Nike Inc. - Cost of Capital - 1368 Words

What is he WACC and why is it so important to estimate a firms cost of capital? The WACC (weighted average cost of capital) is a percentage figure resulting from a calculation method by which the adequate cost of capital of a firm is expressed. It considers the composition of a company’s funding, be it debt or equity. A corporation whose source of funding is equity by 100 percent will have a WACC equal to the cost of equity. By contrast, a levered company will have to reflect the cost of debt as well. The WACC takes their respective quantitative contributions to the entire amount of funding, serving hence as an allocation base, into account. As there is a direct relationship between the two portions, debt and equity, in order to calculate†¦show more content†¦The cost of debt (cd) as used by the WACC refers to the costs a company incures by raising parts of its funds through debt. As debt has a prior position to equity in terms of claiming it is in most cases supposed to be â€Å"cheaper† than equity (moreover the debt costs depend on the leverage). The overall market value of debt of a company can be retrieved by adding all debt positions less excess cash and short-term investments (net debt). Expressed as a relative portion of entire assets and multiplied by the cost of debt it yields the contribution to the WACC figure. By contrast, the cost of equity (ce) is a quantitative result which can be derived from the CAPM e.g. (capital asset pricing model). It suggests that the cost of equity is equal to the sum of the risk-free rate and a risk premium of an average market portfolio adjusted for a company-specific factor beta. This beta reflects the risk associated with the company whereas a beta of 1,0 is equal to the market risk. The importance of estimating the WACC properly becomes evident when using it for the valuation of a company. There is a direct and strong correlation between the exact cost of capital and the preciseness of resulting figures. Future free cash flows of orders of magnitudes are discounted sometimes. Hence, the resulting present value is subject to enormous sensitivity and an arbitrary rounding off of the second decimal as in the NIKE case isShow MoreRelatedNike Inc Cost of Capital2974 Words   |  12 PagesIntroduction Kimi Ford is a portfolio manager at NorthPoint Group, a mutual-fund management firm. She is evaluating Nike, Inc. (â€Å"Nike†) to potentially buy shares of their stock for the fund she manages, the NorthPoint Large-Cap Fund. This fund mostly invests in Fortune 500 companies, with an emphasis on value investing. This Fund has performed well over the last 18 months despite the decline in the stock market. Ford has done a significant amount of research through analysts’ reportsRead MoreCase Analysis of Nike, Inc.: Cost of Capital731 Words   |  3 PagesApparently, the issue of Nike’s case is to control and check the calculation cost of capital done by Joanna Cohen who is the assistant of a portfolio manager at NorthPoint Group. But I am willing to tell you that it can be a complex case in which we can doubt about sensitivity analysis done by Kimi Ford (portfolio manager) too. Because her assumptions such as Revenue Growth Rate, COGS / Sales, S A / Sales, Current Assets / Sales, and Current Liability / Sales have been adopted from previous incomeRead MoreNike Inc Cost of Capital Case Study917 Words   |  4 PagesNike Inc. Case Number 2 Nike Incorporated’s cost of capital is a vital element when addressing opportunities regarding top-line growth and operating performance. Weighted Average Costs of Capital (WACC) is an essential estimation that is needed in order to determine the amount of interest that will be paid for each additional dollar financed. This translates to be the minimum overall required rate of return that the firm will keep. We disagree with Johanna Cohen’s assessment of Nike due to twoRead MoreCase Study –Nike, Inc.: Cost of Capital Essay718 Words   |  3 PagesCase Study –Nike, Inc.: Cost of Capital FIN202a-Spring 2011 1. Please define Weighted Average Cost of Capital (WACC). Write down the WACC formula, and discuss its components. WACC (Weighted Average Cost of Capital) is a market weighted average, at target leverage, of the cost of after tax debt and equity. It is a critical input for evaluating investment decision, and typically the discount rate for NPV calculation. And it serves as the benchmark for operating performance, relative toRead MoreNike Case Study1542 Words   |  7 Pagesthe stocks of Nike for the fund that she manages. †¢ Ford should base her decision on data on the company which were disclosed in the 2001 fiscal reports. While Nike management addressed several issues that are causing the decrease in market sales and prices of stocks, management presented its plans to improve and perform better. †¢ Third party sources also gave their opinions on whether the stock was a sound investment. WACC CALCULATION: Cost of Capital Calculations: Nike Inc Cohen calculatedRead MoreNike1200 Words   |  5 PagesJOHN MOLSON SCHOOL OF BUSINESS | CASE ANALYSIS: NIKE INC. – COST OF CAPITAL | FOR PROF. EDWARD WONG | | ARUN KUMAR DURAIRAJ – 27416008 NIDISH PC – 27254423 VIPUL PARTI – 27246307 | 12/3/2015 | | EvaluationRead MoreA Portfolio Managers Analysis of Nike Inc. Essay1029 Words   |  5 Pagesdecision to make while looking at Nike Inc. financials: whether Kimi should buy Nike shares or not for the fund Group she was working for. Kimi needed to consider all aspects of Nike Inc. financial position. On July 28,2011 Nike Inc. held a analyst’s meeting to disclose their fiscal year 2001 as well as to revitalize the company who wasn’t performing well. Thus, the meeting showed that Nike Inc. experienced some difficulties during the past years. First, Nike Inc. revenues have reached a plateau sinceRead MoreEssay about Cost of Capital Nike974 Words   |  4 Pagesï » ¿Case Analysis of Nike, Inc.: Cost of Capital Apparently, the issue of Nike’s case is to control and check the calculation cost of capital done by Joanna Cohen who is the assistant of a portfolio manager at NorthPoint Group. But I am willing to tell you that it can be a complex case in which we can doubt about sensitivity analysis done by Kimi Ford (portfolio manager) because her assumptions such as Revenue Growth Rate, COGS / Sales,  S A / Sales, Current Assets / Sales, and Current LiabilityRead MoreEssay on Nike Cost of Capital Case1615 Words   |  7 PagesNIKE, INC.: COST OF CAPITAL On July 5, 2001, Kimi Ford, a portfolio manager at NorthPoint Group, a mutual-fund management firm, pored over analysts write-ups of Nike, Inc., the athletic-shoe manufacturer. Nikes share price had declined significantly from the beginning of the year. Ford was considering buying some shares for the fund she managed, the NorthPoint Large-Cap Fund, which invested mostly in Fortune 500 companies, with an emphasis on value investing. Its top holdings Read MoreCapital Structure1215 Words   |  5 PagesInformation My company choice is Nike Inc. (Nike), a multinational sports footwear, equipment and apparel manufacturing company based in Oregon, United States. This puts Nike in the apparel industry. In 2010, Forbes rated Nike as the top sports business with a total value of $10.7 billion. The most effective marketing strategy Nike employ is the sponsorship agreements they have with numerous top athletes in a variety of sports. Operating Risks of Nike When Nike was initially started out, the

The Factors Influencing Human Behaviour Outside Of Other...

Animals are one of the top factors influencing human behavior outside of other non-human animals. The interactions that occur between people and non-human animals, particularly in the Appalachian region, has led to profound changes both on the local community. The most significant interaction to take place and has influenced the area drastically is domestication. Four types of domestication at the forefront of Appalachian culture are livestock, blood-sports, pet keeping, and animal’s prevalence in oral folklore. The introduction of domestication previous to and after the Neolithic Revolution has harbored new relationships between humans and animals that have altered the mountain face, culture, and economy of the Appalachian region. The most prevalent human-animal interaction to be observed and widely practiced in the Appalachian Mountains is the keeping of domesticated animals. The region was widely used as hunting and gathering land previous to colonial expansion. Animals were not domesticated by Native Americans their animism, or the belief that all organisms and inanimate objects possess a soul (â€Å"Constructing Animals†). However, it was not until the Neolithic Revolution reached the Appalachians that sustainable agriculture became a standard way to obtain food. In doing so domesticated animals, particularly livestock, became common in the mountains. Hogs cattle, and chickens were kept on farms to allow for easier access to meat, dairy, and eggs. Consequently, when peopleShow MoreRelatedHuman Motivation the Influential Drive Behind Human Altruism1827 Words   |  8 PagesHuman motivation the influential drive behind human altruism At the forefront of social psychology the issue of what motivates one to act in a prosocial manner has arisen with a vast array of theory and response. The heart of the topic lies in the ambiguity as to whether one acts altruistically as a result of an innate response of empathy and compassion, or merely due to self interest. By definition altruism refers to, â€Å"behaviour that helps people with no apparent gain or with potential cost toRead Moreunit 331 outcome 23600 Words   |  15 Pages Unit 331 Outcome 2 Understand the factors that influence children and young people’s development and how these affect practice. 2.1Explain how children and young people’s development is influenced by range of personal factors. We know that things such as eyes and skin colour aswell as height are inherited. Some medical conditions and disabilities can also be inherited. These can affect the child or young person’s development and below is a list of how a medical condition can affect a childRead MoreWhat Is Brain Gut Axis?1820 Words   |  8 Pageshormones and other molecules such as cytokines and other products of immune system. Function: The function of brain-gut axis is to monitor and integrate gastrointestinal functions and to mediate impact of stress and emotions on gut. Many emotions are reflected in terms of changes in gut physiology. It has been known that a symbiotic relationship between resident gut flora, nutrient absorption and other aspects of digestion exists. In addition, it is now clear that gut flora helps with other functionsRead MoreImpulsivity And Its Effects On The Negative Consequences1988 Words   |  8 Pagesimpulsivity are suggested to be governed by the executive function of behavioural inhibition, that regulates self-control (Miyake Friedman,2012). This encompasses a continuum from high self-control to impulsivity. However, as there are multiple other constructs of impulsivity, there lacks a consensus on a concrete definition, and a number of impulsivity measures are subsequently used in research. The two most commonly documented processes are inhibitory control (IC), the ability to suppress pre-activatedRead MoreThree Characteristics of Effective Work Groups2101 Words   |  9 PagesThe three characteristics that will be discussed in this essay are motivation, communication and leadership. This essay will relate to relevant theories and theorist that have an association to any of the characteristics. The factors will be discussed in detail to portray how they can be used efficiently to create an effective work group and also how organisations will benefit from the outcomes of each individual in the team. Groups are a crucial feature of any company or organisation. If an organisationRead MoreOrganisational Behaviour and Work4432 Words   |  18 Pagesa decision making power of centralized the top layer management plus control functions to manage required departments and divisions. An organization must include: ï‚ · Unique name and character to designate activities from others ï‚ · Objectives – direction of business inside or outside of organisation ï‚ · Special rules and regulations, formal written terms and conditions ï‚ · Hierarchy and decision making management power ï‚ · HR functions and operation roles, financial department ï‚ · An accountancy or bookkeepingRead MoreCommunity and Family Studies - Preliminary Study Notes3223 Words   |  13 PagesCAFS PRELIMINARY EXAM – STUDY NOTES Wellbeing: - Wellbeing is the condition or state of a human being, animal or plant. There are five types of wellbeing†¦ * Physical wellbeing: This is a person’s physical condition, including their appearance and their internal health. * Socioemotional wellbeing: Social wellbeing involves a person’s relationships with others and how that person communicates, interacts and socialises. 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Angels Demons Chapter 82-85 Free Essays

82 At CERN, secretary Sylvie Baudeloque was hungry, wishing she could go home. To her dismay, Kohler had apparently survived his trip to the infirmary; he had phoned and demanded – not asked, demanded – that Sylvie stay late this evening. No explanation. We will write a custom essay sample on Angels Demons Chapter 82-85 or any similar topic only for you Order Now Over the years, Sylvie had programmed herself to ignore Kohler’s bizarre mood swings and eccentricities – his silent treatments, his unnerving propensity to secretly film meetings with his wheelchair’s porta-video. She secretly hoped one day he would shoot himself during his weekly visit to CERN’s recreational pistol range, but apparently he was a pretty good shot. Now, sitting alone at her desk, Sylvie heard her stomach growling. Kohler had not yet returned, nor had he given her any additional work for the evening. To hell with sitting here bored and starving, she decided. She left Kohler a note and headed for the staff dining commons to grab a quick bite. She never made it. As she passed CERN’s recreational â€Å"suites de loisir† – a long hallway of lounges with televisions – she noticed the rooms were overflowing with employees who had apparently abandoned dinner to watch the news. Something big was going on. Sylvie entered the first suite. It was packed with byte-heads – wild young computer programmers. When she saw the headlines on the TV, she gasped. Terror at the Vatican Sylvie listened to the report, unable to believe her ears. Some ancient brotherhood killing cardinals? What did that prove? Their hatred? Their dominance? Their ignorance? And yet, incredibly, the mood in this suite seemed anything but somber. Two young techies ran by waving T-shirts that bore a picture of Bill Gates and the message: And the Geek shall inherit the Earth! â€Å"Illuminati!† one shouted. â€Å"I told you these guys were real!† â€Å"Incredible! I thought it was just a game!† â€Å"They killed the Pope, man! The Pope!† â€Å"Jeez! I wonder how many points you get for that?† They ran off laughing. Sylvie stood in stunned amazement. As a Catholic working among scientists, she occasionally endured the antireligious whisperings, but the party these kids seemed to be having was all-out euphoria over the church’s loss. How could they be so callous? Why the hatred? For Sylvie, the church had always been an innocuous entity†¦ a place of fellowship and introspection†¦ sometimes just a place to sing out loud without people staring at her. The church recorded the benchmarks of her life – funerals, weddings, baptisms, holidays – and it asked for nothing in return. Even the monetary dues were voluntary. Her children emerged from Sunday School every week uplifted, filled with ideas about helping others and being kinder. What could possibly be wrong with that? It never ceased to amaze her that so many of CERN’s so-called â€Å"brilliant minds† failed to comprehend the importance of the church. Did they really believe quarks and mesons inspired the average human being? Or that equations could replace someone’s need for faith in the divine? Dazed, Sylvie moved down the hallway past the other lounges. All the TV rooms were packed. She began wondering now about the call Kohler had gotten from the Vatican earlier. Coincidence? Perhaps. The Vatican called CERN from time to time as a â€Å"courtesy† before issuing scathing statements condemning CERN’s research – most recently for CERN’s breakthroughs in nanotechnology, a field the church denounced because of its implications for genetic engineering. CERN never cared. Invariably, within minutes after a Vatican salvo, Kohler’s phone would ring off the hook with tech-investment companies wanting to license the new discovery. â€Å"No such thing as bad press,† Kohler would always say. Sylvie wondered if she should page Kohler, wherever the hell he was, and tell him to turn on the news. Did he care? Had he heard? Of course, he’d heard. He was probably videotaping the entire report with his freaky little camcorder, smiling for the first time in a year. As Sylvie continued down the hall, she finally found a lounge where the mood was subdued†¦ almost melancholy. Here the scientists watching the report were some of CERN’s oldest and most respected. They did not even look up as Sylvie slipped in and took a seat. On the other side of CERN, in Leonardo Vetra’s frigid apartment, Maximilian Kohler had finished reading the leather-bound journal he’d taken from Vetra’s bedside table. Now he was watching the television reports. After a few minutes, he replaced Vetra’s journal, turned off the television, and left the apartment. Far away, in Vatican City, Cardinal Mortati carried another tray of ballots to the Sistine Chapel chimney. He burned them, and the smoke was black. Two ballotings. No Pope. 83 Flashlights were no match for the voluminous blackness of St. Peter’s Basilica. The void overhead pressed down like a starless night, and Vittoria felt the emptiness spread out around her like a desolate ocean. She stayed close as the Swiss Guards and the camerlegno pushed on. High above, a dove cooed and fluttered away. As if sensing her discomfort, the camerlegno dropped back and lay a hand on her shoulder. A tangible strength transferred in the touch, as if the man were magically infusing her with the calm she needed to do what they were about to do. What are we about to do? she thought. This is madness! And yet, Vittoria knew, for all its impiety and inevitable horror, the task at hand was inescapable. The grave decisions facing the camerlegno required information†¦ information entombed in a sarcophagus in the Vatican Grottoes. She wondered what they would find. Did the Illuminati murder the Pope? Did their power really reach so far? Am I really about to perform the first papal autopsy? Vittoria found it ironic that she felt more apprehensive in this unlit church than she would swimming at night with barracuda. Nature was her refuge. She understood nature. But it was matters of man and spirit that left her mystified. Killer fish gathering in the dark conjured images of the press gathering outside. TV footage of branded bodies reminded her of her father’s corpse†¦ and the killer’s harsh laugh. The killer was out there somewhere. Vittoria felt the anger drowning her fear. As they circled past a pillar – thicker in girth than any redwood she could imagine – Vittoria saw an orange glow up ahead. The light seemed to emanate from beneath the floor in the center of the basilica. As they came closer, she realized what she was seeing. It was the famous sunken sanctuary beneath the main altar – the sumptuous underground chamber that held the Vatican’s most sacred relics. As they drew even with the gate surrounding the hollow, Vittoria gazed down at the golden coffer surrounded by scores of glowing oil lamps. â€Å"St. Peter’s bones?† she asked, knowing full well that they were. Everyone who came to St. Peter’s knew what was in the golden casket. â€Å"Actually, no,† the camerlegno said. â€Å"A common misconception. That’s not a reliquary. The box holds palliums – woven sashes that the Pope gives to newly elected cardinals.† â€Å"But I thought – â€Å" â€Å"As does everyone. The guidebooks label this as St. Peter’s tomb, but his true grave is two stories beneath us, buried in the earth. The Vatican excavated it in the forties. Nobody is allowed down there.† Vittoria was shocked. As they moved away from the glowing recession into the darkness again, she thought of the stories she’d heard of pilgrims traveling thousands of miles to look at that golden box, thinking they were in the presence of St. Peter. â€Å"Shouldn’t the Vatican tell people?† â€Å"We all benefit from a sense of contact with divinity†¦ even if it is only imagined.† Vittoria, as a scientist, could not argue the logic. She had read countless studies of the placebo effect – aspirins curing cancer in people who believed they were using a miracle drug. What was faith, after all? â€Å"Change,† the camerlegno said, â€Å"is not something we do well within Vatican City. Admitting our past faults, modernization, are things we historically eschew. His Holiness was trying to change that.† He paused. â€Å"Reaching to the modern world. Searching for new paths to God.† Vittoria nodded in the dark. â€Å"Like science?† â€Å"To be honest, science seems irrelevant.† â€Å"Irrelevant?† Vittoria could think of a lot of words to describe science, but in the modern world â€Å"irrelevant† did not seem like one of them. â€Å"Science can heal, or science can kill. It depends on the soul of the man using the science. It is the soul that interests me.† â€Å"When did you hear your call?† â€Å"Before I was born.† Vittoria looked at him. â€Å"I’m sorry, that always seems like a strange question. What I mean is that I’ve always known I would serve God. From the moment I could first think. It wasn’t until I was a young man, though, in the military, that I truly understood my purpose.† Vittoria was surprised. â€Å"You were in the military?† â€Å"Two years. I refused to fire a weapon, so they made me fly instead. Medevac helicopters. In fact, I still fly from time to time.† Vittoria tried to picture the young priest flying a helicopter. Oddly, she could see him perfectly behind the controls. Camerlegno Ventresca possessed a grit that seemed to accentuate his conviction rather than cloud it. â€Å"Did you ever fly the Pope?† â€Å"Heavens no. We left that precious cargo to the professionals. His Holiness let me take the helicopter to our retreat in Gandolfo sometimes.† He paused, looking at her. â€Å"Ms. Vetra, thank you for your help here today. I am very sorry about your father. Truly.† â€Å"Thank you.† â€Å"I never knew my father. He died before I was born. I lost my mother when I was ten.† Vittoria looked up. â€Å"You were orphaned?† She felt a sudden kinship. â€Å"I survived an accident. An accident that took my mother.† â€Å"Who took care of you?† â€Å"God,† the camerlegno said. â€Å"He quite literally sent me another father. A bishop from Palermo appeared at my hospital bed and took me in. At the time I was not surprised. I had sensed God’s watchful hand over me even as a boy. The bishop’s appearance simply confirmed what I had already suspected, that God had somehow chosen me to serve him.† â€Å"You believed God chose you?† â€Å"I did. And I do.† There was no trace of conceit in the camerlegno’s voice, only gratitude. â€Å"I worked under the bishop’s tutelage for many years. He eventually became a cardinal. Still, he never forgot me. He is the father I remember.† A beam of a flashlight caught the camerlegno’s face, and Vittoria sensed a loneliness in his eyes. The group arrived beneath a towering pillar, and their lights converged on an opening in the floor. Vittoria looked down at the staircase descending into the void and suddenly wanted to turn back. The guards were already helping the camerlegno onto the stairs. They helped her next. â€Å"What became of him?† she asked, descending, trying to keep her voice steady. â€Å"The cardinal who took you in?† â€Å"He left the College of Cardinals for another position.† Vittoria was surprised. â€Å"And then, I’m sorry to say, he passed on.† â€Å"Le mie condoglianze,† Vittoria said. â€Å"Recently?† The camerlegno turned, shadows accentuating the pain on his face. â€Å"Exactly fifteen days ago. We are going to see him right now.† 84 The dark lights glowed hot inside the archival vault. This vault was much smaller than the previous one Langdon had been in. Less air. Less time. He wished he’d asked Olivetti to turn on the recirculating fans. Langdon quickly located the section of assets containing the ledgers cataloging Belle Arti. The section was impossible to miss. It occupied almost eight full stacks. The Catholic church owned millions of individual pieces worldwide. Langdon scanned the shelves searching for Gianlorenzo Bernini. He began his search about midway down the first stack, at about the spot he thought the B’s would begin. After a moment of panic fearing the ledger was missing, he realized, to his greater dismay, that the ledgers were not arranged alphabetically. Why am I not surprised? It was not until Langdon circled back to the beginning of the collection and climbed a rolling ladder to the top shelf that he understood the vault’s organization. Perched precariously on the upper stacks he found the fattest ledgers of all – those belonging to the masters of the Renaissance – Michelangelo, Raphael, da Vinci, Botticelli. Langdon now realized, appropriate to a vault called â€Å"Vatican Assets,† the ledgers were arranged by the overall monetary value of each artist’s collection. Sandwiched between Raphael and Michelangelo, Langdon found the ledger marked Bernini. It was over five inches thick. Already short of breath and struggling with the cumbersome volume, Langdon descended the ladder. Then, like a kid with a comic book, he spread himself out on the floor and opened the cover. The book was cloth-bound and very solid. The ledger was handwritten in Italian. Each page cataloged a single work, including a short description, date, location, cost of materials, and sometimes a rough sketch of the piece. Langdon fanned through the pages†¦ over eight hundred in all. Bernini had been a busy man. As a young student of art, Langdon had wondered how single artists could create so much work in their lifetimes. Later he learned, much to his disappointment, that famous artists actually created very little of their own work. They ran studios where they trained young artists to carry out their designs. Sculptors like Bernini created miniatures in clay and hired others to enlarge them into marble. Langdon knew that if Bernini had been required to personally complete all of his commissions, he would still be working today. â€Å"Index,† he said aloud, trying to ward off the mental cobwebs. He flipped to the back of the book, intending to look under the letter F for titles containing the word fuco – fire – but the F’s were not together. Langdon swore under his breath. What the hell do these people have against alphabetizing? The entries had apparently been logged chronologically, one by one, as Bernini created each new work. Everything was listed by date. No help at all. As Langdon stared at the list, another disheartening thought occurred to him. The title of the sculpture he was looking for might not even contain the word Fire. The previous two works – Habakkuk and the Angel and West Ponente – had not contained specific references to Earth or Air. He spent a minute or two flipping randomly through the ledger in hopes that an illustration might jump out at him. Nothing did. He saw dozens of obscure works he had never heard of, but he also saw plenty he recognized†¦ Daniel and the Lion, Apollo and Daphne, as well as a half dozen fountains. When he saw the fountains, his thoughts skipped momentarily ahead. Water. He wondered if the fourth altar of science was a fountain. A fountain seemed a perfect tribute to water. Langdon hoped they could catch the killer before he had to consider Water – Bernini had carved dozens of fountains in Rome, most of them in front of churches. Langdon turned back to the matter at hand. Fire. As he looked through the book, Vittoria’s words encouraged him. You were familiar with the first two sculptures†¦ you probably know this one too. As he turned to the index again, he scanned for titles he knew. Some were familiar, but none jumped out. Langdon now realized he would never complete his search before passing out, so he decided, against his better judgment, that he would have to take the book outside the vault. It’s only a ledger, he told himself. It’s not like I’m removing an original Galilean folio. Langdon recalled the folio in his breast pocket and reminded himself to return it before leaving. Hurrying now, he reached down to lift the volume, but as he did, he saw something that gave him pause. Although there were numerous notations throughout the index, the one that had just caught his eye seemed odd. The note indicated that the famous Bernini sculpture, The Ecstasy of St. Teresa, shortly after its unveiling, had been moved from its original location inside the Vatican. This in itself was not what had caught Langdon’s eye. He was already familiar with the sculpture’s checkered past. Though some thought it a masterpiece, Pope Urban VIII had rejected The Ecstasy of St. Teresa as too sexually explicit for the Vatican. He had banished it to some obscure chapel across town. What had caught Langdon’s eye was that the work had apparently been placed in one of the five churches on his list. What was more, the note indicated it had been moved there per suggerimento del artista. By suggestion of the artist? Langdon was confused. It made no sense that Bernini had suggested his masterpiece be hidden in some obscure location. All artists wanted their work displayed prominently, not in some remote – Langdon hesitated. Unless†¦ He was fearful even to entertain the notion. Was it possible? Had Bernini intentionally created a work so explicit that it forced the Vatican to hide it in some out-of-the-way spot? A location perhaps that Bernini himself could suggest? Maybe a remote church on a direct line with West Ponente’s breath? As Langdon’s excitement mounted, his vague familiarity with the statue intervened, insisting the work had nothing to do with fire. The sculpture, as anyone who had seen it could attest, was anything but scientific – pornographic maybe, but certainly not scientific. An English critic had once condemned The Ecstasy of St. Teresa as â€Å"the most unfit ornament ever to be placed in a Christian Church.† Langdon certainly understood the controversy. Though brilliantly rendered, the statue depicted St. Teresa on her back in the throes of a toe-curling orgasm. Hardly Vatican fare. Langdon hurriedly flipped to the ledger’s description of the work. When he saw the sketch, he felt an instantaneous and unexpected tingle of hope. In the sketch, St. Teresa did indeed appear to be enjoying herself, but there was another figure in the statue who Langdon had forgotten was there. An angel. The sordid legend suddenly came back†¦ St. Teresa was a nun sainted after she claimed an angel had paid her a blissful visit in her sleep. Critics later decided her encounter had probably been more sexual than spiritual. Scrawled at the bottom of the ledger, Langdon saw a familiar excerpt. St. Teresa’s own words left little to the imagination: †¦ his great golden spear†¦ filled with fire†¦ plunged into me several times†¦ penetrated to my entrails†¦ a sweetness so extreme that one could not possibly wish it to stop. Langdon smiled. If that’s not a metaphor for some serious sex, I don’t know what is. He was smiling also because of the ledger’s description of the work. Although the paragraph was in Italian, the word fuco appeared a half dozen times: †¦ angel’s spear tipped with point of fire†¦ †¦ angel’s head emanating rays of fire†¦ †¦ woman inflamed by passion’s fire†¦ Langdon was not entirely convinced until he glanced up at the sketch again. The angel’s fiery spear was raised like a beacon, pointing the way. Let angels guide you on your lofty quest. Even the type of angel Bernini had selected seemed significant. It’s a seraphim, Langdon realized. Seraphim literally means â€Å"the fiery one.† Robert Langdon was not a man who had ever looked for confirmation from above, but when he read the name of the church where the sculpture now resided, he decided he might become a believer after all. Santa Maria della Vittoria. Vittoria, he thought, grinning. Perfect. Staggering to his feet, Langdon felt a rush of dizziness. He glanced up the ladder, wondering if he should replace the book. The hell with it, he thought. Father Jaqui can do it. He closed the book and left it neatly at the bottom of the shelf. As he made his way toward the glowing button on the vault’s electronic exit, he was breathing in shallow gasps. Nonetheless, he felt rejuvenated by his good fortune. His good fortune, however, ran out before he reached the exit. Without warning, the vault let out a pained sigh. The lights dimmed, and the exit button went dead. Then, like an enormous expiring beast, the archival complex went totally black. Someone had just killed power. 85 The Holy Vatican Grottoes are located beneath the main floor of St. Peter’s Basilica. They are the burial place of deceased Popes. Vittoria reached the bottom of the spiral staircase and entered the grotto. The darkened tunnel reminded her of CERN’s Large Hadron Collider – black and cold. Lit now only by the flashlights of the Swiss Guards, the tunnel carried a distinctly incorporeal feel. On both sides, hollow niches lined the walls. Recessed in the alcoves, as far as the lights let them see, the hulking shadows of sarcophagi loomed. An iciness raked her flesh. It’s the cold, she told herself, knowing that was only partially true. She had the sense they were being watched, not by anyone in the flesh, but by specters in the dark. On top of each tomb, in full papal vestments, lay life-sized semblances of each Pope, shown in death, arms folded across their chests. The prostrate bodies seemed to emerge from within the tombs, pressing upward against the marble lids as if trying to escape their mortal restraints. The flashlight procession moved on, and the papal silhouettes rose and fell against the walls, stretching and vanishing in a macabre shadowbox dance. A silence had fallen across the group, and Vittoria couldn’t tell whether it was one of respect or apprehension. She sensed both. The camerlegno moved with his eyes closed, as if he knew every step by heart. Vittoria suspected he had made this eerie promenade many times since the Pope’s death†¦ perhaps to pray at his tomb for guidance. I worked under the cardinal’s tutelage for many years, the camerlegno had said. He was like a father to me. Vittoria recalled the camerlegno speaking those words in reference to the cardinal who had â€Å"saved† him from the army. Now, however, Vittoria understood the rest of the story. That very cardinal who had taken the camerlegno under his wing had apparently later risen to the papacy and brought with him his young protege to serve as chamberlain. That explains a lot, Vittoria thought. She had always possessed a well-tuned perception for others’ inner emotions, and something about the camerlegno had been nagging her all day. Since meeting him, she had sensed an anguish more soulful and private than the overwhelming crisis he now faced. Behind his pious calm, she saw a man tormented by personal demons. Now she knew her instincts had been correct. Not only was he facing the most devastating threat in Vatican history, but he was doing it without his mentor and friend†¦ flying solo. The guards slowed now, as if unsure where exactly in the darkness the most recent Pope was buried. The camerlegno continued assuredly and stopped before a marble tomb that seemed to glisten brighter than the others. Lying atop was a carved figure of the late Pope. When Vittoria recognized his face from television, a shot of fear gripped her. What are we doing? â€Å"I realize we do not have much time,† the camerlegno said. â€Å"I still ask we take a moment of prayer.† The Swiss Guard all bowed their heads where they were standing. Vittoria followed suit, her heart pounding in the silence. The camerlegno knelt before the tomb and prayed in Italian. As Vittoria listened to his words, an unexpected grief surfaced as tears†¦ tears for her own mentor†¦ her own holy father. The camerlegno’s words seemed as appropriate for her father as they did for the Pope. â€Å"Supreme father, counselor, friend.† The camerlegno’s voice echoed dully around the ring. â€Å"You told me when I was young that the voice in my heart was that of God. You told me I must follow it no matter what painful places it leads. I hear that voice now, asking of me impossible tasks. Give me strength. Bestow on me forgiveness. What I do†¦ I do in the name of everything you believe. Amen.† â€Å"Amen,† the guards whispered. Amen, Father. Vittoria wiped her eyes. The camerlegno stood slowly and stepped away from the tomb. â€Å"Push the covering aside.† The Swiss Guards hesitated. â€Å"Signore,† one said, â€Å"by law we are at your command.† He paused. â€Å"We will do as you say†¦Ã¢â‚¬  The camerlegno seemed to read the young man’s mind. â€Å"Someday I will ask your forgiveness for placing you in this position. Today I ask for your obedience. Vatican laws are established to protect this church. It is in that very spirit that I command you to break them now.† There was a moment of silence and then the lead guard gave the order. The three men set down their flashlights on the floor, and their shadows leapt overhead. Lit now from beneath, the men advanced toward the tomb. Bracing their hands against the marble covering near the head of the tomb, they planted their feet and prepared to push. On signal, they all thrust, straining against the enormous slab. When the lid did not move at all, Vittoria found herself almost hoping it was too heavy. She was suddenly fearful of what they would find inside. The men pushed harder, and still the stone did not move. â€Å"Ancora,† the camerlegno said, rolling up the sleeves of his cassock and preparing to push along with them. â€Å"Ora!† Everyone heaved. Vittoria was about to offer her own help, but just then, the lid began to slide. The men dug in again, and with an almost primal growl of stone on stone, the lid rotated off the top of the tomb and came to rest at an angle – the Pope’s carved head now pushed back into the niche and his feet extended out into the hallway. Everyone stepped back. Tentatively, a guard bent and retrieved his flashlight. Then he aimed it into the tomb. The beam seemed to tremble a moment, and then the guard held it steady. The other guards gathered one by one. Even in the darkness Vittoria sensed them recoil. In succession, they crossed themselves. The camerlegno shuddered when he looked into the tomb, his shoulders dropping like weights. He stood a long moment before turning away. Vittoria had feared the corpse’s mouth might be clenched tight with rigor mortis and that she would have to suggest breaking the jaw to see the tongue. She now saw it would be unnecessary. The cheeks had collapsed, and the Pope’s mouth gaped wide. His tongue was black as death. How to cite Angels Demons Chapter 82-85, Essay examples

Crony Capitalism free essay sample

The economic and political environment are chancing faster than ever before. â€Å"Business success depends on managers anticipating and coping with change. To do this, managers must identify the characteristics of the environment in which they operate† (Nellis amp; Parker, 2006, p1). 1. Analysis The effect of government expenditures, taxation, and debt on the aggregate economy is of immense importance, and therefore great controversy in economics (Modigliani, 1987). Many factors influence aggregate demand besides monetary and fiscal policy. According to Keynesianism, desired spending by households and firms determines the overall demand for goods and services. When desired spending changes, aggregate demand shifts. If policymakers do not respond, such shifts in aggregate demand cause short-run fluctuations in output and employment. As a result, monetary and fiscal policymakers sometimes use the policy levers at their disposal to try to offset these shifts in aggregate demand and thereby stabilize the economy (Sloman, 2005). When policymakers change the money supply or the level of taxes, they shift the aggregate-demand curve by influencing the spending decisions of firms or households. By contrast, when the government alters its own purchases of goods and services, it shifts the aggregate-demand curve directly. Suppose, for instance, that the Italian Ministry of Defence places a â‚ ¬10 billion order for new helicopters with Finmeccanica. This order raises the demand for the output produced by Finmeccanica, which induces the company to hire more workers and increase production. Being Finmeccanica part of the economy, the increase in the demand for Finmeccanica helicopters means an increase in the total quantity of goods and services demanded at each level (Padoa-Schioppa, 2011). By how much does this â‚ ¬10 billion order from the government shift the aggregate-demand curve? The immediate impact of the higher demand from the government is to raise employment and profits at Finmeccanica. Then, as the workers see higher earnings and the firm owners see higher profits, they respond to this increase in income by rising their own spending on consumer goods. As a result, the government purchase from Finmeccanica raises the demand for the products of many other firms in the economy (Padoa-Schioppa, 2011). Because each euro spent by the government can raise the aggregate demand for goods and services by more than a euro, government purchases are said to have a multiplier effect on aggregate demand. This multiplier effect continues even after this first round. When consumer spending rises, the firms that produce these consumer goods hire more people and experience higher profits. Higher earnings and profits stimulate consumer spending once again, and so on (Sloman, 2003). The multiplier is an important concept in macroeconomics because it shows how the economy can amplify the impact of changes in spending. A small initial change in consumption, investment or in government purchases can end up having a large effect on aggregate demand and, therefore, the economy’s production of goods and services (Nellis amp; Parker, 2006). The other important instrument of fiscal policy is the level of taxation. When the government cuts personal income taxes, for instance, it increases households’ take-home pay. Households will save some of this additional income, but they will also spend some of it on consumer goods. The size of the shift in aggregate demand resulting from a tax change is also affected by the multiplier and crowding-out effects. When the government cuts taxes and stimulates consumer spending, earnings and profits rise, which further stimulates consumer spending (Sloman, 2003). Of course, Keynesianism has its critics, most of them conservatives who loathe the idea that government could ever play a beneficial role in the economy. One of the first major critics was Milton Friedman. Although he accepted Keynes’ definition of recessions, he rejected the cure. Government should butt out of the business of expanding or contracting the money supply, he argued. It should keep the money supply steady, expanding it slightly each year only to allow for the growth of the economy and a few other basic factors. Inflation, unemployment and output would adjust themselves according to market demands (Sloman, 2003). 2. Conclusion The process of interpretation suggests at least three findings. Firstly, monetary policy and fiscal policy are examples of a more general phenomenon: the use of policy instruments to stabilize aggregate demand and, as a result, production and employment. Secondly, in many countries economic stabilization is an explicit goal and a political purpose (Nellis amp; Parker, 2006). Finally, it emerges that governments and regulators are second only to customers in their ability to affect companies’ economic value (Krugman amp; Obstfeld, 2000). From the analysis emerges that managers have to able to read and interpret the environment in which they want to operate. In order to achieve company’s goals, it is extremely important to identify the strengths and opportunities and be aware of the weaknesses and threats that can influence the business (Watson amp; Head 2007). At the end of 2008, the world had entered a period of global recession, the analysis of fiscal policies that can influence national economics has become fundamental and of primary importance. In such an exceptional economic situation, there is a limit to what an individual firm can do.