Environmental Development through Role Play in Schools Essay Example for Free

Environmental Development through Role turn of events in Schools Essay1. Executive SummaryIn this proposal the Environmental Protection Group (EPG) requests funding for its Environmental Development Project through Role Play in Schools. The projects goal is to contribute to the reduction of environsal devastation and destruction through the implementation of role-play strategies that highlight concomitant preventive and demeanour change interventions. With this deliver, EPG will emphasize on increasing awareness practices and measurement requirements and work in close collaborationism with partners toward the reduction of the burden of environmental devastation.EPG is requesting Kyats 16,000,000 to support its efforts to combat human effects on our environment and its resultant environmental destruction among the currently unnoticed affected areas of Myanmar. EPG will work in collaboration with the Save Earth, community-based organizations and International NGOs, promoting positive behaviour change through the Environmental protection Role play in schools project.2. Environmental Issues in Myanmar trance environmental protection projects and environment activists are endeavoring to bring forth harmony amongst our environment and our society, Myanmar has rather a slow rate of environmental protection measurements. Citizens should be warned of the effects of their behavior on the environment and the resultant destruction of the environment. However, since the population of working people will not be able to contribute a great deal to our project, we have set our targets on children.Through role play on environmental devastation, we will piece childrens awareness of the environment. Despite learning astir(predicate) the deterioration of the environment only when they get older, making children contribute to the environment is claimed to have much effect both on the children and on the environment. While the environment will get greener with childrens interest in it, the children, on the other hand, will also learn the advantages and disadvantages of their behavior towards the Earth. This way, the science of the Earth and the art of separate responsibility will be learned by the children at the same time, as well as benefit in the eco-friendliness of men and our Earth.3. Project Objectives to raise environmental awareness through community participation approach to get ideas from the community to promote communitys critical thinking of the environment4. Our visual sensation StatementCommunities in which people respect the environment, develop the sustainable eco-friendly lifestyle and share the environmental knowledge and practice from generation to generation.5. The weaknesses of our community Lack of environmental awareness Weakness in practicing conservation Ignorance of the significance of the natural environment6. Skills and Qualities Patience Motivation in community participation Theatre ability strength Ability t o understand the reality of the community Scientific Knowledge

Humor in Mathematics Classroom Essay Example for Free

Humor in Mathematics Classroom EssayINTRODUCTIONTo make the learning in classroom to a greater extent fun, teachers do make a different strategies or techniques. Game and laughter is very important in learning, thats why teachers that do have imagination make their class more enjoyable and interesting. Anyone who has paid attention to great speakers would know that whim is an excellent rule for eliciting sympathy from the audience and opening them up to your message. Every teacher besides knows that a sense of humor is necessary to winning the sum totals of students. How should this inform teaching? Should the teachers focus on creating an socialize show for their students? Or would the teachers change their lessons into therapy sessions? This dissect presents a teaching approach that is built around math problems that argon for the student at the same time Cheerful (entertaining, funny, cool) and Challenging (difficult). We call this CheCha mathematics. minimize OF THE S TUDYThe technique of using humor to enliven lectures is as ancient as the Babylonian Talmud. Rabbah (Babylonian Talmud, Shabbos 30b), a Talmudic sage who lived 1700 years ago, would say something humorous in the lead starting to lecture to the scholars, and they would laugh after that, he would begin his lecture. Rabbi Meir (Babylonian Talmud, Sanhedrin 38b), a nonher Talmudic sage, was an expert in fox fables and would devote one-third of his lecture to parables. These sages recognized the rate of humor in education, even in ethical and religious instruction. Most statistics textbooks do not use a humorous approach, with exceptions such as Runyon (1977) and Pyrczak (1998). Blumenfeld and Alpern (1985) discourse ten reasons to use humor in the classroom. These include such f roundors as opening communication and the mercifulizing effect of humor on image.Berk (1996, 1998) claims that humor has the ability to falling off students anxiety, improve the ability to learn, and boost self-esteem. This, in turn, provoke encourage a more receptive learning atmosphere. One researcher found that having students watch an episode of Seinfeld helped calm them and reduced their heartbeats when they were later forced to do something stressful, give an impromptu speech about Bosnia, a subject they knew very little about, in crusade of a camera. The heart rates of students who had watched the humorous Seinfeld episode rose from an average of 70 to averages of 80 to 85 beats per minute while speaking the heart rates of students who had not been inoculated with humor rose to a mean of 100 (Burkhart 1998). Lundberg and Thurston (1992) discuss various ways humor base be used in the classroom.THEORETICAL FRAMEWORKCheCha math mode is based on three educational approaches acknowledging the role of affect in math learning (Hannula, 2006), using humor in teaching (Grecu, 2008) and use of open-ended problems in math teaching (Pehkonen, 2004).Affect in mathematical thinking and learningIn order to read affect in math education in contexts of actual classrooms there are three main elements to pay attention to cognition, emotion, and motivation. Achievement without motivation is not sustainable, and neither is motivation without enjoyment. All three domains have a more rapidly changing state-aspect and more stable trait-aspect. (Hannula, 2006). One fundamental principle of human behavior is that emotions energize and organize perception, thinking and action (Izard, 1991). Research has confirmed a positive relationship between positive affect and achievement. It seems that the affective outcomes are most important during the first school years, as they are less presumable to be altered later on. Two key elements of a craved affective disposition are self-confidence and motivation to learn (Hannula, 2006).Advances in our understanding of the neuro mental basis of affect (e.g. Damasio 1995, LeDoux, 1998) have radically changed the old prognosis of the relat ionship between emotion and cognition. Emotions are no longer seen as peripheral to cognitive processes or as noise to impede rationality. Emotions have been true as necessary for rational behavior. Moreover, research has also sh take in although not yet fully understood that certain emotions facilitate certain type of cognitive affect (Linnenbrink Pintrich, 2004).Focusing on motivation we may find ways to influence what the subjects want to do, not only how they try to achieve it. In the existing literature, psychological needs that are often emphasized in educational settings are autonomy, competence and social belonging (e.g. Boekaerts, 1999). These all can be met in a classroom that emphasizes exploration, understanding and communication instead of rules, routines and rote learning. However, this requires that all feel safe and embrace that they can contribute to the process. A possible approach to acquire all these conditions would be the open approach, and more generall y focusing on mathematical processes rather than products (Hannula, 2006).HumorAlready Kant (1952) considered the nature of humor. He stated gag is the result of expectation which suddenly ends in nothing (p. 199). His classical statement has started considering humor as a mental mechanism resulting in laughter. As another(prenominal) early scientific approach to humor, Freud (1991) divided comic into wit, humor and actually comic. Many kinds of activity, including wit, are directed on reception of pleasure from intellectual processes. A person feels pleasure from suddenly released energy, which is splashed out in the form of laughter. From this perspective already, we can perceive how a good joke can succumb a joyful atmosphere and create a positive emotional background of activity. The comic, humorous contents can be reached in various ways and techniques.For example, Veatch (1998) suggests a list of types that are funny finis to the point of irrationality, satire, literal unde rstanding of metaphors, irony, ambiguity, word-play, contradiction, discrepancy, excessive rationality and a deviation from the usual. Each of these types of the comic can be expressed as a joke or a problem in math context. As an example of a math contradiction we take a joke, here framed within the human race of Winnie the Pooh Pooh and Piglet sit on a small bench and talk. Eeyore has sent them a box. In the box there are ten sweets and a note. In the note Eeyore tells them to divide them seven for Pooh and seven for Piglet. Piglet How is that? I do not understand. What do you think of it? Pooh I do not even want to think. But I have already eaten my seven sweets.Humor can also act as means of a psychological discharge, and promote efficiency of pedagogical activity. Suhomlinsky (1975) wrote I would name laughter as a back side of thinking. To mystify ability to laugh in the child, to enhance his sense of humor means to strengthen his intellectual forces, abilities, to teach h im to think and to see the world wisely. Grecu (2008) has considered use of humor in teaching. She highlights seven basic functions of humor in pedagogical activity 1) informatively-cognitive (Opens essential features and properties of subjects and the phenomena. Rejecting standard approaches, the humor bears in itself any discovery), 2) Emotional (the Humor can act as means of creation of creative state of health and as means of emotional support) 3) Motivational (The humor can serve as a stimulator of volitional processes) 4) Communicative (the Person with humor is attractive for people) 5) Developing (Humor promotes development of critical thinking, a sharpness of vision of the world, observation and consequently intellect)6) diagnostic (by the laughter maintenance at what the person laughs, it is possible to judge about his merits and demerits) and 7) Regulative (the humor gives the chance to look at oneself from an unexpected angle, allowing self-evaluation). In CheCha method most of these are relevant, the most important functions being on top of the list. Grecu suggest the following techniques for designing of humor for educational tasks. These pedagogical techniques are paradox, finishing to the point of irrationality, comparison by the remote or casual attribute, return comparison, wit of absurd, pseudo-contrast or false opposition, a hint, a self-exposure of own faults, intentional ignoring of things that expertness cause laughter, and exaggeration of the certain features of behavior.Grecu has offered also classification of means of the comic 1) word-play based on violation of language norm (carrying of terminology over to a context unusual to it). Consider the following riddle I am it while I do not know that I am. But I am not it when I know that I am. What am I? 2) Comparison, authors original neologisms, based on artistic expressive means (double entendre, an ambiguity). Examples are at large(p) for finding in Carrolls books (2006, s. 50) Ex plain yourself I cant explain myself. 3) Paradox, an example being the claim I am lying now. also Dzemidok (1993) distinguishes several humoristic methods modification and deformation of the phenomena, unexpected effects and amazing comparisons, disproportion in attitudes and communications between the phenomena, imaginary association of absolutely diverse phenomena, creation of the phenomena which hive off from logic.As an example of the latter method consider the following There were only 3 students attending a professors lecture in University. Suddenly 5 persons left the room. The professor said If 2 students enter this room, there is nobody attending. Most types of humor and their techniques could be used at mathematics lessons. Thanks to entertaining tasks and comical contents of the problems the classroom climate promotes a positive interaction between the teacher and students. However, one must be aware that opportunities of humor as pedagogical means have their limits.Grec u (2008) gives several suggestions regarding these limits. She suggests that one should use humor gently and support humor of students. She also warns not to ridicule students person, laugh at what the student is not able to correct or change or laugh at an involuntary mistake of the student. Rough jest would indicate lack of customs and disrespect of the student and hence is absolutely unacceptable for the teacher. Moreover, the teacher should avoid being the first to laugh at ones own joke, as it can cause the reaction opposite to expected.Problem solving and open-ended problemsProblems are said to be open, if their starting or goal postal service is not exactly given and they usually have several correct answers (cf. Pehkonen 2008). Open-ended problems emphasize understanding and creativity (e.g. Nohda, 2000, Stacey 1995). This would not mean lowering the expectations, rather the contrary. If an open task allows the solver to gain deeper and deeper insights (a chain of discove ry Liljedahl, 2005) it can facilitate a state of sustained engagement. This would also lead to more intense working.Research has shown that problem solving can be engaging and enjoyable for many students, but it does not attract everyone. Schoenfeld (1985) defined an individuals beliefs or mathematical world view as shaping how one engages in problem solving. For example, those who believe that math is no more than repetition of learned routines would be more likely to give up on a novel task than those who believe that inventing is an essential aspect of mathematics. Unfortunately, there are students who do not see the potency for engagement and enjoyment in a math problem. We see humor as a means to engage also those students who do not perceive math problems enjoyable to begin with.STATEMENT OF THE PROBLEMThe purpose of this study is to answer the following questions 1. What mathematical problems are entertaining from the students point of view? 2. How CheCha method influences the atmosphere in mathematics lessons?

The Importance of Socio dramatic Play

The Importance of Socio dramatic track downMuch of our understanding of the value of acquire has originated from Piaget (1962) and Vygotsky (1978), who focused on the role of lend in childrens development. They aphorism children as active explorers of their world. With each revolutionary encounter or interaction, children were able to discover new meanings, and thus developed more(prenominal) complex understandings and skills. Play is therefore, an fundamental part of the process of constructing knowledge. It enables children to control what happens and to use what they already know to further their understanding and development. Socio-dramatic move is one of the most important forms of stage (Smilansky Shefatya, 1992). Play experiences funding children to be active participants in developing and strengthening their character, finding their own voice in compromising with others or directing their play ideas. When engaging in pretend play, children use fantasy, make-believe , and symbolic behavior in representing one object as some other (Kaugers Ross 2009). Play is a skill worth practicing and mastering not, as adults often seem to think of it, a mere time filler or something to do outside to blow off steam. Mastering play is as important as mastering oral or written language. All these modes of symbolic design enable human beings to remember manage, plan, and communicate with each other (Reynolds Jones 1997). The term play is often used but loosely defined. For the purpose of this paper when verbalize of play the kind of play that will be discussed will be socio-dramatic play (Smilanskiy 1968). This type of play,also called dramatic, imaginative, or pretend play, can occur with peers, adults, or both. Characteristics of socio-dramatic play include make-believe that involves roles, objects, andsituations and includes language and social interaction. The social aspect distinguishes socio-dramatic play from dramatic play because children can and do pretend during solitary play. Socio-dramatic play may also occur in combination with constructive play in early childhood classrooms.Much of what we currently know about sociodramatic play started with Vygotskys research. Vygotsky saw play as the leading behavior in childrens development. In Vygotskys theory, children play beyond their years (Bodrova Leong, 2005). The play has several elements to it. First, the play must include an unreal element, second, involved children must grant assigned role(s) with implicit rules, and finally, language must be involved. (Smilansky Shefatya, 1992).The Role of Teachers in Childrens PlayBecause children are the active participant they have autonomy over their play and this is one of the most empowering experiences a child can have (Canning, 2007). The adults in the childs world play an integral role. Children want support in practical difficulties, but also want to be seen as important and competent individuals (Pramling, Samuelsson, Johans son 2009). Children want to know when they are doing the right things and want to issue in a favorable light to their teachers and other adults by informing them when peers break rules. By this the children also confirm the teachers, in the sense that they are to be trusted, they know how things should be and they have power and knowledge to mediate. The role of the teacher in play is complex and can involve a directive, non-directive, and/or elaborative role. Howard, Jenvey, and knoll (2006) indicated that higher levels of teacher verbalization can reduce play behavior. Similarly, Tamburrini (1982) suggested that re-direction devalued play as a learning activity whereas elaborative interaction facilitated play behavior. Play activities tend to occur more frequently between children rather than with teachers (Canning, 2007). Piagets clinical observations supported educators discoveries that children construct knowledge for themselves through spontaneous activity. Through the play experiences teachers win children acquire rules, imitate reality, and socialize with their peers (Piaget, 1962). So then in the early years for many teaching is based on observation. Teachers dont however just keep up and sit idly by. They also make play possible. The play they make possible is rich, complex, and thoughtfully-planned. Socio-dramatic play provides an excellent context for children to develop and practice many important skills and behaviors that contribute to later success in school and life. As play matures, there is a progressive transition from reactive to and impulsive behaviors to behaviors that are more deliberate and thoughtful (Bodrova Leong, 2005). Teachers need to know how to observe play, helping children grow into master players. Like every stage of development, play does not occur automatically, it inevitably nurturing from a capable adult. Children must learn how to engage in satisfying socio-dramatic play and teachers must take responsibility for se tting up their environment and assisting the play by taking on the role of observer, stage-manager, and co- player (Bredekamp 2005).Within research, play has been analyzed in numerous studies. The purpose of this study will be to envision the role of the teachers involvement during play. Specifically can a teacher or another trained adult improve socio-dramatic play to improve other cognitive and socio-emotional abilities? In order to examine this, the following questions need to be explored What is the level of socio-dramatic play in the classroom? How is the teacher involved? What obstacles hinder progress? modeParticipants and SettingDependent VariableIndependent VariableExperimental Design and Procedures

Tourism in Sri Lanka

holidaymakerry in Sri Lanka1. Sri Lanka is an island nation and god has given to Sri Lanka blessings of nature blue seas, green hills, sandy beaches, abundant wildlife, cascading waterfalls, a riot of flowers and fruits, coco palm groves, tea estates, spice gardens. Here ones day can be gloriously lazy by a palm cool lagoon or respectable of joy, swimming, snorkeling, and fishing or sailing like a brilliant jewel in the sparkling waters of the Indian Ocean. Sri Lanka is located in a strategicalally considered naval spot on the world map. This significant situation creates a path for a major sea route. In addition it creates a strategic naval link between West Asia, Africa and East Asia. Sri Lanka entered the multinational touristry atomic number 18na in the 1960s. Since then, government involvement has been the key factor in tourism increase in Sri Lanka. The Ceylon phaeton Board (CTB) was established in 1966 in order to provide direction and leadership to this promising e mpyrean of the developing economy. The country is famous for healthy and cultural heritage. Hospitality, tropical forests, natural and fascinating beaches, archeological sites and the tropical climate atomic number 18 the more attractive features. These factors make Sri Lanka a marvelous tourist destination. Over the years tourism in Sri Lanka has developed significantly. Today tourism has become the sixth Foreign Exchange Earner (FEE) in Sri Lankan economy.2. Tourism can make a great impact on discipline of the Sri Lankan economy. Tourism is a fast growing fabrication which has been identified presently. Employment opportunities and regional maturation are playing significant role with regard to the tourism application education. It can be considered as the most important industry in the country as a whole. The governments vision is to make the tourism sector as Sri Lankas most innovative and profitable income generating source.3. During past three decades Sri Lankas tourism industry had few draw backs. This was mainly due to the security situation which prevailed in the country. Further the tourism industry was also affected due to the Tsunami catastrophe which occurred in 2004. Approximately 2/3rd of the coastal world including tourist infrastructure facilities was destroyed. The immediate post war period gave grind away to a dramatic emergence of tourist arrival from end May 2009.4. In order to yield the efforts and to develop the tourism sector in Sri Lanka there should be hotels with exclusive facilities which are in par with the international standards to accommodate a large number of visitors. In the year 2010 approximately one gazillion tourists visited Sri Lanka. Unlike in the past, the inflow of tourists is increasing day by day as a result of the end of the 30 year civil war which destroys the whole country. Following chart indicates how tourism increased from 1966 to 2011 in Sri Lanka. The government is channeled to receive 2.5 mill ion tourists in 2016. To cater for this increase tourist hotels in Sri Lanka must be developed. also other facilities should also be increased to meet the desired economic goals.AIM5. The aim of this paper is to analyze the development of Sri Lanka tourism -challenges and opportunitiesGEOGRAPHY AND humor OF SRI LANKA6. Sir Lanka has a variant ter fall but it mainly consists of flat lands but south-central portion of the countrys step sided river, canyons interior features and mountain. The flatter regions are the areas where most of Sri Lankas agriculture takes place, excursion from coconut farms along the coast. Sri Lankas climate is tropical and the southwestern mapping of the island is the wettest. . The northeastern part of Sri Lanka is drier and most of its rain falls from December to February. Most of the rain in the southwest falls from April to June and October to November Sri Lankas average yearly temperature is around 86F to 91F. An important geographic note about Sr i Lanka is its position in the Indian Ocean, which made it vulnerable to one of the worlds largest natural disasters. On December, 26, 2004, it was struck by large tsunami that hit 12 Asian countries. Around 38,000 people in Sri Lanka were killed during this incident and much of Sri Lankas coast was destroyed.7. Sri Lanka is situated in strategic location near major Indian Ocean sea lanes. It has a total area of 65,610 km, with 64,740 km of land and 870 km of water. Its coastline is 1,340 km long. Sri Lankas climate includes tropical monsoons the southwest monsoon (June to October) and the northeast monsoon (December to March), its terrain is mostly low, flat to undulating plain, with mountains in the south-central interior. The highest point is Pidurutalagala at 2,524.13 m. Resource include limestone, mineral sands, gems, graphite, phosphates, clay, and hydropower.8. Adams Bridge, a land connection to the Indian mainland, is now mostly underwater with only a chain of limestone shoa ls remaining to a higher place sea level. According to temple records, this natural causeway was previously complete, but was breached by a violent storm (probably a cyclone) in 1480.SRI LANKAS COMMITMENT TO touristry9. Tourism is a vital area in the policy structure has been identified as capable of efficiently driving the countrys socio economic development. The programmes vision for the tourism sector is to make Sri Lanka foremost freedom destination in the South Asian Region. The programme believes the human resources and natural and cultural endowments values and nation lead be essential in transforming Sri Lanka into a centre of excellence and offer tourists the highest values of real experiences in its unique setting.10 The One Stop unit of measurement Unit for National Investment in Tourism is a Centralized promotion and facilitation center Established Thurs assist potential tourism investors interested in investing in Sri Lanka Tourism Industry. Specialist staff from v arious government agencies helps investors Identify possible cyphers, Obtain information possible, Regarding Investments, submit applications, and Provide support in obtaining investiture promotion privileges, trade licenses and other approvals Requested for project clearance. OSU Prevents the need for investors Thurs spend time in search of answers and agrees all queries are handled by its medical specialist staff.11. Serious civil disturbances starting in July 1983 and the subsequent forcefulness badly affected tourism. Total arrivals were 230,106 in 1986, down 43 percent from 1982. To ease the plight of the industry, the government provided various concessions to hotels, such(prenominal) as the rescheduling of loans and the reduction of the dollar volume tax from 10 percent to 5 percent. The Ceylon Tourist Board also undertook a crack promotion program in an attempt to restore the islands paradigm in world tourist markets. Tourist arrivals in the first six months of 1987, however, showed a bloodline of 23 percent compared with the same period the previous year. In early 1988, the outlook was for further contraction.12. In 1988 it remained unclear whether the policies of economic liberalization Sri Lanka has pursued since 1977 would result in their principal goals of employment, wealth creation, and economic diversification. Although increased sieve production, the growth of textile manufacturing, and an improved infrastructure were successes that could be attributed to the post-1977 policies, these gains came at the cost of a rise outside and domestic debt and declining living standards for the poor.POLITICAL ENVIRONMENT TOWARDS TOURISM13. The One Stop Unit Unit for National Investment in Tourism is a Centralized promotion and facilitation center Established Thurs assist potential tourism investors interested in investing in Sri Lanka Tourism Industry. Specialist staff from various government agencies helps investors Identify possible projects , Obtain information possible, Regarding Investments, submit applications, and Provide support in obtaining investment promotion privileges, trade licenses and other approvals Requested for project clearance. OSU Prevents the need for investors Thurs spend time in search of answers and ensures all queries are handled by its specialist staff.14. Serious civil disturbances starting in July 1983 and the subsequent violence badly affected tourism. Total arrivals were 230,106 in 1986, down 43 percent from 1982. To ease the dilemma of the industry, the government provided various concessions to hotels, such as the rescheduling of loans and the reduction of the turnover tax from 10 percent to 5 percent. The Ceylon Tourist Board also undertook a crash promotion program in an attempt to restore the islands image in world tourist markets. Tourist arrivals in the first six months of 1987, however, showed a decline of 23 percent compared with the same period the previous year. In early 1988, th e outlook was for further contraction.15. In 1988 it remained unclear whether the policies of economic liberalization Sri Lanka has pursued since 1977 would succeed in their principal goals of employment, wealth creation, and economic diversification. Although increased rice production, the growth of textile manufacturing, and an improved infrastructure were successes that could be attributed to the post-1977 policies, these gains came at the cost of a mounting immaterial and domestic debt and declining living standards for the poor.PROMOTION OF TOURISM enthronement16. The Board of Investment has introduced incentives in the form of tax exemptions, duty-free imports and the relaxation of controls on foreign exchange holdings. The incentives provided by the government have mainly attracted investment in the hotel sector. The present hotel capacity is 13,670 rooms. That figure is project to increase to 21,000 rooms by 2004, which lead accommodate the target of 1 million tourists. Five regional domestic airports to be restructured at a total cost of approx. Rs. 2bn Rathmalana, Koggala ,Ampara , Trincomalee Jaffna (Rathmalana will be developed as a City Airport) Previous year. This denotes that tourism industry is one of the core sources of foreign exchange earner in economy of Sri Lanka. Due to the development of tourism improved accessibility via new highways and conversion of war machine to domestic airports may make high-end hotels in the Deep South and the East of Sri Lanka viable alternatives to the Galle area.OPPORTUNITIES FOR TOURISM INDUSTRY17. Tourism directly affected to economy of a country. The momentum of growth in tourism, as result of the post conflict peaceful purlieu, the tourist arrivals grew to 654,476 in 2010 surpassing the previous record of 566,202 in 2004. Tourist nights one of an important indicator in measuring the volume of tourist traffic, has recorded 6, 544, 760 in 2010. It shows 60.6 per cent increase compared to 2009. Total r eceipts in 2010 amounted to US $ 575.9 million as against US $ 349.3 million recorded for the year 2009. It indicates a vast increase of 64.9 per cent thanTHREATS FOR TOURISM INDUSTRY18. Development of tourist hotels in Sri Lanka will extremely support the rapid economic development. Developments of tourist hotels, increase room capacities, increase occupancy rates and develop the condition of rooms and evoke the service provided in the hotels are the key factors to be mainly focused on if to develop tourism. It indeed contributes to the development of tourism and in turn development of economy of the country. Tourist hotel industry should be developed in most of the famous city for tourism with sufficient amount of tourist hotels19. As policy-making risk introduces additional elements of uncertainty into the rules governing tourism investment projects, the risk of capital loss is raised for longer- term projects. Political risk also negatively influences the timing and pricing of the tourism production process. Negative images, lack of foreign exchange for tourism development, lack of skilled manpower, weak institutional frameworks for tourism planning, policy-making dissymmetry caused by communal violence, civil war conflicts are inhibitors to tourism development. However, little is known about how international tourism firms perceive political risks and other general barriers and threats to tourism promotion in Sri Lanka.20. Common political factors which affect the tourism industry are revolution, civil war, factional conflict, ethnic violence, religious turmoil, widespread riots, terrorism, nationwide strikes, protests, cross- national guerrilla warfare, world public opinion, repatriation restrictions, bureaucratic politics, leadership struggle, high inflation, border conflicts, high external debt service ratio and creeping nationalization. Last cardinal years Sri Lanka also faced the civil war and it affected the tourism industry of Sri Lanka. Orga nizing preferences frequently also create threat to the tourism industry because during the election period in roughly places to control the situation cur hews are implemented.21. This will create negative image in the mind of tourists. Some of the foreign countries have reject Sri Lankas products in their country due to the violation of human rights during the war time. For example government invested and spent on IIFA programme but it was not a successful event for Sri Lanka because the big stars have boycotted the event. They didnt visit Sri Lanka because of the protests held in their country by asking them not to visit the place. Currently Sri Lanka is having negative kinship with some foreign countries therefore the exportation and import of Sri Lankan products will be decreased and it affects the tourism industry as well.FUTURE TRENDS, CHALLENGES22. Source markets in Asia and oculus East to drive demand Sri Lankas proximity to source markets such as India and its connectiv ity to the Middle East and China will help in sustaining tourism growth. The rise in per capita income and therefore consumer spending in these source markets will aid the growth in tourism.23. Infrastructure growth to fuel tourism growth To ensure rapid growth of tourism in the future, tourism projects will need to be balance with infrastructure development. We expect that with improvements in road infrastructure and development of the new airport in Hambantota, various new destinations will emerge in the country, especially to the north and the east, as these areas have abundant natural smash to attract tourists but currently suffer from poor connectivity. We expect more airlines to operate in the country as the second airport develops.24. Greater emulation will facilitate growth We also expect greater competition with the introduction of new hotels in popular destinations such as Colombo, Kandy, Bentota, and Sigiriya, and Galle. We expect the live hotels to undertake phased re novations to effectively compete with the upcoming hotels. Also, with the increase in income from hotels over the past few years, we expect an increase in the number of hospitality cerebrate transactions and mergers and acquisitions.25. Challenge of attrition to other destinations Currently, the hotel industry witnesss significant employee attrition to countries in the Middle East and to the Maldives and India. However, with a more stable political environment and improvement in quality of living in Sri Lanka, we expect the attrition to gradually26. Shortage of skilled labor As new players enter the market, the projected growth in tourism will be accompanied by shortage of skilled labour. We anticipate the need for relive hospitality education institutions as the contribution of the tourism sector to the overall economy increases.SUMMARY27. Sri Lanka is located in a strategically considered naval spot on the world map. Sri Lanka entered the international tourism arena in the 1960s. Since then, government involvement has been the key factor in tourism development in Sri Lanka. Over the years tourism in Sri Lanka has developed significantly. Today tourism has become the sixth Foreign Exchange Earner (FEE) in Sri Lankan economy.Tourism can make a great impact on development of the Sri Lankan economy. Employment opportunities and regional development are playing significant role with regard to the tourism industry development. The governments vision is to make the tourism sector as Sri Lankas most innovative and profitable income generating source.28. During past three decades Sri Lankas tourism industry had few draw backs. In the year 2010 approximately one million tourists visited Sri Lanka. Following graph indicates how tourism increased from 1966 to 2011 in Sri Lanka. To cater for this increase tourist hotels in Sri Lanka must be developed. Sri Lankas climate is tropical and the southwestern part of the island is the wettest. . Around 38,000 people in Sri Lan ka were killed during this incident and much of Sri Lankas coast was destroyed.29. Total arrivals were 230,106 in 1986, down 43 percent from 1982. The Ceylon Tourist Board also undertook a crash promotion program in an attempt to restore the islands image in world tourist markets. This denotes that tourism industry is one of the core sources of foreign exchange earner in economy of Sri Lanka. Tourism directly affected to economy of a country. Development of tourist hotels in Sri Lanka will extremely support the rapid economic development. Developments of tourist hotels, increase room capacities, increase occupancy rates and develop the condition of rooms and upgrade the service provided in the hotels are the key factors to be mainly focused on if to develop tourism. Tourist hotel industry should be developed in most of the famous city for tourism with sufficient amount of tourist hotels30. Negative images, lack of foreign exchange for tourism development, lack of skilled manpower, w eak institutional frameworks for tourism planning, political instability caused by communal violence, civil war conflicts are inhibitors to tourism development. However, little is known about how international tourism firms perceive political risks and other general barriers and threats to tourism promotion in Sri Lanka.31. Last thirty years Sri Lanka also faced the civil war and it affected the tourism industry of country. Some of the foreign countries have reject Sri Lankas products in their country due to the violation of human rights during the war time. Currently Sri Lanka is having negative relationship with some foreign countries therefore the export and import of Sri Lankan products will be decreased and it affects the tourism industry as well.32. Sri Lankas proximity to source markets such as India and its connectivity to the Middle East and China will help in sustaining tourism growth. To ensure rapid growth of tourism in the future, tourism projects will need to be balanc e with infrastructure development. We expect the existing hotels to undertake phased renovations to effectively compete with the upcoming hotels. We also expect the hotel companies, especially the domestic companies located in the country to undertake long and speciality term hospitality training programs and regularly undertake competition benchmarking for compensation to retain the talent.RECCOMONDATIONS33. These are the recommendations which we can produce in related to tourism.Develop a marketing strategy Emphasizing the creation and sustaining of a positive image of Sri Lanka as a substantive and well-established tourist destination offering facilities experiences that are different Sri Lankan products.Establish a domestic tourism strategy To expand the existing product base and encourage a greater level of holiday movements in addition to pilgrim movements.Develop goods and services To meet the increasing needs of the tourism industry, and thus optimize the economic benefit of tourism development to Sri Lanka.Modify the agreement of tourism activities In order to bring about related improvements in the private sector, increase coordination between tourism and interrelated sectors, and introduce streamlining to facilitate the development of the tourism sector.Emphasize the environmental, social and cultural aspects Tourism Development Planning is the only way to solve many issues related to tourism in development. accordingly the tourism planning process should be designed to produce goals and objectives for the destination area related to tourism development. The tourism development plan provides overall guidelines for development and identifies development opportunities. Many development countries are involved in tourism planning.Financial Assistance Financial assistance for hotel owners and any other profession in tourist sector would help to create more employment opportunities.Domestic Airport Airport also more than 100 km away from the tourist d estination it is needed have domestic airports.Surfing Training This will create more employment opportunities and generate good income. Among the tourists there are some people they love for surfing and keen to learn.Conduct Language Teaching Language barrier should be overcome by conducting specially job orient language training.Employ Combat Divers Surfing is risky and adventure sport it dont take much time for some to happen therefore as precautionary measure it is needed some combat divers close to the surfing area it would enhance the confidence of people who do surfing.Proper hacker Service Taxi service should be reformed introducing good vehicles fixed with meter system and giving training for drivers.Improve Infrastructure Facilities Infrastructure facilities such as Power, Highways, Railways, Airports, Ports, Water Supply, Telecommunications, Accommodations, and Recreational, Shopping and Banking to be improved.Awareness Programs Tourists should be informed on specific s ocial, cultural and religious environment programmed.GAD ALWIS SLEMaj student OFFICER -DSCSC

General Dynamics and Lockheed Martin Comparison

cosmopolitan ki interlockingics and Lockheed Martin ComparisonFinancial bid Analysis familiar dynamics vs. Lockheed MartinExecutive SummaryThis analysis professional personvides a comparison of both major companies at bottom the Aerospace and Defense pains, General dynamics and Lockheed Martin. General ki lootics had an roe of 25% whereas Lockheed Martin was 49% demonstrating LMT has a high(prenominal) spread and gene charge per unitd a higher amount of slide by above its price of faithfulness capital as compared to GD. GD generates a higher NOPAT coast oer LMT (9.4% and 7.8%, respectively) allowing GD to contribute more to ROE as a outgrowth of the decreased effect post expenses remove on brighten income with respect to total gross gross revenue revenue enhancement. LMT has a considerable advantage for generating increase summation turn all over, by generating $1.37 for every vaulting horse as compared to GDs $1.08 for every dollar spent on company additions. Ge neral kinetics storage is extremely undervalued (estimated $77.71 compared to finish set of $57.79) whereas Lockheed Martins stock was slightly overvalued ($85.93 compared to closing price of $84.08). integrity rating indicates that investors were overly optimistic in LMTs earning potential and pessimistic for GDs earning potential. Despite the valuation, the destiny of this industriousness remains dependent on judicatures decisions to decrease military disbursement, which will stick out a negative impact on both companies. However, expansion of commercialised tonal patternlines and accompliceships with healthcare industries will have a positive effect on these companies and boilersuit this sedulousness will have a neutral outcome for the upcoming year.General Dynamics (NYSE GD)General Dynamics is the sixth largest defense contractor in the world and the second largest maker of corporate jets. The company maintains four pedigree conclaves including aerospace, attac k systems, marine systems and information systems and technology. give the axe earnings for the company change magnitude from 2006-2008 ($1.86 to $2.46), a 24% increase over 3 years. Sales for all groups increased from $24.1 to $29.3 trillion from 2006-2008, a 17% increase. The company is based in Virginia and gets 67% of its revenue from the Department of Defense.The aerospace group generated $5.5 billion (19%) in gross sales in 2008, mostly cod to Gulfstream business jet, which include long-range and ultra-long-range jets. In response to the tidy sumturn in the economy, the intersectionion of large-body and medium-size subscriber linecraft were reduced from 87 to 73 and 69 to 24, respectively, in 2008. In product emergence, Gulfstream introduced 2 additions, which are the ultra-large-cabin, ultra-long-range G650 and the super-mid-size G250. production of both of these aircrafts, which enter into service in 2011 and 2012, are foreseeable income generators based on orders pl aced in 2008.The combat systems group generated $8.2 billion (28%) in sales in 2008, mostly driven by demand for combat vehicles, specifically Mine-Resistant, Ambush-Protected (MRAP) vehicles. The combat system group makes, repairs and supports wheeled and bring in armored vehicles and munitions. Combat system product lines include combat vehicles, guns and ammunition systems, mobile bridge systems, armor, chemical, biological and explosion detection systems. Future opportunities include delivering hundreds of tanks and armored vehicles to Saudi Arabia between 2010 and 2012.The marine systems group generated $5.6 billion (19%) in sales in 2008, extremely productive as compared to 2007. The group delivers destroyers, submarines, logistic ship and the initiative commercial product carrier. Upcoming contracts include doubling production to two submarines per year beginning in 2011, which is predicted to increase revenue and earnings over the close terce years.The information system s and technology generated $10 billion (34%) of sales in 2008 its biggest achievement developing a battlefield communications canwork program and stick Tactical Radio System (JTRS). Customers include federal civilian agencies and commercial customers, which chiefly focus on electronics for land, sea and air-based weapons systems. The acquisition of two companies in the tactical communications and healthcare information technology field are declarative of the direction this group will be reservation in the upcoming years. cultivation gathered from Morningstar1, SP500 patience depicts2 and www.generaldynamics.com3Lockheed Martin (NYSE LMT)Lockheed Martin is the worlds largest military weapons maker, deriving 84% of its net sales from the unify States judicature, including the Department of Defense. The company is comprised of four operating systems including aeronautics, electronic, space and information systems and orbiculate services. dough sales increased 7.3% from 200 6 to 2008 ($39.6 to $42.7 billion) and earnings increased 21.8% over three years ($2.5 to $3.2 billion). The company operates in Maryland and employs 146,000 people.The aeronautics share generated 27% of sales ($11.5 billion) in 2008. The segments primary production are the F-35 Lightning II combat aircraft which is intercommunicate to be completed in 2010. The aeronautics segment is foc utilise on making fighter jets and military transport planes and on unmanned military aircraft. The segment also operates the Global Sustainment enterprise to ensure success throughout the career motorbike of its aircraft.The electronics systems segment also generated 27% of sales in 2008 and primarily makes land, sea and air-based missiles and missile defense systems. Specifically, this segment is focused on maritime systems and sensors, missiles and dismiss control, and platform, training and energy. This system also manages and operates the Sandia National Laboratories for the US Department of Energy. on-going projects include the Terminal Altitude Area Defense System (THAAD), the Ballistic rocket Defense system and the firehead control system for the Apache helicopter.The space systems segment generated 19% of sales ($8.2 billion) in 2008. This segment is comprised of satellites, strategic and defensive missile systems, and space transfer of training systems. The US government customers accounted for 96% of this segments sales in 2008. An ongoing partner is NASA the LMT-built Phoenix Lander will continue to rove on Mars. An early(a) venture is with Boeing, the United Launch Alliance, which provides satellite launch services to the US government.Information systems and global services segment account for 27% of sales in 2008. This segment contains bursting charge solutions, information systems and global services. The US government customers accounted for 93% of the segments sales in 2008. Major products/programs include communication systems, mission and combat su pport solutions, civil confidence programs (US Census), the FAA Automated Flight Service Station, the FBIs Sentinel IT program, and various NASA programs.Collaborations and partnerships with companies around the universe enable Lockheed Martin to grow its international business both with government and industry. The establishment of Lockheed Martin Australia in 2009 indicates an international interest to grow and expand.Information gathered from Morningstar1, SP500 intentness reports2 and www.lockheedmartin.com4 exertion Outlook Aerospace DefenseThe aerospace and defense industry relies heavily on US government allocation and the upcoming year will likely bring budget cuts to the defense budget in 2010. However, there are predictions that the conventional military equipment is maturation and once the Iraq war ends, there will be a involve for repair and replacement. Due to the high levels of deficit spending and an increasing trend for societal spending, it is likely there wi ll be cuts in defense spending and the outlook for this industry will decline.On the other hand, it is estimated that there will be an increased ingathering of global passenger air traffic in 2010 as compared to a decline in 2009. This is based on positive air traffic egression since comparison between 2009 and 2010. Aircrafts that are little fuel-efficient in the US will also bespeak to be upgraded and replaced with vernaler aircraft. The industry predictions are anneal production cuts at Boeing and Airbus, and declines in the business jet markets payable to locomote corporate profits.The industry outlook is therefore at a neutral rating, due to decreased military budget but increased commercial air traffic for 2010. Competition in the industry (Boeing, Northrop Grumman, Honeywell and Raytheon) will strive for contracts within the industry. many an(prenominal) of these defense contractors will face uncertainty from upcoming government decisions in the next year and hence t he neutral outlook for this industry.Information gathered from Morningstar and SP500 fabrication ReportsFinancial Statement AdjustmentsThe following table contains information on the accumulative adjustment to General Dynamics and Lockheed Martins financial Statements.AdjustmentsGeneral DynamicsLockheed MartinIncome Statement make up Net Income by $19 one billion million from loss from discontinued trading operations net of value Increase Net Income by $196 million from deferred portion of income tax income Decrease Net Income by $70 million for gain on sale of LKEI and ILS net of tax Decrease Net Income by $56 million for gain on land sale Increase Net Income by $215 million to reverse impairment charge (215 = 314(1-.316) Increase Net Income by $72 million to comb out deferred taxes Subtract $246 million from Net Income for Pension Income ease tag Increase assets by 75% of PV of capitalized leases ($709 million) Decrease assets by $7 million to depressurise taxes (DTA) Adj ustments for LIFO reserve not added to sum summations. Added in denominator of ITR and occurrent addition in Current Ratio Added 100% of PV of capitalisation of leases to jibe Liabilities ($946 million) Subtracted 25% of PV of capitalized leases to SE ($236 million) Decrease SE by $7 million to unwind deferred taxes effect (-DTA +DTL) Increase assets by 75% of PV of capitalized leases ($699 million) Decrease assets by $5,390 million to unwind deferred taxes (DTA) Increase liabilities by 100% of PV of capitalized leases ($932 million) Decrease SE by 25% of PV of operating leases ($233 million) Decrease SE by $5,390 million to unwind deferred tax (-DTA +DTL)Caveats vector sum of A-12 program in 1991 is an dissimilarly contingency of $690 and is currently on appeal in the Appeals Court. woo of Equity swellHistorically, LMT common stock has proven slight small to the broad stock market. With a beta of .923 and exploitation the Capital Asset Pricing Model (CAPM), LMT investors require an annual rate of reelect of 10.2%. Although this is press down than the pass judgment market return of 10.8% (see appendix for calculation and arrogances), it is greater than its industry (Guided Missile Space Vehicles) expected return of 8.7%. However, although LMT may be more vaporizable as a stock than its competitors, it enjoyed a Return on Equity (ROE) business firmificantly higher than the industry median(a).In 2008, LMT had an ROE of 49.2% while the industry followed with a 23.4% average ROE. Just as significant and telling is the comparison of LMTs ROE to its own ask rate of return. This spread of 39% is an important-looking sign as it demonstrates the amount of return LMT generated above its court of truth capital. This is also impressive to investors at first glance, and will warrant a deeper interest from prospective investors. more than the same can be said for GD when comparing its required rate of return to its ROE. Although the spread was only 12 .9%, it is unagitated a good sign that GD generates such a return above its cost of equity.However, unlike LMT GD has a beta greater than 1 and is therefore more sensitive to stock market moves and has an expected return less than its industry return by about 1.25%.NOPAT MarginWhen we analyze the potential net income in the absence of debt, NOPAT, we observe that General Dynamics (9.4%) generates a higher margin over Lockheed Martin (7.8%), which allows General Dynamics to contribute more to ROE in comparison to Lockheed Martin as a result of the decreased effect interest expenses have on net income with respect to total sales revenue. However, when comparing NOPAT performance to the rest of their industry (Ship Boat Building Repair), General Dynamics comes in slightly to a lower place the 9.9% average that was established for 2008, but does not necessarily signify any under-performance in this area since the industry data only takes into account two firms when generating per sistence NOPAT margin averages. Lockheed Martin was similarly compared to assiduity data, generated by two firms as well, in which NOPAT margins were preserve that were more than double of what was found for similarly classified companies (Guided Missiles Space Vehicles 3.69%).Asset TurnoverThis portion of the ROE evaluates the efficiency to prove revenue based on the investment in assets made by the company. When we begin to evaluate the modify Asset TO values provided by the multiplicative decomposition of ROE, we observe a observable advantage by Lockheed Martin since they reportedly generate $1.37 for every $1.00 spent on assets. General Dynamics generate slightly lower values at $1.08 for every $1.00 spent on company assets. We then continued to analyze Asset TO, now based on the additive decomposition of ROE to see how other variables affect the employee upset rates. When this approach is taken, average assets for both companies in 2008 mandatory to be adjusted, and w as done so by pulling out all non-interest military strength liabilities (NIBL). This is where we noticed that NIBLs for Lockheed Martin ($20,742) were 62.8% higher than those reported by General Dynamics ($12,735). As a result, the Asset TO ratios increased significantly for both companies (LMT 2.05 and GD 4.09) with respect to assets dollars invested by for individually one company. As we can observe, unexpected losses in each companys allowance fund had led them to classify their losses as liabilities since they will still needed to be accounted for in the near future. The 32% look across in the fair value of the LMT pension fund ($27,259 down to $18,539) in 2008 and the 35% neglect in the fair value of the GD pension fund ($7,452 down to $4,823)was felt somewhat more extensively by LMT, since the higher amount befuddled reflects LMTs larger workforce of 140,000 employees. GD, although enduring a similar percentage drop in fund value, only accommodates a workforce of 91, 000, and therefore lost less in overall value amount.LeverageWhen we analyze leverage, we are analyzing each companys ability and efficiency in exploitation interest coach debt to generate revenue. The higher the leverage value, the better the ability of a company is at using invested funds (IBLs) to obtain desired revenues. When evaluating LMTs and GDs effect of leverage as a result of their 2008 results, we observe that the totals generated by LMT (0.17) are over three multiplication higher than those generated by GD (0.05) during the same time period. As we continue to recitation down into the effect of leverage, we notice that ROA is also higher for LMT as a result of the large variation in NIBLs between the two companies. Although a higher leverage effect value may indicate that LMT relies more on interest bearing debt to generate more sales revenue, an analysis of interest bearing liabilities for both LMT and GD was performed based on data available at the end of 2007 and 2008. This analysis revealed that LMT had reduced their interest bearing liabilities ($4,407 down to $3,805) while GD, whom enter a smaller leverage effect, had done the opposite and showed to have increased their interest bearing liabilities ($2,791 increased to $4,024) by the end of 2008.Selected Ratio ComparisonAccounts receivable DaysGeneral Dynamics manufacturingLockheed MartinIndustry39.5132.5043.6257.12From the results presented above, General Dynamics demonstrates that it under-performed the rest of the industry by exceeding the average account due day times by 7 geezerhood. In contrast, Lockheed Martin out-performed the rest of its industry by having save an account receivable average of 43.62 eld, which means LMT was collecting from customers on an average of 13.5 long time ahead of the rest of the industry.Accounts Payable DaysGeneral DynamicsIndustryLockheed MartinIndustry33.8831.5020.0919.66 GD is collecting from customers on average over 2 days past the industry average of 31.50 days LMT is collecting just day over the industry average of 19.66 daysInventory DaysGeneral DynamicsIndustryLockheed MartinIndustry25.9756.6217.3513.55 GD is number inventory on average over 30 days under the industry average of 56.62 days LMT is turning inventory on average over 3 days over the industry average of 13.55 daysInterest CoverageGeneral DynamicsIndustryLockheed MartinIndustry29.5730.4314.495.49 GD could cover its yearly interest expenses 29.57 times in 2008, just under its industry average of 30.43 times LMT could cover its yearly interest expenses 29.57 times in 2008, significantly over its industry average of 5.49 timesEquity ValuationThe equity valuation of General Dynamics for 2008 produced an estimated share price of $77.71. This price is significantly higher than the closing per-share price of $57.59 for 2008 showing the companys stock was extremely undervalued. According to analyst reports5, some concerns about growth for General Dynamics ste m from shrinking credit markets, which would impair the ability to finance business jets. Additionally, it is possible that investors were concerned the aerospace and defense industry would decline with a shift from government defense spending to social spending and deficit spending.Abnormal net income was computed as predicted net income less the cost of equity capital. Predicted net income was computed using 2008 pro forma net income of $2,674 and implementing annual growth rates suggested by Goldman Sachs earnings forecasts5. The growth rates from 2009 through 2013 were -2.9%, 7.3%, 5.2%, 7.3% and 7.8% respectively. The same earnings forecasts were used to calculate the predicted dividends. The predicted dividends from 2009 to 2013 are 577, 617, 643, 671 and 700 respectively. The perch value assumption used in computing abnormal net income was the competitive equilibrium on incremental real sales assumption. This strategy was chosen because the government is one of General Dyna mics most significant customers, comprising approximately 67% of the companys revenue. This lead to the assumption that General Dynamics may not need to invest a large amount of resources in developing new customers and that most of their future growth would be lead by existing customers. This assumption provided a close value of $21,999. The cost of capital for General Dynamics was calculated using a beta of 1.119, a risk salvage rate of 5% and a market risk premium of 4%. This produced a cost of capital of 9.5%. The present value of abnormal net income was calculated to be $20,265, by dividing abnormal net income by a discounting factor derived using the cost of capital.The present value of abnormal net income was combined with the initial bind value of $9,810 to produce an estimated predicted price of $30,075. This price was divided by the number of shares outstanding according to the 2008 annual report to arrive at an estimated share price of $77.71.The equity valuation for L ockheed Martin for 2008 produced an estimated share price of $85.93, which is slightly higher than the veritable share price as of the end of 2008 of $84.08. This shows the stock was slightly overvalued. This shows investors may have been overly optimistic in their opinion of Lockheed Martins earnings potential.Abnormal net income was computed just as that of General Dynamics. Using analysts reports6, estimated (negative) growth rates of (6%), (7%), (6.6%), 11% and 8.92% were apply to the 2008 pro forma net income of $3,114. The same terminal value assumption was used for Lockheed Martin as was used for General Dynamics. The US government is a substantial customer of Lockheed Martins, which lead to the assumption that a large portion of future growth could be attributed to existing customers and few resources could be devoted to developing new customers. The terminal value assumption provided a terminal value of $41,132. The cost of equity capital was calculated using a beta of .9 23, a risk free rate of 4% and a market risk premium of 5%. The 8.7% cost of capital was used to find the present value of abnormal net income of $37.936. This present value was combined with an initial book value of ($2,758) to produce an estimated price of $35,178. The estimated price divided by the number of shares outstanding per the Lockheed Martin annual report to arrive at a per-share price of $85.93.References1www.Morningstar.com2www.netadvantgage.standardandpoors.com3www.generaldynamics.com4www.lockheedmartin.com5Richard Safran, Noah Poponak, Goldman Sachs, January 26, 2009. Noah Poponak, Chun-Yai Wang, Sai Krishna, Goldman Sachs, January 27, 20106Richard Safran, Noah Poponak, Goldman Sachs, January 22, 2009. Noah Poponak, Chun-Yai Wang, Sai Krishna, Goldman Sachs, January 29, 2010APPENDIXCAPM = Rf tempo + (Beta*Rmrkt)Given DataRisk Free rate = 3.77% (10 Year Treasury as of 2/18/10)Market Premium (Rmrkt) = 7% (given on scallywag 26 of class notes) LMT Beta =0.923Industry Beta =0.697GD Beta =1.119Industry Beta =1.298CAPM advisementsLMT = .0377 + .923*.07LMT =10.23%Industry = .0377 + .697*.07Industry =8.65% GD = .0377 + 1.119*.07GD =11.60%Industry = .0377 + 1.298*.07Industry =12.86% Financial Statement Analysis GDLMT 20082008 Beginning assets25,73328,926 Ending assets28,37333,439 Beginning equity11,7689,805 Ending equity10,0532,865 Beginning interest-bearing liabilities2,7914,407 Ending interest-bearing liabilities4,0243,805 Net income (pro forma)2,6743,114 Sales revenue29,30042,731 Other revenue00 Research development expense4741,220 Selling, general administrative expense1,7002,344 Income tax expense1,1261,485 Income tax rate0.310.32 Interest expense133341 Beginning inventory1,6211,718 Ending inventory2,0291,902 Cost of goods sold25,64738,082 Beginning accounts receivable2,8744,925 Ending accounts receivable3,4695,296 Beginning accounts due2,3182,163 Ending accounts payable2,4432,030 Shares outstanding386393 Closing price per share57.5984.08bloo mberg.com fair(a) assets27,05331,183 Average equity10,9116,335 Average interest-bearing liabilities3,4084,106Average non-interest bearing liabilities12,73520,742 Average accounts receivable3,1725,111 Average inventory1,8251,810 Average accounts payable2,3812,097 After-tax interest rate0.030.06Multiplicative bunkum of ROE ROE0.250.49 Net profit margin0.090.07 Asset turnover1.081.37 Leverage2.484.92Additive Decomposition of ROE ROE0.250.49 Market-to-book2.2111.53NOPAT Margin0.090.08 Asset turnover2.054.09 ROA0.190.32 Spread0.170.26 Leverage0.310.65 Effect of leverage0.050.17 Gross profit margin0.120.11RD to revenue0.020.03SGA to revenue0.060.05Accounts receivable days39.5143.65Inventory days25.9717.35Operating cycle65.4861.00 Accounts payable days33.8820.09 Cash-to-cash cycle31.6040.91 Interest coverage29.5714.49 Debt ratio0.650.91 accompaniment CGeneral DynamicsLockheed MartinFinancial Statement AdjustmentsCumulative Financial Statement Adjustments Summary of Income Statement Adjust mentsSummary of Income Statement AdjustmentsNet Income as account$ 2,459Net Income as Reported$ 3,217Discontinued operations19Loss on sale of property,(126) unsnarl tax effect196land, equipment adjust Net Income$ 2,674 empty of Impairment charge215 Unwind tax effects72 Pension Income(264) familiarized Net Income$ 3,114Summary of Balance Sheet AdjustmentsSummary of Balance Sheet Adjustments total Assets as reported$ 28,373Total Assets as reported $ 33,439Constructive capitalisation of709Constructive capitalization 699operating leasesof operating leasesUnwind tax effects (DTA)(7)Unwind tax effects (DTA)(5,390)familiarised Total Assets$ 29,075 familiarized Total Assets$ 28,748 Total Liabilities as reported$ 18,320Total Liabilities as reported$ 30,574Constructive capitalization946Constructive capitalization932of operating leasesof operating leasesAdjusted Total Liabilities$ 19,266Adjusted Total Liabilities$ 31,506Total SE as reported$ 10,053Total SE as reported$ 2,865Constructive ca pitalization(236)Constructive capitalizationof operating leases(233)of operating leasesUnwind tax effects(5,390)Unwind tax effects(7)(DTA+DTL)(DTA+DTL)Adjusted Total SE$ (2,758)Adjusted Total SE$ 9,810Adjusted Total Liabilities + SE$ 29,075Adjusted Total Liabilities + SE$ 28,748General DynamicsPension Income Pro Forma Calculation1Net pension cost (benefit)$ 20 Net postretirement plan cost56 Total cost$ 76Net earnings$ 2,459 component3.1%20082007 2Funded condition pensions$ (2,922)$ 383 Funded status other postretirement plans(640)(642) Total funded status(3,562)(259) Difference$ (3,303)3Rate of return on U.S. plan assets8.1% judge return593 Implied asset base7,330= 592 / .081 Actual return percentage-32.20%= 2360 / 73304Implied asset base$ 7,330 Pro forma expected rate7.0%Given Pro forma expected return513 less(prenominal) Original expected return(593) Difference (reduction in pension income)(80) 1 trenchant tax rate68.8%=1-.312 Adjustment (reduction) to net income$ (55)OR (.08 1-.070)*7,330 * (1-.312) =$ 55Adjusted income$ 2,404= 2,459 55 Lockheed Martin Pension Income Pro Forma Calculation1Net pension cost (benefit)$ 462 Net postretirement plan cost46 Total cost$ 508Net earnings$ 3,217 Percentage15.8%20082007 2Funded status pensions$ (11,882)$ (879) Funded status other postretirement plans14262017 Total funded status(10,456)1,138 Difference$ (11,594)3Rate of return on U.S. plan assets8.5% Expected return$ 2,184 Implied asset base25,694= 2184 / .085 Actual return percentage-28.62%= 7354 / 256944Implied asset base$ 25,694 Pro forma expected rate7.0%Given Pro forma expected return1,799 Less Original expected return(2,184) Difference (reduction in pension income)(385) 1 Effective tax rate68.4%=1-.316 Adjustment (reduction) to net income$ (264)Adjusted income$ 2,953= 3,217 264General DynamicsCapitalization of Operating drives Enter interest rate on a lower floor0.039Enter operating lease commitments below (in millions)2009205.0 2010174.0 2011131.0 201297. 0 201370.0 2014 thereafter405.0Solution founder value of operating lease commitments$ 945.9 Calculation of Present Value of Operating Lease Payments0205.01.000205.0 1174.01.039167.5 2131.01.080121.3General Dynamics and Lockheed Martin ComparisonGeneral Dynamics and Lockheed Martin ComparisonFinancial Statement AnalysisGeneral Dynamics vs. Lockheed MartinExecutive SummaryThis analysis provides a comparison of two major companies within the Aerospace and Defense industry, General Dynamics and Lockheed Martin. General Dynamics had an ROE of 25% whereas Lockheed Martin was 49% demonstrating LMT has a higher spread and generated a higher amount of return above its cost of equity capital as compared to GD. GD generates a higher NOPAT margin over LMT (9.4% and 7.8%, respectively) allowing GD to contribute more to ROE as a result of the decreased effect interest expenses have on net income with respect to total sales revenue. LMT has a considerable advantage for generating increased asset turnover, by generating $1.37 for every dollar as compared to GDs $1.08 for every dollar spent on company assets. General Dynamics stock is extremely undervalued (estimated $77.71 compared to closing price of $57.79) whereas Lockheed Martins stock was slightly overvalued ($85.93 compared to closing price of $84.08). Equity valuation indicates that investors were overly optimistic in LMTs earning potential and pessimistic for GDs earning potential. Despite the valuation, the destiny of this industry remains dependent on governments decisions to decrease military spending, which will have a negative impact on both companies. However, expansion of commercial airlines and partnerships with healthcare industries will have a positive effect on these companies and overall this industry will have a neutral outcome for the upcoming year.General Dynamics (NYSE GD)General Dynamics is the sixth largest defense contractor in the world and the second largest maker of corporate jets. The company maintains four business groups including aerospace, combat systems, marine systems and information systems and technology. Net earnings for the company increased from 2006-2008 ($1.86 to $2.46), a 24% increase over 3 years. Sales for all groups increased from $24.1 to $29.3 billion from 2006-2008, a 17% increase. The company is based in Virginia and gets 67% of its revenue from the Department of Defense.The aerospace group generated $5.5 billion (19%) in sales in 2008, mostly due to Gulfstream business jet, which include long-range and ultra-long-range jets. In response to the downturn in the economy, the production of large-body and medium-size aircraft were reduced from 87 to 73 and 69 to 24, respectively, in 2008. In product development, Gulfstream introduced 2 additions, which are the ultra-large-cabin, ultra-long-range G650 and the super-mid-size G250. Production of both of these aircrafts, which enter into service in 2011 and 2012, are foreseeable income generators based on or ders placed in 2008.The combat systems group generated $8.2 billion (28%) in sales in 2008, mostly driven by demand for combat vehicles, specifically Mine-Resistant, Ambush-Protected (MRAP) vehicles. The combat system group makes, repairs and supports wheeled and tracked armored vehicles and munitions. Combat system product lines include combat vehicles, guns and ammunition systems, mobile bridge systems, armor, chemical, biological and explosion detection systems. Future opportunities include delivering hundreds of tanks and armored vehicles to Saudi Arabia between 2010 and 2012.The marine systems group generated $5.6 billion (19%) in sales in 2008, extremely productive as compared to 2007. The group delivers destroyers, submarines, logistic ship and the first commercial product carrier. Upcoming contracts include doubling production to two submarines per year beginning in 2011, which is predicted to increase revenue and earnings over the next three years.The information systems an d technology generated $10 billion (34%) of sales in 2008 its biggest achievement developing a battlefield communications network program and Joint Tactical Radio System (JTRS). Customers include federal civilian agencies and commercial customers, which primarily focus on electronics for land, sea and air-based weapons systems. The acquisition of two companies in the tactical communications and healthcare information technology field are indicative of the direction this group will be making in the upcoming years.Information gathered from Morningstar1, SP500 Industry reports2 and www.generaldynamics.com3Lockheed Martin (NYSE LMT)Lockheed Martin is the worlds largest military weapons maker, deriving 84% of its net sales from the United States government, including the Department of Defense. The company is comprised of four operating systems including aeronautics, electronic, space and information systems and global services. Net sales increased 7.3% from 2006 to 2008 ($39.6 to $42.7 b illion) and earnings increased 21.8% over three years ($2.5 to $3.2 billion). The company operates in Maryland and employs 146,000 people.The aeronautics segment generated 27% of sales ($11.5 billion) in 2008. The segments primary production are the F-35 Lightning II combat aircraft which is projected to be completed in 2010. The aeronautics segment is focused on making fighter jets and military transport planes and on unmanned military aircraft. The segment also operates the Global Sustainment enterprise to ensure success throughout the life cycle of its aircraft.The electronics systems segment also generated 27% of sales in 2008 and primarily makes land, sea and air-based missiles and missile defense systems. Specifically, this segment is focused on maritime systems and sensors, missiles and fire control, and platform, training and energy. This system also manages and operates the Sandia National Laboratories for the US Department of Energy. Current projects include the Terminal A ltitude Area Defense System (THAAD), the Ballistic Missile Defense system and the firehead control system for the Apache helicopter.The space systems segment generated 19% of sales ($8.2 billion) in 2008. This segment is comprised of satellites, strategic and defensive missile systems, and space transportation systems. The US government customers accounted for 96% of this segments sales in 2008. An ongoing partner is NASA the LMT-built Phoenix Lander will continue to rove on Mars. Another venture is with Boeing, the United Launch Alliance, which provides satellite launch services to the US government.Information systems and global services segment account for 27% of sales in 2008. This segment contains mission solutions, information systems and global services. The US government customers accounted for 93% of the segments sales in 2008. Major products/programs include communication systems, mission and combat support solutions, civil agency programs (US Census), the FAA Automated Fl ight Service Station, the FBIs Sentinel IT program, and various NASA programs.Collaborations and partnerships with companies around the globe enable Lockheed Martin to grow its international business both with government and industry. The establishment of Lockheed Martin Australia in 2009 indicates an international interest to grow and expand.Information gathered from Morningstar1, SP500 Industry reports2 and www.lockheedmartin.com4Industry Outlook Aerospace DefenseThe aerospace and defense industry relies heavily on US government allocation and the upcoming year will likely bring budget cuts to the defense budget in 2010. However, there are predictions that the conventional military equipment is aging and once the Iraq war ends, there will be a need for repair and replacement. Due to the high levels of deficit spending and an increasing trend for social spending, it is likely there will be cuts in defense spending and the outlook for this industry will decline.On the other hand, i t is estimated that there will be an increased growth of global passenger air traffic in 2010 as compared to a decline in 2009. This is based on positive air traffic growth since comparison between 2009 and 2010. Aircrafts that are less fuel-efficient in the US will also need to be upgraded and replaced with newer aircraft. The industry predictions are moderate production cuts at Boeing and Airbus, and declines in the business jet markets due to falling corporate profits.The industry outlook is therefore at a neutral rating, due to decreased military budget but increased commercial air traffic for 2010. Competition in the industry (Boeing, Northrop Grumman, Honeywell and Raytheon) will strive for contracts within the industry. Many of these defense contractors will face uncertainty from upcoming government decisions in the next year and hence the neutral outlook for this industry.Information gathered from Morningstar and SP500 Industry ReportsFinancial Statement AdjustmentsThe follo wing table contains information on the cumulative adjustment to General Dynamics and Lockheed Martins financial Statements.AdjustmentsGeneral DynamicsLockheed MartinIncome Statement Increase Net Income by $19 million from loss from discontinued operations net of tax Increase Net Income by $196 million from deferred portion of income tax Decrease Net Income by $70 million for gain on sale of LKEI and ILS net of tax Decrease Net Income by $56 million for gain on land sale Increase Net Income by $215 million to reverse impairment charge (215 = 314(1-.316) Increase Net Income by $72 million to unwind deferred taxes Subtract $246 million from Net Income for Pension IncomeBalance Sheet Increase assets by 75% of PV of capitalized leases ($709 million) Decrease assets by $7 million to unwind taxes (DTA) Adjustments for LIFO reserve not added to Total Assets. Added in denominator of ITR and Current Asset in Current Ratio Added 100% of PV of capitalization of leases to Total Liabilities ($946 million) Subtracted 25% of PV of capitalized leases to SE ($236 million) Decrease SE by $7 million to unwind deferred taxes effect (-DTA +DTL) Increase assets by 75% of PV of capitalized leases ($699 million) Decrease assets by $5,390 million to unwind deferred taxes (DTA) Increase liabilities by 100% of PV of capitalized leases ($932 million) Decrease SE by 25% of PV of operating leases ($233 million) Decrease SE by $5,390 million to unwind deferred tax (-DTA +DTL)Caveats Termination of A-12 program in 1991 is an unlikely contingency of $690 and is currently on appeal in the Appeals Court.Cost of Equity CapitalHistorically, LMT common stock has proven less sensitive to the broad stock market. With a beta of .923 and using the Capital Asset Pricing Model (CAPM), LMT investors require an annual rate of return of 10.2%. Although this is lower than the expected market return of 10.8% (see appendix for calculation and assumptions), it is greater than its industry (Guided Missile Space Vehicles) expected return of 8.7%. However, although LMT may be more volatile as a stock than its competitors, it enjoyed a Return on Equity (ROE) significantly higher than the industry average.In 2008, LMT had an ROE of 49.2% while the industry followed with a 23.4% average ROE. Just as significant and telling is the comparison of LMTs ROE to its own required rate of return. This spread of 39% is an impressive sign as it demonstrates the amount of return LMT generated above its cost of equity capital. This is also impressive to investors at first glance, and will warrant a deeper interest from prospective investors.Much the same can be said for GD when comparing its required rate of return to its ROE. Although the spread was only 12.9%, it is still a good sign that GD generates such a return above its cost of equity.However, unlike LMT GD has a beta greater than 1 and is therefore more sensitive to stock market moves and has an expected return less than its industry return by appr oximately 1.25%.NOPAT MarginWhen we analyze the potential net income in the absence of debt, NOPAT, we observe that General Dynamics (9.4%) generates a higher margin over Lockheed Martin (7.8%), which allows General Dynamics to contribute more to ROE in comparison to Lockheed Martin as a result of the decreased effect interest expenses have on net income with respect to total sales revenue. However, when comparing NOPAT performance to the rest of their industry (Ship Boat Building Repair), General Dynamics comes in slightly below the 9.9% average that was established for 2008, but does not necessarily signify any under-performance in this area since the industry data only takes into account two firms when generating Industry NOPAT margin averages. Lockheed Martin was similarly compared to Industry data, generated by two firms as well, in which NOPAT margins were recorded that were more than double of what was found for similarly classified companies (Guided Missiles Space Vehicle s 3.69%).Asset TurnoverThis portion of the ROE evaluates the efficiency to produce revenue based on the investment in assets made by the company. When we begin to evaluate the simplified Asset TO values provided by the multiplicative decomposition of ROE, we observe a noticeable advantage by Lockheed Martin since they reportedly generate $1.37 for every $1.00 spent on assets. General Dynamics generate slightly lower values at $1.08 for every $1.00 spent on company assets. We then continued to analyze Asset TO, now based on the additive decomposition of ROE to see how other variables affect the turnover rates. When this approach is taken, average assets for both companies in 2008 needed to be adjusted, and was done so by pulling out all non-interest bearing liabilities (NIBL). This is where we noticed that NIBLs for Lockheed Martin ($20,742) were 62.8% higher than those reported by General Dynamics ($12,735). As a result, the Asset TO ratios increased significantly for both companie s (LMT 2.05 and GD 4.09) with respect to assets dollars invested by each company. As we can observe, unexpected losses in each companys pension fund had led them to classify their losses as liabilities since they will still needed to be accounted for in the near future. The 32% drop in the fair value of the LMT pension fund ($27,259 down to $18,539) in 2008 and the 35% drop in the fair value of the GD pension fund ($7,452 down to $4,823)was felt somewhat more extensively by LMT, since the higher amount lost reflects LMTs larger workforce of 140,000 employees. GD, although enduring a similar percentage drop in fund value, only accommodates a workforce of 91,000, and therefore lost less in overall value amount.LeverageWhen we analyze leverage, we are analyzing each companys ability and efficiency in using interest bearing debt to generate revenue. The higher the leverage value, the better the ability of a company is at using invested funds (IBLs) to obtain desired revenues. When eva luating LMTs and GDs effect of leverage as a result of their 2008 results, we observe that the numbers generated by LMT (0.17) are over three times higher than those generated by GD (0.05) during the same time period. As we continue to drill down into the effect of leverage, we notice that ROA is also higher for LMT as a result of the large variation in NIBLs between the two companies. Although a higher leverage effect value may indicate that LMT relies more on interest bearing debt to generate more sales revenue, an analysis of interest bearing liabilities for both LMT and GD was performed based on data available at the end of 2007 and 2008. This analysis revealed that LMT had reduced their interest bearing liabilities ($4,407 down to $3,805) while GD, whom recorded a smaller leverage effect, had done the opposite and showed to have increased their interest bearing liabilities ($2,791 increased to $4,024) by the end of 2008.Selected Ratio ComparisonAccounts Receivable DaysGeneral D ynamicsIndustryLockheed MartinIndustry39.5132.5043.6257.12From the results presented above, General Dynamics demonstrates that it under-performed the rest of the industry by exceeding the average account receivable days by 7 days. In contrast, Lockheed Martin out-performed the rest of its industry by having recorded an account receivable average of 43.62 days, which means LMT was collecting from customers on an average of 13.5 days ahead of the rest of the industry.Accounts Payable DaysGeneral DynamicsIndustryLockheed MartinIndustry33.8831.5020.0919.66 GD is collecting from customers on average over 2 days past the industry average of 31.50 days LMT is collecting just day over the industry average of 19.66 daysInventory DaysGeneral DynamicsIndustryLockheed MartinIndustry25.9756.6217.3513.55 GD is turning inventory on average over 30 days under the industry average of 56.62 days LMT is turning inventory on average over 3 days over the industry average of 13.55 daysInterest CoverageG eneral DynamicsIndustryLockheed MartinIndustry29.5730.4314.495.49 GD could cover its yearly interest expenses 29.57 times in 2008, just under its industry average of 30.43 times LMT could cover its yearly interest expenses 29.57 times in 2008, significantly over its industry average of 5.49 timesEquity ValuationThe equity valuation of General Dynamics for 2008 produced an estimated share price of $77.71. This price is significantly higher than the closing per-share price of $57.59 for 2008 showing the companys stock was extremely undervalued. According to analyst reports5, some concerns about growth for General Dynamics stem from shrinking credit markets, which would impair the ability to finance business jets. Additionally, it is possible that investors were concerned the aerospace and defense industry would decline with a shift from government defense spending to social spending and deficit spending.Abnormal net income was computed as predicted net income less the cost of equity c apital. Predicted net income was computed using 2008 pro forma net income of $2,674 and implementing annual growth rates suggested by Goldman Sachs earnings forecasts5. The growth rates from 2009 through 2013 were -2.9%, 7.3%, 5.2%, 7.3% and 7.8% respectively. The same earnings forecasts were used to calculate the predicted dividends. The predicted dividends from 2009 to 2013 are 577, 617, 643, 671 and 700 respectively. The terminal value assumption used in computing abnormal net income was the competitive equilibrium on incremental real sales assumption. This strategy was chosen because the government is one of General Dynamics most significant customers, comprising approximately 67% of the companys revenue. This lead to the assumption that General Dynamics may not need to invest a large amount of resources in developing new customers and that most of their future growth would be lead by existing customers. This assumption provided a terminal value of $21,999. The cost of capital f or General Dynamics was calculated using a beta of 1.119, a risk free rate of 5% and a market risk premium of 4%. This produced a cost of capital of 9.5%. The present value of abnormal net income was calculated to be $20,265, by dividing abnormal net income by a discounting factor derived using the cost of capital.The present value of abnormal net income was combined with the initial book value of $9,810 to produce an estimated predicted price of $30,075. This price was divided by the number of shares outstanding according to the 2008 annual report to arrive at an estimated share price of $77.71.The equity valuation for Lockheed Martin for 2008 produced an estimated share price of $85.93, which is slightly higher than the actual share price as of the end of 2008 of $84.08. This shows the stock was slightly overvalued. This shows investors may have been overly optimistic in their opinion of Lockheed Martins earnings potential.Abnormal net income was computed just as that of General D ynamics. Using analysts reports6, estimated (negative) growth rates of (6%), (7%), (6.6%), 11% and 8.92% were applied to the 2008 pro forma net income of $3,114. The same terminal value assumption was used for Lockheed Martin as was used for General Dynamics. The US government is a substantial customer of Lockheed Martins, which lead to the assumption that a large portion of future growth could be attributed to existing customers and few resources could be devoted to developing new customers. The terminal value assumption provided a terminal value of $41,132. The cost of equity capital was calculated using a beta of .923, a risk free rate of 4% and a market risk premium of 5%. The 8.7% cost of capital was used to find the present value of abnormal net income of $37.936. This present value was combined with an initial book value of ($2,758) to produce an estimated price of $35,178. The estimated price divided by the number of shares outstanding per the Lockheed Martin annual report t o arrive at a per-share price of $85.93.References1www.Morningstar.com2www.netadvantgage.standardandpoors.com3www.generaldynamics.com4www.lockheedmartin.com5Richard Safran, Noah Poponak, Goldman Sachs, January 26, 2009. Noah Poponak, Chun-Yai Wang, Sai Krishna, Goldman Sachs, January 27, 20106Richard Safran, Noah Poponak, Goldman Sachs, January 22, 2009. Noah Poponak, Chun-Yai Wang, Sai Krishna, Goldman Sachs, January 29, 2010APPENDIXCAPM = Rf Rate + (Beta*Rmrkt)Given DataRisk Free rate = 3.77% (10 Year Treasury as of 2/18/10)Market Premium (Rmrkt) = 7% (given on page 26 of class notes) LMT Beta =0.923Industry Beta =0.697GD Beta =1.119Industry Beta =1.298CAPM CalculationsLMT = .0377 + .923*.07LMT =10.23%Industry = .0377 + .697*.07Industry =8.65% GD = .0377 + 1.119*.07GD =11.60%Industry = .0377 + 1.298*.07Industry =12.86% Financial Statement Analysis GDLMT 20082008 Beginning assets25,73328,926 Ending assets28,37333,439 Beginning equity11,7689,805 Ending equity10,0532,865 Beginning in terest-bearing liabilities2,7914,407 Ending interest-bearing liabilities4,0243,805 Net income (pro forma)2,6743,114 Sales revenue29,30042,731 Other revenue00 Research development expense4741,220 Selling, general administrative expense1,7002,344 Income tax expense1,1261,485 Income tax rate0.310.32 Interest expense133341 Beginning inventory1,6211,718 Ending inventory2,0291,902 Cost of goods sold25,64738,082 Beginning accounts receivable2,8744,925 Ending accounts receivable3,4695,296 Beginning accounts payable2,3182,163 Ending accounts payable2,4432,030 Shares outstanding386393 Closing price per share57.5984.08bloomberg.comAverage assets27,05331,183 Average equity10,9116,335 Average interest-bearing liabilities3,4084,106Average non-interest bearing liabilities12,73520,742 Average accounts receivable3,1725,111 Average inventory1,8251,810 Average accounts payable2,3812,097 After-tax interest rate0.030.06Multiplicative Decomposition of ROE ROE0.250.49 Net profit margin0.090.07 Asset tur nover1.081.37 Leverage2.484.92Additive Decomposition of ROE ROE0.250.49 Market-to-book2.2111.53NOPAT Margin0.090.08 Asset turnover2.054.09 ROA0.190.32 Spread0.170.26 Leverage0.310.65 Effect of leverage0.050.17 Gross profit margin0.120.11RD to revenue0.020.03SGA to revenue0.060.05Accounts receivable days39.5143.65Inventory days25.9717.35Operating cycle65.4861.00 Accounts payable days33.8820.09 Cash-to-cash cycle31.6040.91 Interest coverage29.5714.49 Debt ratio0.650.91Appendix CGeneral DynamicsLockheed MartinFinancial Statement AdjustmentsCumulative Financial Statement Adjustments Summary of Income Statement AdjustmentsSummary of Income Statement AdjustmentsNet Income as Reported$ 2,459Net Income as Reported$ 3,217Discontinued operations19Loss on sale of property,(126)Unwind tax effects196land, equipmentAdjusted Net Income$ 2,674Reverse of Impairment charge215 Unwind tax effects72 Pension Income(264) Adjusted Net Income$ 3,114Summary of Balance Sheet AdjustmentsSummary of Balance She et AdjustmentsTotal Assets as reported$ 28,373Total Assets as reported $ 33,439Constructive capitalization of709Constructive capitalization 699operating leasesof operating leasesUnwind tax effects (DTA)(7)Unwind tax effects (DTA)(5,390)Adjusted Total Assets$ 29,075Adjusted Total Assets$ 28,748 Total Liabilities as reported$ 18,320Total Liabilities as reported$ 30,574Constructive capitalization946Constructive capitalization932of operating leasesof operating leasesAdjusted Total Liabilities$ 19,266Adjusted Total Liabilities$ 31,506Total SE as reported$ 10,053Total SE as reported$ 2,865Constructive capitalization(236)Constructive capitalizationof operating leases(233)of operating leasesUnwind tax effects(5,390)Unwind tax effects(7)(DTA+DTL)(DTA+DTL)Adjusted Total SE$ (2,758)Adjusted Total SE$ 9,810Adjusted Total Liabilities + SE$ 29,075Adjusted Total Liabilities + SE$ 28,748General DynamicsPension Income Pro Forma Calculation1Net pension cost (benefit)$ 20 Net postretirement plan cost5 6 Total cost$ 76Net earnings$ 2,459 Percentage3.1%20082007 2Funded status pensions$ (2,922)$ 383 Funded status other postretirement plans(640)(642) Total funded status(3,562)(259) Difference$ (3,303)3Rate of return on U.S. plan assets8.1% Expected return593 Implied asset base7,330= 592 / .081 Actual return percentage-32.20%= 2360 / 73304Implied asset base$ 7,330 Pro forma expected rate7.0%Given Pro forma expected return513 Less Original expected return(593) Difference (reduction in pension income)(80) 1 Effective tax rate68.8%=1-.312 Adjustment (reduction) to net income$ (55)OR (.081-.070)*7,330 * (1-.312) =$ 55Adjusted income$ 2,404= 2,459 55 Lockheed Martin Pension Income Pro Forma Calculation1Net pension cost (benefit)$ 462 Net postretirement plan cost46 Total cost$ 508Net earnings$ 3,217 Percentage15.8%20082007 2Funded status pensions$ (11,882)$ (879) Funded status other postretirement plans14262017 Total funded status(10,456)1,138 Difference$ (11,594)3Rate of return on U.S. p lan assets8.5% Expected return$ 2,184 Implied asset base25,694= 2184 / .085 Actual return percentage-28.62%= 7354 / 256944Implied asset base$ 25,694 Pro forma expected rate7.0%Given Pro forma expected return1,799 Less Original expected return(2,184) Difference (reduction in pension income)(385) 1 Effective tax rate68.4%=1-.316 Adjustment (reduction) to net income$ (264)Adjusted income$ 2,953= 3,217 264General DynamicsCapitalization of Operating Leases Enter interest rate below0.039Enter operating lease commitments below (in millions)2009205.0 2010174.0 2011131.0 201297.0 201370.0 2014 thereafter405.0Solution Present value of operating lease commitments$ 945.9 Calculation of Present Value of Operating Lease Payments0205.01.000205.0 1174.01.039167.5 2131.01.080121.3

Theodore Roethke and The Waking :: Waking Essays

Theodore Roethke and The Waking   In describing the way he receives lifes lessons and learned experiences, Theodore Roethke uses repetition of twain different sentences and a simple rhyme scheme to athletic supporter the reader understand his outlook on how to endure life. The two sentences repeated throughout the poem are I wake to sleep, and take my waking windy and I learn by going where I have to go with slight variation in the latter. I wake to sleep, and take my waking dumb shows up in stanzas 1, 2, 4, and 6 and figuratively means that Roethke awakens in the morning and learns from the days experiences. Unlike most people, Roethke does not rush through the day as if he expected another. He lives through the day in a calm and slow manner so that he learns about life without missing anything on the way. At night, he f wholes asleep content with the days experiences and awakens the next morning in the same slow manner. When Roethke states I learn by going where I have to go in stanzas 1, 3, 5, and 6, he declares that he goes anywhere and everywhere to experience all that he can. He observes rare things throughout his journeys and makes mistakes along the way, hardly wherever he goes, he locks the experiences in his memory and repeats the cycle. The repetition of the sentences in the poem set a tone of determination and perseverance to enjoy all of lifes experiences that come Roethkes way. The emotion portrayed by the sentences is an uplifting feeling because Roethke observes and enjoys even the most trivial aspects of life such as when the lowly worm climbs up a winding stair. The rhyme scheme initiated by the author follows the rhyme scheme ABA in the first two stanzas, CDA in the third through fifth stanzas, and ABAA in the final stanza. This particular rhyme scheme creates a comfortable flow of overt rhyming. In the first two stanzas, the rhyming is the same (ABA) as Roethke talks about how to experience life by feeling. The rhyme scheme chang es in the third through fifth stanzas as the focus in the national changes to how Roethke epitomizes his experience by feeling idea by sharing the specific examples of the worm and the ground. The last stanza returns to an ABAA rhyme scheme much like that of the first two stanzas.

review potter3 chapter 1 :: essays research papers

The Characters in Chapter One Owl Post of Harry tamper and the Prisoner of Azkaban by J.K.RowlingIn class, we listened to the first chapter of Harry Potter and the Prisoner of Azkaban. This is indeed an extremely interesting chapter since it contains all the basic information you have to get to understand the Potter Universe. It gives quite detailed information about most of the important characters.The chapter starts with very important information about Harry. It says Harry Potter was a exceedingly unusual boy in many ways. And he also happened to be a wizard.As the story unfolds, you get to know Harry as a boy of thirteen years with untidy jet black hair who is quite small and skinny for his age. His eyes are bright green and he wears round glasses. The most important feature, though, in the description of his appearance is the fool on his forehead, shaped like a bolt of lightning.The book explains that Harry got the scar when his parents, James and Lily Potter, wizard and wi tch themselves, were murdered by the dark wizard Voldemort, the most vicious of his kind for a hundred years. This explains why Harry has to stop with his only living relatives, whom he obviously dislikes.It is also made clear that Harry only spends the summer with his relatives to go back to Hogwarts School of Witchcraft and champion for the rest of the year, which he has attended for the last two years.His relatives are his uncle Vernon Dursley, aunt Petunia Dursley and his cousin Dudley Dursley. They are non-magic folk, so-called Muggles, and they are extremely scared of anything that has to do with magic. This shows when Harrys uncle roars at one of his wizard friends on the phone DONT YOU COME NEAR MY FAMILY. To the Dursleys it is very important to make a good impression on their neighbours and so they are terrified of anyone finding out that Harry is a wizard and goes to Hogwarts.They think that magic community function to some kind of a lower class, which shows clearly wh en Uncle Vernon screams at Harry HOW DARE YOU GIVE THIS NUMBER TO PEOPLE LIKE- PEOPLE LIKE YOU Magic people seem to be dirty and worthless and even dangerous in his eyes.Three of the magicians closest to Harry are characterized in chapter one in detail. First, thither is Ron Weasley, one of Harrys best friends at Hogwarts.