Walt Disney Yen Financing - Free Essay Example

Sample details Pages: 5 Words: 1395 Downloads: 7 Date added: 2017/09/12 Category Advertising Essay Did you like this example? 1. Should Disney hedge its yen royalty cash flow? Why or why not? If so, how much should be hedged and over what time period? Yes, Walt Disney Company should hedge its royalty cash flow to protect against currency fluctuations. The company has revenues in Yen and does not have expenses in Yen. Thus it would be converting the Yen to Dollar and so is exposed to foreign exchange risk. The value of Yen has declined recently and it is difficult to forecast what the value could be in the future. Also currency speculation should be left to speculators and Disney should not play on the exchange rate. It would be wise to reduce the risk due to changes in exchange rate. The royalty receipts form a significant part of the pre tax income of Disney and any adverse movement would impact the financial position of Disney. The maximum amount and the period should be the Yen royalties that accrue to Disney. At the moment the amount is Yen 8 billion. The royalties are expected to grow for all times in the future and so the hedging should be for the maximum maturity available which is 10 years. Don’t waste time! Our writers will create an original "Walt Disney Yen Financing" essay for you Create order At the minimum, Disney may Disney may want to take enough money so as to reduce the debt to capitalization ratio back to 20% which now stands at 32%. The expected yen revenue stream of more than ? 8 billion every year would create 2. Assuming a hedge is desirable what hedging techniques available to the treasurer? What are the advantages and disadvantages of each? The various hedging techniques available and the advantages and disadvantages are : 1. Currency Options – In this Disney could buy dollar yen options allowing Disney the right to buy dollars against yen at a predetermine rate or could sell Put options allowing Disney to sell yen for dollars at a predetermined rate. The advantages of options are †¢ It gives the right but not the obligation. If the Option is out of the money it need not be exercised. †¢ Options have an unlimited upside but limited downside so will help Disney benefit from favorable rate movement. †¢ Options can be taken for high amounts using small margin money The disadvantages are †¢ The time period for which options are available is till 2 years only. Beyond 2 years the market is not liquid †¢ Options require payment of upfront premium and so there will be a cash outflow 2. Forward Contracts – In this Disney could take a forward contract through a bank and sell the Yen forward for US Dollars at a rate that is fixed now. The advantages are †¢ Forward contracts can be tailored to the needs and requirements of Disney †¢ Longer term contracts are available and Disney could hedge up to 10 years †¢ The forward contracts can be cancelled and so provide some flexibility in the future years The disadvantages are The rate is locked at the time of contract and so there is so upside benefit †¢ The forward contracts need to be honored at maturity and so Disney has to settle it †¢ As mentioned in the case, the forward contracts would be against the overall exposure to Disney and so would tie up lines of credit †¢ Forward contracts are exposed to default risks of the counterparty 3. Futures – Futu res are standardized contracts which are traded on the exchanges. That is the only difference between forward contracts and futures. Disney could buy or sell contracts on the futures exchange and hedge its exposure. The advantages are : †¢ They are liquid as they are traded on the exchange †¢ Using futures would not tie up the lines of credit with the banks †¢ There is not much default risk as the futures are market to market daily. The disadvantages are †¢ As these are standardized, they cannot be customized to the requirements †¢ Require a margin deposit †¢ The futures contracts are available for shorter periods only 4. Swaps – Disney could swap its exposure in Yen with Dollars so that its inflow is in Dollars and it pays Yen The advantages are †¢ Swaps are off balance sheet financing with only disclosure in notes. Thus the balance sheet looks better †¢ The two parties to Swap could customize the terms to their requirements †¢ Swap enables parties to access capital markets which they may not able to do directly The disadvantages are †¢ High fees to be paid to the intermediaries †¢ It is difficult to get counterparties with a perfect hedge 4. Yen 15 billion 10 year bullet loan The advantages are †¢ The time period would be 10 years †¢ The interest rate would be the Japanese prime rate The disadvantages are †¢ Since it is a bullet loan it does not help in hedging the year on year income †¢ Requires lump sum payment on maturity It is more expensive than the SWAP transaction †¢ Has upfront fees Other hedging methods such as issuing longer maturity Eurodollar note was not feasible because of the Disney’s temporarily high debt ratio. Also, Euroyen bonds are not an option because Disney was not eligible to issue them under Japanese regulations. 3. In light of the various other techniques for hedging currency exposures why the market for currency swap does exists? Who benefits and who looses in such an agreement? Can a swap really create value for a corporation? And if so where does the value come from? What risks does the swap carry for the various parties involved? The market for swap exists since it allows parties to access market which they might not be able to do directly. Also swaps are customizable between parties and so are more flexible. The duration of swaps could be the duration of the exposure. These advantages have led to the creation of the swap market. Swaps also help in broadening the investor base. Companies could raise money in different currencies and then use a swap to get back to their home currency. Swap also helps in lowering the overall cost of borrowing as also enable firms to change their payment stream to either fixed or floating. When the swap is initiated for the first time, it creates value since only if value is created will the parties agree for a swap. The value comes for the differing credit ratings of the firms. In interest rate swaps, two firms come together to swap their interest obligations and each mat find that it is paying a lower rate than before. The risks that the swaps carry is the changes in the market after the swap has taken place. In case of an fixed for floating swap, if the floating rate rise then the firm will have to pay more. Or in the case of currency swap, if the exchange rate movement is adverse, then there could be a loss. There is also a default risk since the agreement is between two parties. The swaps are not liquid and once entered may be difficult to come out of. 4. Evaluate Goldman’s proposal for an ECU bond issue accompanied by an ECU/yen swap. How does its â€Å"all-in† yen cost compare to that of the proposed yen term loan? Is it superior to hedging using outright forwards? (Note: â€Å"all-in† cost generally refers to that discount rate which equates the present discounted value of the future debt service payments with the financing proceeds less front-end fees [i. . the internal rate of return], expressed as an annual rate). The calculations are in the excel file ( we use the IRR function to calculate the internal rate of return. The cash flow details are from the exhibits) . We get the following costs 1. 10 years ECU Eurobond Issue – YTM is 9. 46% 2. SWAP ECU/Yen – YTM is 6. 89% 3. Yen 10 year Loan – YTM is 7. 61% The ECU/Yen swap is the cheapest, t hough it does not include fees, but it may still be the cheapest. In the outright forwards market we find that the Yen is appreciating. This is obviously a better choice since this would mean that Disney would get more dollars. An exercise has been done, where the Yen payments made by Disney are converted to USD at the forward rates. Using the same discounting rate as the cost of Swap, the PV of the Yen payments in USD comes to $69. 27 million. This is higher than the present value of the amount that Disney gets from IBJ which is $58. 23 million. Also the Swap does not cover the entire exposure of Disney in Yen. Therefore if it is possible than outright forward hedge is better than other alternatives

Environmentalism The Rise Of Industrialization As Spread...

In the last century, environmentalism has become an important and highly polarizing topic of social discourse as the rise of industrialization as spread across the world. More and more human beings have become aware of their impact on the environment, yet even this seems to be up for debate. However, those who are concerned with environmental issues like global warming, the depletion of natural resources, and pollution have gained a more clear and organized voice to not only raise awareness, but enact both higher and lower level change. Within these movements, different religious institutions (churches, denominations, temples) have used drawn on their religious narratives to understand what â€Å"creation care† and stewardship truly mean. The†¦show more content†¦To begin to understand the interaction between Judaism and environmentalism, formative narratives from the Torah must be investigated. However, this investigation need not journey passed the first narrative o f the creation story to understand the significant between humanity, creation, and the divine. Genesis 1 describes how God created the heavens and the earth, man and beast and then mandates man to rule over beast and creation (Genesis 1:28). Therefore, from the beginning there seems to be an established hierarchy of man over nature. In a seminal article discussing the connection between ecology and religion, Lynn White (1967) heavily critiqued the traditional interpretation of this mandate of man’s domination over the environment. White saw the connection between religion and the growing ecological as he stated: â€Å"What people do about their ecology depends on what they thing about themselves in relation to things around them. Human ecology is deeply conditioned by beliefs about our nature and destiny-that is, by religion†¦Since the roots of our trouble are so largely religious, the remedy must also be essentially religious†¦Ã¢â‚¬  (as cited in Benstein, 2006, p. 14). Religion, then, is a large part of the problem and historical has not been part of the solution. Although a Christian writer, White states that the

CMTG Network Security Infrastructure Free Essays

Each Kudler Fine Foods location would be protected via higher end firewall recommended for small/medium size businesses with higher security requirements (Cisco, Watchguard, Barracuda). Each Kudler Fine Foods location, regardless of its geographical location, would have hi-speed internet access that would keep it connected to the headquarters location. Each firewall would be configured to provide maximum security for each location as well as Virtual Private Network (VPN) connection between the location and the headquarters. We will write a custom essay sample on CMTG Network Security Infrastructure or any similar topic only for you Order Now Headquarters location would host Main POS Database Server which would be synchronized with all other POS database servers every fifteen to thirty minutes. All of the synchronization would take place via VPN that has 1024bit encryption. Each geographical location would be able to access necessary data and files at the headquarters location via VPN at any time. Depending on the network authentication and network policies, not every person would have access to the same data. Since Kudler Fine Foods employs only two computer support specialists, we would recommend for the email to be hosted off site and be accessed either via Outlook Web Access (web-mail) or POP/SMPT/IMAP protocols with the Microsoft Outlook client. We also recommend that Email SPAM filtering be provided by the Email Host, but Kudler Fine Foods computer support staff should have access to email spam filters and manage them as they see fit best for the organization. Read this  Chapter 2 – Why Security is Needed We would also recommend for the Website to be hosted outside of the Kudler Fine Foods network but would recommend that Website’s database be synchronized with the network database via secure connection. Main reason for suggesting Email and Website services to be hosted off-site is security, downtime and support staff. Each firewall would handle IDS and IDP (intrusion detection and prevention service), as well as web access filtering, attachment filtering, traffic monitoring, virus scanning. Each computer and server would also run virus protection software. Firewall would be setup to shut down and block any suspicious network incoming/outgoing traffic in case of security breach and log it and email notify the computer support specialist (DoS, Hacker attacks, Virus outbreak). Firewall security updates would be done automatically and in the background and would provide security against latest threats. We believe that proposed network security infrastructure for Kudler Fine Foods would be secure, centralized, manageable by the small IT staff, reasonably priced to implement and easily upgradable and expendable in the future. How to cite CMTG Network Security Infrastructure, Papers

Changes in Blood Pressure Classification

Question: Discuss about the Changes in Blood Pressure Classification. Answer: Introduction: Hypertension is the most prevalent disease in Australia. Hypertension mainly occurs due to irregular food habit and unhealthy lifestyle. Hypertension can be classified into different categories based on the level of blood pressure. There are varied complications and different treatment options are associated with each category of hypertension. In this essay case of Amanda and Jim is discussed. Amanda and Jim belong to different grades of hypertension. Hence, different goals should be set and different treatment should be given to Amanda and Jim. Educational plan for control of hypertension in case of Amanda and Jim is also discussed. This educational plan should comprise of education for food, physical exercise, smoking and alcohol consumption, psychological and social issues, blood pressure monitoring and medication. Prevalence of hypertension: High blood pressure ( 140/90 mmHg) is the most frequently treated disease in Australia. In Australia, approximately 9 out of 100 patients are hypertensive patients treated at general practitioner. Majority of these patients are with chromic hypertension and only 4.5 % patients are newly diagnosed patients. Prevalence of hypertension is slightly higher in men (34 %) as compared to the women (29 %). 50 % patients of hypertension are generally associated with other heart and cardiovascular complications and approximately 11 % are associated with diabetes. In Australia, it is observed that high blood pressure increases with the age of the person (ABS, 2013). Primary hypertension can be mainly caused due to the smoking, being overweight or obese, alcohol consumption, lack of exercise, unhealthy diet comprising of high salt and saturated fat and family history of high blood pressure. Secondary hypertension can be mainly caused due to kidney disease, endocrine disease and narrowing of aorta. Secondary hypertension can also be caused due to steroidal drugs, contraceptive pill and pregnancy (Harrison et al., 2017). Grading system for hypertension: Blood pressure can be graded in three categories like grade 1 (SBP 140-159 or DBP 90-99), grade 2 (SBP 160-179 7or DBP 100-109) and grade 3 (SBP 180 or DBP 110). Grade 1 hypertension mainly occurs due to circulatory, vascular or renal response to environmental and genetic stimuli. In grade 1 hypertension, there are structural and functional alterations in heart and arteries of the patient. There can be occurrence of more than one risk factors in grade 1 hypertension patients. There would not be target organ damage in patients with grade 1 hypertension. Amanda may be suffering through grade 1 hypertension. Grade 1 hypertension patients should be assessed to identify early stage cardiovascular marker in the patient and identify specific treatment to attenuate these markers (Trana and Giangb, 2014; Kim et al., 2017). Patients of grade 1 hypertension should be traded with antihypertensive drugs like angiotensin converting enzyme inhibitors (ACE inhibitors) or angiotensin II receptor an tagonists. For Amanda also same drug was prescribed. Grade 2 hypertension is considered as the progressive disease. Grade 2 hypertension can occur due to inability of heart and cardiovascular system to control blood pressure. This may occur due to the persistent structural and functional changes in the heart and arteries. Grade 2 hypertension can be associated with the more than two risk factors. If grade 2 hypertension doesnt controlled before certain level it may lead to the target organ damage. This susceptibility of the target organ damage in grade 2 patients should be identified through research studies. This would be helpful to manage the condition effectively and in cost effective manner. Jim might have grade 2 hypertension, because he was diagnosed with type 2 diabetes mellitus and atherosclerosis. In grade 2 hypertensive patients, there is moderate to high rise in blood pressure accompanied by at least two target organ damage. Hence in these patients antihypertensive drugs like ACE inhibitors or angiotensin II receptor blocker s or beta blockers or calcium channel blockers or renin inhibitors can be used (Varounis et a., 2017; Yoon et al., 2015). Along with antihypertensive drugs, there should be administration of medication for target organ pathology. In patients with hypertension associated with atherosclerosis, there should be administration of statins which lowers levels of cholesterol. For Jim also, Lipitor was prescribed. Moreover, there was clear indication of organ damage in Jim. Patients with grade 3 hypertension are apparently associated with the target organ damage. Patients of this category generally exhibit sustained cardiovascular events irrespective of the level of blood pressure. Aging and association of other risk factors generally exaggerate condition of the grade 3 hypertensive patients and it may lead to the morbidity and mortality. Special emphasis should be given for reducing cardiovascular risk factors in grade 3 hypertensive patients. In patients with grade 3 hypertension, emergency antihypertensive drugs like nitrates should be administered along with the other antihypertensive drugs. In addition, medications for other risk factors should be administered in patients with grade 3 hypertension. Modifiable features of hypertension comprises of smoking, physical activity, low density lipoprotein (LDL), triglyceride levels, obesity, body mass index (BMI), diabetes mellitus and psychological stress. Non-modifibale features of hypertension comprises of family history, age, gender and genetic factors (Materson et al., 2014). Nurse should set different goals for Amanda and Jim. Nurse should set goal for Amanda to reduce her blood pressure to SBP 130-149 or DBP 80-89. Nurse should set goal for Jim to reduce his blood pressure to SBP 140-159 7or DBP 90-99. Nurse should set goal for Jim to reduce his cardiovascular complications and manage his type 2 diabetes mellitus condition. Nurse should give special attention for diastolic pressure in case of Jim because there should not be more reduction in diastolic pressure in patients with diabetes. Educational Plan: Food Nurse should educate Amanda and Jim for dietary habit to control hypertension. Nurse should advise them to eat food comprising of fruits, vegetable, whole grains, low-fat dairy products and fish. Nurse should advise them to consume more amount of potassium and fewer amounts of saturated fats. Specifically Jim, should avoid sugar containing products and food containing saturated fatty acids because he was diagnosed with type 2 diabetes mellitus and atherosclerosis. Nurse should prepare diet plan for Amanda and Jim, in consultation with dietician. These products exaggerate blood pressure in hypertension patients. Nurse should advise them to consume not more than 2000 mg per day salt because salt has negative impact on hypertension and its related risks like diabetes and kidney disease (Chen et al., 2014, Khan et al., 2014). Physical exercise Nurse should advise them to keep control on their body weight. Due to increase in body weight, BMI also can increase. Increased BMI is one of the prominent risk factor for the hypertension. Amanda should give special attention to control her body weight because her BMI is 28. BMI in this range indicates, Amanda is overweight. For maintaining optimum body weight both Amanda and Jim should increase their physical activity. Amanda should be very particular about physical activity because she should reduce her body weight. Amanda and Jim should perform approximately 150 minutes aerobic activity per week. Physical activity on the regular basis would be helpful for Amanda and Jim for controlling hypertension, managing stress due to increased blood pressure, reducing risks associated with hypertension and reducing body weight. Nurse should prepare exercise schedule for Amanda and Jim in consultation with exercise physiologist (Lauziere et al., 2013; Zinat Motlagh et al., 2015). Smoking and alcohol consumption Nurse should advise them to avoid alcohol because alcohol can increase blood pressure in normal persons also. Nurse should advise them to avoid smoking because smoking can produce injuries to blood vessels and facilitate hardening of the blood vessels (Lauziere et al., 2013; ; Zinat Motlagh et al., 2015) Psychological education Nurse should advise them to live stress free life. They should practice muscle relaxation and deep breathing for living stress free life. Physical activity and sufficient sleep also would be helpful in reducing stress (Lauziere et al., 2013; ; Zinat Motlagh et al., 2015) Blood pressure monitoring Nurse should teach them to monitor blood pressure at home. She should educate them to check blood pressure prior to and after medications. Nurse should incorporate cardiovascular technologist for teaching them measurement of blood pressure. This would be helpful in assessing effectiveness of medications. Nurse should also advise them to consult doctor immediately, if they observed noteworthy variation in their blood pressure (Lauziere et al., 2013) Social education Both Amanda and Jim should link themselves to the different community healthcare societies. In these societies they can share their experience and gain knowledge about the disease. It would be helpful for them for self management of the disease. It would also be helpful in relieving psychological issues like stress and burden of the disease. They should consult social worker to get link themselves to community healthcare societies (Park et al., 2011). Education about Lipitor and Avapro Nurse should educate Jim for Lipitor consumption. Nurse should advise him to take this drug once daily at the same time every day. Nurse should advise him to take regular blood tests for cholesterol and triglycerides. Nurse should also advise him to take liver function test. Nurse should advise him to inform healthcare provider about Lipitor consumption, if doctor wishes to prescribe him medicines for acute illness. Nurse should inform him that there may be nausea, vomiting and joint pain due to consumption of this medication. Nurse should tell him that, he should report muscle pain, weakness, fever, swelling and change in color of urine during consumption of Lipitor (Barber et al., 2012). Nurse should educate Amanda that she should not consume Avapro, if she has diabetes. Nurse should tell her that she should not use Avapro, if she is dehydrated. Nurse should inform her that she should monitor blood pressure on regular basis during consumption of Avapro. If she didnt find improvemen t in blood pressure, she should consult doctor. She should not stop taking Avapro, even if she found improvement in her blood pressure. She should keep Avapro away from heat and light. Nurse should tell her that she should stop alcohol and potassium supplements while taking Avapro. Both Amanda and Jim should consult pharmacist to get more information about their respective drugs (Barber et al., 2012). Conclusion: In Australia, highest number of treatments at general practitioners is for hypertension. Male are more affected with hypertension as compared to the female. There are different treatment options are available for different grades of hypertension. Along with medications use change in food habit and lifestyle should be incorporated in the management of hypertension. Amanda and Jim are having different grade of hypertension. There should be different goals and education plan for Amanda and Jim in hypertension management. With effective implementation of medical, social, psychological and physical interventions, hypertension in Amanda and Jim can be effectively controlled. References: Australian Bureau of Statistics (ABS). (2013). Hypertension. Retrieved from https://www.abs.gov.au/ausstats/abs@.nsf/lookup/322DB1B539ACCC6CCA257B39000F316C?opendocument. On 17.04.2017. Barber, P., Parkes, J., and Blundell, D. (2012). Further Essentials of Pharmacology for Nurses. McGraw-Hill Education. Chen, Y., Hu, S., Li, Y., Yan, B., Shen, G., and Wang, L. (2014). Systematic review of hypertension clinical practice guidelines based on the burden of disease: a global perspective. Journal of Evidence-Based Medicine, 7(1), 52-9. Kim, S., Lewis, J.R., Baur, L.A., Macaskill, P., and Craig, J.C. (2017). Obesity and hypertension in Australian young people: results from the Australian Health Survey 2011-2012. Internal Medicine Journal, 47(2), 162-169. Khan, M.S., Bawany, F.I., Mirza, A., Hussain, M., Khan, A., and Lashari MN. (2014). Frequency and predictors of non-compliance to dietary recommendations among hypertensive patients. Journal of Community Health, 39(4), 732-6. Lauziere, T. A., Chevarie, N., Poirier, M., Utzschneider, A., Belanger, M. (2013). Effects of an Interdisciplinary Education Program on Hypertension: A Pilot Study. Canadian Journal of Cardiovascular Nursing, 23(2), 12-19. Materson, B.J. (2014). Diagnostic evaluation: Classification of hypertension. Journal of the American Society of Hypertension, 8(9), 680-1. Park, Y., Song, M., Cho, B., Lim, J., Song, W., Kim, S. (2011). The effects of an integrated health education and exercise program in community-dwelling older adults with hypertension: A randomized controlled trial. Patient Education and Counseling, 82(1), 133-137. Trana, T.M. and Giangb, N.M. (2014). Changes in blood pressure classification, blood pressure goals and pharmacological treatment of essential hypertension in medical guidelines from 2003 to 2013. IJC Metabolic Endocrine, 2, 110. Varounis, C., Katsi, V., Nihoyannopoulos, P., Lekakis, J., and Tousoulis, D. (2017). Cardiovascular Hypertensive Crisis: Recent Evidence and Review of the Literature. Frontiers in Cardiovascular Medicine, 3(51), doi: 10.3389/fcvm.2016.00051. Yoon, S.S., Gu, Q., Nwankwo, T., Wright, J.D., Hong, Y., and Burt, V. (2015). Trends in blood pressure among adults with hypertension: United States, 2003 to 2012. Hypertension, 65(1), 54-61. Zinat Motlagh, S.F., Chaman, R., Ghafari, S.R., et al., (2015). Knowledge, Treatment, Control, and Risk Factors for Hypertension among Adults in Southern Iran. International Journal of Hypertension, 897070, doi: 10.1155/2015/897070.