Dividend Policy

Stability of dividend policy. There may be three types of dividend policy (1)Strict or Conservative dividend Policy which envisages the retention of profits on the cost of dividend pay-out. It helps in strengthening the financial position of the company; (2) Lenient Dividend Policy which views the payment of dividend at the maximum rate possible taking in view the current earing of the company. Under such policy company retains the minimum possible earnings; (3)Stable Dividend Policy suggests a mid-way of the above two views. Under this policy, stable or almost stable rate of dividend is maintained.Company maintains reserves in the years of prosperity and uses them in paying dividend in lean year. If company follows stable dividend policy, the market price of tis shares shall be higher. There are reasons why investors prefer stable dividend policy. Main reasons are:- 1. Confidence Among Shareholders. A regular and stable dividend payment may serve to resolve uncertainty in the minds of shareholders. The company resorts not to cut the dividend rate even if its profits are lower. It maintains the rate of dividends by appropriating the funds from its reserves.Stable dividend presents a bright future of the company and thus gains the confidence of the shareholders an the goodwill of the company increases in the eyes of the general investors. 2. Income Conscious Investors. The second factor favoring stable dividend policy is that some investors are income conscious and favor a stable rate of dividend. They too, never favour an unstable rte of dividend. A Stable dividend policy may also satisfy such investors. 3. Stability in Market Price of Shares. Other things beings equal, the market price very with the rate of dividend the company declares on its equity shares.The value of shares of a company having a stable dividend policy fluctuates not widely even if the earnings of the company turn down. Thus, this policy buffer the market price of the stock. 4. Encouragement to Institutional Investors. A stable dividend policy attracts investments from institutional investors such institutional investors generally prepare a list of securities, mainly incorporating the securities of the companies having stable dividend policy in which they invest their surpluses or their long term funds such as pensions or provident funds etc.In this way, stability and regularity of dividends not only affects the market price of shares but also increases the general credit of the company that pays the company in the long run. Factors Affecting Dividend Policy A number of considerations affect the dividend policy of company. The major factors are 1. Stability of Earnings. The nature of business has an important bearing on the dividend policy. Industrial units having stability of earnings may formulate a more consistent dividend policy than those having an uneven flow of incomes because they can predict easily their savings and earnings.Usually, enterprises dealing in nec essities suffer less from oscillating earnings than those dealing in luxuries or fancy goods. 2. Age of corporation. Age of the corporation counts much in deciding the dividend policy. A newly established company may require much of its earnings for expansion and plant improvement and may adopt a rigid dividend policy while, on the other hand, an older company can formulate a clear cut and more consistent policy regarding dividend. 3. Liquidity of Funds.Availability of cash and sound financial position is also an important factor in dividend decisions. A dividend represents a cash outflow, the greater the funds and the liquidity of the firm the better the ability to pay dividend. The liquidity of a firm depends very much on the investment and financial decisions of the firm which in turn determines the rate of expansion and the manner of financing. If cash position is weak, stock dividend will be distributed and if cash position is good, company can distribute the cash dividend. 4. Extent of share Distribution.Nature of ownership also affects the dividend decisions. A closely held company is likely to get the assent of the shareholders for the suspension of dividend or for following a conservative dividend policy. On the other hand, a company having a good number of shareholders widely distributed and forming low or medium income group, would face a great difficulty in securing such assent because they will emphasise to distribute higher dividend. 5. Needs for Additional Capital. Companies retain a part of their profits for strengthening their financial position.The income may be conserved for meeting the increased requirements of working capital or of future expansion. Small companies usually find difficulties in raising finance for their needs of increased working capital for expansion programmes. They having no other alternative, use their ploughed back profits. Thus, such Companies distribute dividend at low rates and retain a big part of profits. 6. Trade Cycles. Business cycles also exercise influence upon dividend Policy. Dividend policy is adjusted according to the business oscillations.During the boom, prudent management creates food reserves for contingencies which follow the inflationary period. Higher rates of dividend can be used as a tool for marketing the securities in an otherwise depressed market. The financial solvency can be proved and maintained by the companies in dull years if the adequate reserves have been built up. 7. Government Policies. The earnings capacity of the enterprise is widely affected by the change in fiscal, industrial, labour, control and other government policies.Sometimes government restricts the distribution of dividend beyond a certain percentage in a particular industry or in all spheres of business activity as was done in emergency. The dividend policy has to be modified or formulated accordingly in those enterprises. 8. Taxation Policy. High taxation reduces the earnings of he companies and c onsequently the rate of dividend is lowered down. Sometimes government levies dividend-tax of distribution of dividend beyond a certain limit. It also affects the capital formation. N India, dividends beyond 10 % of aid-up capital are subject to dividend tax at 7. 5 %. 9. Legal Requirements. In deciding on the dividend, the directors take the legal requirements too into consideration. In order to protect the interests of creditors an outsiders, the companies Act 1956 prescribes certain guidelines in respect of the distribution and payment of dividend. Moreover, a company is required to provide for depreciation on its fixed and tangible assets before declaring dividend on shares. It proposes that Dividend should not be distributed out of capita, in any case.Likewise, contractual obligation should also be fulfilled, for example, payment of dividend on preference shares in priority over ordinary dividend. 10. Past dividend Rates. While formulating the Dividend Policy, the directors mus t keep in mind the dividend paid in past years. The current rate should be around the average past rat. If it has been abnormally increased the shares will be subjected to speculation. In a new concern, the company should consider the dividend policy of the rival organisation. 11. Ability to Borrow.Well established and large firms have better access to the capital market than the new Companies and may borrow funds from the external sources if there arises any need. Such Companies may have a better dividend pay-out ratio. Whereas smaller firms have to depend on their internal sources and therefore they will have to built up good reserves by reducing the dividend pay out ratio for meeting any obligation requiring heavy funds. 12. Policy of Control. Policy of control is another determining factor is so far as dividends are concerned.If the directors want to have control on company, they would not like to add new shareholders and therefore, declare a dividend at low rate. Because by add ing new shareholders they fear dilution of control and diversion of policies and programmes of the existing management. So they prefer to meet the needs through retained earing. If the directors do not bother about the control of affairs they will follow a liberal dividend policy. Thus control is an influencing factor in framing the dividend policy. 13. Repayments of Loan. A company having loan indebtedness are vowed to a igh rate of retention earnings, unless one other arrangements are made for the redemption of debt on maturity. It will naturally lower down the rate of dividend. Sometimes, the lenders (mostly institutional lenders) put restrictions on the dividend distribution still such time their loan is outstanding. Formal loan contracts generally provide a certain standard of liquidity and solvency to be maintained. Management is bound to hour such restrictions and to limit the rate of dividend payout. 14. Time for Payment of Dividend. When should the dividend be paid is anoth er consideration.Payment of dividend means outflow of cash. It is, therefore, desirable to distribute dividend at a time when is least needed by the company because there are peak times as well as lean periods of expenditure. Wise management should plan the payment of dividend in such a manner that there is no cash outflow at a time when the undertaking is already in need of urgent finances. 15. Regularity and stability in Dividend Payment. Dividends should be paid regularly because each investor is interested in the regular payment of dividend.The management should, inspite of regular payment of dividend, consider that the rate of dividend should be all the most constant. For this purpose sometimes companies maintain dividend Meaning and Types of Dividend The profits of a company when made available for the distribution among its shareholders are called dividend. The dividend may be as a fixed annual percentage of paid up capital as in the case of preference shares or it may vary a ccording to the prosperity of the company as in the case of ordinary shares.The decision for distributing or paying a dividend is taken in the meeting of Board of Directors and in confirmed generally by the annual general meeting of the shareholders. The dividend can be declared only out of divisible profits, remained after setting of all the expenses, transferring the reasonable amount of profit to reserve fund and providing for depreciation and taxation for the year. It means if in any year, there is not profits, no dividend shall be distributed that year.The shareholders cannot insist upon the company to declared the dividend. It is solely the discretion of the directors. Aunt hinted that the dividend was an income of the owners of the corporation which they received in the capacity of the owner. Distribution of dividend involves reduction of current assets (cash) but not always. Stock dividend or bonus shares is an exception to it Basic Issues Involved in Dividend Policy There a re certain basic questions which are Involved in determining the sound dividend policy. Such questions are:- 1.Cost of Capital. Cost of capital is one of the considerations for taking a decision whether to distribute dividend or not. As decision making tool, the Board calculates the ratio of rupee profits that the business expects to earn (Ra) to the rupee, profits that the shareholders can expect to earn outside (Rc) i. e. , Rs. /Rc. If the ratio is less than one, it is a signal to distribute dividend and if it is more than one, the distribution of dividend will be discontinued. 2. realisation of Objectives. The main objectives of the firm i. e. maximization of wealth for shareholders including there current rate of dividend-should also be aimed at in formulating the dividend policy. 3. Shareholders' Group. Dividend policy affects the shareholders group. It means a company with low pay-out an heavy reinvestment attracts shareholders interested in capital gains rather than n current income whereas a company with high dividend pay-out attracts those who are interested in current income. 4. Release of Corporate earnings. Dividend distribution is taking as a mens of distributing unused funds.Dividend policy affects the shareholders wealth by varying its dividend pay = out ratio. In Dividend policy, the financial manager decides whether to release Corporate earnings or not. These are certain basic issues Involved in formulating a Dividend policy. Dividend policy to a large extent affects the financial structure, the flow of funds, liquidity, stock prices and in the last shareholders' satisfaction. That is why management exercises a high degree of judgment establishing a sound dividend pattern. Dividend Policy Dividend Policy Vinod Kothari Corporations earn profits – they do not distribute all of it. Part of profit is ploughed back or held back as retained earnings. Part of the profit gets distributed to the shareholders. The part that is distributed is the dividend. The ratio of the actual distribution or dividend, and the total distributable profits, is called dividend payout ratio. How much of its profits should a corporation distribute? There are several considerations that apply in answering this question. Hence, companies have to frame and work on a definitive policy of dividend payout ratio.Of course, no corporate management can afford to stick to a fixed dividend payout ratio year after year – neither is such fixity of dividend payout ratio required or expected. However, management has to broadly decide its policy on its broad attitude towards distribution – liberal dividend payout ratio, or conservative dividend payout ratio, etc. If one were to ask this quest ion in context of debt sources of capital – for example, how much interest should a corporation pay to its bankers, the answer is straight forward. As interest paid is the cost of the borrowing, the lesser the interest a corporation pays, the better it is.Besides, companies do not have choice on paying of interest to lenders – as the rate of interest is contractually fixed. Rate of dividends may be fixed in case of preference shares too. However, in case of equity shares, there is no fixed rate of dividends. It cannot be said that the dividend paid is the cost of equity capital – if that was the case, corporations may try to minimize the dividend distribution. Hence, the following points emerge as regards the dividend distribution policy: †¢ The cost of equity is defined as the rate at which the corporation must earn on its equity to keep the market price of the equity shares constant.Let us further suppose that the market price of the shares is obtained by capitalizing the earnings of the corporation at a certain capitalization rate – the capitalization rate itself depending on the riskiness or beta of the industry. Suppose the corporation does not earn any profit. Shareholders were expecting a certain rate of return on their shareholding – hence, share prices will fall at the expected return on equity. On the other hand, if just the expected rate of return is earned by the corporation, the price of equity shares remains constant if the earnings are entirely distributed, and xactly grows by the expected rate of return if the earnings are entirely retained. The above discussion leads to the conclusion that the cost of equity is not the dividends but the return on equity – hence, a corporation cannot work on the objective of minimizing dividends. Equity shareholders are the owners of the corporation – hence, retained earnings ultimately belong to the shareholders. Supposing a company earns return on equity o f 10%, and retains the whole of it, the retained earnings increase the net asset value (NAV) of the equity shares exactly at the rate of 10%.Assuming there are no other factors affecting the equity price of the company, the market price of †¢ †¢ †¢ †¢ †¢ †¢ the shares should exactly go up by 10% commensurate with the increase in the NAV of the shares. That is to say, shareholders gain by way of appreciation in market price to the extent of 10%. On the other hand, if the company distributes the entire earnings, shareholders earn a cash return of 10%, and there is no impact on the NAV of the shares, hence, the same should remain unchanged.Therefore, in both the cases, the shareholders earned a return of 10% – in the first case, by way of growth or capital appreciation, and in the second case, by way of income. In other words, merely because the corporation is not distributing profits does not mean it is depriving shareholders of the rate of return on equity. The above two points reflect the indifference, sometimes referred to as irrelevance of dividend policy (see Modigliani and Miller approach later in this Chapter) from the viewpoint of either the company or its shareholders. Supposing the corporation decides to retain the entire earning.Obviously, the corporation would earn on this retained profit at the applicable return on equity. Note that the return on equity is relevant, as retained earnings would be leveraged and would, therefore, benefit from the impact of leverage too. On the other hand, if the corporation were to distribute the entire profits, shareholders reinvest/consume the income so distributed at their own rate of return. Hence, it may be contended that whether the company retains or distributes the earnings depends on whose reinvestment rate is higher – that of the company or that of the shareholders?Quite clearly, the rate of reinvestment in the hands of the corporation is higher than that in the han ds of the shareholders, (a) because of leverage which shareholders may not be able to garner; and (b) intuitively, that is the very reason for the shareholders to invest in the company in the first place. This argument generally favors retention of profits by the company rather than distribution. [As we discuss later, this argument is the basis of the Walter formula] As a counter argument to this, it is contended that shareholders do not need growth only – they need current income too.Many investors may sustain their livelihood on dividend earnings. Of what avail is the increase in market value of shares, if I need cash to spend for my expenses? However, in the age of demat securities and liquid stock markets, growth and income are almost equivalent. For example, if I am holding equity shares worth $ 100, which appreciate in value to $ 110 due to retention, I can dispose off 10/110% of my shareholding, earn cash equal to $ 10, and still be left with stock worth $ 100, which i s exactly the same as earning cash dividend of $ 10 with no retention at all.While the above argument may point to indifference between growth and income, the reality of the marketplace is that investors do have varying preferences for growth and income. There are investors who are growth-inclined, and there are those who are income-inclined. Majority of retail investors insist on balance between growth and income, as they do not see an exact equivalence between appreciation in market value and current cashflows. Hence, the conclusion that emerges is that companies do have to strike a balance between shareholders’ need for current income, and growth opportunities by retained earnings.Hence, dividend policy still remains an important consideration. While making the above points, there are certain special points that affect particular situation that need to be borne in mind: †¢ Company’s reinvestment rate lower than that of shareholders: Sometimes, there are compani es that do not have significant reinvestment opportunities. More precisely, we say the reinvestment rate of the company is lesser than the reinvestment rate of shareholders. In such cases, obviously, it is better to pay earnings out than to retain them.As the classic theories of impact of dividends on market value of a share (see Walter’s formula below) suggest, or what is anyway intuitively understandable, retention of earnings makes sense only where the reinvestment rate of the company is higher than that of shareholders. †¢ Tax disparities between current dividends and growth: In our discussion on indifference between current dividends and share price appreciation, we have assumed that taxes do not play a spoilsport. In fact, quite often, they do.For example, if a company distributes dividends, the same may be taxed (either as income in the hands of shareholders, or by way of tax on distribution – like dividend distribution tax in India). Alternatively, if the shareholders have a capital appreciation, which they encash by partial liquidation of holdings, shareholders have a capital gain. Taxability of a capital gain may not be the same as that of dividends. Hence, taxes may differentiate between current dividends and share price appreciation. Shares with fixed returns: Needless to say, there is no relevance of dividend policy where dividends are payable as per terms of issue – for example, in case of preference shares. †¢ Entities requiring minimum distribution: There might also be situations where entities are required to do a minimum distribution under regulations. For example, in case of real estate investment trusts, a certain minimum distribution is required to attain tax transparent status. There might be other regulations or regulatory motivations for companies to distribute their profits.These regulations may impact our discussion on relevance of dividend policy on price of equity shares. †¢ Unlisted companies: Fi nally, one must also note that discussion above on the parity between distributed earnings and retained earnings – the latter leading to market price appreciation – will have relevance only in case of listed firms. Technically speaking, in case of unlisted firms too, retained earnings belong to the shareholders, as shareholders after all are the owners of the residual wealth of the company. However, that residual ownership may be a myth as companies do not istribute assets except in event of winding, and winding up is a rarity. The discussion in this chapter on dividend policy, as far is relates to market price of equity shares, is keeping in mind listed firms. In case of unlisted firms, classical models such as Walter’s model or Gordon Growth model discussed below may hold relevance than market price-based models. From dividends to market value of equity: Dividend capitalisation approach: If, for a second, we were to ignore the stock market capitalisation of a company, what is the market value of an equity share?Say, we take the case of an unlisted company. We know from our discussion on present values that the value of any asset is the value of its cashflows. What is the cashflow a shareholder gets from his equity? As long as the company is not wound up, and the shareholder does not sell the stock, the only cashflow of the shareholder is the dividends he gets. It is easy to understand that if we are not envisaging either a sale of the shares or a liquidation of the company, then the stream of dividends may be assumed to continue in perpetuity. Hence, VE = ? ? (1 + K i =1 Di E )i (1)Where VE : Value of equity K E : Cost of equity Di : dividends in paid in year i Equation (1) is easy to understand. Shareholders continue to receive dividends year after year, and these dividends are discounted by the shareholders at the cost of equity, that is, the required return of the shareholders. If the stream of dividends is constant, then Equation (1) is actually a geometric progression. We can manipulate Equation (1) either to compute the price of equity, if the constant stream of dividends is known, or to compute the cost of equity, if the dividend rate and market price of the shares is known.Applying the geographical progression formula for adding up perpetual progressions, assuming constant dividends equal to D, Equation (1) above becomes: VE = = D (1 + K E ) ? (1 ? 1 ) 1+ KE (2) D KE Example: Supposing a company the nominal value equity were $ 100, and the dividends at the rate of 10 % were $ 10, if the cost of equity is 8%, then the market price of the shares will given by 10/8%, or $ 125. Incorporating growth in dividends:In our over-simplified example above, we have taken dividends to be constant. It would be unusual to expect that dividends will be constant, particularly where the company is not distributing all its earnings. That is to say, with the retained earnings, the company has increasing profits in successive ye ars, and therefore, it continues to distribute more. If dividends grow at a certain compounded rate, say g, then, Equation (2) above becomes: VE = D (1 + g ) (1 + K E ) = ? (1 ? 1+ g ) 1+ KE (3) D (1 + g ) KE ? gNote that we have assumed here that even the first dividend will have grown at g rate, that is, the historical dividend has been D, but we are expecting the current year’s dividend to have increased at the constant rate. If we assume the current year’s dividend will not show the growth, and the growth will come from the forthcoming year, then we can remove (1+g) in the numerator above. The formula as it stands is also referred as Gordon’s dividend growth formula, discussed below. Example: Supposing a company the nominal value equity were $ 100, and the dividends at the rate of 10 % were historically $10.Going forward, we expect that the dividends will continue to grow at a rate of 5% per annum. If the cost of equity is 8%, what is the market value? We pu t the numbers in the formula and get a value of $350. Note that we can also test the valuation above on Excel. If we take sufficient number of dividends, say, 1000, successively growing at the rate of 5%, and we discount the entire stream at 8%, we will get the same value. Example: Supposing a company the nominal value equity were $ 100, and the dividends at the rate of 10 % were historically $10.Going forward, we expect that the dividends will continue to grow at a rate of 12% per annum. If the cost of equity is 8%, what is the market value? This is a case where the growth in dividends is higher than the discounting rate. The growth in dividends is a multiplier; the discounting rate is a divisor. If the multiplier is higher than the divisor, then the present value of each successive dividend will be higher than the previous one, and hence a perpetual series will have infinite value. There is yet another notable point – the growth rate g above may be also be visualised as the appreciation in the market value of the share.That is, shareholders are rewarded in form of current earnings as well as growth in the value of their investment. Dividend-based equity models: Walter Approach: The Walter formula belongs to James E Walter, and is based on a simple argument that where the reinvestment rate, that is, rate of return that the company may earn on retained earnings, is higher than cost of equity (which, as we have discussed before, the expected returns of the shareholders, or rate of return of the shareholders), then, it would be in the interest of the firm to retain the earnings.If the company’s reinvestment rate on retained earnings is the less than shareholders’ rate of return, the company should not retain earnings. If the two rates are the same, then the company should be indifferent between retaining and distributing. The Walter formula is based on a simple analysis that the market value of equity is the capitalisation of the current ear nings and growth in price (g in our formula in equation 3 above). Hence, the basis of Walter formula is: VE = D +g KE (4) Here, the growth factor occurs because the rate of return on retention done by the company is higher than the cost of equity.That is to say, the company continues to earn at r rate of return on the retained earnings, and this is what causes growth g. Hence, g= r (E-D)/ K E Inserting equations (5) into (4), we have VE = (5) D KE + r (E – D)/K E KE (6) Where r = rate of return on retained earnings of the company E = earnings rate D = dividend rate Example: Supposing a company the nominal value equity is $ 100, and the dividends at the rate of 10 % are $10. Supposing the company earns at the rate of 12% , what is the market value of equity if the the cost of equity is 8%?The market value of the share comes to $ 162. 50. This is explainable easily. As the company is earning $12, and distributing $10, it retains $ 2 every year, on which it earns at 12%. The cap italised value of 0. 24 at 8% will be the expected growth. Therefore, the sustainable earnings of the shareholders will be $ 10 +3, which, when capitalised at 8%, produces the value $ 162. 50. Of course, the key learning from Walter’s approach is not what the market value of equity is, but how the market value of equity can be maximised by following a proper distribution policy.For instance, in the present case, it is not advisable for the company to distribute any dividend at all, as the company earns more than the shareholders’ opportunity rate. If the company was not to distribute anything, the market value of the share may increase to $ 225. Gordon growth model: Gordon’s growth model is simply Equation (3) above, that is, VE = D (1 + g ) KE ? g This is, as we have seen above, derived from perpetual sum of a geometric progression, under the assumption that the growth rate is less than the cost of equity. Modigliani and Miller approach:Franco Modigliani was aw arded Nobel prize in 1985 and Merton Miller in 1990 (along with Markowitz and Sharpe). M&M have theorised on the irrelevance of the capital structure, and a corollary, irrelevance of the dividend payout ratio to the value of the firm. Like several financial theories, M&M hypothesis is based on the argument of efficient capital markets. In addition, we believe that a firm has two options: (a) It retains earnings and finances its new investment plans with such retained earnings; (b) It distributes dividends, and finances its new investment plans by issuing new shares.The intuitive background of the M&M approach is extremely simple, and in fact, almost selfexplanatory. It is based on the following propositions: †¢ Why would a company retain earnings? Only tenable reason is that the company has investment opportunities. If the company does not retain earnings, where does it finance those investment opportunities from? We may assume a debt issuance, but then as M&M otherwise propoun ded irrelevance of the capital structure, they see a parity between debt and equity, and hence, it does not make a difference whether the new investments are funded by equity or debt.So, let us assume that the new growth plans are funded by equity. Shareholders price the equity shares of the company to take into account the earnings and the retentions of the company. If the company distributes dividends, the shareholders take into account that fact in pricing of the shares; if the company does not distribute dividends, that is also reflected in the pricing of the shares. If dividends are distributed, the financing needs of the company will be funded by issuing new shares. The issue price of these shares will compensate for the fact that the dividends have been distributed.That is to say, the market price of the share will remain unaffected by whether the dividends have been distributed or not. †¢ †¢ Let us take a one year time horizon to understand the indifference argumen t of M&M. We use the following new notations: Po P1 D1 n m I X : Price of the equity share at point 0 : Price of the equity share at point 1, that is, end of period 1 : Dividend per share being paid in period 1 : existing number of issued shares : new shares to be issued : Investment needs of the company in year 1 : Profits of the firm year in 1 The relation between the price at the beginning of the year (Po), and that at he end of the year (P1) is the simple question of discounted value at the shareholders’ expected rate of return (KE). Hence, Po = (P1 +D1) / (1+(KE) (7) Equation (7) is quite easy to understand. Shareholders have got a cash return equal to D1 at the end of Year 1, and the share is still worth P1. Hence, discounted at the cost of equity, the discounted value is the price at the beginning of the period. Alternatively, it may also be stated that the P1 = (P0 )* (1+(KE) – D1 (8) That is to say, if the company declares dividends, the price the end of year 1 comes down to the effect of the distribution.Equation (7) can be manipulated. By multiplying both sides by n, and adding a self-cancelling number m, we may write (7) as follows: nPo = [(n+m)P1 -mP1 +nD1)]/(1+(KE) (9) Note that we have multiplied both sides by n, and the added number m along with m is cancelled by deducting the same outside the brackets. mP1 represents the new share capital raised by the company to finance its investment needs. How much share capital would the company need to raise? Given the investment needs I and the profits X, the new capital issued will be given by the following: mP1 = I – (X – nD1) (10)Again, this is not difficult to understand, as the total amount of profit of the company is X, and the total amount distributed as dividends is nD1. Hence, the company is left with a funding gap as shown by equation (10). If the value of mP1 is substituted in Equation (9), we have the following: nPo = [(n+m)P1 – {I – (X – nD1)} +nD1)]/(1+(KE) (11) As nD1 would cancel out, we will be left with the following: nPo = [(n+m)P1 – I + X] /(1+(KE) (12) Since nPo is total value of the stock at point 0, it is seen from Equation (12) that dividend is not a factor in that valuation at all.

“Chemistry” written by Graham Swift Essay

In the opening of the story, Graham Swift uses descritptive writing to give us a striking image of the pond, where he went with his grandfather and mother, â€Å"The pond in our park was circular, exposed, perhaps fifty yards across. When the wind blew, the little waves travelled across it and slapped the paved edges like a minature sea.† This helps the reader gain a more precise image in their head of the park where the narrator is, and it also helps make the story more interesting to read. The opening of the story is also parallel to the end. The narrator in the story, goes back to the pond at the end of the story, and again gives us good imagery description of it, â€Å"Dead willow leaves floated on it†. I found this interesting, because it makes the story cyclical, and may be a reminder of the journey of growing up and of the acceptance ‘ â€Å"You must accept it – you can’t get it back† ‘. It also convinces us to believe that the na rrator went back to the park, for wishful thinking – hoping that his grandfather would return and not wanting to left go of the past. When I first began reading the story, I believed that it was a female narrator. One of the reasonings for this is because it said, â€Å"My grandmother died suddenly†¦ all I know is that I must have had her looks.† However, we are later informed that the narrator is a ten year old boy. We aware of this because his mother calls him her â€Å"little man† and she also says, ‘ â€Å"He’s only ten, what can he know?† ‘. I find this extremely interesting in the story, because he appears to be extremely mature, intelligent and formal. Although he is only ten years old, he uses complex words and sentences such as â€Å"fundamentals of chemistry†, â€Å"haunches† and â€Å"reconciled them in mutual grief†. However, he is cold blooded as he rarely describes how he is feeling and has never mentioned about being upset when his father and grandmother died. This is an unusual perspective to use as he is so young, yet faced with traumatizing experiences, but I believe that the author has done this to highlight his innocent and because he will have few prejudices. This means he will tell the story how it is, without changing it to suit what he believes or his own opinions. An example of this, is when his father comes to see him. Although I believe that it is a dream, the narrator is convinced that his father came to see him – â€Å"That night father came to the bedroom. I knew it was him†. At the beginning of the story, I find it interesting, that the author describes the boat journey, over the pond towards grandfather as â€Å"trouble free†. Then, all of a sudden the boat sinks. I believe that the author purposely makes the boat sink when Ralph is immediately introduced to the story, â€Å"Then one day – it must have been soon after mother met Ralph – we watched the boat†¦ become deeper and deeper in the water.† This contrasts greatly with the boat journey on the pond before the boy’s mother met Ralph, and poses questions in the readers mind that Ralph is going to stop the boy’s and grandfathers â€Å"trouble free† life. I believe that this is interesting because he is indirectly warning the readers that Ralph is going to make things worse, which is symbolic of the sinking boat. An example of Ralph making things worse later in the story, is during meal times. This is because since Ralph’s appearance, the narrator’s mother would cook the things that only Ralph liked and forget to produce meals that grandfather was of. Thus resulting in arguments at meal times, when grandfather was sent out to his shed. Although the story is quite dull and morbid, the author uses humour, when the boy says, â€Å"I wondered how Grandmother could be at the bottom of the Irish Sea and at the same time what Father was doing there†. Again, this highlights his innocence and although it is humerous we are not laughing with him, but at his ignorance. In the story, there are many time shifts. Numerous times the narrator goes back in time, to update and tell the reader of a previous event, such as the relationships between his mother and grandfather before Ralph came along, and explaining why his mother and him came to live with his grandfather . This may be significant in the story because he preferred things in the past, compared to now. I find the relationship between the narrators mother and grandfather interesting. â€Å"He refused to leave the house in which my grandmother had lived, and my parents refused to leave theirs†, tells us that they are both arrogant and selfish and will not give in to their stubborness for one another. The narrator tells us that his mother is also hypocritical towards her father, â€Å"no matter how neglectful and even hurtful she might be to Grandfather herself, she wouldn’t have forgiven someone else’s hurting him†. Also, she tries to punish her father by isolating him from them (as he was â€Å"runing their meals†) by saying â€Å"do you want to take yours out to your shed?!† When he dies, her mother shows no remorse and â€Å"did not cry†. The narrator tells us that, it was as though she had â€Å"this look of relief, as if she had recovered from an illness†. The narrator does not say this, but we assume that the illness was her father. The boy believes that his mother is in love with Ralph, and would choose him over her father, â€Å"If Ralph hurts Grandfather it means I’m right – he doesn’t really care about mother at all; but if mother is cruel to Grandfather it means she really loves Ralph†. However, he also says â€Å"She looked trapped and helpless†, when Ralph and his mother were cuddling, which puts questions in our mind about their relationship and if she is truly happy. Within the story there are many hidden messages and meanings. There are many questions that remained unanswered too. An example of this is when the boy’s father came to visit him during the night. He says to him, ‘ â€Å"It was her. She made a hole in the bottom of the boat, not big enough to notice, so it would sink – so you and Grandfather would watch it sink. The boat sank – like my plane† ‘. The questions that this poses in my mind are: Did the boy’s mother kill her father? Did she kill the boys Grandfather? Is he looking for someone to blame? Did she purposely sink his boat? I think it is ironic that his father â€Å"visited† him, on the night that his Grandfather had died. I believe the author did this purposely to add more mystery and confusion to the story. Another example which raises hints and questions to the reader is the cherry laurel bushes that were growing in their garden. He says, â€Å"Only the cherry-laurel bushes were partly denuded – for some reason Grandfather had been picking their leaves.† Further on in the story, when the boy goes out to the shed, he begins questioning his Grandfather about the chemicals he had. ‘ â€Å"Laurel water. Prussic acid.† He smiled. â€Å"Not for drinking.† ‘ The smile may indicate to the reader that he is smiling to the boy through innocence; telling him to politely and informaly not to drink it, or he his smiling to himself, asthough he has something planned. Again, this poses more questions in my mind but it contradicts my believing that the boys mother killed the boys Grandfather, and because of this it adds more unanswered questions. Also in the story, I find interesting that the official verdict was â€Å"suicide by swallowing prussic acid†, which is an argument for his Grandafther commiting suicide (as he had some prussic acid in his shed), yet the boy is extremely cynical and believes his mother murdered her father. † But all of the other things that should have been explained – or confessed – she never did explain†, and â€Å"I wanted to tell them – about how suicide can be murder† indicate this to us. His mother says to the boy, ‘ â€Å"†¦he wouldn’t have lived much longer anyway† ‘ which may inform the reader that she is trying to justify her actions (murder). Throughout the story is the theme of chemistry and how things are â€Å"changed – not made†. His Grandfather’s job, before retirement, was gold-plating and now, in the shed in the garden, he carries out many experiments, â€Å"I don’t think Grandfather practised chemistry for any particular reason†.The chemistry Grandfather experiments with and changes is a metaphor of what is happening in the home, ‘ â€Å"People change too, don’t they?† ‘ His Grandfather replies with â€Å"They change. But the element’s don’t change.† This is telling the reader, that although people/elements can change and become something else, underneath it all they are still made of the same as they were before.

John Corvino and Glenn Stanton on Same Sex Marriage Essay

Same sex relationships have been a controversial issue now in 21st century and marriage is coming along the way. In the United States, when the issue of same sex marriage was brought up, many homosexuals are in a hurry to marry and become actual parents with legislative support but many states banned it. As a result, numerous gay activists and supporters battle in a debate for same sex marriage. John Corvino, gay activist, and Glenn Stanton, researcher and staff of Focus on the Family, have been travelling in the country and passionately fighting for the acceptance of gay marriage and parenting. In John Corvino’s Same Sex: Debating the Ethics, Science and Culture of Homosexuality, he presented different views from theologians, scientists, philosophers, historians, and lesbian and gay scholars. He showed a bigger picture of what is homosexuality, what is its history, and what are the factors that influence or hindrance it. In one of the chapters under Science and Identity, the possible biological origins of homosexuality are explained. Sexual orientation, as many argued is affected by biological foundations but is not merely determined by it but also but experiential factors. Many studies have implied results that some individuals are born with homosexual brains while others’ sexuality is later modified through experience. However, being homosexual should not about the lack of choice or heredity but of gay and lesbian rights in key areas: justice, privacy, equality, and liberty (Corvino 111). On Marriage on Trial: The Case Against Same Sex Marriage and Parenting, Glenn Stanton together with Bill Maier—another staff of Focus on the Family and also a child and family psychologist presented a strong argument on why same sex marriage should be allowed as a right for homosexuals. The two authors specifically designed the book as â€Å"equipping manual† or a defence toll to enable gays and lesbians in responding and reasoning to defend same-sex marriage (Stanton and Maier 9). The manual provided â€Å"accurate information† about homosexuality on how to answer the questions that may gay people are looking for. Questions such as â€Å"What’s wrong with letting homosexuals marry? ,† â€Å"How would homosexuals threaten other families? ,† and â€Å"Wouldn’t gay marriage make for a more open and equitable society? † are aimed to answer and guide same-sex couples into fighting for their right and actually having their families by understanding the nature of homosexuality first and by learning its historical evidences. Both authors fight for the same cause but used different attacks. Corvino presented a more wide and critical information through science and ethics without mixing the two. Although many studies revealed that sexuality is developed by genetics or experience, it is still an inconclusive matter since no one has ever seen how sexual orientation is represented on the brain. Corvino provided its readers such integrity, passion, and rationality by not mixing science and religion or to simply conclude that gays and lesbians become who they are due to violence they experience from gay community. Its approach to same sex marriage is not limited to debate and arguments by wide array of information such as its history, psychology, family, religion, and legality. Stanton, on the other hand, encourages and empowers gays and lesbians to fight for same-sex marriage not merely because they want to but because it is their right to marry and have a family as human beings. He gave sound political statements that could uplift the spirit of its readers and he also debunked the numerous myths about gays such as genetics, lifestyle, and threats. Both authors have provided arguments that are strong and critical assessment of sex-marriage and homosexuality without overly becoming biased on gays and lesbians. Works Cited Corvino, John. Same Sex: Debating the Ethics, Science and Culture of Homosexuality. Rowman and Littlefield, 1999. Stanton, Glenn and Maier, Bill. Marriage on Trial: The Case Against Same Sex Marriage and Parenting. InterVarsity Press, 2004.

Students Should be Paid for Good Grades Research Paper

Students Should be Paid for Good Grades - Research Paper Example We tell him going to school and getting good grades is his job. If he does his job well, he gets paid just like a job in the real world.† Just think about it, if you were told that going to the office is your â€Å"job† as an adult and yet you derive nothing from participating in the said activity, would you be motivated to go to work? Would you be motivated to work harder in order to achieve a promotion if you knew that it did not come with a salary increase? Exactly. So why should paying a child for doing well in school be any different? Most specially since financial problems will be keeping these kids out of school later on in their lives. We should give them every opportunity to complete their education and if that means offering financial incentives while they are in high school, the so be it (Fitzpatrick, 2009). Weston (2009) quotes lawyer Jon Gallo, who is a non believer in the reward system as having said, " "Some psychologists believe that paying for grades is a bad idea because it substitutes an external reward -- money -- for an internal sense of satisfaction and therefore interferes with developing a work ethic." Remember that the educational system is meant to be a training ground for our country's future leaders. Therefore, giving them an incentive to stay in school and discover their true interests, since they will be amply rewarded for it early on in life, will result in truly motivating them to enter college and compete for jobs in the real world. Thereby giving them a thirst for more accomplishments in their future careers. It may also motivate students to enter the fields of study that are most in-demand in our country due to lack of participants. According to Guttenplan (2011), the money for grades program is actually helping the country of Qatar to do just that, remove their reliance on migrant workers for the professional jobs in the medical, engineering, and law fields. In the U.S. where we have a shortage in the Math and Sc ience areas, incentive programs such as these on the high school level may just be what the doctor ordered in order to fill in that hole. Tommie Sue Anthony president of the Arkansas Advanced Initiative for Math and Science (Toppo, 2008) explains that under their own Exxon-Mobile funded rewards for grades incentive program â€Å"We still have students who are not sure of the value, who are not willing to take the courses... Probably the incentives will make a difference with those students." This is a belief that is supported by by National Math and Science Initiative. Their representative, Gregg Fleischer explains (Toppo 2008) â€Å"It's an incentive to get them to basically make the right decision and choose a more rigorous class... This teaches them that if they work at something very hard and have a lot of support, they can do something they didn't think they could do.† Guernesy (2009) argues that psychologists believe that paying students to do well in school may result in various problems such as cheating. However, she also says that economists believe the program to be a â€Å"valuable incentive, especially for struggling students† (Guernsey, 2009). Our country's current financial situation means that parents are struggling to keep a roof over their heads and food on the table. This in turn, forces the students from these families to take on part time or full time jobs

Philosophy of Punishment Essay Example | Topics and Well Written Essays - 750 words

Philosophy of Punishment - Essay Example However, the concept of punishment as largely arisen from a retributive practice as a form of providing justification for the victim (Alexander 2012). A greater liberal justification of punishment is the sense of isolating and getting rid of all threats in the society so as to achieve social order and to ensure that criminal aggression is kept within control (Bedau 2010). The threatened punishments are deemed to be necessary as due process of law. In the modern day, punishment is defined as any form of pain, suffering, confinement or loss that has been imposed by auhtoruty on a person for an offense (the authority having the subject for the offense). However, the definition of punishment also needs to include the effects and incidents related to the punishment including exclusions to be made. Early man caused punishment to include destruction of those objects or people who harmed or threatened to harm society or property. In this paper, the broad philosophies of punishment would be c onsidered along with the various models that are being used (Alexander 2012). Body The first model of punishment being considered is retribution. Retribution is a theory of justice that punishment should be appropriate or proportionate to the type and seriousness of the crime with the aim of achieving satisfaction and psychological benefits for the aggrieved party and the society in general. Often the saying goes ‘an eye for an eye’ and ‘a tooth for a tooth’, wherein the severity of the punishment should be based on the severity of the wrongdoing. According to Michael Davis, a philosopher, the amount of punishment as per retributive justice should be based on the amount of unfair advantage that has been gained by the wrongdoer. In proposing such a theory, he wanted greater reform in the reformative justice being done. Following the development of this theory, judges considered the mitigating factors for various crimes based on the situations existing (Bedau 2010). Vengeance or revenge is more of harmful form of action as a reaction to crime and a form of grievance and may be based on societal rules. Over time vengeance has evolved and today is being implemented with greater social cohesion. Death penalty is a form vengeance wherein some societies have it even for other crimes such as child rape. Many religions such as Christianity and Buddhism go against the concept of revenge. Vengeance may be considered as a form of retribution. However, in today’s justice system, punishment has gone much more beyond mere revenge with an intention of protecting society in general (Bright 1995). Deterrence considers that punishment is necessary for any crime and should often be based on the gravity of the crime, so that the crimes are avoided not only by the offender, but also by other potential offenders that may be present in society. There are 2 types of deterrence’s, namely general deterrence and specific deterrence. In general dete rrence, specific events would help to prevent crimes in general, so that unintended behavior is removed from society. In specific deterrenc

Financial Economics Essay Example | Topics and Well Written Essays - 3250 words

Financial Economics - Essay Example ecent finance theory are applicable across countries, much is still to be done to bring out the effect of different institutional features on capital structure choices. Our knowledge of capital structures has mostly been derived from data from developed economies that have many institutional similarities. The purpose of this paper is to analyse the capital structure choices made by companies from developing countries that have different institutional structures (Artikis, 2007). The study also is to examine the determinants that can be used in capital structure choices of firms. This is mainly for small and private firms. In the study, there was use of data obtained from World Bank to determine the differences that exist in capital structure in the countries (DeMarzo & Sannikov, 2004). In accordance with the capital structure theory, the importance of firm level elements of capital structure, tangibility in terms of assets, and profitability of firms and size of companies are brought out. Results are healthy to the different descriptions of size. Large and listed firms can have easy access to finance in developing countries, thus they have higher leverage and higher debt maturities (Bierman, 2003). For small and private firms, access to finance is depended on the conditions of economic environment. Leverage and debt maturities are sensitive to macroeconomic factors. The knowledge on the capital structure in the essay was also used to analyse the choices that are made by institutions, mainly from developing countries that have different structures in their institutions. As in Gordon and Li (2005), profitability is measured using the return on sales (ROS), return on assets (ROA) and return on equity (ROE). With respect to leverage, there are several measures in the literature. Following Gordon and Li (2005), the paper considers the following ratios: Total Debt to Total Assets ratio and total debt to equity ratio. From analysis, it was found out that financial

Polanski & Spielberg Term Paper Example | Topics and Well Written Essays - 1500 words

Polanski & Spielberg - Term Paper Example The directors made films that hit the public both emotionally and dramatically. Their work was loved by all due to their sense of portraying the war and the post events of the war. The Pianist was released in 2002 written by Ronald Harwood and starred by Adrien Brody. The film is a biographical account of a pianist who is a Polish Jew. While the story truly depicts the hardships faced by the Jewish people in the World War II, it keenly takes in account the life of Szpielman being torn apart, his family being taken away from him, and his existence being vanished. Saving Private Ryan is an American film released in 1998. It is a war film based on the invasion of the Normandy in the World War II. The story is written by Robert Rodat who was inspired by the monument he saw which was built for the eight siblings killed in the American civil war. Thus, he wrote a narrative of the siblings in the World War II who had fought against the Germans. The film had received much of the praise from the audience as well has the critics, and won many awards too. These films have been a clear picture of what the World War II brought for the people and how cleanly the directors have pictured it. Comparison of the two films: Both the films have many similarities in their plots and their use of graphics. Since both the films are based on wars, they are more towards the horror aspect. They give the viewers a look of horror, suspense and thriller. The actors in both the films have done an outstanding job, the stories are strong and the use of graphics and screenplay makes the most out of the films. The difference in the films are the ways the directors have created the directed and the stories and how they have taken the stories along to reach the audience and to win their attention. Despite having the same theme, the directors have managed to give a wave of emotions in a different way that the audience of each movie would have felt something different after watching the movie. In the critical aspect, both the films have been immensely appreciated and praised by the critics and the audience and have successfully won the hearts of many. Both the works have been written in a war scene and they show the stories plotted on the World War II and the lives affected at that time. The films are known for their graphics and their depiction of the war scenes. Thus, the scenes of the war which are in most of the two movies can be compared and contrasted with each other. Both movies do not just show some scenes, in fact the whole movie of around two hours is based on a war scenario with different features of the war. There is a clear scene of the war in Saving Private Ryan where the Captain is looking for Ryan and enters the zone of war with his group. While he is searching for Ryan, and even after finding him, they face many of the troubles of the war together. In The Pianist, the scenes are also in the zone of war and show the struggles of the pianist during the war time. In this film, the main focus is made on the pianist with however, lesser scenes of the war than in Saving Private Ryan, but the scenes of the war have been presented pretty well. In the second aspect when we look at both of the films, we can see that not only do they show the similarities in the scenes of war, but they also show a plot on which the emotional lives

Occupational Safety and Health Act Essay Example | Topics and Well Written Essays - 2750 words

Occupational Safety and Health Act - Essay Example The concerns that had prompted passage of this landmark law were hardly unfamiliar or new ("Act of Congress: Occupational Safety and Health Act of 1970"). Accidents in America's factories and mines had ruined thousand of worker's lives. Federal statistics compiled since 1911 had also documented a growing epidemic of work-related illness and diseases. The first federal statute passed by Congress that required safety equipment in the workplace was the Safety Appliance Act which was applied only to railroad equipment. In 1910, the Congress established the federal Bureau of Mines to conduct research into the mine safety in response to a series of highly-publicized and deadly mine explosions and collapses. The broadest early federal reform measures - legislation establishing the Department of Labor in 1913 and banning exploitive child labor in 1938 - intentionally left most regulatory power over industrial working conditions with the states. The Esch Act of 1912 effectively outlawed the p roduction of white phosphorus matches, and the Walsh-Healey Public Contracts Act banned federal contract work done under hazardous conditions. These laws, as well as the growing number of labor unions and public anger toward poor workplace safety, led to the significant reductions in worker accidents for a time. State regulations of workplace began as part of the Progressive response to the industrial revolution during the 19th century. Early in the twentieth century, the increasing labor movement lobbied successfully for further regulation. Eventually, the federal government became involved in workplace safety during the Franklin's Roosevelt presidency. (US History Encyclopedia: Occupational Safety and Health Act). Industrial production increased significantly in the United States during World War II, and industrial accidents soared. Winning the war took precedence over safety, and most labor unions were more concerned with maintaining wages in the face of severe inflation than with workplace health and safety. After the war ended, however, workplace accident rates remained high and began to rise. In the two years preceding OSHA's enactment, 14,000 workers died each year from workplace hazards, and another 2 million were disabled or harmed. Additionally, the "chemical revolution" introduced a vast array of new chemical compounds to the manufacturing environment. The health effects of these chemicals were poorly understood, and workers received few protections against prolonged or high levels of exposure. While a few states, such as California and New York, had enacted workplace safety as well as workplace health legislation, most states had not changed their workplace protection laws since the turn of the century. Workplace Conditions Before the Passage of the OSHA In the mid - 1960's, growing awareness of the environmental impact of many chemicals, and the changes in America industry, exposed the ineffectiveness of existing state and federal laws. In 1965, the Public Health Service published an influential report that outlined some of the recently discovered technological dangers, including chemicals linked to cancer. The report called for a major national occupational health effort, criticizing existing federal law as too limited and state programs as uncoordinated and insufficient. The AFL-CIO and other labor organizations urged President Lyndon Johnson to support the report's recommendations. The Passage of

Tanning. Why do people still tan after knowing all the bad effects Essay

Tanning. Why do people still tan after knowing all the bad effects - Essay Example Within the same era as that of Shakespeare, Elizabeth I passed away from white lead cosmetics. Such concept of beauty was also prevalent in Europe during much of the 18th and 19th centuries. This was because tanned skin signifies manual labor, of people who toil under the sun, the fair skinned people were regarded as the elite of the society. However, it was only when the labor practice has changed, where indoor work had become a norm, that tanned skinned became a trademark of people who can afford to do it for leisure purposes. Iconic figure Coco Channel during the 1920's accidentally acquired a tan during one of her holidays. This has had ignited a fad among fair skinned people to get themselves tanned. ( Wikipedia ) The first and the most common is sunburn, where the usual symptoms are marked by the redness of skin and peeling that takes places after a few days of too much sun exposure. This is described to be as a short-term skin damage. The next problem encountered is the premature aging or photoaging. ... Another one that is most dreaded by all is skin cancer. One type is called melanoma which is considered to be the less common but dangerous form of skin cancer that can cause death. UV radiation causes cancer in two ways : 1. By damaging DNA cells that will cause abnormal growth in the skin, that could be benign or malignant, and 2. by making the immune system weak that leads to the inability of the body to defend itself from aggressive cancer cells. Another kind of growth named actinic or solar keratoses is a concern because it has the tendency to develop into cancer cells. Then another risk which most people are not aware of is eye damage. This happens when the eyes weren't protected from the heat of the sun. It causes cataract characterized by the clouding of the lens of the eyes thereby blocking one's vision. Lastly, most people regardless of the race or skin color will most like suffer from immune suppression where the body's natural defenses to fight against diseases were compromised. Apparently, weak immune system makes one susceptible to different diseases where one of them could be skin cancer. (U.S. Food and Drug Administration) Reasons Why People Tan Despite Risks Robin Hornung and Solmaz Poorsattar, students of the University of Washington, conducted a study among 385 UW students about their tanning behaviors. It was revealed that 75% of the students do tanning in order to look good and 41% specified it is a relaxation technique. Due to these reasons, students strive to achieve their aim that the researchers described it to be an addictive behavior. ( Paras ) Steven Feldman, a lead researcher for the Wake Forest Baptist Medical Center , said that they believed that tanning has a

Graduate school Essay Example for Free

Graduate school Essay Preparation Before applying, understand why attending graduate school makes sense to you. To clarify why you want to attend graduate school at this point in your life, try answering questions such as: †¢Ã‚  What will this degree enable you to achieve? †¢Ã‚  What do you plan to do with your advanced degree? Be able to express what about you and your experiences will help you to succeed in the program: †¢Ã‚  Make lists of professors, courses, research projects, ideas, travel, and other experiences that have been important to you, or have influenced your decision to apply to graduate school. †¢Ã‚  Think about any volunteer, extracurricular, or paid work experiences, as well as interests, special skills you possess, or honors and awards you have received. †¢Ã‚  What have you learned from your experiences? How have you used this knowledge? †¢Ã‚  Provide the admissions committee with information that supplements (not repeats) the information in the rest of your application. What important aspects are not clearly reflected in your resume, college transcripts and test scores? For example, you might want to indicate how you hope to benefit  from graduate studies, and how you intend to apply and integrate your graduate studies in your career. Writing Tips †¢Ã‚  Answer the question. Some applications require a general personal statement, others ask you to write on more specific topics. Be sure to tailor your essay to the school’s request. †¢Ã‚  Keep the essay clear, concise, and to the point. The essay demonstrates your writing ability and communication skills. Engage your readers with an effective introduction and clear structure. Say what you mean directly and avoid using phrases like â€Å"I think† or â€Å"In my opinion.† †¢Ã‚  Write your personal story. Set your statement apart by discussing WHAT is important to you, WHY it is important, and HOW you have used your talents and abilities in your life. †¢Ã‚  Be specific and give examples. For instance, instead of simply stating that you would make an excellent doctor (lawyer, engineer, etc.), provide reasons and examples. What experiences have you had that encouraged you to enter this field? †¢Ã‚  Follow any format guidelines provided by the school, such as length, font, or margin size. †¢Ã‚  Proofread! Ask several people to read through your essay, especially faculty in your desired area of study, English professors, career counselors, parents, and friends who will give you honest feedback. Ensure that there are no typos, misspellings, or grammatical errors. Over → USD Career Services †¢ Hughes 110 †¢ 619-260-4654 †¢ [emailprotected] †¢ www.sandiego.edu/careers Tailoring Your essay will be different for each application. Know the special features, emphases, or approaches of each program, and reflect these in your essay. †¢Ã‚  What are the school’s strengths? †¢Ã‚  What makes the program a good choice for you? †¢Ã‚  How might you contribute to the program? Cautions †¢Ã‚  Do not include references to your experiences or accomplishments before college, unless there was an extraordinary achievement or trauma that had a significant impact on your current situation. †¢Ã‚  Do not mention subjects that are too controversial. Avoid offending the admissions committee. †¢Ã‚  Do not be too general. Top schools may receive thousands of applications, and you want yours to stand out. Keep your essay interesting, relevant, and tailored to the school. Additional Resources Websites at many universities contain advice on writing graduate school essays. The Writing Center at RPI www.rpi.edu/dept/llc/writecenter/web/gradapp.html UC Berkeley: Graduate School Statement http://career.berkeley.edu/Grad/GradStatement.stm UCSD: Application Essays http://career.ucsd.edu/sa/applicationEssays.shtml These commercial web sites offer helpful samples and tips on writing graduate school essays. By listing these sites, USD Career Services is not endorsing the additional paid services. Essay Edge www.essayedge.com/ Admissions Essays www.admissionsessays.com (click on Writing Tips) All About the Graduate Admissions Essay http://gradschool.about.com/od/essaywriting/All_About_the_Graduate_Admissions_Essay.htm The following books on graduate school essays are available in the USD Career Services Library. Graduate Admissions Essays, by Donald Asher (Ten Speed Press) Peterson’s Perfect Personal Statements, by Mark Stewart (Thomson Peterson’s)

Laboratory Report on Properties of Carboxylic acids

Laboratory Report on Properties of Carboxylic acids Ramona Mae S. Rajaratnam Abstract: This report presents the different properties of carboxylic acids including solubility, acidity of some carboxylic acids, difference in strength of carboxylic acids compared to phenols, action of oxidizing agent on the carboxylic group and the neutralization equivalent of carboxylic acids. Carboxylic acids like acetic acid, butyric acid, oleic acid, succinic acid, stearic acid and benzoic acid were each mixed with water to test their solubility. The same acids were each mixed with 10% sodium bicarbonate to test their acid strength. The typical pKa values of carboxylic acids, phenols, HCO3 and CO32- were used to compare the acid strength of carboxylic acids with phenols and to judge whether both Na2CO3 and NaHCO3 can be used to successfully separate phenols from carboxylic acids. Carboxylic acids like acetic acid, formic acid, lactic acid, succinic acid and oxalic acid were each mixed with 0.5% KMnO4 to look at the action of KMnO4, an oxidizing agent, on the carboxylic acid group. Thi s report also focuses on the finding the neutralization equivalent to determine the unknown molar mass of a carboxylic acid. An accurately weighed sample of an unknown carboxylic acid was dissolved, heated and titrated with a previously standardized NaOH solution to find the neutralization equivalent and ultimately, the molar mass of the unknown carboxylic acid. Introduction: This experiment focuses on the different properties of carboxylic acids. The experiment aims to compare the solubility of acetic acid and stearic acid in water and to describe the relationship between molecular weight and solubility of carboxylic acids in water. The experiment also intends to infer the relative acidities of carboxylic acids and phenols based on the relative differences of their reaction with NaHCO3 and explain how NaHCO3 can be used to separate a mixture containing a water-insoluble carboxylic acid and a water insoluble phenol. The experiment also aims to identify reducing acids and the functional groups responsible for their reduction potential. The experiment also intends to describe a physical property such as physical state, color, odor or solubility that can differentiate succinic acid and oxalic acid, acetic acid and lactic acid, acetic acid and formic acid, benzoic acid and stearic acid and acetic acid and butyric acid. And lastly, the experiment looks into th e determination of the neutralization equivalent and molar mass of an unknown mono- and dicarboxylic acid. Experimental Details: The following apparatus were used in the experiment: Vials Vial rack Micro spatula Dropper Test Tubes Test Tube Rack Weighing boat 50 mL Buret Iron stand Buret clamp Erlen Meyer flasks Funnel Corks Graduated Cylinder Bunsen burner Wire gauze Test tube brush Vial brush Safety goggles The following materials were used in the experiment: Distilled water Acetic acid Butyric acid Oleic acid Stearic acid Succinic acid Benzoic acid Formic acid Lactic acid Oxalic acid 10% NaHCO3 0.5% KMnO4 0.09413 M NaOH Bromthymol blue indicator unknown carboxylic acid (at least 0.2 g) The following procedures were carried out in the experiment: a. Solubility in Water. The solubility of carboxylic acids in water was tested by mixing water with the following acids: acetic, butyric, oleic, stearic, succinic and benzoic. Three drops of the liquid or one micro spatula of the solid acid were added to 2 mL of water. The qualitative results obtained with the solubilities listed for the compounds were checked in a chemical handbook. The data were tabulated. b. Reaction with 10% Sodium Bicarbonate. The solubility test of the same acids was repeated with 10% sodium bicarbonate solution. Three drops of the liquid or one micro spatula of the solid acid were added with 2 mL of 10% sodium bicarbonate solution. The evidence for reaction when water soluble acetic acid and succinic acid when added to reagent was noted. The typical pKa values of carboxylic acids, phenols, HCO3 and CO32- were compared. c. Action of an Oxidizing Agent on the Carboxylic Acid Group. Five drops of acetic acid were added to three to five drops of 0.5 KMnO4 in a vial. The test was repeated with the following acids: formic, lactic, oxalic and succinic. d. Neutralization Equivalent of Carboxylic Acids. A 0.2 g sample of unknown carboxylic acid was weighed accurately to four significant figures. The acid was dissolved in 50 mL water or ethanol. The mixture was heated to dissolve completely the compound. The solution was titrated with a previously standardized NaOH solution. A bromthymol blue indicator was used. The neutralization equivalent and molar mass of the unknown carboxylic acid were calculated. Results and Discussion: Carboxylic acids are organic compounds containing a carboxy group (COOH). The carbon atom of a carboxy group is surrounded by three groups, making it sp2 hybridized and trigonal planar, with bond angles of approximately 120Ã ¢-Â ¦. Figure 1: Carboxylic Acid structure Carboxylic acids exhibit dipole-dipole interactions because of their polar C-O bond and O-H bond. They also exhibit intermolecular hydrogen bonding because they possess a hydrogen atom bonded to an electronegative oxygen atom. Carboxylic acids are one of the most polar organic compounds. Most carboxylic acids exist as cyclic dimmers, held together by two hydrogen bonds. Figure 2: Carboxylic acid dimer Acetic acid is soluble in water. Carboxylic acids with less than 5 carbons in their alkyl group are soluble in water. The carbon skeleton is not too large for the OH group to solubilize by hydrogen bonding. The hydrophilic nature of the carboxylic group dominates than the hydrophobic nature. This is the reason why acetic acid and butyric acid are soluble in water. Figure 3: Acetic acid and butyric acid On the other hand, oleic acid and stearic acid are insoluble in water. Both have long, bulky carbon chains exceeding the five carbon limit. The OH group cannot solubilize the carbon skeleton via hydrogen bonding. Its hydrophobic character dominates than its hydrophilic nature. Figure 4: Oleic acid Figure 5: Stearic acid A good solvent for stearic acid would be organic solvents like ether, chloroform and carbon tetrachloride. Figure 6: Solvents for stearic acid Benzoic acid is insoluble in water because the benzene ring is too bulky and large, and because of its stability, the OH group cannot solubilize it using hydrogen bonding. Figure 7: Benzoic acid Succinic acid contains two COOH groups because it is a dicarboxylic acid. This tells us that there is an increase in the hydrogen bonding capacity which makes it slightly soluble only because the carbon chain exceeds the five carbon chain limit and its hydrophobic character also shows. Figure 8: Succinic acid Carboxylic acids readily react with Bronsted Lowry bases to form carboxylate ions which are done through deprotonation. Figure 9: Carboxylic acids react with sodium carbonate In the experiment, sodium bicarbonate was used to deprotonate the carboxylic acid. This was a simple neutralization reaction forming a carboxylate salt, carbon dioxide and water. Acetic acid, butyric acid, succinic acid and benzoic acid react with the sodium bicarbonate. Succinic acid undergoes two deprotonation steps because it contains two COOH groups. An acid can be deprotonated by a base that has a conjugate acid with a higher pKa. The pKa values of acetic acid, butyric acid, benzoic acid and succinic acid are all ~5, thus bases that have conjugate acids with pKa values higher than 5 are strong enough to deprotonate them. Oleic acid and stearic acid have pKa values of 9.85 and 10.15 respectively. These pKa values are higher than the conjugate acid of the base (NaOH) which is H2CO3. This tells us that sodium bicarbonate is not strong enough to deprotonate both carboxylic acids. Stronger bases are needed to deprotonate them such as NaOH which has a conjugate acid with a pKa of 15.7. Figure 10: Dissociation and pKa values of carboxylic acids When comparing the pKa values of carboxylic acids and phenols, phenols always have a higher pKa value which tells us that phenols are weaker acids than carboxylic acids. Figure 11: pKa values of phenol and carboxylic acid Carboxylic acids and phenols are both acidic. Looking into the Arrhenius definition of an acid, both when dissolved in water, increases the H+ concentration. Also looking at the Bronsted-Lowry definition of an acid, acids are proton donors. Figure 12: Bronsted Lowry definition of an acid Aside from these two famous definitions of an acid, we must also look into the stability of the conjugate base. A rule states that anything that stabilizes a conjugate base makes the starting reagent acidic. When we talk about phenols, its conjugate base which is the phenoxide is resonance stabilized. It has five resonance structures which disperse the negative charge to three carbons and one oxygen atom. This makes phenols more acidic than alcohols which cannot stabilize its conjugate base via resonance. When we compare phenols with carboxylic acids, carboxylic acids are stronger compared to phenols. For carboxylic acids, their conjugate base which is the carboxylate ion is a lot more stable because they contain two oxygen atoms that delocalize the negative charge. As an effect, carboxylic acids are stronger acids than phenols which is evident in their pKa values. Looking at the pKa values of phenols and carboxylic acids, we could conclude that NaHCO3 can be used to separate a water insoluble carboxylic acid and a water insoluble phenol considering that this insoluble carboxylic acid does not exceed the pKa value of HCO3 (when protonated H2CO3 which is the conjugate acid) which is 6.4. Sodium bicarbonate can successfully separate a water insoluble phenol and a water insoluble carboxylic acid because typical pKa values for phenol which is 10 exceeds 6.4. The NaHCO3, therefore, is not strong enough to deprotonate the phenol but is strong enough to deprotonate the carboxylic acid. It will most likely form two layers: an organic layer with the phenol and an aqueous layer with the water and carboxylate ion which are products of the reaction of the carboxylic acid with the base. Sodium carbonate is not effective in separating a mixture containing a water insoluble carboxylic acid and a water insoluble phenol. The pKa of CO32- (when protonated becomes HCO3) is close to 10. This tells us that Na2CO3 reacts with some of the phenol and ofcourse with the carboxylic acid. Thus, no complete separation between the two occurs. Figure 13: Sodium bicarbonate and sodium carbonate Some carboxylic acids undergo oxidation. These are called reducing acids. In the experiment, lactic acid, formic acid and oxalic acid are all oxidized to carbon dioxide and water with the presence of a brown precipitate which is the reduced KMnO4. Acetic acid and Succinic acid are both non-reducing acids because they do not oxidize in the presence of a strong oxidizing agent, KMnO4. Lactic acid is oxidized into pyruvic acid because it contains an oxidizable group which is OH. Figure 14: Oxidation of lactic acid Formic acid is oxidized to carbon dioxide and water. Figure 15: Oxidation of formic acid Oxalic acid also oxidizes into carbon dioxide and water. Figure 16: Oxidation of oxalic acid The neutralization equivalent of an acid is mathematically defined as: Neutralization equivalent (NE) = To determine the molar mass: Molar mass = (X) x neutralization equivalent *Where X is the number of COOH groups The molar mass of an unknown carboxylic sample could be determined by computing its neutralization equivalent. Finding the neutralization equivalent requires titrating the solution of unknown carboxylic acid with a previously standardized solution of NaOH. The exact molarity of the NaOH was found to be 0.09413 M. Two trials were carried out in this section of the experiment. The solid form of the unknown carboxylic acid was water soluble. Weighing of sample: Titration: Computations: Trial 1: Volume of NaOH used = Final buret reading – Initial buret reading = 33.80 mL – 0.50 mL = 33.30 mL Neutralization equivalent (NE) = = = 66.36 g/mol Molar mass = 2 x (66.36 g/mol) = 132.72 g/mol Trial 2: Volume of NaOH used = Final buret reading – Initial buret reading = 32.50 mL -0.30 mL = 32.20 mL Neutralization equivalent (NE) = = = 66.35 mL Molar mass = 2 x (66.35 g/mol) = 132.70 g/mol Average molar mass = = 132.71 g/mol This molar mass was determined to be 95% near the true molar mass of the unknown carboxylic acid. Calculations for determining identity of unknown: = 139. 69 139.69 – 132.71 = 6.98 (error) For MM1 = 132.71 +6.98 = 139.69 MM2 = 132.71 – 6.98 = 125.73 For the 1st probable molar mass: 139.69 – 90.02 (2 X molar mass of COOH) = 49.67 CnH2n = 49.67 (12.01)n + (1.00)2n = 49.67 14.01 n = 49.67 n= 3.5/4 For the 2nd probable molar mass: 125.73 – 90.02 (2 X molar mass of COOH) = 35.71 CnH2n = 35.71 (12.01)n + (1.00)2n = 35.71 14.01n = 35.71 n= 2.5/3 Possible identities for the carboxylic acid include Glutaric acid, Glutaconic acid and Adipic acid. Conclusion: Therefore, the solubility of different carboxylic acids can be rationalized from the structure of the carboxylic acid itself. Acetic acid and butyric acid are soluble since their OH groups are able to solubilize their alkyl chain which does not exceed five carbons. Oleic acid and stearic acid are insoluble in water because their alkyl chain exceeds 5 carbons and the OH group cannot solubilize the long, bulky alkyl chain. A good solvent for stearic acid would be organic solvents like ether, chloroform and carbon tetrachloride. Benzoic acid is insoluble in water because the benzene ring, due to its stability, cannot be solubilized by the OH group. Succinic acid on the other hand, is soluble in water due to greater capacity of hydrogen bonding because it has two OH groups. Carboxylic acids also react with sodium carbonate through deprotonation. Only acetic acid, succinic acid, benzoic acid and butyric acid give a reaction because these acids have a lower pKa value than the conjugate aci d of the base which is NaHCO3. Oleic acid and Stearic acid do not react with NaHCO3 because they have higher pKa values than the conjugate acid of the base. This tells us that sodium bicarbonate is not strong enough to deprotonate both carboxylic acids. The rule here is: an acid can be deprotonated by a base that has a conjugate acid with a higher pKa. By looking at the pKa values, phenols are weaker acids than carboxylic acids. Phenols are resonance stabilized by carboxylic acids is more stable because they have conjugate bases with two oxygen atoms which delocalize the negative charge. NaHCO3 can be used to separate a mixture containing a water insoluble carboxylic acid and a water insoluble phenol because phenols do not react with this because it has a higher pKa than its conjugate acid. Na2CO3 is not effective because both phenols and carboxylic acids react, therefore, no separation occurs. Some carboxylic acids react with KMnO4 and are oxidized. Examples are lactic acid which i s oxidized to pyruvic acid and formic acid and oxalic acids which are oxidized to carbon dioxide and water. Non-reducing acids include acetic acid and succinic acid. And for the last part of the experiment, the molar mass of an unknown carboxylic acid may be determined by identifying how many COOH groups are present and by computing its neutralization equivalent. Neutralization equivalent (NE) = Molar mass = (X) x neutralization equivalent Supporting information: In determining the molar mass or formula for an unknown carboxylic acid, it may be possible to have an unsaturated compound. If the molecular formula is given, plug in the numbers into this formula: DoU= C= number of carbons N= number of nitrogens X= number of halogens (F, Cl, Br, I) H= number of hydrogens References: Organic Chemistry by John McMurry Organic Chemistry by Janice Smith http://chemwiki.ucdavis.edu/Organic_Chemistry/Hydrocarbons/Alkenes/Properties_of_Alkenes/Degree_of_Unsaturation Wikiperdia.org www.studymode.com

Similes in Literature and Daily Life

Similes in Literature and Daily Life NGUYEN THI HONG Abstract The assignment aims at exemplifying, analyzing and describing the character and function of the art of simile in works. It focuses on the occurrence of figurative language in standard English as well as in Vietnamese. The paper is chiefly based on Kleisers framework. Data analysis is done qualitatively with descriptive method. An overview of the paper is to exemplify and explain models with the purpose of revealing the character and the effects of the simile on showing expressions. 1. Introduction Every public speaker, writer, poet or musician knows the value of the simile to give vividness and color to his style of expressions. The simile has long been recognized as a useful element of expression. This technique is broadly used in prose, poetry, folk-song or even in report and magazine. The research takes examples from various works of famous writers as well as from peasant sayings in daily conversations. The reason for choosing these sources lies in the fact that the means of simile is efficient not only in literary works but also in daily life. In fact, if you wish to increase freshness, originality, vividness and accuracy on your written and spoken language, then you should use the art of simile. 2. A review of notion and classification 2.1. What are similes? Simile and the related word similar derive from the Latin similis, meaning like. A simile is a figure of speech which is extensively used in verbal language and which has long been recognized as a useful element of expression. According to Cleary (2009), a simile is a comparison between two unlike things that use like or as. Cuddon (2013) defined simile in this way: A figure of speech in which one thing is likened to another, in such a way as to clarify and enhance an image. It is an explicit comparison ( as opposed to the metaphor, q.v., where the comparison is implicit) recognizable by the use of the words like or as. It is equally common in prose and verse and is a figurative device of great antiquity (Cuddon, 2013). A simile is a figure of speech that directly compares two things by using connecting words such as like, as or than as in He is like a lion or in Tià ¡Ã‚ ºÃ‚ ¿ng suà ¡Ã‚ »Ã¢â‚¬Ëœi trong nhÆ ° tià ¡Ã‚ ºÃ‚ ¿ng hà ¡t xa/ Trăng là ¡Ã‚ »Ã¢â‚¬Å"ng cà ¡Ã‚ »Ã¢â‚¬ ¢ thà ¡Ã‚ »Ã‚ ¥ bà ³ng là ¡Ã‚ »Ã¢â‚¬Å"ng hoa in Vietnamese. In fact, simile is always the product either of the fancy or of the imagination. Similes are similar to metaphors in that they are both forms of comparison, but similes compare the two ideas whilst they remain separate by using connecting words ( like, as, so, than or various verbs such as resemble), whereas a metaphor compare two things directly. Although a comparison between simile and metaphor will be made, here is just one example: Simile: Abook is like a garden carried in the pocket. Metaphor: A book is a garden carried in the pocket. Obviously, the presence or absence of only word separates a simile from a metaphor. The similarities and differences will be discussed later. Now we focus on forms and kind of similes as well as the effects of simile on showing expression. 2.2. Classification of similes. Similes have different types and classifications, too. Bredin remarked about a scale going from the most stereotyped to the most creative similes. At one extreme is situated the conventionalized and fixed similes, and at the other extreme is the creative similes. Between the two extremes, standard (ordinary) and original (fresh, but not totally unexpected) similes can be settled. Ortony (1993) offered a semantic distinction between literal and non-literal similes. In non-literal similes, topic and vehicle are not symmetrical and the similarity markers can be dropped, but in literal similes, the terms can be reversed and the similarity markers can not be dropped. Another classification by Fromilhague has offered a distinction between objective similes, originating from concrete physical experience, and subjective similes, stemming from individual association mechanisms. He also explains explicit and implicit similes which are the basis of this article. In explicit simile, sense or point of similarity is stated directly. Most of the sentences with asà ¢Ã¢â€š ¬Ã‚ ¦as structures are of this kind as in as light as feather or in as hot as fire. Implicit simile, however, is the one whose sense is not stated directly and leave the onus of interpretation to the reader. Most words with like are of this types as in eat like a bird or in live like a pig. These types of simile can also be adapted, extended or cut. Often a writer will slide the usual expressions into hot like an oven or oven-hot or with the heat of an oven or some other phrases. To avoid clichà © and extend the image though this has to be done with caution a writer might take a simile like she looked like an angel and change it to she looked like an angel, full of its sadness for humankind the idea being to give the object of reference more detail in order to make the image more complex. 2.3. Functions of simile. A simile is a figure of speech that makes a comparison, showing similarities between two different things. We can find simile examples in our daily speech. We often hear comments like John is as slow as a snail. Snails are notorious for their slow pace and here the slowness of John is compared to that of a snail. The use of as in the example helps to draw the resemblance. Simile inputs vividness into what we say. Authors and poets utilize comparisons to convey their sentiments and thoughts through vivid word pictures like a simile. Some examples are given below: I would have given anything for the power to soothe her frail soul, tormenting itself in its invincible ignorance like a small bird beating about the cruel wires of a cage. The lines have been taken from Lord Jim written by Joseph Conrad. The helplessness of the soul is being compared with a bird in a cage beating itself against the merciless wires of the cage, to be free. In To the Lighthouse, Virginia Woolf compares the velocity of her thoughts about the two men with that of spoken words impressions poured in upon her of those two men, and to follow her thought was like following a voice which speaks too quickly to be taken down by ones pencil. She says both are difficult to follow and cannot be copied in words by a pencil. The first verse in A red, red rose by Robert Burns is a well-known simile: O my Luves like a red, red rose Thats newly sprung in june; O my Luves like the melodies Thats sweetly playd in tune. Robert Burns uses a simile to describe the beauty of his beloved. He says that his love is a fresh red rose that blossoms in the spring. Some similes are found in daily life such as as busy as a bee comparing someones level of energy to a fast-flying bee or as agile as a monkey implying someone can move as well as a monkey. According to Fromilhague, similes have various functions. Firstly, they serve to communicate concisely and efficiently. They are one of a set of linguistic devices which extend the linguistic resources available. Secondly, they can function as cognitive tools for thought in that they enable us to think of the world in alternative ways. Simile can be an excellent way for an author either to make an unusual thing seem more familiar like The planet Zenoth was as cold as ice or a familiar thing seem more unique as in Her smile was jagged like a broken zipper. In this way, similes can help the reader imagine the fictive world of a piece of literature. Good similes can also make readers think about things in a new way, and can sometimes create a lasting effect. Scottish poet Robert Burnss declaration that his luves like a red, red rose forever linked the concepts of love and red roses in our minds. Simile can help to make new connections for the reader. One of literatures purposes is to help better explain the world around us, and the technique of simile is one of those ways in which we are able to see things in a new way. All types of analogies are cognitive processes of transferring meaning from one thing to another, and thus the use of simile in literature has real synaptic effects. For this reason, and for aesthetic purposes, simile has been a popular literary technique for many hundreds of years. From the above discussion, we can infer the function of similes both in our everyday life as well as in literature. Similes can make our language more descriptive and enjoyable. Writers, poets, and songwriters make use of similes often to add depth and emphasize what they are trying to convey to the reader or listener. Similes can be funny, serious, mean, or creative. Using similes attracts the attention and appeals directly to the senses of listeners or readers encouraging their imagination to comprehend what is being communicated. In addition, it inspires life-like quality in our daily talks and in the characters of fiction or poetry. Simile allows readers to relate the feelings of a writer or a poet to their personal experiences. Therefore, the use of similes makes it easier for the readers to understand the subject matter of a literary text, which may have been otherwise too demanding to be comprehended. Like metaphors, similes also offer variety in our ways of thinking and offer s new perspectives of viewing the world. 2.4. Similes and metaphors. It would be a mistake to leave the subject of simile without a word about metaphor. The word metaphor derives from two Greek roots: meta, meaning over, beyond and pheiren, meaning to carry, transfer. According to the American Heritage Dictionary, a metaphor is a figure of speech in which a word or phrase that ordinarily designates one thing is used to designate another, thus making an implicit comparison. In literary texts, simile is used with metaphors to enhance the effect and beauty of the text. As metaphor is a covert comparison, simile is an overt one which explicitly and precisely explains the object and it is the first and simplest method for conveying the beauty of message which is used in poetry, prose and also usual conversations. Simile is much less investigated than metaphor, although it occurs as frequently in discourse. It can have an affirmative or a negative form: the affirmative form asserts likeness between the entities compared, as the sun is like an orange an d the negative one denies likeness, as the sun is not like an orange. Similes share with metaphors the goal of relating one thing to another, but they do it in a slightly different way. Look at the example: Simile: Simon is like a rocket. Metaphor: Simon is a rocket around the circuit. The presence or absence of only one word separates a simile from a metaphor. And because of the words like or as, it is classified as a simile. It is obvious that in a simile, there is an explicit comparison-one thing is said to be like something else. In a metaphor, there is no comparison because the two things are treated as identical ( an implicit comparison). In addition to like or as, several other words and expressions indicate the presence of a simile. A common one is than, as in faster than a speeding bullet or sharper than a serpents tooth. Here are some more expressions that signal the use of a simile: is similar tomay be compared tois akin to is comparable toputs one in mind ofis a kind of as thoughcan be likened tois the same as is not unlikeis not dissimilar tomay be seen as In the world of figurative language, similes have long taken a back seat to the more glamorous metaphor. Similes are similar to metaphors in that they are both forms of comparison, but similes compare the two ideas whilst they remain separate, whereas a metaphor compares two things directly. 3. Aims and objectives of the study The study aims at exemplifying and analizing models with the purpose of revealing the character and the effects of the simile on showing expressions. Accordingly, the paper tells you how to use the simile, the form and kind to use, and when to avoid it through risk of artificicality and the danger of becoming trite and obvious. 4. Research methodology 4.1. Sample of the study. The paper takes examples from the books of many well-known writers. These examples are chosen carefully which are suitable for each aspect. The models are either sentences in stories or verses in poems, thus they are short and each does not exceed 40 words. 4.2. Theorical framework. The theorical framework of the study is based on Kleiser (1925) and other authors like Grothe (2008) and Alm-Arvius (2003). However, Kleisers framework is chiefly used. 4.3. The uses of similes. The simile is generally regarded as a purely poetic accessory-as an artifice which, belonging to the realm of poetry, is sometimes divorced from its proper relationship and forced into the association of prose. Simile is always the product either of the fancy or of the imagination, and is therefore a poetic attribute. Still, simile is a poetic ornament mainly, and the similes that leap to ones mind when one hears the word mentioned are nearly always taken from famous poems. Simile is an imaginative, and therefore poetic, means of giving a vivid description. Kleiser (1925) claimed that there are four main uses of simile, including pure description, association, ornamentation and the effect of proverbial wisdom. We will take these uses in order. 4.3.1. Purely descriptive. The use for description is the chief use of simile. Generally speaking, descriptive passages are of three kinds-of persons, of interiors, and of natural scenery. Simile is the most effective in natural scenery. Conrad is a master in using similes in his works. His similes are extremely good. They are easily understood even by those who have never seen the sights he is describing and they are extraordinarily beautiful giving you the picture he is attempting to convey far more truly and far more vividly than any number of pure descriptions could do. Take an example from Lord Jim: The young moon, recurved and shining low in the west, was like a slender shaving thrown up from a bar of gold, and the Arabian Sea, smooth and cool to the eye like a sheet of glass, extended its perfect level to the perfect circle of a dark horizon (Conrad, 2005). He made a comparison between the young moon and a slender shaving thrown up from a bar of gold. By using the mean of simile, the author painted a perfect picture about the beauty of the moon. Similarly, that the Arabian Sea is compared with a sheet of glass shows an extremely smooth and lissom stream. The excellent simile draws a natural picture vividly and perfectly. Descriptions of people are often given both very vividly and very briefly by using the technique of simile. Take this from The gift of the Magi of O. Henry- an American writer of short stories Dellas beautiful hair fell about her rippling and shining like a cascade of brown waters. The comparation between Dellas beautiful hair with a cascade of brown waters describes very long, very soft and smooth hair. Each of these passages conveys a description by means of a simile which could not possibly be as effectively made in any other way. The technique of simile allows readers to make his own picture, and so conveys ti him his own individual interpretation of the scene you are trying to present. 4.3.2. Associative. The second use of simile is nearly as important as that of pure direct description. Kleiser (1925) claimed that it is this, to suggest by means of the simile employed the hidden character of the thing you are describing. Thus O. Henry, in The gift of the Magi, describing Jims surprise when seeing Dellas hair, says Jim stopped inside the door, as immovable as a setter at the scent of quail (Henry, 1906). Della-Jims wife-has a very long and smooth hair. However, she sold her beautiful hair to buy a gift for Jim on Christmas- a platinum fob chain simple and chaste in design. Absurdly, Jim sold his gold watch that had been his fathers and his grandfathers to buy a present for his wife-the set of combs. Jims attitude shows a sacrifice and true love to his wife. 4.3.3. Ornament. According to Kleiser, ornament simile is a quite legitimate but sometimes a simile put in merely to improve the rhythm of a sentence, or to enhance the effect of a description already given, is justified by its result; but the dangers are obvious. The ornament use of simile is particularly effective in a story written in a rather bare, straightforward style; the sudden introduction of a particularly apt simile arrests the attention, and forces the reader to take particular note of the passage in which it occurs. Similarly, it is very effective to recur to a simile already made in order to recall the circumstances under which it was first made. For instance, in Lord Jim, when the author wishes to remind the reader of the state of mind of his hero on an earlier occasion without putting it in so many words, he again refers to the thin gold shaving of the moon and the sea like a sheet of ice. 4.3.4. Proverbial. Simile is used very largely by country folk and peasants of all lands, but their similes are of a very particular kind, and to get your effect you must know exactly the kind of thing that peasants say. As slow as turtle, for instance, is a peasant saying in thousands of the century, and it has the true elemental ring; it might be found in fairy tales. The simile is a good way of achieving your effect if you are speaking of peasant life, for it is one of the poetic beauties of genuine peasant speech; but it must be such similes as would naturally occur to a cowherd or a fisherman or a washerwoman. Simile is an important technique in most works; therefore, to make a good use of simile, you should watch the similes that occur to you instinctively, try to compare the people and things you see every day to something that will at once give a good idea of the real object and at the same time be original; for you must at all costs avoid the obvious simile, which is mere waste of time. Morever, when you have both sifted your inspired similes and carefully created them out of your fancy and your observation, you should read those authors who are especially successful in the art of simile, noticing how they obtain their effects. 5. Results and discussion From the above analyses, we can see that almost writers and poets utilize the means of simile in their works. In addition, every one also uses similes in daily conversations and even many similes last in thousands of century and become typical similes in life as as nimble as a rabbit or as busy as a bee. It is indisputable that similes play an important role in enhancing the effects of expressions. They can make our language more descriptive and enjoyable. Besides, they can add depth and emphasize what the authors are trying to convey to the readers or the listeners. However, the uses of similes can be confusing to people who are not fluent in a given language because they will interpret the words literally. Also, similes can change from region to region, and even among groups of people. 6. Summary This study on similes and their use has exemplified and analyzed proses and verses as well as peasant sayings to discover four uses of similes. Pure description, association, arnamentation, and proverb are main uses of similes in which the first is the most important. So, too, the study suggest the ways to make a good simile and avoid bad similes. Types of simile are also showed and especially, metaphors are mentioned in order that people are not confused among the two notions. All types of analogies are cognitive processes of transferring meaning from one thing to another, and thus the use of simile in literature has real synaptic effects. For this reason, and for aesthetic purposes, simile has been a popular literary technique for many hundreds of years. 7. Implication Simile can be an excellent way for an author either to make an unusual thing seem more familiar or an fimiliar thing seem more unique. In this way, similes can help the reader imagine the fictive world of a piece of literature. Good similes should be therefore made to make readers think about things in a new way. REFERENCE Alm-Arvius, C. (2003). Figures of speech. Cleary, B. P. (2009). Skin like milk, hair of silk. Conrad, J. (2005). Lord Jim. Cuddon, J. A. (2013). A dictionary of literary terms and literary theory. Grothe, M. (2008). I never metaphor I didnt like: A comprehensive compilation of historys greatest analogies, metaphors, and similes. Henry, O. (1906). The gift of the Magi. Kleiser, G. (1925). Similes and their use. Ortony, A. (1993). Metaphor and Thought.