The Separation Theorem States Finance Essay - Free Essay Example

First, the company should take on investment projects that offer higher rate of return and regardless of the preferences of the firms owners. Shareholders wealth will be maximized by investing in as many such projects as are available. Second, investments preferences of individual shareholders are irrelevant in making corporate investment decisions. If Costco Wholesale Company makes a right decision to invest on a certain projects, this will take the value of company to the maximum level. As a result, the performance of the investments has no influence to how they are financed, whether by stock, debt, or cash. This is because individual shareholders can match their personal tastes by borrowing or lending to adjust the dividends from the business. Third, the financing method does not make any changes on the shareholders wealth. In brief, the behavior of Costco Wholesale Company is not consider during the process of selecting investments, and the goal of maximizing the companys value is the main part for making investment decisions. Costco Wholesale Company should make investments in the new warehousing facilities rather than paid dividend to the shareholders. Warehouse building office space is very useful; they can be used in any manufacturing unit or storage unit as it offers higher rate of return Costco Wholesale Company needs to create custom office space. A vast space brings lot of benefits in warehouse building as Costco Wholesale Company can install modular office walls as the company needs more spaces as it needed. Warehouse buildings are considered as effective investment. For example, Costco Wholesale Company can make the agreements at market rents. Such storage device or from other warehouse leasing or rental, the recurrent expenditure, monthly or yearly in the long run it is expensive. Therefore, the more storage needs the company have, the more worth purchase-sale warehouse building. The high demand for new storage customers help revitalizes the neighborhood. Shop in the community where the establis hment of a warehousing and distribution services, there is an important new employer who is sufficient to revitalize communities or entire towns. Employees become experts on warehousing during the process of serving the needs of multiple corporate clients. With the company warehouse distribution suppliers request a quote, the experts believe that the selection process may affect the size and location of the logistics park. Investments preferences of individual shareholders are irrelevant in making corporate investment decisions. The most important point in the process of making investment in a new warehouse building is earning as much as many of the profits. The consideration of a dividend policy is irrelevant because the investors have the ability to make adjustments own portfolio to earn income. For example, investors looking for interest payment that will not change are more likely to invest in bonds rather than a dividend-paying stock which value can easily change. Dividend stock is less risky than stocks do not pay dividends. However, they have a certain risk and the return of some investors may not be able to maintain a sufficient commitment. Those investors who own bonds are not caring about a particular companys dividend policy because their interest payments wont change. Costco Wholesale Company needs to explain more details and make sure that the investors are understand what the running of t he market price and hire some financial analysts to estimate the forecast of the moving in a stocks price about one month. A high dividend is important for investors because dividends provide a clear understanding of the companys financial well-being. It helps to attract more investors to make investment in the company. Financing method does not make any changes on the shareholders wealth. The goal of maximizing the companys value is the main part for making investment decisions, but not the behavior of Costco Wholesale Company during the process of selecting investments. Purchasing a warehouse building is a profitable transaction. Costco Wholesale Company can expand the business by selecting a scalable warehouse building investment. The company can store a lot of stocks that the customers order in the warehouse. A big and enough storage space allow the company easy to check and arrange stocks. It helps to reduce costs and increase the profits. Warehouse building is easy and requires not expensive cost to build. Now days, most construction of warehouse buildings are using steel as it much cheaper. Costco Wholesale Company can pay investors in the form of cash dividends. The corporation can reinvest by taking all the profits in growth opportunities and acquisitions. The company will grow and increase s the stock price if the company knows how to invest its capital by efficiently and wisely. When the investor sells this growing company, he or she will receive the benefit by getting a higher price for the stock that she purchases. However, when Costco Wholesale paid the dividends, it affects the company growth due to lack of capital to invest. The high dividend payout ratio is very important, because dividends provide investors with the certainty of the companys financial well-being and it acts as an attraction for investors looking to secure current income. But, the disadvantage is that investors must pay 15% of the dividend tax. If the payment is retained, then the share price could grow tax-free until it is sold, only 5% of the capital gains tax will apply. In conclusion, Costco Wholesale Companys objective needs to maximize the profits in order to survive in such a competitive business field.

Critical Essay on The Glass Menagerie

Critical Essay on The Glass Menagerie Tennessee Williams’ play The Glass Menagerie is about undergoing the transition from childhood to adulthood and the decision to leave home and become independent. The decision is made with the understanding of the difference between reality as well as illusion. Tom makes the decision to leave home, aware that there are things in life he can control and others which are beyond his control. This story revolves around persons who are not aware of themselves or their true identity. Paul tries to encourage his family members to be more aware of their true selves. People tend to run away from reality and create illusions that they believe in. These illusions blind them, encouraging them to live in a dream world. So many people live this kind of life, and by the time they become aware of reality, they are too late or unable to revert to their true selves. A major them in Williams’ The Glass Menagerie is that people live a dream life by making any effort to understand their potentials and capabilities. Throughout the play, the characters try to create illusions because they find reality very painful. This makes the characters believe too much in their illusions, which results in them being accepted by their society in a way that they should not be accepted. Believing in illusions is a psychological problem because these people are no longer in control of their senses. Illusions cause, people to become more of dreamers and this can affect their relationship with the family members who perceived life from a different perspective. A dreamer is unlikely to agree on many issues with a person who bases his life on reality. A dreamer will always remain a dreamer, and his or her ideas are unlikely to produce anything important. It is not good to encourage people to live in a dream world because this affects their social, economic, and civic responsibilities. It is important to take life seriously by doing what is realistic. An individual can begin by identifying realistic goals and a doable plan to achieve those goals. When dreamers make up the majority in a society, then many important issues are likely not to be addressed because no one will take such issues seriously. Society always encourages its members to take responsibility for themselves and those around them to some extent. Parents encourage their children to be courageous in life by facing reality. These are the core principles that shape the community and make it a good place to live. Illusions, thus, are not part of a society. Those who are perceived as dreamers often find themselves as social outcasts. This is why Williams’ play The Glass Menagerie is considered so important. It shows how life can be wasted by living in a dream. Tips on Writing a Critical Essay: People often think that being critical means being negative. That is not so. When writing a critical essay on anything, one examines the strong and the weak points in a work and discusses those points in reference to some aspect of the work. In the case of a story, for example, the reader might identify a major idea that the story is expressing and then analyze how well the writer did in presenting and supporting that idea throughout the story. Regardless of what kind of essay you are writing, be certain to begin with a thesis statement. Gather your evidence from the story you are critiquing. Then, refrain from presenting that evidence according to the order in which it occurs in the story. Remember, you are not retelling the story. Instead, organize your arguments in the order that makes sense for your paper and draw on the evidence as needed to support your arguments. Welcome to our custom essay writing service to get professional essay help from academic experts. AdvancedWriters guarantees high quality and plagiarism-free in our papers!