, 1999, The corporate cost of capital and the return on corporate inv estment, Journal of Finance 54, 1939-1967. †¢ John J. Pringle, the Capital Decision in Commercial Banks, the Journal of Finance, Vol. 29, No. 3 (Jun. , 1974), pp. 779-795 †¢ Richard Lambert*, Christian Leuz, Robert E. Verrecchia â€Å"Accounting Information, Disclosure, and the Cost of Capital† September 2005, Revised, August 2006 †¢ Barton, S. L. and P. J. Gordon (1987). ‘Corporate strategy: Useful perspective for the study of capital structure? Academy of Management Review, 12, pp. 67-75 †¢ Balakrishnan, S. and I. Fox (1993). ‘Asset specificity, firm heterogeneity, and capital structure', Strategic Management Journal, 14(1), pp. 3-16. †¢ A. Seth (1990). ‘The impact of LBOs on strategic direction', California Management Review, 32(1), pp. 30-43. †¢ Groth John C. , â€Å"Capital structure: Perspectives. † Management Decision 35:7 (1997): 552–561. †¢ John C. Groth, Professor, Texas A University, USA â€Å"Capi tal Structure: Implications†, 1997. †¢ Ross, Stephen A. , Randolph W. Westerfield, and Jeffrey Jaffe. Corporate Finance. 9th ed.Boston, MA: McGraw-Hill, 2010. †¢ Alan J. Auerbach, Wealth Maximization and the Cost of Capital, the Quarterly Journal of Economics, Vol. 93, No. 3 (Aug. , 1979), pp. 433 †¢ John R. Graham, â€Å"Taxes and Corporate Finance: A Review†, the Review of Financial Studies, Vol. 16, No. 4 (Winter, 2003), pp. 1075-1129 †¢ Meziane Lasfer, Professor, Cass Business School, UK â€Å"Optimizing the Capital Structure: Finding the Right Balance between Debt and Equity†. †¢ William F. Coffin and Sean Collin, 2006, Techniques to lower the cost of capital in today’s volatile markets, CCG Investor Relations. Ali Murtaza, manager financial reporting and analysis, finance division, BANK ALFALAH LIMITED. †¢ Amir Ahmed, risk manager, Asst. vice president, Risk Management Unit, MEEZAN BANK. †¢ Aniel Victor, Asst. manag er, Riak management, UBL FUNDS MANAGERS. †¢ Syed Ali Shabar, Branch Manager, MCB BANK LIMITED. †¢ Raza Abbas, Asst. vice president, Portfolio Management, HABIB BANK LIMITED. †¢ Aamir Maysorewala, customer service manager, ALLIED BANK LIMITED. †¢ Riazullah Khan, Assistant Vice President & Manager, SONERI BANK. APPENDIX A Questionnaire NAME_________________________DESIGNATION_________________ BANK__________________________ BRANCH_______________________ 1. Debt and equity are the sources of finance, through which source your bank finances their investment? a) Debt b) Equity c) Both 2. What is the impact of dividend payment on cost of capital as using equity is source of finance that will liable bank to pay dividend? a) Increase cost of capital b) Decrease cost of capital c) No impact on cost of capital 3. Tax shield also has an important factor in cost of capital, how tax impact on cost of capital? a) Increase cost of capital b) Decrease cost of capital ) No impact on cost of capital 4. Cost of capital has positive impact by using both sources of finance. [pic] 5. When bank finance through debt, it increase liabilities that also increase the risk factor of default. [pic] 6. Fluctuation in the interest rate affects Cost of Capital and also the Capital Structure of your banks. [pic] 7. As low dividend payout will affect the reputation of your bank, is high dividend payout and dividend growth affect the capital structure decision? [pic] 8. Cost of capital occupies an important role in the financial management and in investment decision making in commercial banks. [pic] . Cost of capital affects the level of risk in commercial bank. [pic] 10. Taxes bring variation in the capital structure of commercial banks. [pic] 11. Reducti