paul essays

paul articles Me and Literature Parm Hothi In spite of the fact that I have been perusing books from an early age, the principal book I truly preferred was a children story book that was imprinted in India. We lived in a little town close Los Angles called Riverside. Since we had no South Asian basic food item store or even a little shop in the town, my father would particularly ask my uncle in Vancouver to send us Indian books since he enjoyed perusing. This one time with a portion of my fathers books came an awesome little shading filled book with peculiar pictures inside . My father gave it to me said dont lose it (not his careful I went to a primary school called Cameno Real rudimentary also, I was the main Indian in the whole school. None of the children even comprehended what my identity was so they recently expected that I was a bizarre Mexican. Ordinary I would get back home and read that equivalent book. I had different books however I didnt discover the warmth and kind disposition in those books that I found in this specific one. This book gave me a sense having a place and it evoked and demonstrated a great deal of slants. The book was about a kid who couldnt go to class since he had to go work in the fields with his father. Later I understood that the books was to educate us not to underestimate the benefits we have. Despite the fact that the story was as well complex for me at that age, the delineations in the book were the ones that pulled in me. I use to envision my self in the field and all the children in the photos that appeared as though me was an amazing idea. I accept in view of my fathers endeavors I have begun a genuine enthusiasm for India by and large and present day Indian books explicitly. Since I began watching a great deal of Indian film it has become simpler for me to comprehend the implications in the books. I have perused a few present day Indian fiction first versions. My advantage corresponded ... <!

Daddy 2 Essay Example For Students

Daddy 2 Essay A Critique of the Poem â€Å"Daddy† In the sonnet â€Å"Daddy,† Sylvia Plath portrays her actual sentiments about her perished father. All through the exchange, the peruser can discover numerous occasions that show an extraordinary sentiment of contempt toward the author’s father. She starts by communicating her feelings of dread of her dad and how he treated her. In this manner she passes on her point of view toward the wars being battled in Germany. She proceeds by clarifying her life since her dad and how it has identified with him. In the main refrain the peruser understands that Sylvia Plath is terrified of her dad. It is very certain that she never talked up to him to protect herself. In the primary line it is evident that something is finishing. â€Å"You don't do, you don't do any increasingly, dark shoe,† this shows she feels that her dad can't hurt her any longer. Additionally, she realizes that she needs to tell him how she feels. â€Å"In whic h I have lived like a foot for a long time, poor and white, scarcely setting out to inhale or achoo,† this communicates her dread of her dad, and outlines the way that she has stayed quiet, incapable to shout out or even breath any words against him. â€Å"Daddy, I have needed to execute you. You kicked the bucket before I had time,† this depicts the degree of her contempt toward him. That she was so horrified by his character that she would take his life if just she had the quality. Be that as it may, he kicked the bucket before she became sufficiently able to face his horrendous face. The following segment of the sonnet, â€Å"Marble-substantial, a sack brimming with God, Ghastly sculpture with one dim toe large as a Frisco seal,† shows how enormous she sees his essence. Contrasting him with the heaviness of marble with the forces of God. Anyway the one dim toe, which was harmed, and took into consideration ailment to set in, carried him to nothing. Something s he had not the ability to do, and something as immaterial as a small sore could. â€Å"In 1940, Otto built up a sore on his toe and disregarded the condition until gangrene overwhelmed the toe and he was hospitalized. Specialists performed medical procedure, yet it was past the point of no return. Otto’s toe was cut away in order to save him. Sylvia’s father died in November, 1940.† Source: Butscher, Edward. Sylvia Plath: Method and Madness. New York: The Seabury Press, 1976. The following entry, â€Å"And a head in the amazing Atlantic where it pours bean green over blue, in the waters off delightful Nauset.† portrays how Sylvia felt when she knew about her fathers’ contamination in his foot. She considers it in a sort of terrible manner that makes her wiped out. â€Å"I used to go to recoup you. Ach, du,† gives me that she despite everything thought about her dad and appealed to God for him while he was sick. Unfortunately despite the fact that she knew her dad didn’t care for her, Sylvia still thought about him to stress. In any case, he still didn’t care that she stressed. The section â€Å"In the German tongue, in the Polish town scratched level by the roller of wars, wars, wars,†shows the plot of the sonnet, where everything occurred. This likewise implies on the period in history when this occurred, be that as it may, it doesn’t let us know precisely. In the accompanying refrain it clarifies further. â€Å"But the name of the town is normal. My Polack companion says there are twelve or two. So I never could tell where you put your foot, your root, I never could converse with you.† This discloses to me that she is searching for where he is from. She doesn’t precisely know where he was raised or what his experience is on the grounds that there are numerous towns with a similar name. Hence, she can't comprehend his childhood, which built up his unfeeling character. As Sylvia gets more established and starts to comprehend the wars in Germany, she relates her life to the numerous contentions they carry with them. â€Å"The tongue stuck in my jaw. It stuck in a barbwire catch. Ich, ich, ich, ich, I could scarcely speak.† Again this portrays her dread toward her dad. She is so terrified of him that she can’t talk and stand in opposition to him. The barbwire speaks to the war that was occurring. She identifies with the survivors of war and sees herself trapp ed in the barbwire that has been set up by her dad, which keeps them isolated. â€Å"I thought each German was you. What's more, the language disgusting a motor, a motor chuffing me off like a Jew.† This shows she saw the similitudes between the Germans and her dad. Her dad in some cases regarded her as gravely as the Jews were being dealt with. He didn’t think about her as a little girl, but instead as a thing that was a weight to him. â€Å"A Jew to Dachau, Auschwitz, Belsen.† These were inhumane imprisonments. She analyzed her internal dread of her dad and her scorn for him to these camps. She felt as though she was caught inside one of these camps with nobody to go to. â€Å"I started to talk like a Jew. I figure I likely could be a Jew.† Again, she depicts herself as a Jew feeling like her dad is driving her away. â€Å"The snows of the Tyrol, the away from of Vienna are not unadulterated or true.† This shows she understands her dad is an unsa fe man. She realizes that a few things, similar to her dad, are not fair or good. It resembles she comprehends her father’s ways and understands that they are not his own, however are the methods of the Germans. â€Å"With my wanderer ancestress and my peculiar karma and my Taroc pack and my Taroc pack I might be somewhat of a Jew.† She is scrutinizing her relations with her dad. She acknowledges that she isn't care for him. In a manner wishes she were a Jew. She had preferably be his conceived adversary over his little girl that he didn't think about. â€Å"I have consistently been frightened of you, with your Luftwaffe, your gobbledygoo.† She concedes her dread to her dad. This is the first occasion when she has confronted him. What's more, despite the fact that he is dead it improves her vibe to do this. â€Å"And your flawless mustache and your Aryan eye, splendid blue. Panzer-man, panzer-man, O You† This portrays her dads appearance. She likewise mak es reference to the distinctive qualities of the Aryan race. The German faith in an ideal progress where everybody has blue eyes and light hair is the foundation of their racial separation. â€Å"Not God however an insignia so dark no sky could squeak through.† She can't help contradicting the insignia image and considers it a malicious symbol. Seeing that all that it represents isn't right and out of line she is against it. â€Å"Every lady reveres a Fascist, the boot in the face, the savage animal heart of a beast like you.† She is taunting the severity German men appear toward ladies. The German battle ready culture built up a conduct of man, which had little regard for the ladies in their general public. .u7211e90052ecdde596fbdda3f8b78166 , .u7211e90052ecdde596fbdda3f8b78166 .postImageUrl , .u7211e90052ecdde596fbdda3f8b78166 .focused content region { min-tallness: 80px; position: relative; } .u7211e90052ecdde596fbdda3f8b78166 , .u7211e90052ecdde596fbdda3f8b78166:hover , .u7211e90052ecdde596fbdda3f8b78166:visited , .u7211e90052ecdde596fbdda3f8b78166:active { border:0!important; } .u7211e90052ecdde596fbdda3f8b78166 .clearfix:after { content: ; show: table; clear: both; } .u7211e90052ecdde596fbdda3f8b78166 { show: square; change: foundation shading 250ms; webkit-progress: foundation shading 250ms; width: 100%; mistiness: 1; progress: darkness 250ms; webkit-progress: haziness 250ms; foundation shading: #95A5A6; } .u7211e90052ecdde596fbdda3f8b78166:active , .u7211e90052ecdde596fbdda3f8b78166:hover { murkiness: 1; change: obscurity 250ms; webkit-progress: darkness 250ms; foundation shading: #2C3E50; } .u7211e90052ecdde596fbdda3f8b78166 .focused content region { width: 100%; position: relat ive; } .u7211e90052ecdde596fbdda3f8b78166 .ctaText { outskirt base: 0 strong #fff; shading: #2980B9; text dimension: 16px; textual style weight: striking; edge: 0; cushioning: 0; content adornment: underline; } .u7211e90052ecdde596fbdda3f8b78166 .postTitle { shading: #FFFFFF; text dimension: 16px; textual style weight: 600; edge: 0; cushioning: 0; width: 100%; } .u7211e90052ecdde596fbdda3f8b78166 .ctaButton { foundation shading: #7F8C8D!important; shading: #2980B9; fringe: none; outskirt span: 3px; box-shadow: none; text dimension: 14px; textual style weight: intense; line-stature: 26px; moz-fringe range: 3px; content adjust: focus; content enrichment: none; content shadow: none; width: 80px; min-tallness: 80px; foundation: url(https://artscolumbia.org/wp-content/modules/intelly-related-posts/resources/pictures/straightforward arrow.png)no-rehash; position: outright; right: 0; top: 0; } .u7211e90052ecdde596fbdda3f8b78166:hover .ctaButton { foundation shading: #34495E!important; } .u 7211e90052ecdde596fbdda3f8b78166 .focused content { show: table; tallness: 80px; cushioning left: 18px; top: 0; } .u7211e90052ecdde596fbdda3f8b78166-content { show: table-cell; edge: 0; cushioning: 0; cushioning right: 108px; position: relative; vertical-adjust: center; width: 100%; } .u7211e90052ecdde596fbdda3f8b78166:after { content: ; show: square; clear: both; } READ: A guess out of nowhere EssayIn her later years, Sylvia can consider existence with her dad in an increasingly target way. â€Å"You remain at the writing board, daddy, in the image I have of you, a parted in your jawline rather than your foot however no less a villain for that, no less the dark man who bit my quite red heart in two.† She portrays him as a fiend with a split in his jaw representing the hoofed foot of s evil spirit. In her eyes he is a beast whom she has been hesitant to face every last bit of her life. She concedes that he has harmed her before. She references him with the shading dark, to re present that he is a sort of dull individual. â€Å"I was ten when they covered you. At twenty I attempted to bite the dust and get back, back, back to you.† She contrasts her father’s demise and the endeavored self destruction of her own. She felt that in the event that she could bite the dust that it

DOJ Orders North Dakota Payday Loan Processor to Pay $6 Million - OppLoans

DOJ Orders North Dakota Payday Loan Processor to Pay $6 Million - OppLoans DOJ Orders North Dakota Payday Loan Processor to Pay $6 Million DOJ Orders North Dakota Payday Loan Processor to Pay $6 MillionInside Subprime: Dec 6, 2018By Grace AustinAn electronic funds transfer company is ponying up millions to the federal government after being found guilty of processing illegal payday loans.A North Dakota-based firm was  ordered to pay nearly $6 million from the Department of Justice after an ongoing investigation into its role in helping several payday loan companies, including those under Charles Hallinan, nicknamed the “godfather of payday lending.” The firm is also being placed on probation for two years and was fined an additional $500,000, after pleading guilty to operating an illegal money transmitting business.Hundreds of thousands of payday loan victims lived in states in which payday loan interest is either capped or outright illegal.  The money transfers involved the funding of the loans by the payday loan companies to the borrowers, and the collection of the loan payments from borrowers to the companies.Wit hout the firm, the DOJ said the payday loan companies wouldn’t have been able to nab as much cash from needy borrowers. The firm made millions in profits from the various payday loan companies, according to the DOJ.The firm was notified several times of the illegal nature of its business doings since it began processing the payments for the payday loan companies. The DOJ said the first time was May 2008, when The firm was notified that a payday loan transaction by one of its clients was against Connecticut law. In June 2009, Intercept was again notified that one of its clients made an illegal payday loan, this time in California.In 2012, the firm was outrightly told by its bank it had to stop processing payday loan payments to borrowers who lived where payday loans were limited or banned. And in August 2012, a payday lending client directly told Intercept’s leadership that payday loans were being made in states in which payday lending was illegal. But, the DOJ said, they kept on processing those illegal payments.“Godfather of Payday Lending” Hallinan was sentenced to 14 years fraud and money laundering. Philadelphia-based Hallinan ran dozens of lending businesses, sometimes charging borrowers over 780 percent on payday loans. Hallinan’s lawyer was also sentenced to eight years behind bars in May 2018.The DOJ said that the firms role in Hallinan’s payday loan scheme was “essential.”The company’s president testified at the trial that, between May 2008 and August 2013, the firm wittingly processed those illegal payments for Hallinan’s companies. Smith testified against Hallinan and his lawyer at their trials, in which he admitted to helping theses companies collect more than $490 million from consumers.The investigation involved a slew of federal agencies: The Federal Bureau of Investigation, Internal Revenue Service, and U.S. Postal Inspection Service all contributed.For more information on payday loans, scams,  cash advances, and  title loan s,  check out our state financial guides  including, Illinois, Texas, Florida and more.Visit  OppLoans  on  YouTube  |  Facebook  |  Twitter  |  LinkedIn

Should Parents Use Genetic Engineering Be Select The...

Essay topic: Should parents be able to use genetic engineering to select the characteristics they want for their children? With the development of medical studies within genetic engineering, our planet has transformed more than ever in our society, with development are major transformations of diseases, studies and having privileges to change their future child’s genetics before they are even born using a type of engineering called genetic engineering. Genetic engineering is the direct manipulation of an organism’s genome using biotechnology to deliberately modify the characteristics of a being and to modify and add one or more traits to an organism that are not already found in that organism. Genetic engineering has been publicised in†¦show more content†¦In the human body genes are located on rodlike structures called chromosomes that are found in the nucleus of every cell in the body and each gene is assigned a specific position on a chromosome as genes provide the instructions for making proteins, and proteins determine the structure and function of each cell in the body, it fo llows that genes are responsible for all the characteristics you inherit from your parents. DNA is able to replicate as cells divide, ensuring that each new cell has identical genes. The human genome is made up of about 3 billion chemical bases that are arranged in patterns like individual letters that are arranged into sentences. More than 99% of these patterns are the same in all humans and are continually passed down from parent generations to progeny generations. Furthermore, each human has an individual genetic identity based on many factors such as their abilities which are passed on to us through our inherited genes. It is apparent that each individual has a specific genotype and phenotype, but each of the two types has their own properties and functions around how an individual is created such as the genotype of a human refers to the information contained on two alleles in the cell, which is the genetic makeup of an individual. The genotype contains the hereditary information that was given to an individual byShow MoreRelatedHuman Enhancement Should Be Discontinued1627 Words   |  7 Pagesthey think a perfect baby should be. Genetic Engineering or known to the public as designer babies is a term used to describe the use of technology to modify embryos and choose specific traits that parents want for their newborn. Using this new advance in science should bring concern amongst the people; as efforts to create human perfection can lead to recreating the same ideals and standards of Hitler’s principles of perfect looking human being. Human Enhancement should be discontinued because isRead MoreGenetic Engineering : Designer Babies1077 Words   |  5 PagesGenetic engineering is the process in which new DNA can be added to an organism in order to alter its genetic makeup . ‘Designer Babies’ is a term developed by journalists to describe children born from genetically modified embryos. These modifications are done through In-Vitro Fertilisation (IVF), a process in which eggs are fertilised with sperm in a laboratory outside the mother’s body. There are only two legal forms of using IVF to select embryos based on genetic makeup, which are gender selectionRead MoreTaking a Look at Designer Babies1085 Words   |  4 PagesImagine if parents were able to select preferred traits and the intelligence level for their children. Soon this may be the case as scientists and researchers are slowly takin g genetic engineering to a whole new level which jeopardizes the uniqueness of the human race. Genetic engineering has rapidly become hardwired into our society since its discovery in the late 1960s. The process involves removing DNA from an organism and modifying that strand of DNA in order to revise the functions or appearanceRead MoreThe Future of Genetic Engineering in Babie Is in Our Hands Essay1173 Words   |  5 PagesBabies Group The Future of Genetic Engineering in Babies is in Our Hands The idea of designer babies has been around for a very long time, in various media, video games all the way to on-screen movies. Only recently through massive breakthrough of technology and science can genetically modified babies actually be possible for the future. The definition of the expression ‘designer baby’ is â€Å"a baby whose genetic makeup has been artificially selected by genetic engineering combined with invitro fertilizationRead MoreIn The Early 1900’S Russian Plant Geneticist Georgi Dmitrievich1220 Words   |  5 PagesIn the early 1900’s Russian plant geneticist Georgi Dmitrievich Karpechenko sought to create an agriculturally optimized hybrid. Cabbage has inedible roots; the leaves of radishes have less relative use than cabbage. Karpechenko desired to create a superior, radish-cabbage hybrid featuring by the leaves of cabbage and the roots of radishes (Pierce 257). Through painstaking experimentation stable aneuploidy was eventually achi eved. Finally, the fertile offspring were analyzed and the novel plant wasRead MoreEssay about Genetics In Life1450 Words   |  6 Pages Genetics In Life Genetics is the study of the patterns of inheritance of specific traits (Poretto). This knowledge could be used to alter the course of a future human life. This knowledge could even be used to stop a potentially painful life before it starts. Genetic engineering, like any other science, is a tool. Like any other tool Genetic Engineering is neither inherently positive nor inherently negative. Genetic engineering’s benefits outweigh the potential negatives, and in spite of someRead MoreGenetic Engineering : An Organism2297 Words   |  10 Pagesnot exist, people lived 50+ years longer than they do now, and the genes of unborn children could be picked? Sounds pretty appealing. But the catch is, it is not done naturally and there are still risks involved. Genetic engineering could have the ability to change generations to come and would target a huge amount of people and could even increase the population. Genetic engineering alters an organism s genetic makeup by unreal means, u sually involving the transfer of a specific traits, or genesRead MoreDesigner Babies And Its Effects On Society2133 Words   |  9 Pages Have you heard of the new technology that allows parents to make their own perfect, desired child? Scientists are developing a technology called designer babies. Designer babies are essentially genetically engineered children that can also have artificially selected traits. This would lead to a powerful impact on society because there will be a clear division between the poor and wealthy due to the expenses of designer babies. There are dangerous risks, and in the long run, it will create more problemsRead MoreGenetic Modification Should Be Supported By The Government1326 Words   |  6 PagesWe’ve all heard innumerable stories of half-humans and shapeshifters, transgenesis and cyborging, genetic superpowers and mutations. The concept of genetically engineering humans was once confined to the world of fiction, but now those once impossibl e ideas have seemingly become attainable. Female scientists in the United States and Sweden recently discovered CRISPR-Cas9, a sophisticated gene-snipping technology that is much easier and cheaper than other methods. This sudden development has motivatedRead MoreThe Genetic Modification Of Humans993 Words   |  4 Pages Remedial Genetic Modification When discussing the topic genetic modification of humans, some people readily agree that modification of humans is an unsound procedure. Where their agreement typically ends, however, is on the question of how much people generally understand about genetic modification, considering, not only its unfamilirarity, but its broad diversity. Where as some are convinced this bio ingenuity course of action is unnatural and should not be practiced, others maintain

How Organic Food Is Better Than Buying And Eating The Non...

Introduction In today’s world, there is a lot of emphasis on the kind of food that we consume in daily routine. One such issue claims that eating organic food is much better than buying and eating the non – organic food (D. Mosbergen July 2014). Certain studies point to the fact that the organic food that is available in almost every market is the best healthy option available whereas others say that it is no good but a tactical business strategy for increasing the sales of products labelled as â€Å"Organic†. While surfing through the internet and also while reading newspapers, one can see the influence these USDA approved label food item have on the general public. It has been in the controversy for a long time about labelling a certain food item as organic. But, what really is organic. Some people are misinformed about the organic food being the food that is resistant in a certain protein (for example, Gluten – free) or some other component of food (For example, B – fatty acids, low – fat). But as per the USDA guidelines, foods are â€Å"organic† if they â€Å"integrate cultural, biological, and mechanical practices that foster cycling of resources, promote ecological balance, and conserve biodiversity† (Wikipedia). As one can make out from the definition, Organic food refers to avoidance in the use of synthetic chemicals such as fertilizers, pesticides; avoidance of much controversial genetically modified crops; usage of farmland that is prohibited f rom the chemically synthesizedShow MoreRelatedOrganic Foods Products And Non Organic Products1188 Words   |  5 PagesOrganic products and non-organic products have been a subject of interest for me for a reasonable amount of time because I have often questioned whether there really was a difference between the two types of products chemically. To begin, labeling something as organic you have to very precise and it is determined by the United States Department of Agriculture (USDA). The regulations set are extremely specific and it is relatively difficult to meet the standards. The pesticides must be natural, andRead MoreThe Organic Food Industry Has Gained A Great Deal Of Customers1141 Words   |  5 PagesThe organic food industry has gained a great deal of customers over the past few years. Consumers commonly follow popular word of mouth marketing and the organic food industry has established a name for itself. Claiming to be better for overall health and wellness, the indust ry has made more people want to incorporate a variety of organic foods into their diets. Though claims may hold valuable truth, do organic groceries truly benefit people more than the conventional foods that many have grown upRead MoreAdvantage Of Organic Food776 Words   |  4 Pagesconsuming organic food, far outweigh the important matters. Organic food precedes a healthful life, in the long term it works in favor of a persons health in general. It also creates more jobs by producing organic food. Animals are organically fed and live in a more acceptable habitat. In recent studies, researchers found that with the significance of living a healthy lifestyle being profusely clear, healthy food alternatives are actually within the public attention. The high demand for organic foodRead MoreThe Use Of Pesticides And Growth Hormone1530 Words   |  7 Pagesworld’s population continuing to increase, the demand for food is higher than ever. A growing population means more demand on food. â€Å"The world population will rise to 9.3 billion in 2050 and surpass 10 billion by the end of this century.† (Sanyal) This should say something about our growing population that is still continuing to grow to this day. This increase in food demand also calls for more efficient ways of growing and providing food without causing any damage to our environment or our healthRead MoreThe Basic Economics of Organic versus Non-Organic Foods 666 Words   |  3 Pagesarea that has a fairly wide array of organic foods. There is a healthy mix of large supermar kets and small, independent grocers that sell organic foods. Using the Mayo Clinic as a reference, I have developed the following opinion on organic foods that takes into account the financial aspects as well as the health ramifications of eating or not eating organic foods. The basic economics of Organic versus Non-Organic foods are as follows: Non-Organic These foods are grown using fertilizers, herbicidesRead MoreThe American Diet1026 Words   |  5 Pagesentitled â€Å"11 Facts about American Eating Habits,† addresses the state of food in the U.S by stating, â€Å"Healthiness of the food we eat decreases by 1.7 percent for every hour that passes in the day.† Experts and scientists in the U.S has raised questions about regarding the different ways food is now being produced. While individuals are usually not aware of the ingredients that food contains, many people continue to have unhealthy eating habits. In the past few decades, food production has included numerousRead MoreWhat Are We Really Eating?1143 Words   |  5 PagesAre We Really Eating? Everything that we eat has some form of an unnatural chemical in the product. As of late I have been considering only eating organic foods because not only is it healthier, but it is safer. In this term paper I am going to examine a few aspects of organic food. First I will examine what is organic food and what makes it organic? How does the prices of organic food compare to inorganic foods? And why we should eat organic foods rather than inorganic foods? I just want toRead MoreThe Consumption Of Organic Products989 Words   |  4 Pagesof Internal Medicine, it has been proven that the consumption of organic products has the same nutritional values as conventional products. Although quality nutrition is not a factor in the cost for organic products, the real cost is stemmed from the neglect of pesticide in the product. Ultimately organic products are raised in a superior environment unlike conventional products which are raised in cost effective methods. Non-organic products mature in ghastly conditions. Products purchased by a futureRead MoreGenetically Modified Organisms And Organic Organisms Essay1578 Words   |  7 Pages the reader will see how organic and genetically modified organisms are viewed and interpreted. They will see the â€Å"facts† about the genetically modified organisms and organic organism, and how producers and consumers view this. The reader will be able to understand what is actually happening to genetically modified organisms and organic organisms during the production and when it is getting processed. They will also learn about certified organic and the USDA organic and how each one is determinedRead MoreA Debate Between Organic Foods And Non Organic Food1689 Words   |  7 Pagesmore things. Technology is getting better and better day by day for humans need and survivenment, but one thing is that human will never be able survive without food. Food comes from farms and animals. There are many ways for farming like organic far ming, conventional farming, commercial farming, multi-crop farming, factory farming and many more other technique of it. Farming has a significant role in toady’s economy. All people should know what they are eating and they have right to know for their

Nutrition Is The Vital Part Every Person Life - 1966 Words

Nutrition is the vital part every person life from infant to adulthood to establish good eating habits. It is needed support the rapid growth, reproduction and maintain a healthy. The general nutrition of a person determines how healthy and well their organs and other vital components function. In the U.S, a quarter of American suffer from illness due to the popularity of fast food. People are not supplying their bodies with the necessary vitamins and protein for a healthy lifestyle. If everyone would pause for a minute and consider the type of food they putting in their body and ask them questions such as Do I know where this came? What was the environment like for the animals? What does their diet consist of? Who is the farmer? Yes the†¦show more content†¦When we buy from big corporations such as McDonalds and Burger king, for them to keep he business flowing they need mass production. To supply more than 100 restaurants the major concerns for them to consider the correct health measures for livestock are neglected. The chicken or the cows are fed with cheapest ingredients and then filled with hormones so they can reach their full maturity faster. Right there as a consumer most of our well needed nutrition is lost. The meat is filled with preservatives and extra fillers for taste. At the restaurant, the meat is cooked in lots of oil and even more nutrition is lost. By the time the meat is in a burger as a consumer of fast food what are you really eating. Even the vegetables used in the burger didn’t supply the body with no well needed nutrition. The vegetables basically goes through the same process as thei meat and then stored until it used. When people make the decision to indulge in that is of no good to body because of its lack nutrients, the person tends to feel hungry after eating a full meal. Reason why people tend to over eating because the food is not giving the body no substance. After eating fast food the individual has filled their body with nothing but fats and calories. Fats and calories are difficult to digest in our body, the undigested fats and calories accumulate inside the body causing excess oil in the body. Reason why adolescents may have problem with acne or excessively oily skin. When eating fast

Eco-Products, Inc. free essay sample

Margins were low and salaries were small. Friends and family supplied funds for business operations. This early history was suggestive of a life-style business. B. Discuss Eco-Products’ revenue growth-based â€Å"business model† that evolved over the 2004 through early 2008 period in terms of (a) production versus distribution, (b) product line development, (c) branding, etc. The company remained a local marketer of green janitorial paper and building supplies until 2004 when the company was set on a new course with both business supply and building supply divisions. The management team was expanded and sales in the business supply division grew rapidly as a result of a focus on brand and Internet strategies. a) In 2004-05 Eco-Products remained primarily a distributor of eco-friendly products such as biodegradable disposable drinking cups, etc. that were purchased from a variety of manufacturers. As the business focus shifted from retail sales to wholesale distribution, pressure increased to produce their own brand of eco-friendly products. Product suppliers were selected in China and Taiwan. ) Steve Savage emphasized the development of a signature Eco-Products line from a Polylactide (PLA) resin from renewable resources such as corn and sugarcane. This allowed the firm to offer a full, uniquely designed line of environmentally friendly products. However, lead times were long since orders from the Asian original equipment manufacturers took from 7 to 12 weeks to be filed. c) As wholesale distribution grew, existing product manufacturers restricted Eco-Products’ ability to sell many products in the wholesale marketplace. After identifying Asian manufacturers, the â€Å"Eco-Products† branded line of compostable cups and food containers hit the market in March, 2007. C. What is the size of the domestic and global markets for foodservice disposable packaging? Who are the major competitors producing/selling environmentally-friendly food service products. What intellectual property or competitive advantages does Eco-Products, Inc. possess? The global food service disposable industry produces an estimated $30 billion in sales annually. Biodegradable products represented the fastest growing segment of the industry and had sales estimated to exceed $700 million in 2008. Eco-Products previously carried the Fabri-Kal, International Paper, and Georgia Pacific paper product lines. These firms became direct competitors when Econ-Products decided to produce its own eco-friendly products line. It is difficult to produce intellectual property or competitive advantages in an industry where product production technology is reasonable simple and where there are several major competitors. In fact, the firm had a net loss in 2007 due in large part to the nearly $200,000 (actually $186,726) in interest expense associated with the obtaining of a line of credit which was $2,843,242 at the end of December, 2007. As sales â€Å"ramp up† in the future, it is important to â€Å"spread† the â€Å"fixed† and â€Å"semi-fixed† operating expenses in order to improve the operating profit margin and the firm’s value. E. Exhibit 4 presents Eco-Products’ Statement of Cash Flows for 2007. Was the firm building or burning cash in its operating activities? When also considering cash flows from investing activities, was Eco Products in a net cash build or burn position in 2007? In Chapters 4 and 6 we discussed the preparation of the Statement of Cash Flows. We use the indirect method which begins with an accounting period’s (usually one year) net income (or loss) and adds back non-cash deductions (depreciation and amortization). We then adjust these income statement amounts by changes (between last year and this year) in non-interest bearing working capital accounts shown on the balance sheet to get net cash flow from operations. We also calculate cash flows from investing activities and cash flows from financing activities. In actual practice, accountants use the direct method for preparing the statement of cash flows which aggregates all individual transactions made throughout the year that impact accounting cash flows. Thus, because of the lack of detail, the indirect method for preparing the statement of cash flows is sometimes difficult to exactly reconcile with the more detailed results provided from the direct method. Also, as noted in the prior question, only the 2007 balance sheet was audited. Other financial statements were only â€Å"reviewed by a CPA firm. This makes it more difficult to separately prepare (using the indirect method) a statement of cash flows for Eco-Products for 2007. While many of the changes in balance sheet accounts between 2006 and 2007 match with the amounts presented in the consolidated statements of cash flow in Exhibit 4, others do not. Thus, for this question we suggest that students concentrate on Exhibit 4 to determine the extent to which Eco-Products was building or burning cash in 2007. In Chapter 4 we presented a short method for determining whether a firm had been building or burning cash. The short method sums the net cash used in operating activities and the net cash used in investing activities. 2007 Cash Build/Burn = net cash used in operating activities + net cash used in investing activities = -2,891,887 + -356,745 = -3,248,632 Thus Eco-Products had a cash burn of over $3 million in 2007. A more detailed method for estimating cash build or burn was provided in Chapter 5. Cash Build = Net Sales – Increase in Receivables = 10,867,104 – 965,683 = 9,901,421 Cash Burn = Income Statement-Based Operating, Interest, and Tax Expenses + Increase in Inventories (Changes in Payables and Accrued Liabilities) + Capital Expenditures Note: there may be deferred income taxes as well as changes in other less common current asset and current liability accounts (as shown in Exhibit 4) that must be accounted for in determining net cash used in operating activities. These include prepaid expenses and other assets, income tax receivable, deposits, other current liabilities, deferred lease liability, and deferred revenue and are considered below. Cash Burn = 10,786,740 [i. e. , 7,726,455 + 1,822,206 +1,102,437 + 187,918 (interest other expenses) + -23,276 29,000 (deferred income tax)] + 1,553,188 + 664,003 (i. e. , 589,743 + 64,260 + 10,000) 84,156 (44,800 + 39,356) 126,467 (i. e. , 3,966 + 16,913 + 105,588) + 356,745 = 13,150,053 Net Cash Burn = Cash Burn – Cash Build = 13,150,053 – 9,901,421 = 3,248,632 F. Describe the early rounds of financing that occurred from Eco-Products’ inception in 1990 through 2006. Beginning in 2007, the need for external financing began increasing. Describe the sources, amounts, and types of financing obtained during 2007and the early part of 2008. Exhibit 5 in the case summarizes previous rounds of financing. Eco-Products was started with $8,000 in seed money in 1990. Additional equity investments from the founders, family, friends, and employees for purchase of inventory and to support the building supply division occurred in 1995, 1999, and 2003. As sales began increasing rapidly in 2007, there was a need to finance more working capital, particularly inventory. In 2007, $220,000 was raised from 14 investors which included friends, family, and angels. An additional $2. million was raised from 30 angel investors in late 2007 and during the spring of 2008 through a private placement memorandum. Excerpts from the memorandum are shown in Appendix A. G. In mid-2007, Eco-Products’ management prepared a five-year (2007-2011) projection of revenues and expenses (see Exhibit 1). What annual rates of growth were projected for ne t sales? Make a â€Å"back-of-the-envelope† estimate of the amounts of additional assets needed to support the sales forecasts. How might these assets be financed? Prepare a â€Å"rough† estimate of the possible size of external financing needed to support these sales projections. First, let’s review recent actual sales growth rates: YearSales/RevenuesPercent Increase 2005 $3,649,799 2006 $5,751,78757. 6% 2007$10,867,10488. 9% Financial Projections (made in mid-2007) in Thousands of Dollars: Change YearSales/Revenuesin Sales Percent Increase 2007 $9,200 2008 22,000$12,800139. 1% 2009 38,000 16,000 72. 7 2010 55,000 17,000 44. 7 2011 78,000 23,000 41. 8 Actual revenues for 2006 were 5,751,787 or in Thousands of Dollars rounded to 5,752. The five-year compound rate of growth between 2006 actual revenues and projected 2011 revenues of 78,000 is: PV = -5752 FV = 78,000 N = 5 I%Yr = 68. 44% It is also worth noting that actual sales or revenues for 2007 of $10,867,104 substantially exceeded the mid-2007 forecast of $9. 2 million. Over the 2005-2007 period, Eco-Products changed from being primarily a retail distributor of eco-friendly paper and plastic products produced by other manufacturers to a wholesale distributor of its own â€Å"branded† eco-friendly products. If we assume that the sales to assets relationship that existed at the end of 2007 would hold going forward, we have: 2007 Sales to Total Assets = 10,867,104/5,647,015 = 1. 24 times And, 2007 Total Assets/Sales = 5,647,015/10,867,104/= . 5196 = 52. 0% Thus, it will take approximately a $. 52 investment in assets to support each $1. 00 increase in sales. Using the actual 2007 revenues, we have the following estimates for the change in both sales and assets: ChangeAssets/Change YearSales/Revenuesin Sale x Sales = in Assets 2007 (actual)$10,867 2008 22,000$11,133. 52$5,789 2009 38,000 16,000. 52 8,320 2010 55,000 17,000. 52 8,840 2011 78,000 23,000. 52 11,960 Total = $67,133 Total = $34,909 Based, on these estimates, Eco-Products will need to acquire nearly $6 million in assets in 2008 and nearly $35 million over the 2008-2011 period. Recently 2008 sales forecasts have been revised to 45 million which would more than double the amount of assets needed for 2008. Additional assets can be financed in part through the generation of net profits or income and the retention of those profits in the business. Some spontaneous financing will also occur through an expected increase in accounts payable and accrued liabilities. Any remaining asset financing needs will need to be met through the raising of external debt and equity funds. In Chapter 6, we introduced the a basic additional funds needed (AFN) equation which can provide a quick â€Å"back-of-the-envelope† estimate of future external financing needs. AFN = (Total Assets/Sales)(Change in Sales) – (Accounts Payable + Accrued Liabilities)/(Change in Sales) – (Next Year’s Sales)(Net Income/Net Sales)(Retention Rate) 2007 Total Assets/Sales = 5,647,015/10,867,104 = . 5196 = . 520 (rounded) 2007 (Accounts Payables Accrued Expenses)/Sales = 568,131/10,867,104 = . 052 2007 Net Income/Sales = -36,199/10,867,104 = -. 003 Note: Eco-Products must return to profitability in order to finance its sales growth and to add to firm value. Exhibit 1 projects an EBITDA/Sales margin of 8. 5%. A net profit margin of 4. 25% (8. 5% x . 50) might be achievable and is used here for illustrative purposes. A 100% retention rate also is assumed. Two AFN estimates are prepared for 2008: 1) 2008 sales estimate (in $ Thousands) made in mid-2007 = $22,000; with a change of $11,133 ($22,000 $10,867) 2) 2008 sales estimate (in $ Thousands) made in early-2008 = $45,000; with a change of $34,133 ($45,000 $10,867) 1) 2008 AFN for Sales of $22,000 = . 20(11,133) . 052(11,133) – 22,000(. 0425)(1. 00) = 5,789 – 579 – 935 = 4,275 2) 2008 AFN for Sales of $45,000 = . 520(34,133) . 052(34,133) – 45,000(. 0425)(1. 00) = 17,749 – 1,775 – 1,913 = 14,061 The 2008 AFN ranges from $4. 275 million for $22 million in sales to $14. 061 million for $45 million in sales or revenues. The large AFN est imates are due in large part to working capital needs primarily in the form of higher accounts receivable and inventory. The amount of funds tied up in inventory is problematic due to supply chain lead times and supplier terms (see Figure 2). Furthermore, relatively little supplier financing is provided and the business does not generate large profit margins. As a result, Eco-Products will likely need to improve its supply chain model. Note: Actual 2008 operating results are presented in the Epilogue (What Happened) at the end of this teaching note: 2008 Actual Sales/Revenue: $34. 378 million (well below the early 2008 estimate of $45 million due to a slowing economy, greater competition, and supply chain issues) 2008 Net Income: $1. 338 million (resulting in a 3. % net profit margin) 2008 Year-end Inventory: $12,223 million (excess inventory was produced in anticipation of higher sales which did not materialize) H. Eco-Products’ management developed a Confidential Private Placement Memorandum (PPM) dated October 16, 2007 in an attempt to raise $3,500,000. Appendix A contains excerpts from the PPM. 1. What is meant by a Regulation D offering? What is an accredited investor and how many investors can participate in the PPM? [You may wish to review materials from Chapter 8 and its appendices when answering these PPM-related questions. Regulation D (or Reg D) is a registration that offers a safe harbor from registration of securities with the SEC. Due to uncertainty about what constitutes a nonpublic offering, the SEC provided some â€Å"safe-harbor† conditions that will result in guaranteed exemption as a private placement. An â€Å"accredited investor† was first defined under the Securities Act of 1933 and Section 4(6) provided that there is no limit to the number of accredited investors so long as the offering amount does not exceed $5 million. The definition of an â€Å"accredited investor† was expanded to include eight categories of accredited investors under Rule 501 of Regulation D (see Chapter 8, Appendix B). Banks, private business development companies, and other specified organizations are considered to be accredited investors. Directors, executive officers, or general partners of the issuer of the securities being offered or sold are considered to be accredited investors. A natural person with individual net worth (or joint net worth with that person’s spouse) exceeding $1,000,000 is deemed an accredited investors. Also, a natural person who had individual income in excess of $200,000 in each of the two most recent years (or $300,000 of joint income with one’s spouse) and who has a reasonable expectation of the same income level in the current year also is considered to be an accredited investor. There is no limit as to the number of investors (accredited or unaccredited) under Reg D: Rule 504 which has an offering limit of $1 million. Under Reg D: Rule 505 (offering limit of $5 million) and Reg D: Rule 506 (no offering limit) there may be a maximum of 35 unaccredited investors but no limit on the number of accredited investors. . Considering the planned use of proceeds, discuss the pros and cons of trying to raise $3,500,000 in increments as small as $50,000 each. A $3. 5 million private placement memorandum fall under Reg D: Rule 505 which has a $5 million offering limit in a 12-month period. While there is no limit on the number of accredited investors, there is a limit of 35 unaccred ited investors. At the extreme, raising $3. 5 million all in minimum $50 thousand amounts would require 70 different investors. At this minimum amount, only $1. 5 million could be generated from the maximum 35 unaccredited investors (i. e. , 35 x $50 thousand). Raising funds in small amounts requires more time, effort, and cost. Since there is a need to quickly build up working capital, particularly inventory, raising funds in relatively small amounts over an extended period of time could impede the firm’s ability to grow its sales. 3. Summarize the risk factors listed by management in the Private Placement Memorandum. Which factors do you believe are the most crucial in determining the future success of Eco-Products? Appendix A provides excerpts for Eco-Products 2007 Private Placement Memorandum. Risk factors include: a) Need for new product development b) Being subject to patent infringement laws c) Reliance on importing products from overseas suppliers d) Competition will continue to increase e) Supply could be constrained by raw material availability f) Subject to federal and state, as well as foreign, regulations g) Subject to product liability claims h) Need to hire and retain skilled personnel i) Need to successfully manage growth ) Impact by general economic conditions k) Restrictions on the transferability of, and no pubic market, for firm’s stock l) Determination of offering price was arbitrarily determined by current owners m) No expectation to pay dividends in foreseeable future Supply chain-related risks (availability to obtain raw materials and reliance on importing products from overseas suppliers), the need for new product development, and increasing competition clearly will be important if Eco-Products is able to achieve profitable sales growth and added to firm value in the future. Of course, the ability to avoid/manage the other risk factors listed by management also will have a major impact on the firm’s future success. I. Identify and discuss the factors and developments that led to the previously unexpected revenue growth during the first-half of 2008 by Eco-Products. Is such growth likely to be sustainable in the near future? What possible developments might interrupt or change this rapid rate of sales growth? In mid-2007, management forecasted full-year 2007 sales to be $9. 2 million with a sales forecast of $22 million for 2008 (refer to Exhibit 1). Then, the â€Å"perfect storm† hit. Oil prices spiked to new heights and general awareness of environmental issues intensified. Orders for products made from renewable resources skyrocketed and Eco-Products experienced large and sudden increases in sales. In early 2008, forecasted 2008 full-year sales were increased to $45 million. The ability to meet and maintain such growth targets would depend on consumer demand for eco-friendly products, the ability to fulfill orders given the firm’s long inventory cycle, how competitors (particularly some very large firms) will react, and overall economic conditions. Actual 2008 sales were a little under $35 million (see the Epilogue, What Happened, at the end of this teaching note). This over $10 million short-fall in sales from the early 2008 forecast of $45 million was associated with a decline in economic activity (recession), increased competition, and a supply chain problem that made it difficult to first avoid stocking out of inventory and then accumulating excess inventory. By the end of 2008, inventory had increased to more than $12 million compared to $2. 4 million at the end of 2007. J. Explain Eco-Products’ supply chain model that existed in early 2008. Describe the strengths and weaknesses of such a model from an operations viewpoint. What are the implications of this supply chain model on Eco-Products working capital financing needs and its cash conversion cycle? The supply chain model used by Eco-Products resulted in a long inventory cycle (for a relatively simple production process). Raw materials were often purchased in the U. S. or from suppliers in other countries, shipped to manufacturers in Asia, with the final products being shipped back for sale in the U. S. This long inventory cycle tied up cash and made it difficult to stock adequate inventory in some time periods, or produce excess inventory at other times. A long supply chain cycle involves larger asset financing requirements, particularly in the form of inventory. As shown below, both assets to sales and inventory to sales increased dramatically as the firm changed from a seller of products manufactured by other firms to a business model whereby Eco-Products became a manufacturer and wholesaler of eco-friendly products. 2005 Total Assets/Sales = 795,465/3,649,799 = . 179 = 21. 8% 2006 Total Assets/Sales = 2,103,478/5,751,787 = . 3657 = 36. 6% 2007 Total Assets/Sales = 5,647,015/10,867,104 = . 5196 = 52. 0% 2005 Inventory/Sales = 361,906/3,649,799 = . 0992 = 9. 2% 2006 Inventory/Sales = 862,728/5,751,787 = . 1499 = 15. 0% 2007 Inventory/Sales = 2,415,916/10,867,104 = . 2223 = 22. 2% Actual 2008 Results: 2008 Total Assets/Sales = 18,903,838/34,378,138 = . 5499 = 55. 0% 2008 Invento ry/Sales = 12,222,801/34,378,138 = . 3555 = 35. 6% Total assets to sales increased from 52. 0% for 2007 to 55. 0% in 2008. Of course, the primary reason for the need to finance more assets relative to sales was due to the increase in the inventory to sales ratio which increased from 22. 2% in 2007 to 35. 6% in 2008. The inability to efficiently manage inventory levels was due, at least in part, to the supply chain model being employed by Eco-Products. An examination of the Cash Conversion Cycle (CCC) also helps illustrate the working capital problem faced by Eco-Products. CCC Calculations: Inventory-to-Sale Conversion Period (Inv. CP): 2005 Inv. CP = 361,906/(2,584,326/365) = 361,906/7,080. 4 = 51. 1 days 2006 Inv. CP = 862,728/(3,684,492/365) = 862,728/10,094. 5 = 85. 5 days 2007 Inv. CP = 2,415,916/(7,726,455/365) = 2,415,916/21,168. 4 = 114. 1 days Sale-to-Cash Conversion Period (Rec. CP): 2005 Rec. CP = 101,690/(3,649,799/365) = 101,690/9,999. 5 = 10. 2 days 2006 Rec. CP = 862,728/(5,751,787/365) = 862,728/15,758. 3 = 54. 8 days 2007 Rec. CP = 1,330,562/(10,867,104/365) = 1,330,562/29,772. 9 = 44. 7 days Purchase-to-Payment Conversion Period (Pmt. CP): 2005 Pmt. CP = 123,429/(2,584,326/365) = 123,429/7,080. 4 = 17. 4 days 2006 Pmt. CP = 526,555/(3,684,492/365) = 526,555/10,094. 5 = 52. 2 days 2007 Pmt. CP = 568,131/(7,726,455/365) = 568,131/21,168. 4 = 26. 8 days Cash Conversion Cycle (CCC): 2005 CCC = 51. 1 days + 10. 2 days – 17. 4 days = 43. 9 days 2006 CCC = 85. 5 days + 54. 8 days – 52. 2 days = 88. 1 days 2007 CCC = 114. 1 days + 44. 7 days – 26. 8 days = 132. 0 days The dramatic increase in the cash conversion cycle from 43. 9 days in 2005 to 132. 0 days in 2007 reflects the change in the firm’ business model from a seller of products manufactured by other firms to a manufacturer/wholesaler of eco-friendly products, as well as the firm’s supply chain model which resulted in a long inventory conversion period which was 114. days in 2007. Dividing 365 days by 114. 1 days results in an inventory turnover of 3. 2 times per year. This is a very low turnover for products that require very short production times. For reference, the actual CCC calculations for 2008 were as follows: 2008 Inv. CP = 12,222,801/(26,041,166/365) = 12,222,801/71,345. 7 = 171. 3 days 2008 Rec. CP = 3,109,920/(34,378,138/365) = 3,109,920/94,186. 7 = 33. 0 days 2008 Pmt. CP = 3,804,210/(26,041,166/365) = 3,804,210/71,345. 7 = 53. 3 days 2008 CCC= 171. 3 days + 33. 0 days – 53. 3 days = 151. 0 days This further increase in the CCC meant that even more financing was required to support the actual 2008 sales. K. In mid-2008, Eco-Products management sought to quickly (hopefully) raise an additional $2 million in external financing through a single private equity investment. The term sheet prepared by Greenmont Capital is presented in Appendix B. 1. After considering a number of possible private equity investors, Greenmont Capital was selected by Eco-Products’ management. Discuss the pros and cons of selecting a small locally-based private equity firm relative to a larger private equity investor? Large private equity firms have large amounts of funds to invest and will have a portfolio of several projects being simultaneously financed. Large private equity firms also usually can move quickly in providing funds to specific ventures and are likely to have broad industry and managerial expertise to offer in support of the venture’s management team. However, given multiple investments, their working arrangements with a specific venture may be more impersonal. A small private equity firm will invest in fewer ventures and thus can devote more specific focus on understanding the business model of each of their venture investments. While a small private equity firm may have limited overall industry and managerial expertise, they will concentrate their investments in industries and firms they know and understand. However, small private equity firms likely will have smaller amounts to invest and may take longer to raise funds from their investors. As a result, ventures needing large amounts of immediate financial capital may be hindered if they try to work with a small private equity firm. 2. Review the investment terms presented in Appendix B and comment on any factors in the term sheet that might be â€Å"deal breakers. If you were representing Eco-Products top management, which terms might you want deleted or modified from the term sheet? Now, if you were representing Greenmont Capital, which terms would be important in protecting its investment capital? It might be helpful to first review Chapter 11, Figure 11. 6 which provides a list of â€Å"Typical Issues Addressed in a Term Sheet. ’ A term sheet should summarize the proposed principal terms with respect to a specific financing vehicle to be used to finance a venture. Included should be an identification of the issuer, the investor(s), the type of security being used, the price of the security being offered, and the amount of financing to be raised and an agreed to ownership position. In the proposed term sheet shown in Appendix B, Eco-Products is issuing Series A Convertible Preferred Stock (initially convertible on a 1:1 basis into shares of the company’s common stock) at a price of $1. 50 per share to Greenmont Capital Partners. A total of $2 million will be raised in exchange for a 7. % ownership position on a fully-diluted basis (including shares reserved for any employee option pool including additional warrants being offered to Greenmont). The proposed terms of the Series A Preferred Stock are spelled out in Appendix B and include: dividends, liquidation preference, conversion, automatic conversion, anti-dilution provisions, voting rights, board of directors, board meetings, protective provisions, information rights, registration rig hts, right of participation, purchase agreement, employee pool, stock vesting, restrictions on sales, co-sale agreement, and employment agreements. The term sheet also addresses â€Å"other matters† that include: confidentiality, indemnification, legal fees and expenses, and conditions precedent to financing. A possible â€Å"deal breaker† would be the number of warrants being offered to Greenmont Partners in the term sheet proposal. The July 18, 2008 term sheet proposal provides for Greenmont to receive 1. 5 million shares of Series A Convertible Preferred Stock initially convertible on a 1:1 basis into shares of Eco-Products common stock. The term sheet proposal also provides for a 25% warrant coverage (i. . , warrants to purchase additional Series A Preferred Shares at an exercise price of $1. 50 per share). This would amount to 333,333 warrants ($1. 5 million shares times . 25) which potentially dilutes Eco-Products equity ownership. Eco-Products likely would want the proposed â€Å"warrants† provision to be modified downwards or even deleted. Eco-Products also may want to modify downwards the proposed à ¢â‚¬Å"dividends† provision for the Series A Preferred Stock which provides for cumulative dividends of 8% of the original purchase price per annum. Greenmont Capital, in an effort to protect its investment capital, would want to maintain the warrants provision. Anti-dilution provisions also are very important since additional equity capital will be needed to finance Eco-Products growth and this capital is likely to come from other private equity investors. 3. Some analysts employ a relative value method that uses multiples from comparable firms to estimate the value of a target venture. Exhibit 9 contains enterprise value-to-sales information for a number of possible comparable firms for the purpose of valuing Eco-Products. Estimate the enterprise value of Eco-Products. What portion of equity ownership should Eco- Products be willing to give up for the $2 million Greenmont Capital investment? Although Eco-Products had been in business since 1990, its business model changed between 2005 and 2007. Eco-Products became a manufacturer and wholesaler of eco-friendly products at a time when oil prices were at record highs and concern about the environment reached new heights. Sales grew rapidly in 2007. However, the firm operated at a loss in 2007. Thus, by 2008 Eco-Products possessed characteristics of a high sales growth venture that needed to still find a way to produce bottom line profitability and ultimately free cash flows for the equity investors. When trying to value such a venture, analysts may differ widely as to what they believe are reasonable values. As discussed in the text, ventures may be valued using a discounted cash flow (DCF) method (see Chapters 9 and 13), a venture capitalist (VC) short-cut method (see Chapter 10), or a relative valuation method (see Chapter 14). Analysts often attempt to value a firm on the basis of its top line (sales), its rough cash flow (as reflected in EBITDA), and/or its bottom line (net income). Here we concentrate on examining the relative valuation data provided by Greenmont Capital Partners in Exhibit 9 which included financial information on 7 â€Å"possible† transactions. Five of the transactions occurred While some analysts might argue for including all available transactions, a case could be made for including the five transactions that occurred during 2007 and which may be more representative of the valuation multiples that prevailed in mid-2008. The Insulair acquisition was in July, 2006 and had an enterprise value to revenue multiple that was several times higher than any of the other transactions. The Newspring acquisition occurred in March, 2005 and thus was over three years prior to the current mid-2008 valuation date. The average enterprise value to revenue multiple for the Tendercare International, Waddington, Van Houtte, Matrix Packaging, and Prairie Packaging transactions was 1. 55 times. Unfortunately, no information was available for EBITDA (except for the dated Newspring transaction) or net income multiples. As noted in the case, sales estimates changed rapidly in the case. Eco-Products management in mid-2007 had forecasted 2008 sales to be $22 million. By early 2008, the 2008 sales estimates were revised upwards to $45 million. Trailing twelve months revenues for the twelve months ended in June, 2008 were $19. 7 million. Exhibit 8 shows quarterly revenues increasing rapidly over the past three quarters with revenues amounting to almost $13. 5 million for the first-half of 2008. Thus, to reach the $45 million in forecasted sales for all of 2008, the second-half of the year sales would need to be $31. 0 million. However, as Eco-Products entered the second-half of 2008, there was reason for some concern due to an inventory-related problem and the fact that consumer spending and overall economic activity were slowing considerably. A range of possible values for Eco-Products using an enterprise value to sales multiple of 1. 55 might be: Sales or Rev. xMultiple = Value 12-Month Trailing Sales $19. 7 million 1. 55 $30. 535 million Management’s Forecast$45. 0 million1. 55 $69. 750 million Actual 2008 Results$34. 4 million1. 55 $53. 20 million At the end of 2007, Eco-Products had a line of credit outstanding of $2,843,242, long-term debt (including the current portion) of $164,411, and long-term capital leases (including the current portion) of $215,530 for an interest-bearing debt plus capital leases total of $3,223,183 or approximately $3. 2 million rounded. Thus, the enterprise values shown above should be reduced by about $3. 2 million each. The equity value using trailing sales would be $27. 3 million while the equity value using management’s $45 million sales forecast would be about $66. 5 million. Furthermore, it was likely that even more interest-bearing debt was outstanding as of mid-2009. For example, the $4 million line-of-credit (of which $2. 8 million was outstanding at the end of 2007) was increased to $8 million on July 1. Larger interest-bearing debt obligations would have further reduced the equity value of the firm. Note: As can be seen from the actual 2008 results, the lines of credit at the end of 2008 amounted to slightly more than $8 million, long-term debt (including the current portion) was nearly $. 5 million, and long-term capital leases (including the current portion) was nearly $. 3 million. Thus, the total interest-bearing debt plus long-term capital leases amounted to approximately $8. 8 million. In the proposed term sheet (see Appendix B), Greenmont Partners valued Eco-Products equity at $29. 6 million as of mid-2008. This amount was about $2. 3 million more than the equity value of $27. 3 million (30. 5 million $3. 2 million) estimated based on 12-month trailing sales. Greenmont Partners’ post-money ownership (including shares reserved for the employee option pool but not the warrants to be issued to Greenmont) can be estimated as: $2,000,000/($29,587,500 + $2,000,000) = $2,000,000/$31,587,500 = 6. 3% Or, using pre-money and post-money shares the calculations would be: Pre-money shares (fully diluted to account for the employee option pool) = $29,587,500/$1. 50 = 19,725,000 shares Shares issued to Greenmont = $2,000,000/$1. 50 = 1,333,333 Post-money shares = 19,725,000 + 1,333,333 = 21,058,333 Greenmont Partners’ ownership = (1,333,333 shares)/(21,058, 333 shares) = 6. 33% Of course, the potential dilution impact of the 333,333 (1,333,333 x . 25) warrants to be issued to Greenmont also need to be taken into consideration in determining Greenmont’s ownership percentage on a fully diluted basis. Greenmont’s potential total shares = 1,333,333 + 333,333 = 1,666,666 Total post-money fully-diluted shares = 21,058,333 + 333,333 = 21,391,666 Greenmont’s ownership position on a fully-diluted basis = 1,666,666 shares/21,391,666 shares = . 0779 = 7. 8% rounded As noted in the following epilogue, Greenmont Partners negotiated a larger percentage ownership as Eco-Products struggled to meet its revenue targets due to inventory-related problems and the rapidly slowing economy during the last-half of 2008. According to the 2008 balance sheet, 1,366,666 shares of preferred stock were actually issued to Greenmont, instead of the previously negotiated 1,333,333 shares (an increase of 33,333 shares). Adding the 333,333 warrants resulted in Greenmont Partners having potential 1,699,999 fully-diluted shares. EPILOGUE: What Happened Finance deal. Steve Savage and Greenmont Capital Partners signed a $2 million Series A investment round on July 1, 2008. Greenmont’s valuation was not the highest of those Savage received, but it was close. Savage chose Greenmont over others because the valuation was fair and provided the intangible benefits of a strategic partnership, and the Greenmont team was beset with industry veterans. Greenmont’s terms sheet contained what Savage considered were standard provisions and covenants and negotiations went smoothly. Ellie’s Organic Home Center, the retail operation, was the main sticking point for Greenmont because they felt the retail operation distracted from the company’s core competencies. The valuation excluded Ellie’s and the terms contained a provision preempting any activity involving â€Å"the investment of funds in Ellie’s Organic Home Center in excess of $200,000 beyond its current approved operating budget. † Recession. Following the investment, Eco-Products struggled to meet revenue targets. Prior to the Greenmont deal, Eco-Products had never been accountable to outside investors for its performance and, at that time, introducing new products impeded accurate sales forecasts. The company faltered when a recession hit the market in late 2008 and sales slumped by as much as 30% industry wide. Greenmont ended up with nearly 8% of Eco-Products, shares fully diluted including an employee pool, up from its original 6. 3% share prior to adding the 333,333 warrants as part of the deal. Savage continued to believe he made the right decision, regardless of these difficulties, but â€Å"I should have kept the PPM going,† he stated. Recovery. Eco-Products overcame the decline in spending that most consumer good companies and manufacturers experienced beginning in the fall of 2008. The 2008 financial statements are given in Exhibits 1 and 2. One year later Eco-Products’ â€Å"GreenStripe† product line was being sold through than 450 distributors and the company launched a retail product line. In June of 2009, Savage resigned as CEO. The company replaced its CEO-Founder with an executive accomplished in growing established companies, the former CEO of Corporate Express who took that company from $50 million to $5 billion in revenue. Savage became Executive Chairman and looked to planned to conduct another round of private equity financing, this time for $5 million to operations. He stated: This $5 million in financial capital is more than enough unless the core business really takes off, or the new products lines really take off, or an attractive merger and acquisition comes along. Then that money could go up in smoke. I figure a pre-valuation equity stake of $9. 5 million and still in the single-digits. I hope to give myself and some others that have been part of the five previous rounds an opportunity to take money off the table. I never have†¦. and I hold 9 million of the 21 million shares.