Voluntourism Research Paper Example | Topics and Well Written Essays - 2250 words

Voluntourism - Research Paper Example Voluntourism originates from a craving to contribute something, anyway little, to the prosperity of individuals who are in any case distraught. It gives the individuals who engage in it the chance to visit new nations, experience new conditions, and the greater part of all, to find out about the way of life of those individuals among whom they will be living. Voluntourism gives customary individuals the opportunity to visit places, which they would somehow or another not ordinarily visit, for example, the ghettos in less created nations. A few sorts of voluntourism include individuals visiting places to examine their condition, or having the option to direct other logical examinations. The individuals who take an interest in voluntourism ventures need to give a charge whose reason for existing is to cover the costs during their movements in various pieces of the world. Besides, the members are required to partake in ventures inside the nations, which they visit, and this is generally founded on their area and their own advantages. The individuals who initially went for voluntourism would in general have an immediate association with the causes wherein they were going to chip in. The associations that encouraged their movement believed the span of their movements to be of the present moment, chipping in ventures in the nations, which they were visiting. ... These regularly allowed individuals the chance to add to these ventures for brief periods before returning to their nations of origin. The inceptions of what came to be voluntourism can be followed back to the United States Peace Corps, which made a way for volunteers (voluntourists) to travel everywhere throughout the world (La Prensa San Diego, 2011). Afterward, the need to travel, while contributing something to the less advantaged networks on the planet, turned out to be gigantically famous among undergrads; this prompted the improvement of trade programs, which empowered understudies, to visit to and concentrate in the nations of their inclination. Not exclusively did these understudies become acquainted with increasingly about these nations and have a ball, some significantly volunteer in nearby undertakings (Wagner, 2009). Voluntourism likewise came to influence the logical field since some logical association considered it to be a path through which they could get the open in spired by science. These associations encouraged the bringing on the whole of researchers and unpaid partners in different areas around the globe, which had logical activities. This filled a double need as it gave free work to researchers in the field, that is, the volunteers while it was likewise a wellspring of extra financing to the undertakings, through the charges paid by the volunteers. Voluntourism got pace during the 1990s when organizations in the movement business created implies through which people could take some time off, and keeping in mind that on it, likewise volunteer in different undertakings. These organizations focused on those individuals who needed to travel and had no related knowledge with causes. The items gave by the movement business pulled in an enormous number of youngsters, who will in general be the most bold of all age gatherings (Hansen, 2009).

Obsessive-Compulsive Disorder and Memory Loss

Obsessive-Compulsive Disorder and Memory Loss OCD Print Obsessive-Compulsive Disorder and Memory Loss By Owen Kelly, PhD Medically reviewed by Medically reviewed by Steven Gans, MD on March 14, 2017 Steven Gans, MD is board-certified in psychiatry and is an active supervisor, teacher, and mentor at Massachusetts General Hospital. Learn about our Medical Review Board Steven Gans, MD Updated on October 10, 2019 Getty Images Credit: PhotoAlto/Ale Ventura More in OCD Causes Symptoms and Diagnosis Treatment Types Living With OCD Related Conditions If you have obsessive-compulsive disorder  (OCD), you may have compulsions in which you repeat behaviors over and over again. For instance, you might have to repeatedly check to make sure that the front door is locked or that the stove is turned off. Or, you might have to repeat a ritual such as washing your hands or counting up to a certain number. Because of the repetitive nature of many OCD symptoms, there has been some suggestion that people with OCD may experience some sort of problem with memory and simply forget that they’ve already carried out their compulsion. Does Obsessive-Compulsive Disorder Cause Memory Impairment? Before talking about OCD and memory it may be useful to remember that there is more than one kind of memory. For instance, memories can be stored both as words (verbal memory) and as images or pictures (non-verbal memory). In general, there is no scientific evidence to suggest that people with OCD have any problems with remembering information that has been stored verbally or in the form of words. In contrast, it has been consistently found that people with OCD show deficits in non-verbal or visual memory. For example, in comparison to people without OCD, people with OCD often have trouble accurately recalling and drawing a complex geometric shape that they have just been shown. Likewise, OCD has been linked to deficits in spatial memory such as remembering places on a map or the location of a room within a building. People with OCD are more likely to have difficulties with non-verbal or visual memory. They dont have any unusual problems with memories stored verbally or in word form. Research suggests that these deficits in non-verbal memory are probably caused by the way information is encoded in the brain. Specifically, in OCD, certain information seems to be stored and organized in a way that can make it difficult to access when it needs to be recalled. Metamemory and OCD Metamemory refers to a person’s knowledge or awareness about their own memory and how confident they are in their own memory performance. Not surprisingly, people with OCD, particularly those who have symptoms involving checking, have less confidence in their memory than those without OCD. Also, the worse OCD symptoms are, the worse this confidence in memory seems to be. Interestingly, people’s level of confidence does not seem to be related to their actual performance on memory tasks. Implications for Treatment So, what does this all mean for our understanding and treatment of OCD? Currently, it is unclear whether the changes in memory, particularly non-verbal abilities and metamemory seen in OCD, are a cause or effect of the obsessions and compulsions that go along with OCD. It is also not clear whether such changes are specific to OCD or whether they may apply to all anxiety disorders. As such, it is difficult to know whether targeting memory problems would be of any value in the treatment of OCD symptoms. Clearly, much more research is needed in this area. A Word From Verywell It is well established that major depression can cause  problems with memory and concentration and it is possible that the memory problems seen in OCD are actually related to the overlap of symptoms between depression and OCD, which often occur together. Thus far, most studies looking at memory and OCD have not done a good job controlling for the effects of depression on memory.

Essay on Ragtime and Blues Influence on Jazz - 1377 Words

Ara Cho Ethno 50A 803-672-412 October 14, 2011 Seeing Ragtime and Blues as Parents of Jazz Jazz is a music genre that has complex characteristics and history of development and thus many musicians and scholars face troubles in defining what jazz is. In general, jazz is believed to have born in New Orleans. Jazz developed for the pleasure of the social dancers. According to the â€Å"Understanding Jazz: What Is Jazz?† of John F. Kennedy center for the Performing Arts, Jazz was created mainly by Afro-Americans, and had elements of European and Afro-American culture. Also, it emphasizes few elements of Jazz, which are swing-feel, syncopation, and improvisation. These different culture and elements of jazz may be explained by how jazz†¦show more content†¦Thus the similarity between ragtime and blues is significant but there are numerous differences between the two music styles. First, their origin was different. Even though they both had African influence as mentioned, ragtime was more strongly influenced by European music style, and blues was heavily African music style. According to Durk Sutro in his book Jazz for Dummies, â€Å"Ragtime was European-influenced, in the sense that it was composed, not improvised, and featured carefully crafted melodies and harmonies†¦ragtime could sound concisely European† (ch.5). Although European-influenced, there is some African influence such as rhythm and African banjo music as mentioned during the lecture. Ragtime rhythm was â€Å"the rhythms of the black dancers who used their heels to make drum sounds, or to that of the black church singers who could vary the rhythms of a Christian hymn so much that a white Christian could not even recognize it†(Tirro, pp.37). On the other hand, Blues were basically from work songs of African Americans slaves at the time. â€Å"It is a native American music, the product of the black man in this country, or, to put it more exactly the way I have come to think about it, blues could not exist if the African captives had not become American captives†(pp.17), said Jones and Baraka. In Jazz – A History, Frank Tirro wisely analyzes and explains the relationship between the unique background andShow MoreRelatedRagtime And Blues : The History And Their Influence On Jazz1581 Words   |  7 PagesRagtime and Blues: The History and Their Influence on Jazz In the city of New Orleans, from parades to clubs and from weddings to funerals, one element usually remained constant throughout all these events: the music that permeated the air. At most of these occasions, a band often performed as entertainment, providing many opportunities for musicians in the area to work. By the early 20th century, due to various factors such as mix of ethnicities and cultures with syncopated musical styles influencedRead MoreThe Ragtime And The Blues1184 Words   |  5 PagesBoth ragtime and the blues were essential and influential in their contributions to the development of jazz. Together, they served as the primary predecessors to the later, more complicated genre. Key elements from each brand are incorporated and mixed to create jazz. Without the creative geniuses of ragtime such as Scott Jopin and James Reese Europe and Blues propagators W.C. Hady and Robert Johnson, the distinctive genre of jazz would not have emerged. Ragtime and blues are both uniq ue in theirRead MoreMusic, Blues And Ragtime1337 Words   |  6 Pagesâ€Å"Jazz is the first true art form to come from the soil of America†, Winton Marsalis made this claim in the film Jazz by Ken Burns. Jazz would be born here in America after the fall of slavery. The interactions between previously enslaved peoples and the rest of society gave the breeding ground for a mixture of cultures and music styles. The city which was most clearly known for the mixing of cultures after the Civil war was New Orleans. In New Orleans the primary cultures and ethnicities seen included:Read More Ragtime Essay examples850 Words   |  4 Pages Ragtime was a very influential part of the development of jazz. Ragtime became very popular in the late 1800’s. Ragtime’s distinct style set it apart from the other genres. Syncopation is what defines this art form. This is when the loud accents fall in between the beats. Anything that is syncopated is basically ragtime. One of the most important ragtime composers was Scott Joplin. Like all great artists, Joplin did not restrict himself to this favored art form. Both before the advent of ragtimeRead MoreThe Ragtime Vs. The Blues1616 Words   |  7 Pages ¬Ragtime vs. The Blues In the city of New Orleans emerged one of the most influential music genres in U.S. history. At the time, New Orleans was known for being a melting pot of people or rather, a region where people from all over the world came together in one place. This city served as a key seaport in the U.S. allowing for goods to be imported and exported. The purpose of this city was not only strategic to the growth of the country, but also, the atmosphere allowed for the incredible mixingRead MoreEssay on Jazz Ken Burns1444 Words   |  6 PagesJazz by Ken Burns â€Å"JAZZ† is a documentary by Ken Burns released 2001 that focuses on the creation and development of jazz, America’s â€Å"greatest cultural achievement.† The first episodes entitled, â€Å"Gumbo, Beginnings to 1917† and â€Å"The Gift (1917-1924), explain the early growth of jazz as it originates in New Orleans and its expands to Chicago and New York during the Jazz Age. In assessing the first two episodes of Ken Burns 2001 documentary, JAZZ, this essay will explore the history of jazz,Read MoreJazz From The United States999 Words   |  4 PagesJazz originated from the United States in the early part of the 20th century. From Ragtime and blues to Big Bean and Bebop, jazz has been a part of a proud African American tradition for over 100 years. The history of jazz has its roots firmly planted in the American cities of New Orleans, Chicago, and New York City. New Orleans jazz was first recorded in Chicago and New York, not in New Orleans. The fir st recording was the Original Dixieland Jazz Band. Jazz is often referred to as â€Å"American’sRead MoreThe Music Of Jazz Music1353 Words   |  6 PagesTo define jazz music, one must scroll through the lexicon of words associated with the sound of jazz to come up with a description of the art form. Words such as smooth, cool, nice, swinging, and jazzy describe the art form. However, because of the vague definition of its sound, there is no one true definition of the art form. Jazz is an art form that cannot be restrained. Jazz is like watching Michael Jordan go up for an ordinary slam dunk, but in midair, he changes his mind to do something completelyRead MoreA Brief History of Piano Greats and Jazz Essay1426 Words   |  6 PagesBrief History of Piano Greats and Jazz The piano has been a pivotal instrument throughout the development of jazz music. Starting with ragtime, which developed out of classical music, all the way to modern jazz the piano has been a foundational instrument upon which many styles have been built. This is a result of the versatility of the instrument, as it has the ability to play accompaniment, rhythm, and solo improvisation simultaneously. Throughout the course of jazz history many musicians have utilizedRead MoreAnalysis Of The Structure Ives s Country Band March 1394 Words   |  6 Pages 3.  Ragtime, blues and jazz were three early twentieth century musical forms that were original to America. Jazz is a music genre created mainly by African Americans, that drew African traditions and Western popular and art music. Jazz music centered around African American ceremonial and work songs. Scott Joplin is a well known composer for ragtime and also one of the first black Americans to gain important as a composer. Although ragtime itself did not branch to different styles as Jazz did, ragtime

Are there Frank Lloyd Wright Homes in New Hampshire

You dont have to go to Chicago to see the architecture of Frank Lloyd Wright. Plenty of people in the Northeast have works by Americas most famous architect right in their backyard. The Zimmerman House Guided tours of this classic Usonian style house by Frank Lloyd Wright depart by shuttle van from the Currier Museum of Art. Tours are limited to 12 people, so youll need to make reservations in advance. The house is closed during the winter months. If you miss the tour, you can still drive by and see the outside of the Zimmerman House. Simply follow Union Street north from downtown Manchester. The Zimmerman House is located at 223 Heather Street, which is on the corner of Union and Heather streets. Learn more about the Zimmerman HouseLearn more about Zimmerman House tours The Kalil House The Toufic H. Kalil house by Frank Lloyd Wright is privately owned. No tours are available. If you choose to drive by, please be mindful of the privacy of the current residents. The Kalil house is located on 117 Heather Street, just a stroll from the Zimmerman house. If you take the Zimmerman house shuttle bus tour, your guide will point out the Kalil house as you pass. Where To Stay The Ash Street Inn on 118 Ash Street is perhaps the most comfortable and the most interesting lodging in Manchester, New Hampshire. The owners removed the old asbestos shingle siding to restore the elegant Queen Anne style house. During your stay, take special note of the stained glass windows and elaborate fireplace mantels. Be sure to ask about History/Architecture Weekend Getaway packages when you make your reservation. Learn more about the Ash Street Inn More New Hampshire Attractions The Manor on Golden PondNew Hampshire Travel GuideNew Hampshire Official Site

Self Awareness and Opportunity Awareness Free Essays

I have undertaken 5 classes to evaluate my strengths and weaknesses on various topics associated with employability and careers. The classes use a variety of tests and other methods to analyse me in order to produce reports on each topic. This report will summarise these topics and my conclusions from the classes, as well as reflecting on the exercises and how I found the results and their consequences. We will write a custom essay sample on Self Awareness and Opportunity Awareness or any similar topic only for you Order Now Employability Skills Employability skills are one of the most important skills a person can learn. It is one thing having the necessary qualifications for a job, but if you don’t have the employability skills required, you will not succeed. From Class 1 on â€Å"Employability Strengths and Weaknesses† I found out that my main strengths were my organisation and work skills. For organisation, the class discovered that my main strengths were setting and reaching targets, prioritising tasks and meeting deadlines. These points are all related and vital at University and also at a job in â€Å"the real world†. Without being able to set targets and accomplish them, nothing would ever get done and in life targets need to be set and reached in order to progress. They can be used to monitor you and see improvement, which is a large benefit. My main weakness in my organisation category is my motivation. Sometimes I can’t get motivated into doing a piece of work, but once I start and get flowing, I do it till it’s finished. Its one of the areas that I have improved on, but there is still room to develop. For work skills, the class confirmed that I am good at using and applying financial information which I gained and developed at college studying maths and business studies which could open up different types of careers, associated with computing also. My weakness in work is teamwork, but only with something academical. I have no problems team working in a sport or socially, but would often prefer to complete a piece of work individually rather than in a group of people as I get more control in the content. The skill that is my main weakness is my adaptability. My strength in this area is the ability to learn from experiences and develop new strategies for tasks that I experience. My weaknesses in this skill are finding creative solutions to problems and I think this is because overall I am not a particularly creative person. Another weakness in this area is that I am not resilient to change and the exercise states that most of us have this as a weakness but its something that is always going to happen and we need to accept change and thrive upon it. Another possible weakness in this area is transferring skills from one situation to another. The test results for this class state that people often have many skills that they have attained from every day life that they do not realise and these skills can be transferred into University or the work place. To improve in this area I have completed the exercises that are contained within this class and this will help me to identify improvements that can be made so that I can turn weaknesses into strengths to maximise my chances of getting a successful career. For this class, I found that I had done most of the activities before gaining similar results so I didn’t actually learn much about myself, rather confirming the thoughts that I previously had. The most beneficial part of this class was getting a summary of each individual area of employability that related to me. It showed a graph as an overview of the skills and then described them in detail, which was really helpful as it stated what I am good at and what needs further work on. Occupational Interests Class 2’s aim was to help me identify the nature of occupation that was suitable for me and to learn about why it is important to recognise career preferences for choosing an occupation. The test that I completed in this section didn’t tell me anything that I didn’t already know. The main point that the test found out was that I am not very artistic, which I have known for a long time and anyone else that knows me will know this also. For the other 5 areas, it found that my interests were divided across the board. Apparently this will lead to a â€Å"conflict† in terms of career choice as â€Å"it may prove difficult to find a career area that satisfies all of my interests†. It implied that my answers may have been incorrect, but I feel this is because the questions were too general and could only be answered with a â€Å"yes† or a â€Å"no†. As this was the case, I answered â€Å"yes† for most questions as I felt that it was either correct or partially so. Due to the format of the questions, I felt the summary of answers was irrelevant and conclusions could not be formed from the questions asked. An improvement to the questions could have been to answer on a scale of 1 to 10 and make conclusions based on the scale; this would have given a more in-depth summary on career interests which would have made it more relevant to each person, rather than general answers. Learning Style Team Working The aim of class 3 was to identify my role when working in a team and my strengths and weaknesses of team working and my learning style when working alone and in a team. Although I participated in the Belbin method of identifying team roles before, it was in the first week that I was at University and my role has changed over this time as I have became more involved in groups and grown as a person. After completing the test as part of the class, the team role that best suited me was â€Å"Team Worker†. The main points of this role are that I support members in their strengths and improve communications between members and help create team spirit within the group. Qualities in this role contain humility, flexibility, popularity and good listening skills, all of which I believe to have. Weaknesses are a lack of decisiveness and toughness and distaste for friction. When I originally did the Belbin test, I didn’t rate it highly and didn’t pay much attention to the ro le it gave me. After completing it this time, I agree with the entire summary and believe the method to be informative and helpful in deciding roles for members within a group in order to get the best out of the team members. Employment Opportunities The main employment opportunity that I have in the near future is the year long industrial placement that takes place after my current year. The industrial placement will refine my employability skills in the workplace and also teach me new skills that will increase my knowledge and level of work ready for the final year and progressing from there onwards. Experience in industry for a year will also increase my job prospects once I leave University, as many jobs now require that people have at least 1 year’s experience, but to get experience you need a job. It’s a cycle that is hard to enter but the industrial placement joins the cycle and gets that valuable experience required. My current employment is working in a high street electrical store. Working with them has improved my communication and team working skills as I work as part of a small team which requires constant communication for us to function efficiently. As part of a team, we get assigned roles and each role in the team is vital for the running of the store. I took this job mainly to fund myself at University but it has taught me skills that I can transfer into my work and for future jobs and career opportunities. Career Decisions The aim of class 4 was to identify my own decision making style and find out and use two methods of improving the quality of my decision making. Also this class helped to prepare to take appropriate action to progress to career plans. I am a mixture of decision making types, including rational, intuitive and â€Å"please everyone†. I discovered that I tend to collect information about the possibilities and weigh up the pros and cons of each outcome to base my decision upon. Other times, I tend to know intuitively which decision to make. I can often not explain or justify these reasons for choosing a particular decision, but I’m drawn towards it. I also like to please as many people as I can when making a decision. If I have no preference on a decision, or would be pleased with a number of outcomes, I would choose the most popular vote to prevent conflict and make the most people happy. The test on Career Decision Making stated that I have a good idea of where I am heading in career terms and that I may have a good record of successful decisions and a strong idea of what career I wish to enter. I agree with this summary of my career progress but was unsure that the test would come to this justification. In the test, there were only 3 options per question and only 12 questions in total so I was sceptical whether it would come to an accurate decision given the lack of depth of the questions, but seeing as though it proved accurate for me, I cannot fault the process too much. Conclusion These classes have enhanced my knowledge of myself and the current skills that I obtain, and also the skills that I need further development on. Some of the classes have exercises that I have experienced before and weren’t particularly useful as they told me nothing new, but they confirmed the results that previous tests had found. Other classes and exercises were new that I hadn’t done before showed me my learning style which I hadn’t previously known and I found out which team role I belong in, which has changed from the last time I did the exercise 14 months ago. One improvement that could have been made to the course was if there were practical classes, roughly once every 2 weeks that we could attend and get a better idea of what was happening and receive any help if we required it and a physical class would have been easier to keep up to date with the certificate than it all being online. Overall I think that these classes, and exercises within then, have be en worthwhile as I have learnt which skills I posses and am good at, and also which skills I need to work on to improve my employability. 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Ellectoral College Essay Research Paper The Electoral free essay sample

Ellectoral College Essay, Research Paper The Electoral College has been used to elect the President since the beginnings of the United States. In the two hundred some uneven old ages of history, there have been cases when the college did non work. There have been many thoughts that have floated around about repairing the job with the electorate. Then once more, there are many assets to utilizing the Electoral College system. In an election, the President is elected non by the popular ballot, but by the ballots of the electorates. The electorates are representative of each province. There are a figure of electorates per province equal to the sum of individuals in both the House of Representatives, and the Senate. The District of Columbia besides has three ballots to project. One of the major drawbacks to the Electoral College is the fact that it can at times be really undemocratic. If a campaigner wins the ballots in certain provinces, and gets all their electoral ballots, it is possible to win the Presidency, without acquir ing the most popular ballot. We will write a custom essay sample on Ellectoral College Essay Research Paper The Electoral or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In the 1800? s, there were three cases where the Electoral College disagreed with the popular ballot. On the same note, in 1968, the race would hold ended up in Congress shy of a few ballots for George Wallace. Again in 1976, the electoral ballot gave Gerald Ford the triumph even though Jimmy Carter one the most popular support. How would you repair this job, there is no easy reply to this inquiry. One manner to work out this is send per centums of electoral ballots, or disregard the winner-take all system. For case, say that in Florida, who has 25 ballots, 80 per centum of the popular ballot supports the democratic nomination, whereas the other 20 percent went for the republican nomination. Then 20 electoral votes would go to the democrat, and 5 would go to the republican. Another way to solve this problem would be to base electoral votes solely on the population, separate the nation into regions with approximately the same population, and give them each votes. In this, there would be no actual state borders, just a set number of voting regions. A third and final way to solve the problem would be to do away with the system entirely, and let the popular vote be the sole decision making factor. This would be the easiest and quickest way to solve the Electoral College problem. The electoral system is not all bad. There are several pluses to its use. One of those plusses is the declaration of a clear winner. Whichever candidate wins the most votes, or the first to get 270 votes, wins. Also with the current winner-take all policy, it makes the smaller states votes more important and less significant to the c andidates. There is also the ability to tell that a clear winner may or may not have a mandate. A mandate states that the public endorses a candidate?s programs and that the candidate should put them into affect when he finally reaches office. The Electoral College is the system of the United States, set up even before the first actual political parties, that is used to elect the President and the Vice President. The Electoral College is not perfect by any means. There have been some instances when a President has been elected even though he wasn?t the popular choice, but the plusses given to the election process by having it are worth the few mistakes.

Analysis of Capital Structure and Debt Financing of TUI

Introduction The concept of an optimal capital structure for business firms remains a cornerstone of financial economics theory since the seminal works of Modigliani and Miller (1958; 1963) that focused on tax benefits and other costs of debt. According to Vasiliou and Daskalakis (2006), the capital structure of the firm can be a combination of the long-term sources of funds employed by the firm.Advertising We will write a custom essay sample on Analysis of Capital Structure and Debt Financing of TUI specifically for you for only $16.05 $11/page Learn More A firm is said to be less leveraged when it has not included any debts in its capital structure. On the other hand, with a high level of debts the firm is highly leveraged. In a leveraged firm, the value of the firm is equivalent to the value of the firm reduced by the value of the debt (Brealey et al, 2003; Song 2005). Large corporations arrive at a combination of owned and borrowed funds to ensure ma ximum benefits from the capital structure. This paper analyzes the financing of the capital structure of TUI AG, a German based company operating in the tourism industry. Overview of TUI AG Established in 1997, TUI is the industry leader in the tourism industry of Europe. The Group operates in holiday destinations in more than 180 countries worldwide. The company serves nearly 30 million customers spread in 27 source markets globally. TUI Group is in the business of operating around 240 hotels in different destinations, and most of them are four or five-starred hotels. TUI travel, hotels and resorts, and cruise lines are the three business segments, which the company is operating. TUI travel division undertakes the businesses of tour operating, online sales, high street outlets and air travels. The company owned Hapag Lloyd AG, container shipping division and TUI sold this division in March 2009. After the sale of container shipping division, the business of the company has become c ompletely tourism-oriented. The following sections outline the capital structure and debt financing of TUI AG. Capital Structure of TUI AG TUI is a highly leveraged company with more debt financing. The capital stock of the company as at September 30, 2010 consisted of 251,548,525 ordinary shares having a value of EUR 643,073,592.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The company’s external debt consists mainly of convertible bonds. During the financial year 2009-2010, the total financial liabilities of the company increased by EUR 797 million and as at the end of September 30, 2010 the total liabilities stood at EUR 4,512 million. Table 1 in Appendix shows the breakup of the non-current liabilities of TUI AG. The total financial liabilities for 2008-09 was EUR 3,275 million and the increase in the liabilities for the year 2009-10 amounted to 37.8% over the previous yearâ⠂¬â„¢s liabilities. The total equity of the company as at the end of the financial year 2009-10 was EUR 2,434.20 (for 2008-09 = EUR 2,240.8). Table 2 in the Appendix shows the different components of equity of TUI AG. The total equity for 2009-10 has increased by 8.6% over the previous year. While the subscribed capital has not changed significantly, the reserves have increased by 14.3% over the previous year. The equity as a percentage of total assets stood at 17% for both the years. Non-current capital of the Group decreased by 4% as compared to the previous year and stood at EUR 6,989 million. Table 3 in Appendix shows the equity, non-current liabilities and total assets of TUI AG. Equity and non-current liabilities (debt financing) amounted to 36% of the total assets of the Group (for the previous year it was 40% of the total assets). The increase in non-current liabilities signifies that the company has resorted to additional external funds to support its operations. With incre ased external debts, the interest burden on the company is increasing, which in turn affects the current ratio of the company, because of the increase in the current liabilities. With this policy of increasing the external funds, TUI AG is increasing its current financial obligations in the form of interest payments. With a strain on the liquidity of the company, TUI may find it difficult to meet the interest payments in time. Hybrid Capital In December 2005, TUI issued Hybrid Capital to the extent of EUR 300 million, the first of its kind from a non-investment grade organization. The Hybrid Capital represented a debt, which is deeply subordinated and unsecured. â€Å"The two main traits of a hybrid bond are a long maturity (hybrids are often perpetual) along with the possibility to defer interest payments under certain conditions† (Carlsson et al., 2006).Advertising We will write a custom essay sample on Analysis of Capital Structure and Debt Financing of TUI specifical ly for you for only $16.05 $11/page Learn More TUI AG introduced the features of â€Å"deep subordination, perpetual tenor, cumulative optional interest deferral and replacement language† (Corporate Markets, 2006), in the structure of the Hybrid Capital to achieve equity credit from the rating agencies. TUI AG has used the important benefit of Hybrid Capital, in that, even though hybrid capital is perpetual debt of the company, it looks like equity on the balance sheet of the company. Hybrid Capital has a benign effect on the rating of the company. The other advantage of Hybrid capital is that there would be no dilution and coupon payments are eligible for tax deduction. Because TUI AG structured hybrid in an ideal manner, it achieved appropriate equity credit from agencies and it was received well by investors. Bonds â€Å"In the case of funding via the corporate bond market, the monitoring of borrowers by many creditors, as is the case in the corp orate bond market, could lead to unnecessary costs and free-riding problems† (Altunbas et al. 2009). Volume of prior studies supports an extensive theoretical literature (Besanko and Kanatas 1993; Hoshi et al. 1993; Chemmanur and Fulghieri 1994; Boot and Thakor 2000; Holmstrom and Tirole 1997 and Bolton and Freixas 2000). TUI issued 3,868,373 units of convertible bond with subscription rights carrying a coupon rate of 5.5% payable semiannually. These bonds are maturing in 2014. The nominal value of the bonds is EUR 218 million. To augment the debt financing, â€Å"TUI AG also issued notes worth EUR 100 million, maturing in August 2014.† The Group’s debt financing includes two convertible bonds of  £ 350 million and  £ 400 million issued by TUI Travel PLC. Large corporations such as TUI AG have used external loan funds as the important contributor of business funding. Analysis of Debt Financing and Capital Structure of TUI AG Management of firms can calculate the optimal capital structure, using theoretical models. However, many researchers have found most of the firms do not have optimal capital structure (Simerly and Li, 2000; Myers, 1997; Song and Thakor, 2008). This is true in the case of TUI AG. The capital structure of the Group was affected by the financing measures taken by TUI AG and TUI Travel PLC, in the form of bonds issued by both entities.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The capital structure of a company indicates the relative combination of long-term debt and equity in its capital. Majority of financial theories seeking to analyze corporate capital structures focuses on debt financing as a tax shield for firms. The capital structure of TUI AG shows an excessive reliance on debt financing, which is comparable with the norms of â€Å"Hotels, Restaurants and Leisure Industry† at 64.0% as of March 2011. However, the operating profits and the liquid assets of the company are not strong enough to meet the financial obligations because of interest payable by the company on its external debts. TUI AG appears to be more effective in its cash collections as compared to other companies operating in the industry. With the latest financial information available about the company, the uncollected receivables amounted to Euro 2.4 billions, which amount represented a Days Receivable Outstanding of 62.48 at the current sales figures of the company. Despite the efficiency in the collection of book debts, the company is facing liquidity crunch because of its debt financing. One of the reasons for the liquidity crunch of TUI AG is the inefficiency in managing its inventories. TUI AG has followed â€Å"Pecking Order Theory† in raising additional funds through issue of bonds. The company has preferred to use fixed interest bearing debts in the form of bonds, which underlines the operation of pecking order theory. In addition, use of Hybrid instruments indicates the application of pecking order theory. The company cannot be said to have applied signaling to its shareholders, because the company has a precarious debt to equity position. The company’s debt to equity position as shown by the following table indicates that the company has borrowed excessively by issue of long-term bonds. The interest payments on the long-term bonds would place significant strain on the cash flow of the company affecting the liquidity of the compan y. When the company faces short-term liquidity crunch, the company might resort to securing additional long-term funds to meet the short-term obligations. Table: Debt to Equity Ratio of TUI AG Description Amount (Euro Million) 2008-09 2009-10 Equity 2,240.8 2,434.2 Non-current liabilities (Debt) 3,175.1 2,827.5 Total Equity + Debts 5,415.9 5,261.7 Total Non-current liabilities 7,268.8 6,989.2 Total Assets 13,460.2 14,615.5 Equity to Total Assets 16.6% 16.6% Total Debt to Total Assets 40.2% 36.0% Total Non-current Liabilities to Total Assets 54.0% 47.8% A look at the current ratios for the company for the current and previous years shows that the current ratio is less than one, which implies that the company has shortage of liquid funds to meet its short-term obligations. The company might have used its long-term funds raised by issue of bonds to meet their short-term financial obligations, which is not a desirable practice as such practice may lead the compa ny to bankruptcy. The next section of the paper focuses on the Shareholder Value Analysis model to value TUI AG as developed by Rappaport (1986). Part II Valuation of TUI AG – Shareholder Value Analysis (SVA) Model The intrinsic value of a stock can be determined using Gordon Growth Model. This model assumes a series of dividends payable growing at a constant rate over the future period. The model further assumes that dividend grows at a constant rate over the future years and the growth is in perpetuity. The present value of future dividends is considered to arrive at the intrinsic value of the shares. However, in the case of TUI AG, considering the present financial status of the company, a constant dividend growth cannot be assumed and hence the Shareholder Value Analysis model is used to find the value of the shares. To meet the shortcomings found in the traditional accounting measures, consultants like Rappaport (1986) and Stewart (1991) developed the concept of sharehol der value and the ways in which shareholder value can be improved. This in turn has led to the development of metrics like Shareholder Value Analysis (SVA). The SVA approach developed by Rappaport (1986) can be used for estimating the value of shareholders’ stakes. The value of operations of a business can be determined by discounting the future operating â€Å"free cash flows† at a cost of capital that is appropriate considering the capital structure of the company. Principal Value Drivers for TUI AG SVA value driver approach provides a simplified method. This method provides sufficiently reliable approximation in many of the situations. Seven value drivers need to be developed for estimating the value of operations during the planning horizon. The value drivers for TUI AG  can be arrived as below. Percentage of Annual Sales Growth Particulars 2006 2007 2008 2009 2010 Sales Euro Million 20,916 21,866 24.868 19,265 16,350 4.5% 13.7% -22.5% -15.1% It is as sumed that sales growth will remain -15% in 2011 and during the planning horizon of 5 years the rate of growth is assumed as below. An incremental sales growth of 5% is assumed during the future years, and the percentage change during the planning horizon period. 2011 2012 2013 2014 2015 -15% -10% -5% 0% 5% Operating Profit Margin The operating profit margin is calculated based on the operating expenses during the past 5 years. Particulars 2006 2007 2008 2009 2010 Sales Euro Million 20,916 21,866 24.868 19,265 16,350 Operating Profit 1,184 1,261 922 1,282 1,670 Operating Margin 6% 6% 4% 7% 10% It is assumed that the business of TUI AG will earn an operating margin of 10% as was possible in the year 2010. The assumed percentage of operating margin for the planning horizon is shown below. 2011 2012 2013 2014 2015 10% 10% 10% 10% 10% Cash Income Tax Rate Cash income tax rate is assumed at 15% as the Group income is subjected to German corporation tax. As men tioned in the annual report, the cash income tax rate is assumed at 15% for all the years in the planning horizon, and no change is anticipated in the government policies, which will have an effect on the effective income tax rate. Incremental fixed capital rate The incremental fixed capital rate is calculated taking into account the historical cash outflow on capital investment activities. Particulars 2006 2007 2008 2009 2010 Capital Expenditure 757 1,116 954 2,329 2,287 Incremental rate 4.5% 13.7% -22.5% -15.1% Assumed incremental capital investment rates are: 2011 2012 2013 2014 2015 -5% -5% -5% -5% -5% Investment in Working Capital Rate Particulars 2006 2007 2008 2009 2010 Current Assets 4,797 4,721 9,317 4,367 5,258 Current Liabilities 6,374 6,404 8,692 6,190 6,976 Net Working Capital (NWC) -1,577 -1,683 625 -1,823 -1,718 Increase/decrease in NWC -106 2,308 -2,448 105 Since there is no regular pattern is seen in the changes in the net working c apital an incremental rate of increase in working capital investment of 5% is assumed. 2011 2012 2013 2014 2015 5% 5% 5% 5% 5% Planning Horizon Planning horizon is taken as the five-year period starting from 2011 until 2015 at the end of which it is assumed that the growth will be zero irrespective of any new investment in fixed capital or in working capital Cost of Capital Generally, Weighted Average Cost of Capital (WACC) is adopted as the measure for discounting the future cash flows. Weighted Average Cost of Capital (WACC) is an important constituent in the calculation of the valuation of a firm using SVA model. WACC is the weighted average of the cost at which equity capital is serviced and the cost of debt financing. The ratio of external financing and own share capital in the company’s capital structure determines the relative cost of equity and debt of the firm. The cost of capital is calculated using Capital Asset Pricing Model (CAPM) method. WACC of TUI AG b ased on the figures for the year 2009-10 is calculated as below. Calculation of WACC % Capital Structure   % Including Current and Other Liabilities   % Excluding Current and Other Liabilities and Losses 2009-10 Current assets 5,258.8 Net fixed assets 9,356.7 Total assets 14,615.5 Current liabilities 7,626.2 52% Long-term debt 2,961.7 20% 56% Other Liabilities 1,593.4 11% Equity 2,340.9 44% Minority interest 93.3 Total common equity 2,434.2 17% Total liabilities equity 14,615.5 100% 100% Cost of Equity = Risk Free Return + Beta (Market Risk Premium) = 3.3% + 0.83 (5%) = 7.45% Cost of Debt = = Weighted Interest Rate x (1 – Effective Income Tax Rate) = 5.35% x (1-15%) = 5.35% x 85% = 4.5% Weighted Average Cost of Capital Equity Weight (Cost of Equity) + Debt Weight (Cost of Debt) = 44% (7.45%) + 56% (4.5%) = 3.28% + 2.52% = 5.80% or 6.00% Effect of Changes in Key Assumptions This section discusses the changes in the key assump tions, by changing the relevant values in three different excel sheets based on the original SVA model. In view of different steps involved in the calculations, this simple working method is adopted instead of using â€Å"Whatif† function in Excel. With the key assumptions of shareholder values the intrinsic value of common share of TUI AG is worked at Euro 0.45 per share. Relevant calculations are shown in the Excel sheet attached. Using the SVA model, the following changes are made in the key assumptions and the effect of the changes made significant changes in the shareholder value. At the first instance, the sales growth is assumed at 10% from sales of the base year 2010. At the rate of 10% increase in sales the intrinsic value per share increased 0.61 Euro per share. In the second case, along with the increase in sales growth the operating margin is assumed to be 20% of sales, which resulted in a share value of Euro 1.05 per share. The third working shows the share value at Euro 1.08 with changes in the sales growth rate, operating margin and increase in working capital at 15% during the planning horizon. The calculations in SVA model thus enable mangers to understand the change in the value of the firm with changes in the key assumptions, which in turn help them in many decision-making situations. For instance, TUI AG can find out the required changes in the capital structure to bring about changes in the working capital and the resultant changes in the shareholder value of the operations of TUI AG. Difficulties in Applying SVA in Practice The most significant issue in using SVA model in practice is the prediction of the variables or key assumptions required to be used in the analysis. A variety of factors including changes in consumer behavior and economic changes will have an influence in affecting the shareholder value. In practice, it is difficult to assume these changes to arrive at the key assumptions. It is difficult to make assumptions abo ut discount rate planning period and projected cash flows in the varying business circumstances. Most of the criticisms reflect on the application of the SVA model. Generally, companies lack imagination and rigor in their strategic thinking, which disable them from linking the figures assumed for SVA with their actual strategic planning. This is a serious problem, which affects the practicality of the application of SVA to real life situations. In addition, because different sets of organizational members are involved in the formulation of strategies and development of SVA model in the context of large companies human shortcomings like over-optimism and narrow thinking cannot be ruled out, which would vitiate the results of the SVA model adopted. Although one can understand these shortcomings, they are not acceptable for an effective use of the SVA model in practice. This is the reason managers often find different ways of working with SVA models to avoid the usual pitfalls and to e nsure successes to be achieved with SVA† (Day and Fahey, 1990). One other criticism against the application of SVA model is that the managers often spend considerable time in developing SVA models and testing the sensitivity of the key inputs. This extended executive time spent on sensitivity testing exercises reduces the time of the executives spent on strategic thinking. In addition, there is unlikely to be agreement among the executives on the values of key inputs like the discount rate, planning period and projected cash flows. This disagreement might affect the practical value of SVA models. Market Valuation of TUI The market valuation of TUI has been calculated based on the free cash flows and Shareholder Value Analysis (SVA) model, taking a planning horizon of five years from 2010-11 until 2014-2015 taking 2009-2010 financial year as the base year for calculation. Even though the current market value of the shares of TUI AG is Euro 7.56, the intrinsic value of the share s is arrived at Euro 0.45 only based on the SVA model of Rappaport (1986). The excessive borrowing of the company through bonds and the financing from banks has reduced the value per share. This is because, the intrinsic value of the shares is calculated after deducting the market value of debt from the total corporate value as at the end of the planning horizon of 5 years. With more debt financing the intrinsic value will go down to the extent of debt financing. Therefore, when the company has more external debts, the intrinsic value is likely to go down. When TUI AG is able to increase the sales and the percentage of operating margin, the company would be able to increase the free cash flows, which in turn would increase the present value of the cumulative cash flows during the planning horizon. With the result, the intrinsic value of the shares of TUI AG goes up. This is reflected by the calculations using the basic SVA models. With a presumed increase in the percentage of sales growth, operating margin and operating capital the intrinsic value of the shares of TUI AG would go up Euro 1.08 per share. It may be observed even with the presumed increase in the different variables, the intrinsic value is much less than the market value, implying that the shares of TUI AG are highly over-priced. With the imminent liquidity crunch, TUI AG might find it difficult to meet its current financial obligations with ease. Conclusion The exercise contained within this report was used to analyze the capital structure of TUI AG, a large multinational company operating in tourism industry. The company is found to be using excessive external borrowing in the form of bonds, which has increased the interest burden of the company and consequently has affected the liquidity of the company. Although the debt to equity ratio is comparable with the other firms of the industry, the operating profits and the liquid assets of the company are not strong enough to meet the financial obli gations because of interest payable by the company on its external debts. Part II of the exercise was concerned with the determination of the market value of the firm using the Shareholder Value Analysis (SVA) model developed by Rappaport (1986). 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Environmental dynamism, capital structure and performance: a theoretical integration and an empirical test. Strategic Management Journal 21: 31-50. Song Han-Suck 2005. Capital Structure Determinants. An empirical study of Swedish companies. CESIS Electronic Working Paper Series, Paper No. 25. Song, F. and A. V. Thakor, 2008. Financial system architecture and the co-evolution of banks and capital markets. Working paper, Pennsylvania State University. Vasiliou, D. and Daskalakis, N. 2006 â€Å"The Practice of Capital Structure in a Small Market and a Cross-National Comparison†, SSRN Working paper series. This essay on Analysis of Capital Structure and Debt Financing of TUI was written and submitted by user Angela W. 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.