The Relationship Between Macbeth and Lady Macbeth in Act...

How is the theme of the influence of women on men explored in Act I, scene vii of Shakespeare’s Macbeth? An old proverb states that behind every successful man stands a strong woman. Surprisingly for a play set in the Middle Ages, like William Shakespeare’s Macbeth, this saying remains valid. The renowned tragedy chronicles the downfall of Macbeth, a distinguished warrior who yields to the corrupting force of his ambition for the Scottish throne. In his malevolent quest for power, he is accompanied, if not firmly guided, by his ruthless wife. Indeed, in Act I, scene vii Macbeth has almost renounced to murder of the king, but Lady Macbeth reinforces his determination to commit the regicide. Through her manipulative strategies in this†¦show more content†¦Lady Macbeth strengthens her mental prevalence over her husband by bolstering his self-confidence. One can easily trace how she casts doubts over Macbeth’s initial judgments, reassures him of the murder’s success, and redirects his confidence towards their malicious deed. In the soliloquy at the beginning of Scene vii, Macbeth presents several important reasons for not killing Duncan and ends with the resolute: â€Å"We will proceed no further in this business† (l. 31). Later, his strength of will diminishes significantly as suggested by his weak groan: â€Å"If we should fail?† (l. 59). Finally, his wife’s rhetoric has obliterated all the previous scruples: â€Å"I am settled† (l. 79). Indeed, these three quotations indicate the gradual but dramatic change in Macbeth’s values under Lady Macbeth’s influence. From a hesitant individual, wavering between loyalty and ambition, gratitude and desire, Macbeth has retained his self-confidence with his wife’s help. Moreover, the Thane of Cawdor has learned so much from his wife’s imperturbability that he participates actively in the scheming by suggesting using the guards’ daggers. The new confidence, with which Macbeth speaks about the plan, proves that Lady Macbeth’s metho ds of manipulation have achieved the desirable effect. By bringing composure and safety to her husband, she finally pushes him down theShow MoreRelatedJourney into Night by Eugene ONeill and Macbeth by William Shakespeare925 Words   |  4 Pagessounds and sights; gruesome acts and frightening ghosts like Macbeth? Or would you write about a seemingly normal family from the outside, where the unknown hides from behind common decisions and objects. First and foremost, Long Day Journey into night by Eugene Oneill and Macbeth by Shakespeare share a common theme with each other. The characters in both of these dramas lack communication with one another. Let’s examine Macbeth first. The playwright Macbeth begins with Macbeth, who is thane of GlamisRead MoreThe General Summary Of Banquos Macbeth1530 Words   |  7 Pagesgrassland near Forres General Summary: Macbeth and Banquo, meet the three witches on the hill as they return from the battle. The witches make three prophecies for each of them and Macbeth begins to wonder what the future entails. Analysis: Once again, the witches enter the stage to the sounds of thunder. They boast of their evil powers. The third witch implies the limits of their power. â€Å"Though his bark cannot be lost, Yet it shall be tempest tossed (I, iii, 24–25)†. As she talks about theRead MoreMen Are Women And Women Are Men1104 Words   |  4 Pagesplay, Macbeth, the characters defy their own gender norms by exhibiting traits of the opposite gender. Women are portrayed as villainous and men are portrayed as good. The women are dominant and the men, alternately Macbeth, are passive, since he is the victim to the womens manipulation. The women are not sensitive, rather they are more emotionless than the men. Though the play sets gender norms through the lines of the characters, these characters defy their own norms. For instance, Lady MacbethRead MoreThe Relationship of Macbeth and Lady Macbeth Essay1386 Words   |  6 PagesThe Relationship of Macbeth and Lady Macbeth At the start of the play Macbeth and Lady Macbeth are seen as a united couple. They appear to have no secrets from one another, and seem to the audience as though they are equal: My dearest partner of greatness - this is what Macbeth calls his wife - partner signifying equality and greatness suggesting standing. During the course of the play, their relationship faces serious obstacles and strains are put on their loyaltiesRead MoreUnchecked Power in Shakespeares Macbeth and King Lear1458 Words   |  6 Pagesrelation to the tragic hero, there are many similarities between the tragic heroes in Macbeth and King Lear. However, the differences between the two outline the re-occurring themes in both plays. In Shakespeare s plays the central characters own weaknesses and lust for power lead to corruption. The unchecked power in Shakespeare s Macbeth and King Lear ultimately leads to corruption, tragedy, and the hero s fall from grace. In Macbeth, Macbeth s power goes unchecked within himself, his wife, andRead MoreThe Downfall of Lady Macbeth in William Shakespeares Macbeth1399 Words   |  6 PagesThe Downfall of Lady Macbeth in William Shakespeares Macbeth William Shakespeares Macbeth has been a theatrical favorite since Elizabethan times. Its timeless themes of ambition, fate, violence, and insanity collaborate to produce a captivating plot. The audience traces the disintegration of a tragic hero and his willful wife. Lady Macbeth, one of Shakespeares most forcefully drawn female characters, plays an important role in the play Macbeth. She has a profound influence over the actionRead MoreImportant Macbeth Quotes1713 Words   |  7 PagesImportant Macbeth Quotes 1. The raven himself is hoarse That croaks the fatal entrance of Duncan Under my battlements. Come, you spirits That tend on mortal thoughts, unsex me here, And fill me from the crown to the toe top-full Of direst cruelty. Make thick my blood, Stop up th’access and passage to remorse, That no compunctious visitings of nature Shake my fell purpose, nor keep peace between Th’ effect and it. Come to my woman’s breasts, And take my milk for gall, youRead MoreWilliam Shakespeare and Macbeth8813 Words   |  36 Pageshero was to be pitied in his fallen plight but not necessarily forgiven: Greek tragedy frequently has a bleak outcome. Christian drama, on the other hand, always offers a ray of hope; hence,  Macbeth  ends with the coronation of  Malcolm, a new leader who exhibits all the correct virtues for a king. Macbeth  exhibits elements that reflect the greatest Christian tragedy of all: the Fall of Man. In the Genesis story, it is the weakness of Adam, persuaded by his wife (who has in turn been seduced byRead MoreEssay on James I influence in Shakespeares Writing1519 Words   |  7 Pagesfocused mainly on God from the Christian perspective. During this time other supernatural characters were brought to light, affecting the politics of the monarchies as it did during the rule of King James I in England. Shakespeares use of the supernatural demonstrates his support for King James I and his beliefs in the extraordinary. Through out history religion has been tied to politics since the beginning of history; what the ruler belief was the set religion for the state. However, England hasRead MoreFeminist Criticism and Shakespeares Work Essay1887 Words   |  8 PagesShakespeare’s works had few females because women were not allowed to act in London in the late 1500s and early 1600s. Disregarding the standards imposed on women of his time, Shakespeare created many female characters that were strong-willed, intelligent, and daring. Shakespeare resided in a world dominated by men, in which women were essentially the means of exchange in power relationships among those men. Feminist criticism is interested in marriage and, gender relations, and family structures

Medicine and Doctors in Final Cut by Atul Gawande - 872 Words

The main theme of â€Å"Final Cut† by Atul Gawande is that medicine is an inexact science and doctors are not always sure of themselves, even if they appear confident. Gawande’s main argument is simply stated: there has been a decline in the amount of autopsies performed in the medical field as a result of medical arrogance; over confident doctors believe they know the cause of death and do not want to perform autopsies. Gawande illustrates his argument by outlining the history of autopsy use in medicine, incorporating medical cases that he has experienced as a surgeon, and including statistics on autopsy usage. â€Å"Final Cut† is an outstanding profile on the decline of autopsy use in medicine. What makes â€Å"Final Cut† an enjoyable and informative article for all readers is its use of strategies associated with fiction such as the establishment of characters, balance between medical information and personal experience, and its use of active voice. It is evident throughout â€Å"Final Cut† that Gawande is an author who draws on and adapts elements of fiction such as the establishment of characters and the creation of tension and suspense within his journalism. By incorporating medical cases he has experienced as a surgeon, Gawande is able to establish many characters that the reader develops an emotional connection with. This emotional connection develops because readers are provided with just enough information about the characters to individualize them, allowing readers to care aboutShow MoreRelatedThe Hippocratic Oath, By Atul Gawande1344 Words   |  6 PagesMedicine is a science of healing, but also an art. It takes intelligence in the sciences as well as precise skill in the art of medicine to heal successfully. In the Hippocratic Oath, Hippocrates highlights the importance of passing on the tradition of practicing medicine, maintaining respect for patients, and preserving humility within themselves. Modern day prac tice of this oath involve patient’s stories. Rita Charon in her article â€Å"What to do with Stories? The sciences of Narrative Medicine,†Read More Increased Patient Responsibility1565 Words   |  7 Pages We like to think of medicine as a vast sea of knowledge, a science of certainty and applied research intended to heal and cure. Patients visit their doctors expecting to be diagnosed, prescribed, and treated. For several patients, this optimistic outlook is in fact the order of things. But, for many others, medicine is an experimental endeavor and very human in nature. Atul Gawande, in his collection of essays entitled Complications: A Surgeon’s Notes on an Imperfect Science, sheds lightRead MoreTheme Of Being Mortal1271 Words   |  6 PagesBeing Mortal and its Consequences 1. Introduction In Being Mortal, Atul Gawande uses his experiences as a surgeon, professor and public health professional to discuss many facets of Western end-of-life care and the process of growing old in a modern age. Overall, I have found that three overpowering themes in this novel are security versus autonomy, a need for pragmatism surrounding the concept of death, and our medicalized society’s devaluation of hospice and palliative care. Regarding these themesRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 Pagesproduction specialists, editorial personnel, and marketing and sales staff. More than one hundred instructors reviewed parts or all of Organizational Behavior, Fifteenth Edition. Their comments, compliments, and suggestions have significantly improved the final product. The authors wish to thank John D. Kammeyer-Mueller of the University of Florida for help with several key aspects of th is revision. The authors would also like to extend their sincerest thanks to the following instructors: Lee Boam, University

Masculinity And Style In Hemingway And Carver - 1604 Words

Masculinity and Style in Hemingway and Carver. The following will present the themes of masculinity in relation to style in Raymond Carver and Ernest Hemingway. Both are major figures of 20th century US fiction, and both write about characters that struggle with male or masculine identity and social expectations. These struggles often mean that other characters in their stories are the victims. In other words, the problems that the characters experience, are both internalized but also externalized toward others and this will be examined with specific author selections. It will be argued in the following that there is a minimalism recognized at many levels of the style for both authors, but this essay will explore the minimal†¦show more content†¦There is workplace degradation that happens to male characters in Carver stories, and these characters are in turn, viewed as expressing these personal frustrations on those around them (Hall 177). Hemingway wrote extensively about a character that will be examined in the following named Nick Adams, and their own biographical parallel is a First World War experience that results in a dynamic that gets played over and over. The character of Nick Adams like the figure of Hemingway, had to return to a world after a shattering emotional war experience, and a good dimension of that world is defined by the male expectations of it. The following will examine the theme of masculinity in relation to style using two specific RC short stories. Cathedral and Why Don t you dance? are very similar in structure and are useful for comparison. Both characters involve the dynamic of a couple with a challenged relationship who encounter another male. In both stories, it is a younger couple, and in both stories, the older male is partially defined by some eccentric and important features. In Cathedral, the blind friend of a wife and her husband meet for the first time and there is a tension between the couple over a few dif ferences of expectations. In Why Don t you dance?, a young couple walking along together encounter an older man who has

Differentiated Instruction and Professional Development

Differentiated Instruction Professional Development Plan Carol (Stepp) Wahl EDU 673 Dr. Dianne Fernandez June 11, 2012 Introduction Differentiating instruction is a valuable instructional management and delivery tool, which can be used to assist teachers in meeting the needs of the diverse populations of students which they now find in their classrooms. In using these strategies, a teacher may use pre-assessments to determine the learning styles, interests and readiness of the students, prior to the introduction of a lesson or unit. After developing a learner profile, the teacher may then differentiate according to the readiness of the student, by process of delivery, and by the product which the student may produce to†¦show more content†¦Ability refers to the child’s ability to complete the learning tasks, while readiness has to do with the child’s background which will support the learning tasks (p86-87). For example, the child has the ability to read the science material presented for the Life Sciences lesson, yet does not have the readiness to understand the reading d ue to inadequate technical vocabulary development. Scaffolding for this student would include activities to develop the technical vocabulary necessary to understand the reading materials, or having the teacher provide reading materials appropriate to the child’s reading level. Additional instruction may be needed in reading skills, to support the student in a reading activity. The zone of proximal development explains the need for student and task to match, making the task of learning attainable (p87). Teaching to one zone of proximal development is likely to leave some students frustrated and confused, while others can coast through the lesson (p88). It is not so important for the teacher to know exactly what the student’s status is, rather to be aware when the students are becoming frustrated, and are in need of more practice, or when the task is just right for the individual (p89). Student Grouping Grouping of students can be by learning style, interest, readiness, task, or other teacher determined criteria. Flexible grouping is one of the non-negotiables in the differentiated instructionShow MoreRelatedDifferentiated Instruction For Professional Development811 Words   |  4 Pages Differentiated Instruction in Professional Development If educators have learned anything in the last decade of school reform initiatives it is that one size does not fit all. Differentiated Instruction (DI) is an approach where teachers proactively plan varied approaches to what students need to learn, how they will learn it and how they express what they ve learned (Differentiated Instruction, 2015). However, does this all end when we become educators and then magically educators learnRead MoreIep Reflection Paper1092 Words   |  5 PagesCritical Thinking Questions Change Leadership for Differentiated Education Environment April 8, 2012 Critical Thinking Questions The six-column framework for differentiated instruction proposes that if we are trying to comprehend and construct classrooms in which differentiated instruction can grow, there are several components that we need to search and be mindful of in our preparation and teaching. Educators must explore the framework and recognize what they are already utilizing in theRead MorePros and Cons of Differentiated Instruction1373 Words   |  6 Pagesthese tips help take away some of your stress! Pros and Cons of Differentiated Instruction Pros of Differentiated Instruction Differentiated instruction is a way of thinking about teaching and learning. It means using a variety of instructional strategies that address diverse student learning needs. It places students at the center of teaching and learning and student needs drive instructional planning. Differentiated learning is a way to enhance learning for all students by engagingRead MoreThe Importance Of Monitoring In Education920 Words   |  4 PagesCurriculum-based progress-monitoring measures were done in the experimental EMERGE classrooms recording the childrens responses to the literacy-focused, universal instruction and their need for differentiated instruction occurred over a 4-month period. These measures focused on letter knowledge, awareness of print in books, vocabulary development, and book comprehension. The progress-monitoring battery was administered to children at the end of each thematic curricular unit taught between January andRead MoreProfessional Development For Blended Learning Essay1447 Words   |  6 PagesProfessional Development for Blended Learning Danielle Sherfey, William Pollock, Brandi Miranda Columbus State University  Introduction The idea of every student fitting into one box is long gone in education. More and more schools and organizations are putting their efforts into providing individualized learning that will allow students to work at their own pace and achieve success. With this is the growing use of technology to achieve the goals of proficiency and to provide students with effectiveRead MoreRationale For Professional Development Day Essay968 Words   |  4 PagesPart I: Rationale for Professional Development Day As the newest school in the district, James C. Carter High School is home to 1,231 diverse learners; over 350 of which make up our school’s Fine Arts Academy. Carter High School is also home to seventy-one highly qualified educators who embody the school’s motto of â€Å"Students First† and its mission to become the best high school in North Carolina. Carter High serves students in grades 9-12 and is the district’s first and only Fine Arts Academy. TheRead MoreEssay on Teaching Strategies for Inclusive Education1343 Words   |  6 Pagesstudents, regardless of difference. As a preservice teacher about to enter into the teaching profession it will be my responsibility to cultivate optimum teaching and learning experiences that will support all students’ social, emotional and academic development. Whilst this task does seem daunting and challenging, it is also exciting to be one of the many pioneers who will contribute to an educational reform, resu lting in the ideal of inclusive education. Within my classroom there may be learners whoRead MoreData Analysis Essay1330 Words   |  6 PagesCorrespondingly, Marchand-Martella, Klingner, and Martella (2010) justify that â€Å"effective reading instruction targeted to meet the needs of struggling ELLs is warranted given that these students drop out of school at higher rates than their peers and score significantly lower on standardized reading assessments† (pp. 4-5). As a result, the school improvement plan includes professional development on differentiated instruction and implementation of strategies to build vocabulary and oral language skills throughRead MoreImproving Curriculum and Instruction in an Organization Essay examples722 Words   |  3 Pageseveryone around me. Leaders must be catalysts, whether instructing JKD or leading a school. As an instructional leader, it was important that I model and demonstrate the same commitment to improving my knowledge based (4.1.3) around instruction and curriculum development. As the new accountability system – Smarter Balanced Assessment Consortium – approached, our district also launched its effort by helping teachers develop their own Core Curriculum using â€Å"spirals† – scope and sequence (standards basedRead MoreDifferentiated Instruction Paper1664 Words   |  7 PagesDifferentiated Instruction Differentiated instruction is a process to approach teaching and learning for students with differing abilities in the same class. The intent of differentiating instruction is to maximize each student’s growth and individual success by meeting each student where he or she is assisting in the learning process (Polloway, Patton, and Serna, 2005). It’s an individualized instructional method. It is used to help students with diverse needs learn using a general curriculum

Paper Copy Free Essays

I even commend those that go to work and do school all at the same time. That works very well for some people, but not quite for me especially online. I have to find what works for me. We will write a custom essay sample on Paper Copy or any similar topic only for you Order Now Career Goals I am in the mist of changing careers from the military to hopefully finding a job doing Transportation Logistics as a civilian. I believe it would be more beneficial to me to get certified rather than going a degree in this field. For instance, if had a bachelors degree in my career field would over qualify me most of the job offers they have posted. I will continue to pursue my associates degree, but most likely in a classroom setting than online. My goal from there on out is to buy my time spent in the military, so that I can retire. In order to achieve this must get a federal equivalent job. I am looking to go anywhere to make this a dream a reality. Will travel to Europe, Asia, and even cross the border into Canada. I am just looking to one have a family, and a wife I can call my very own. Over all, I want to live by the Twelve Principles of Islam which are: knowledge, wisdom, understanding freedom, justice, equality. We will continue with: food clothing shelter, love, peace and peppiness. I have simple reasonable goals, nothing big. Time Management Techniques My success in college solely depends on me. Know that I can procrastinate a lot, but it’s not totally my fault. For me balancing work and school is very difficult. I rather do one or the other. Now with that being said, I have decided to put school on hold until I get of the army. It’s not like can’t manage my time. It’s just that at the end of the day what time do have left to manage. Get up at 4:30 am, and return home at ten o’clock at night. This is the reason why I have late assignments, and I had to pay for extra time on his class. Us Mary In summary I have discussed my career goals, and time management problems. I think I have some realistic goals and I can accomplish them on my own terms. I really want these things for me, and know in order to get them I will have to separate myself from the military. I think it will help with my time management skill, and really bring down my stress level. How to cite Paper Copy, Papers

Shelby Steele Affirmative Action Essay Example For Students

Shelby Steele Affirmative Action Essay The problem of discrimination has been around since the writing of theDeclaration of Independence in 1776. The U.S. Constitution said nothing ofequality; instead, it legitimized the institution of slavery. TheEmancipation Proclamation issued January 1, 1863, set slaves in the confederatestates free. The Thirteenth Amendment permanently abolished slavery. The formerconfederate states, not wanting to let go of their control over blacks,established the restrictive Black Codes. The Civil Rights Act of 1866proposed by Andrew Johnson was the first Civil Rights act ever written. The actwas turned down by congress. The act would have given all blacks the same rightsas whites. The issue of discrimination has been addressed in the court systemmany times. Beginning with the Dred Scott v. Sanford (1) case, in which theSupreme Court ruled, that blacks as subordinate and inferior beings, couldnot constitutionally be citizens of the United States. More recently, the Bakkecase gave a look at the wor kings of affirmative action. A white student wasdenied admission to U.C. Davis because the school had already met its quotas forwhite students. Affirmative action(2) is a term coined by President of theUnited States, Lyndon B. Johnson in 1965. In an executive order Johnson declaredthat federal contractors should take affirmative action, this was toguarantee that applicants are employed, and that employees are treated duringemployment, without regard to their race, color, religion, sex, or nationalorigin. Executive Order #11246 would increase the number of minoritiesemployed by federal contractors. This order would become a major policy issuefor years after it was made. Many people view affirmative action as reversediscrimination, or as reparations made by the government to minorities for pastdiscrimination. It has been left up to the states own government to decidewhether or not affirmative action programs should be implemented. Most havedecided not to allow these programs. These st ates now have to figure out how tomake up for the unemployed minorities and loss of diversity in colleges. Thearguments against affirmative action have many aspects. A major complaint inmost arguments is the contradictions its policies support. Such as reversediscrimination. The policies have been constructed to give women and minoritiesequal opportunities in applying and being accepted in schools and jobs. Othersthink that women and minorities did not earn their positions, but given agift, from the affirmative action programs. Another view is that women andminorities can have their self-worth affected by these programs. They will feelthat special arrangements, need to be made because women and minoritiesare biologically inferior, to white males. Another point againstAffirmative action is that it is no longer needed. Affirmative action began tohelp women and minorities into the workforce, and higher education. It isconcluded that the process will continue on it is own with out the h elp of anyaffirmative action programs. Besides reverse discrimination, affirmative actionis claimed to be the cause of promoting, in many cases, the hiring of lessskilled workers and less qualified individuals being accepted into college. Proposals have been made to make up for the lack of minority enrollment inhigher education. One way to ensure minority representation would be to targethigh poverty schools. Texas legislature was seeking a way to preserve minorityaccess to college. The conclusion was that the top ten percent of students inevery high school are eligible for admission to the University of Texas. Inaddition, an increased use of test scores and grades as entrance standards foreveryone would help with the loss of diversity. Other proposals have been togive applications in different languages, to have jobs offered on campuses, andto have a list of all people that do not have jobs in the area. Affirmativeaction should be implemented for sheer promotion of diversity. Some of thegreatest intellectual interactions a student experiences, are with otherstudents in college. If those interactions are not diverse or culturallyenriching, then every person will have a narrow experience at college. Anotherreason affir mative action programs should be implemented is for the preventionof primarily white, dominated campuses. The affirmative action policiesshould be reinstated. Colleges and jobs should not look at race as the onlyfactor in accepting an applicant. That is true, they should look at leadershipqualities, experience, academics, and even athletics. To limit the hiring andadmission of incompetent workers and students, those other factors should belooked at. It is a good possibility that many women and minorities could behired just for the simple fact that they have more experience, and is betterqualified than a white male. People blame so many things on affirmativeaction. A white man did not get a job over a black or Hispanic man so he blamesit on the affirmative action programs. The black or Hispanic man may have beenbetter qualified for the job. Everyone deserves a chance to work and go toschool; affirmative action programs should not have to exist. There should be anequal chance for ever yone to get a job and go to school, until there is, therewill be affirmative action. .u959250ae0ac10a0fc0ce478c22959784 , .u959250ae0ac10a0fc0ce478c22959784 .postImageUrl , .u959250ae0ac10a0fc0ce478c22959784 .centered-text-area { min-height: 80px; position: relative; } .u959250ae0ac10a0fc0ce478c22959784 , .u959250ae0ac10a0fc0ce478c22959784:hover , .u959250ae0ac10a0fc0ce478c22959784:visited , .u959250ae0ac10a0fc0ce478c22959784:active { border:0!important; } .u959250ae0ac10a0fc0ce478c22959784 .clearfix:after { content: ""; display: table; clear: both; } .u959250ae0ac10a0fc0ce478c22959784 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u959250ae0ac10a0fc0ce478c22959784:active , .u959250ae0ac10a0fc0ce478c22959784:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u959250ae0ac10a0fc0ce478c22959784 .centered-text-area { width: 100%; position: relative ; } .u959250ae0ac10a0fc0ce478c22959784 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u959250ae0ac10a0fc0ce478c22959784 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u959250ae0ac10a0fc0ce478c22959784 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u959250ae0ac10a0fc0ce478c22959784:hover .ctaButton { background-color: #34495E!important; } .u959250ae0ac10a0fc0ce478c22959784 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u959250ae0ac10a0fc0ce478c22959784 .u959250ae0ac10a0fc0ce478c22959784-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u959250ae0ac10a0fc0ce478c22959784:after { content: ""; display: block; clear: both; } READ: Metacognition EssayGovernment

Capital Asset Pricing Model and Capital Budgeting

Question: Describe the topical issues in financial management - CAPM and Capital Budgeting? Answer: Part A CAPM Capital Asset Pricing Model Capital asset pricing model has been widely used for estimation of the cost of capital for business organizations. Additionally, this model is helpful in evaluation of the performance of managed portfolios (Fama and French, 2004). Capital asset pricing model considers the market return, risk free rate of return and systematic risk in order to estimate the cost of capital (Dempsey, 2012). In the above formula, Rf = Risk free rate of return = Systematic Risk Rm = Market return Assumptions of Capital Asset Pricing Model The assumptions of capital asset pricing model are listed below: All investors operating in the market will focus on maximizing their economic utilities when the asset quantity is constant. Investors are rational and will be risk-averse in nature (Pennacchi, 2008). The investors are largely diversified according to different type of investment. The investors are not price takers or have no influence on the prices. The investors can borrow as well as lend unlimited amount at the rate of risk free rate of interest. Trade activities take place without the cost of transaction and tax (Fama and French, 2004). Investors have equal access to the market information and they all have homogeneous expectation. It is assumed that all assets can be liquefied and divided (Bornholt, 2012). Relationship between Security Market Line and Capital Market Line Capital market line refers to the line which is used in the capital asset pricing model for illustrating the rate of return for the efficient portfolios on the basis of risk free return and the level of uncertainty or risk for that specific portfolio. Capital market line can be drawn as a tangent line from the intercept point of the efficient frontier at which point the expected rate of return is same as the risk free rate of return. Capital market line demonstrates a relationship between the return as well as risk of the efficient portfolio. The capital market line helps in combining the risk free asset and the market portfolio. It is used for representing the risk premium earned from taking additional risk. Capital market line is considered to be superior to the efficient frontier as it includes the risk free asset within the portfolio (Lee et al., 2013). Figure: Capital market line Source: Lee et al., 2013 Security market line helps in plotting the systematic risk versus the market return for a specific period of time. It has been observed that in security market line all the risky marketable securities are include. Basically, security market line helps in plotting the results obtained from the capital asset pricing model. The market risk or bet is represented along the horizontal axis and the vertical axis represents the expected market return. From this graph, market risk premium can be estimated from the slope of the security market line. According to the capital asset pricing model, the market portfolio is the efficient frontier and it can be achieved with the aid of security market line (Pennacchi, 2008). Figure: Security market line Source: Pennacchi, 2008 Capital market line considers the total risk while security market is line includes the systematic risk. The inefficient portfolios lie below the capital market line and both the efficient and inefficient portfolios lie on the security market line (Skiadas, 2009). Arguments in Favor and Against of CAPM It has been argued that capital asset pricing model is an effective tool in estimation of the expected return of a portfolio or cost of capital for business organization. The research scholars have argued that the major advantaged of CAPM is it considers systematic risk which reflects the reality and helps in providing a proper insight to the market condition which the investors must consider. It helps in deriving a relationship between the systematic or market uncertainty and the required rate of return which is very important for the investors. It is a better approach than WACC as it includes the systematic risk (Smart, Megginson and Gitman, 2004). However, some limitations of the CAPM have been identified by the research scholars. It has been observed that the CAM model is reliant upon the risk free rate of interest which refers to the government bonds. The rate of return of the government bond frequently changes depending on the economic situation of the nation. Hence, it will affect the calculation of long term investment. Additionally, it has been correctly argued that estimation of the equity risk premium becomes difficult and it is unstable. Moreover, the value of beta also varies over time (Subrahmanyam, 2012). Alternatives of CAPM Some alternative models have been proposed such as multi beta model (the multifactor model and arbitrage pricing model), market price based model and accounting information based model. Conclusion This paper has provided an insight to the concept of capital asset pricing model and its assumptions. It has been found that the model is very useful as it considers the systematic risk. However, some limitations of the model have been discussed in this paper. CAPM is dependent on the beta and risk free rate of return which frequently changes. It has been found that some alternative models are proposed which will address the shortfalls of the CAPM. Part B: Capital Budgeting Analysis Gordon Hall is considering replacement of his existing machine which has a remaining life of 5 years. The new machine will be bought from Li Ho with useful life of 5 years. In order to evaluate the replacement decision capital budgeting tool Net Present Value (NPV) analysis is an important tool (Ross, Westerfield and Jordan, 2000). It will be used in this paper for making replacement decision (Berk and DeMarzo, 2007). First of all, it is important to estimate the depreciation of the new as well as old machine. Depreciation has been calculated in straight line method in the following two tables: Calculation of the depreciation of New Machine Particulars Amount Purchasing Cost $ 280,000.00 Useful Life (years) 5 Value at the end of life $ 50,000.00 Depreciation per year $ 46,000.00 Salvage Value $ 40,000.00 Calculation of the depreciation of Old Machine Particulars Amount Purchasing Cost $ 340,000.00 Useful Life (years) 10 Value at the end of life $ - Depreciation per year $ 34,000.00 Salvage Value $ - The initial cost of replacement is important to calculate. The initial cost of replacement will include the purchasing cost of new machine, amount paid for conducting feasibility study of the machine and the amount lost by selling the old machine (Holland and Torregrosa, 2008). The loss on sale of the old machine can be calculated by deducting the selling price of the old machine from the depreciated value of the machine at the end of 5th year (Helbk, Lindest and McLellan, 2010). Calculation for Initial Cost of Replacement: Particulars Amount Cost of new machine $ 280,000.00 Present Depreciated Value of the Old Machine $ 170,000.00 Selling Price of old machine $ 86,000.00 Loss on Sale $ 84,000.00 Feasibility Study $ 20,000.00 Total Cost of Purchasing New Machine or Initial Cost $ 384,000.00 The cash flow will be changed due to installation of the new machine The following two tables will consider the elements which will influence the cash flow in the next five years (Ross, Westerfield and Jaffe, 2005). Calculation of the cash flow for the first five years: Particulars Amount (+) Reduction in cooling Cost $ 70,000.00 (-) Reduction in Sale $ 10,000.00 Cash Flow $ 60,000.00 (Moles, 2011) Additional Cash Flow on Fifth Year: (+) Requirement of cleaning supply $ 9,000.00 (+) Increase in accounts receivable $ 14,000.00 (+) Sale of New Machine $ 40,000.00 Calculation of the Total Present Value of Replacement: Total present value of the cash flow after replacement of the old machine with the new one has been calculated in the following table: Year Cash flow Depreciation PBT Tax (@30%) PAT CFAT PVF (@9%) PV 1 $ 60,000.00 $ 46,000.00 $ 14,000.00 $ 4,200.00 $ 9,800.00 $ 55,800.00 0.917431193 $ 51,192.66 2 $ 60,000.00 $ 46,000.00 $ 14,000.00 $ 4,200.00 $ 9,800.00 $ 55,800.00 0.841679993 $ 46,965.74 3 $ 60,000.00 $ 46,000.00 $ 14,000.00 $ 4,200.00 $ 9,800.00 $ 55,800.00 0.77218348 $ 43,087.84 4 $ 60,000.00 $ 46,000.00 $ 14,000.00 $ 4,200.00 $ 9,800.00 $ 55,800.00 0.708425211 $ 39,530.13 5 $ 83,000.00 $ 46,000.00 $ 37,000.00 $ 11,100.00 $ 25,900.00 $ 71,900.00 0.649931386 $ 46,730.07 5 $ 40,000.00 $ - $ 40,000.00 $ 12,000.00 $ 28,000.00 $ 28,000.00 0.596267327 $ 16,695.49 Total Present Value $ 2,44,201.92 Calculation of Net Present Value (NPV): Net present value can be calculated by subtracting the present value of cash flow over the five years from the initial cost of replacement on 0th year. Particulars Value Total Present Value of Cash Flow $ 2,44,201.92 Total Initial Cost of Replacement $ 3,84,000.00 Net Present Value of Replacement $ (1,39,798.08) From the above table it is estimated that the net present value of replacement is estimated to be negative. It implies that if Gordon Hall replaces its existing machine with the new one from Li Ho, it will encounter loss of $ 166,637.37 over the next five years. Hence, it can be stated that Henry must not purchase the new machine (Peterson Drake and Fabozzi, 2002). References Berk, J. and DeMarzo, P. (2007).Corporate finance. Boston: Pearson Addison Wesley. Bornholt, G. (2012). The Failure of the Capital Asset Pricing Model (CAPM): An Update and Discussion.Abacus, 49, pp.36-43. Dempsey, M. (2012). The Capital Asset Pricing Model (CAPM): The History of a Failed Revolutionary Idea in Finance?.Abacus, 49, pp.7-23. Fama, E. and French, K. (2004). 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