Calculating And Evaluating Example For Free - Free Essay Example

Sample details Pages: 9 Words: 2836 Downloads: 7 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? Corporate finance is the field of finance dealing with financial decisions that business enterprises make and the tools and analysis used to make these decisions. Corporate finance is one of the most important areas of finance which takes into account all the financial decision taken by corporate enterprises.The primary goal of corporate finance is to maximize corporate value while managing the firms financial risks. Although it is in principle different from managerial finance which studies the financial decisions of all firms, rather than corporations alone, the main concepts in the study of corporate finance are applicable to the financial problems of all kinds of firms. Don’t waste time! Our writers will create an original "Calculating And Evaluating Example For Free" essay for you Create order It also deals with the tools and techniques used to make these decisions. One of the main objectives of corporate finance is to maximize the corporate value. Corporate finance also takes into account the financial risks faced by the firm while maximizing the corporate value. Corporate finance is different from managerial fianceacute;. Corporate finance deals only with the corporate whereas managerial finance deals with almost all the firms. Capital Investment Decisions: The goal of the corporate sector is to maximize return on investing in projects which have a positive Net Present Value. Capital investment decision is composed of : 1. Investment Decision 2. The Dividend Decision Working Capital Management: This type of corporate finance is used the management of the current assets of the company. It also deals with short term financing such that the cash flows and return are acceptable. Financial Risk Management: Financial Risk Management is vital for Corp orate Finance. It basically highlights the risks that are to be hedged by the use of different financial instruments. The financial instruments are changes in the commodity prices, interest rates, foreign exchange rates and stock prices. Derivatives like options, future contracts, forward contracts and swaps are used as instruments of financial risk management. Introduction to Corporate Finance is simply dealt with acquisition of resources and allocation of resources. Get an introductory part on Corporate Finance. Corporate Financial Services are mainly of asset based lending, cash flow lending and second lien loans. Corporate Financial Management is an important tool in managing the working capital of a company. Find the process of managing the corporate finance. PepsiCo The world leading firm in snack food industry and the second in the soft drink industry. It has more than 200 product available in the market in and around the world. It invents many ideas and designs to p romote and improve itself. The company is listed in the London stock exchange. The major competitor of pepsico is coca cola which is the leading brand in the soft drink industry and maintains a larger share than pepsico. 2.Net Debt Ratio of PEPSI CO L*= (D+PVOL-CMS)/ (NP+D+PVOL-CMS) D=Market value of Total Debt= $9453 PVOL=Present Value of Operating Lease (5 times the annual rental expense) =479*5= $2395 CMS=Cash and Marketable Securities=($1498*25%)+$1498= 1123.50 NP=No. Of common shares* common stock price=788*55.87=$44025.56 L*= (D+PVOL-CMS)/ (NP+D+PVOL-CMS) L*= (9453+2395-1123.50)/ (44025.56+9453+2395-1123.50) = 10724.50/ 54750.06 = 0.20 3.Ratio Calculation of PepsiCo and Comparable Firms Interest Coverage Ratio Interest coverage Ratio is used to analysis the firms debt-servicing ability. The ratio indicates the number of times the company can make the payment of the interest charges are available funds. A higher ratio is desirable for every company, but as the ratio increases the risk also increases for the company indicating conservative nature of the firm in using debt. A lower ratio indicates excessive use of debt or inefficient operations. Interest coverage  is a financial ratio which helps the company in providing a quick glance of companys ability to pay the interest charges on its debt. It also tells the company about the number of times the company can pay interest from the available earnings which acts as a safety margin for a particular period for the company. Pepsi Co Interest Coverage Ratio= Earning before Interest and Tax(EBIT)/ Interest = $3114/ $682 = 4.57 Cadbury Schweppes Interest Coverage Ratio= Earning before Interest and Tax (EBIT)/ Interest = $ 661/ $135 = 4.90 Coca- Cola Interest Coverage Ratio= Earning before Interest and Tax(EBIT)/ Interest = $4600/ $272 = 16.91 Coca- Cola Entreprises Interest Coverage Ratio= Earning before Interest and Tax(EBIT)/ Interest = $471/ $ 326 = 1.44 McDonalds Interest Coverage Ratio= Earning before Interest and Tax(EBIT)/ Interest = $2509/ $ 340 = 7.38 Comparing the Interest coverage ratio of PepsiCo with other companies, PepsiCo has a good ratio which is neither high nor low, which indicates that the company is operating efficiently and is not conservative in using Debt. Fixed Charge Coverage Ratio A ratio that indicates a firms ability to satisfy fixed financing expenses, such as interest and leases. The fixed charge coverage ratio is especially important for firms that extensively lease equipment. EBIT, Taxes, and Interest Expense are taken from the companys income statement. Lease Payments are taken from the balance sheet and are usually shown as a footnote on the balance sheet. The result of the fixed charge coverage ratio is the number of times the company can cover its fixed charges per year. A Ratio which is higher to 1 indicates that the company is able to payoff its fixed expenses and lower ratio shows that the company is unable clear its fixed expenses. It is calculated as follows: EBIT + Fixed charge/ Fixed charge + Interest Pepsi co Fixed Charge Coverage Ratio = EBIT + Fixed charge/ Fixed charge + Interest = $ 3114+ $479/ $479+ $ 682 =$ 3593/ $ 1161 =$ 3.09 Cadbury Schweppes Fixed Charge Coverage Ratio = EBIT + Fixed charge/ Fixed charge + Interest = $ 661+$25/ $25+$ 135 = $686/$ 160 =$ 4.29 Coca- Cola Fixed Charge Coverage Ratio = EBIT + Fixed charge/ Fixed charge + Interest =$ 4600+$ 0/$0 +$ 272 =$ 16.91 Coca- Cola Enterprise Fixed Charge Coverage Ratio = EBIT + Fixed charge/ Fixed charge + Interest =$ 471+$ 31/$ 31+$ 326 =$ 502/ $ 357 =$1.41 McDonalds Fixed Charge Coverage Ratio = EBIT + Fixed charge/ Fixed charge + Interest =$ 2509+$ 498/$ 498+$ 340 =$ 3009/ $ 838 =$ 3.59 The ratios indicate that all the companies are showing a positive sign that they are able to payoff the fixed expenses which they incur every year. The companies with higher than 1 indicates the ability to pay the fixed charges that the company incur. Long Term Debt Ratio This ratio is calculated to determine the companys leverage. Here the companies long term debt and the shareholders equity is taken into consideration for the calculation. Long term debt ratio shows what proportion of debt and equity the firm is using to finance its assets to run the operation of the company. If the company uses more debt finance to run the operations of the business, the company can generate more earnings. Higher the ratio, higher is the companies leverage, but the companies with more long term debt are a liability to the company and therefore it is risky. It is calculated as follows: Long term debt / Shareholders Equity Pepsi Co Long Term Debt Ratio = Long term debt / Shareholders Equity = $ 8747/ $ 1498 = 5.84 Cadbury Schweppes Long Term Debt Ratio = Long term debt / Shareholders Equity =$ 864/$ 129 =6.70 Coca- Cola Long Term Debt Ratio = Long term debt / Shareholders Equity =$ 1141/$ 1315 =0.87 Coca- Cola Enterprises Long Term Debt Ratio = Long term debt / Shareholders Equity =$ 4138/$ 8 = 517.25 McDonalds Long Term Debt Ratio = Long term debt/ Shareholders Equity =$ 4258/$ 335 =12.71 Here the comparison indicates that the only PepsiCo has an average level leverage of the company, which is neither too risky nor safe. This can also said as ideal leverage level compared to the risk that other companies bare. This ratio also indicates the risk which the company face while using the debt financing for investment activities. If the company is not able to generate enough cash flows, its risk of bankruptcy is higher which with shatter the business of the company. Total debt to Adjusted Total Capitalisation The long term debt to total capitalisation ratio indicates the proportion of long term debt invested in the total asset of the company. For the calculation, the total long term debt and the shareholders equity are taken into consideration. A major difference from the traditional debt-to-equity ratio is that,  this ratio compares the proportion of a companys long-term debt compared to its available capital. With this ratio, investors can identify the  amount of leverage  utilized by the company and compare it  to others to help analyze the companys risk exposure. Companies  with a greater portion of their capital with the debt are considered riskier than those with lower leverage ratios. Total debt to adjusted total capitalization helps in measuring the performance of a company on a risk-adjusted basis calculation. This ratio helps the company in showing the financial leverage. This ratio is the variation of Long term debt ratio or the traditional debt-equity ratio. Tot al debt to adjusted total capitalization computes the proportion of companys total debt with its available capital. By using this ratio, investors can identify the  amount of leverage  utilized by a specific company and compare it  to others to help analyze the companys risk exposure. It is calculated as follows: Total Debt/ Total Debt + Common Stock Pepsi Co Total Debt to Adjusted Total Capitalisation= Total Debt/ Total Debt + Common Stock = $ 9453/ $9453+$ 1498 =$ 9453/ $ 10951 =0.86 Cadbury Schweppes Total Debt to Adjusted Total Capitalisation= Total Debt/ Total Debt + Common Stock =$ 1490/ $ 1490+ $ 129 =$ 1490/ $ 1619 =0.92 Coca-Cola Total Debt to Adjusted Total Capitalisation= Total Debt/ Total Debt + Common Stock =$ 1693/ $ 1693+ $1315 =$ 1693/ $ 3008 =0.56 Coca- Cola Enterprises Total Debt to Adjusted Total Capitalisation= Total Debt/ Total Debt + Common Stock =$ 4201/$ 4201 + $ 8 =$ 4201/ $ 4209 =1 McDonalds Total Debt to Adjusted Total Capitalisation= Total Debt/ Total Debt + Common Stock =$ 4836/ $ 4836+$ 335 =$ 4836/ $ 5171 =0.94 The ratios of the companies are having the same position with Cadbury with the ratio in highest position with 0.92 and Coca Cola with 0.56 as the lowest. It indicates that Coca Cola is the lowest riskier company among all in the list. Ratio of Cash Flow to Long- term Debt Ratio of Cash flow to long term debt indicates the available fund with the company payoff the companies long term debts. Higher is the ratio, higher will be the ability of the company to pay the total debt with the cash generation with its operations. A lower ratio will indicate debt or a weak cash flow generation of the company. This has to be investigated by the company to know the factor the low ratio and this ratio can be compared with the historic data so that the root cause can be found. It is calculated as follows: Cash Flow/ Long Term Debt Pepsi Co Ratio of cash flow to long term debt=Cash Flow/ Long Term Debt =$ 3742/ $ 8747 =0.43 Cadbury Schweppes Ratio of cash flow to long term debt=Cash Flow/ Long Term Debt =$ 492/ $ 864 =0.57 Coca-Cola Ratio of cash flow to long term debt=Cash Flow/ Long Term Debt =$ 3115/ $ 1141 =2.73 Coca- Cola Enterprises Ratio of cash flow to long term debt=Cash Flow/ Long Term Debt =$ 644/ $ 4138 = 0.16 McDonalds Ratio of cash flow to long term debt=Cash Flow/ Long Term Debt =$ 2296/ $ 4258 =0.54 The ratios indicates that the company need to investigate on the cause behind the lower ratio. other companies are also indicating a low ratio. This can be a serious issue for the companys in the future if this is not rectified in the initial stage of occurrence. The company are facing this situation for more year have to identify the cause with comparative study using the historical data of the company so as to get a clear picture of the scenario. The Ratio of Cash Flow to Total Debt Ratio of cash flow to total debt indicates the companys ability to pay the total debt with the cash available from its yearly operations. Total debt is the sum of short term and long term debt of the company. Higher is the ratio, higher will be the ability of the company to pay the total debt with the cash generation with its operations. A lower ratio will indicate debt or a weak cash flow generation of the company. This has to be investigated by the company to know the factor the low ratio and this ratio can be compared with the historic data so that the root cause can be found. It is calculated as follows: Cash Flow/ Total Debt Pepsi Co The Ratio of cash flow to total debt=Cash Flow/ Total Debt =$ 3742/ $ 9453 = 0.40 Cadbury Schweppes The Ratio of cash flow to total debt=Cash Flow/ Total Debt =$ 492/ $ 1490 =0.33 Coca-Cola The Ratio of cash flow to total debt=Cash Flow/ Total Debt =$ 3115/ $ 1693 =1.84 Coca- Cola Enterprises The Ratio of cash flow to total debt=Cash Flow/ Total Debt =$ 644/ $ 4201 =0.15 McDonalds The Ratio of cash flow to total debt=Cash Flow/ Total Debt =$ 2296/ $ 4836 =0.47 The ratios indicate that the company with lower ratio need to investigate on the cause behind the lower ratio. There are other companies also which have low ratio. This can be a serious issue for the companys in the future if this is not rectified in the initial stage of occurrence. Net Debt Ratio of PEPSI CO L*= (D+PVOL-CMS)/ (NP+D+PVOL-CMS) D=Market value of Total Debt= $9453 PVOL=Present Value of Operating Lease (5 times the annual rental expense) =479*5= $2395 CMS=Cash and Marketable Securities=($1498*25%)+$1498= 1123.50 NP=No. Of common shares* common stock price=788*55.87=$44025.56 L*= (D+PVOL-CMS)/ (NP+D+PVOL-CMS) L*= (9453+2395-1123.50)/ (44025.56+9453+2395-1123.50) = 10724.50/ 54750.06 = 0.20 or 20% PepsiCo measures a good financial leverage on the above ratios. Here, the company has a net debt ratio of 20% which states that the organization is maintaining a handle on their finances in a good manner which help them maintain a proper financial control of the activities. PepsiCos objective to maintain a single A debt rating for the net debt ratio is satisfactory and reasonable since the standard is set in and between 20-25% and the net debt ratio falls in 20% for the firm. 4. Conclusion A firm should maintain the corporate financial activities of the firm in the controllable and satisfactory manner so that the company is able to plan and workout its future activites in the current situations and plan which help the firm to carry out the activities. The interest coverage ratio, the calculation indicates that coca cola is using higher level of their earnings for their operations. Though higher ratio is desirable but this also indicates that the company is conservative in using debt, which is a narrow idea or notion that the company has about itself. In the fixed charge coverage ratio, the ability of the company or firm to clear its yearly fixed expenses that the company incur are to be cleared, here the ratios shows that coca cola enterprise is not able to pay off its expenses when compared to other four firms and the higher ability to payoff the expenses is coca cola with 16.91, which is highly a positive sign when compared with other companies. The company w ith the ratio in between the coca cola and coca cola enterprise are maintaining a kind of equilibrium with the expenses. In the long term debt, the ratios show the company leverage, here the company leverage for the coca cola enterprise is with a risk that the company is having too many long term debt which is a risk for the firm operation. Company with lower long term debt indicates the higher leverage level for them to carryout the firms operations and also without any risk of bankruptcy. Total debt to total capitalisation ratio indicates the total debt in the capitalisation of the company, the higher the portion will be the higher risk to the company. Here, the calculation shows that the coca cola is with lower risk of total debt to capitalisation. The higher portion is shared by the coca cola enterprises, which is a sign of risk to the company. The company should investigate the root cause of the problem so that the company can sustain itself from the risk in the market. T he company take the historical data to calculate the cause and come out with solution for the risk. Ratio of cash flow to long term debt shows the availability of the cash with the company to clear the long term debt of the company. Here in the calculation the coca cola is 2.73 ratio which indicates that the company is having sufficient amount of cash flow with which it an clear the long term debt of the company. And the lower ratio is shown by the coca cola enterprise, which is indeed at risk as the company will not be able to pay the older debt and will accumulate more of debt for running the operation. The company need to be careful about the new debt which they are going to take from the financial institutions etc. Ratio of cash flow total debt indicates the ability to pay the total debt of the company with the cash flow from its operations. Here in the calculation, coca cola enterprise is making a ratio of 0.15, which indicates that the company is not able to pay its tota l debt with the cash generated from the yearly operation. The company needs to restructure its financial activities so that the company will be able to function properly and successfully. The coca cola company is making a higher ratio in the available firms which indicates the company is able to pay its total debt with the cash they generate every year. Here the ratio shows the company is handling the financial activities in the right manner and controlling the activities. All the ratios calculated are in the average which shows that the ratios are average and companies are functioning with the single A debt rating which makes the investment decision in the right direction and also minimum with high returns.

A Persuasive Speech On Organ Donation - 947 Words

1) Attention/Introduction a) Attention Getter. Hi my name is, Lizette Vazquez, and I am here to talk to you about becoming an organ donor. Many people wait for years for organs to become available, the need for organ donors is growing. Donate and save a life. If you had a chance to save a life and or change their life, would you do it? If you answered no, to this question would your feelings change, towards organ donation if someone in your family or close to you need an organ transplant? Can you imagine, what it would feel like to get handed a death sentence like this and to know there is millions of people capable of saving a life and no one is stepping up. Many of these people waiting can have a happy ending to their story. However, the†¦show more content†¦They are technically dead, but the body is still functioning so the organs remain healthy. A match is made when both the donor and the recipient have the same blood type. c) The Organ Procurement Organization facilitates the coordination of donors and recipients. f) Inoculation: The U.S. Department of Health and Human services described myths and misconception about organ and tissue donation. One can imagine the lives saved if we all knew the true fact about donation. If they see Im a donor at the hospital, they wont try to save my life. Donation doesnt become a possibility until all lifesaving methods have been exhausted. My family will have to pay for the donation. There is no cost to donors or their families for organ or tissue donation. If Im in a coma, they could take my organs. Brain death is not the same as coma. Humans can recover from comas, but not from brain death. Brain death is FINAL. Transition: Even though many Americans fail to donate organs and or tissue, you can help the myths about organ donation, help save lives, by learning and sharing these facts. III. Satisfaction There are two steps you should take in order to become an organ donor. a) Register as an organ donor next time you visit the Texas Department of Transportation (DMV). Or online at texasdriverservices.org 1. Mark the box on your initial drivers license application or renewal. 2. Go onlineShow MoreRelatedPersuasive Speech : Organ Donation1076 Words   |  5 PagesTopic: Persuasive Speech Assignment #2: Organ Donation Specific Purpose: To persuade my audience to become registered organ donors. Thesis: Today I want to persuade my audience to become registered organ donors. Introduction I. To start, by a show of hands, only if you feel comfortable, how many of you are registered organ donors? II. According to organdonor.gov, â€Å"an average of 22 people die each day waiting for transplants that can t take place because of the shortage of donated organs.† Read MoreOrgan Donation : Persuasive Speech909 Words   |  4 PagesOrgan Donation Rhetorical Analysis Organ donation has been a major controversy for many years now. There are those people who favor it and the ones who do not. According to the United States Organ and Tissue Transplantation Association, organ donation is defined as tissue or organ removal from a deceased or living donor, for transplantation purposes. Tissues and organs are moved in a surgical procedure. Afterwards, they are transplanted to a recipient to ensure their recovery (Francis 2015). OrganRead MorePersuasive Speech On Organ Donation1150 Words   |  5 Pagesshortage of donated organs.† (Brazier) Due to the shortage of organs, this causes many people to go to extreme measures to save a loved one. Maybe even to the point of doing something illegal. The more we help promote and contribute to organ donation, the more lives we can save. There is a new name added to the list every 10 minutes while around 20 people die a day waiting for an organ. Organ donation is the process of surgically removing an organ or tissue from one person (the organ donor) and placingRead MorePersuasive Speech On Organ Donation973 Words   |  4 Pagesbecome a live organ donor and donating a kidney to my husband Keisy. Nowadays the number of people in need of organ donation is constantly raising and one of the greatest ways we can help someone even save their lives is by becoming a live organ donor. Long before I have met my husband, he has been diagnosed with the end stage kidney disease. That meant his kidneys were failing and he needed a kidney transplant in a near future. His name was entered in the National Organ Donation list. MeanwhileRead MorePersuasive Speech : Organ Donation1335 Words   |  6 Pagesto make. C. My name is Morgan Silva and I am here to talk to you about organ donation, how you can become one, and the ways your family and donor recipients benefit from the donation you made. II. Body A. People often ask themselves what organ donation is and what it involves. 1. According to Medline Plus, organ donation takes healthy organs and tissues from one person for transplantation into another. a. All kinds of organs can be donated to save a life: the kidneys, the heart, the liver, the pancreasRead MorePersuasive Speech On Organ Donation1048 Words   |  5 Pageshigh enough. These people need organs, and it is on us to help. It takes just one of us to save as many as eight people on the list. People need to be educated on organ donation and the opportunities it creates rather than a hasty decision that is made when you apply for your driver’s license. Organ donation is an amazingly powerful and underestimated practice. I believe everyone should become more open to the idea of helping others through the donation of their organs, which would otherwise be entirelyRead MoreOrgan Donation Persuasive Speech Essay1115 Words   |  5 Pagescouldn’t live without? Imagine you are lying in a hospital bed and you have no choice but to impatiently wait for that one organ you and your body are depending on to survive. Many people face this struggle every day. These people are waiting on a list for their perfect match†¦ the perfect person to be their organ donor. An organ donor is a person who has an organ, or several organs, removed in ordered to be transplanted into another person. Imagine that one of your loved ones are in the hospital†¦Read MorePersuasive Speech About Organ Donation1369 Words   |  6 Pagesan organ transplant (â€Å"Data†). These people wait patiently as death knocks on their door. In America, we can do so much to ensure that people will live on with the donations of organs. Unfortunately, many are unaware of the amount of people who are dying that are waiting for an organ. Organ donation is a great way to save someones life, and continue the life of a loved one. Although it is a great way to give someone a new life many people are uninformed about donation and how valuable organs areRead MorePersuasive Outline-Organ Donation886 Words   |  4 PagesPERSUASIVE SPEECH OUTLINE – ORGAN DONATION Topic:  Organ donation Thesis Statement:  Becoming an organ donor after death is not only an important decision for yourself, but it is also an important decision for the life that you may have the power to save. Purpose:  To persuade my audience to consider becoming organ donors after death    Introduction: 1. Organ donation is a selfless way to give back to others, and to be able to make a huge difference by giving another person a second chanceRead MorePersuasive Speech Outline Essay examples942 Words   |  4 PagesPersuasive Speech Outline Topic: Organ Donation General Purpose: To persuade Specific Purpose: After listening to my speech my audience will consider donating their organs and tissues after death and to act upon their decision to donate. Central Idea: The need is constantly growing for organ donors and it is very simple to be an organ donor when you no longer need your organs. Introduction: How do you feel when you’re waiting for something you really really want? Or what if it’s not even

The Prinicple Of Utility Essay Example For Students

The Prinicple Of Utility Essay Word Count: 2337The Principle of Utility A. Jeremy Bentham (1748 1832)There are two main people that talked about the principles of utility and they were Jeremy Bentham and John Stuart Mill. First off Ill talk to you about Mr. Bentham. It is helpful to see Benthams moral philosophy in the context of his political philosophy, his attempt to find a rational approach to law and legislative action. He argued against natural law theory and thought that the classical theories of Plato and Aristotle as well as notions such as Kants Categorical Imperative were too outdated, confusing and/or controversial to be of much help with societys ills and a program of social reform. He adopted what he took to be a simple and scientific approach to the problems of law and morality and grounded his approach in the Principle of Utility. The Principle of Utility1. Recognizes the fundamental role of Painand Pleasure in human life. 2. Approves or disapproves of an action on thebasis of the amount of pain or pleasure broughtabout (consequences). 3.Equates the good with the pleasurableand evil with pain. 4.Asserts that pleasure and pain are capableof quantification-and hence of measure. As with the emerging theory of capitalism in the 18th and 19th Century England, we could speak of pleasure as pluses and pains as minuses. Thus the utilitarian would calculate which actions bring about more pluses over minuses. In measuring pleasure and pain, Bentham introduces the following criteria:Its intensity, duration, certainty (or uncertainty), and its nearness (or fairness). He also includes its fecundity (more or less of the same will follow) and its purity (its pleasure wont be followed by pain vice versa). In considering actions that affect numbers of people, we must also account for their extent. As a social reformer, Bentham applied this principle to the laws of England for example, those areas of the law concerning crime and punishment. An analysis of theft reveals that it not only causes harm to the victim, but also, if left unpunished, it endangers the very status of private property and the stability of society. In seeing this, the legislator should devise a punishment that is useful in deterring theft. But in matters of private morality such as sexual preference and private behavior, Bentham felt that it was not at all useful to involve the legislature. Bentham also thought that the principle of utility could apply to our treatment of animals. The question is not whether they can talk or reason, but whether they can suffer. As such, that suffering should be taken into account in our treatment of them. Here we can see a moral ground for laws that aim at the prevention of cruelty to animals (and such cruelty was often witnessed in Benthams day.) (Cavalier)John Stuart Mill (1806 1873)It is better to be a human being dissatisfied that a pig satisfied;better Socrates dissatisfied than a fool satisfied. For Mill, it is not the quantity of pleasure, but the quality of happiness. Benthams calculus is unreasonable qualities cannot be quantified (there is a distinction between higher and lower pleasures). Mills utilitarianism culminates in The Greatest Happiness Principle.(Cavalier)If I am asked what I mean by difference of quality in pleasures, or what one pleasure more valuable than another, merely as a pleasure, except its being greater in amount, there is but one possible answer. Of two pleasures, if there be one to which all or almost all who have experience of both give a decided preference, irrespective of any feeling of moral obligation to prefer it, that is the more desirable pleasure. If one of the two is, by those who are competently acquainted with both, placed so far above the other that they prefer it, even though knowing it to be attended with a greater amount of discontent, and would not resign it for any quantity of the other pleasure which their nature is capable of, w e are justified in ascribing to the preferred enjoyment a superiority in quality so far outweighing quantity as to render it, in comparison, of small account. (Cavalier) The principle of utility tells us to produce the greatest balance of happiness over unhappiness, making sure that we give equal consideration to the happiness and unhappiness of everyone who stands to be affected by our actions. The principle of utility can be applied in two different ways. The first is to apply it to individual acts. How are we to do that? Well, we might ask ourselves every time we act which of the options open to us will maximize happiness, but Mill did not recommend that procedure because it would be much too time consuming. Since we know that lying and staling and cheating will rarely maximize happiness when everyone is taken equally into account, the sensible thing to do is avoid such behavior without worrying about the principle of utility. (Barry pg.8)The learning process of Bentham and Mill was very strange and different. They expressed things in there own words that were different from the rest of us, and the way we might think about pleasure and happiness. Trying to understand where they were coming from was hard to follow and to understand. To understand the meanings of happiness and pleasure are difficult and will very from person to person. So when you think about it you try to see it from there point of view, but you can only see it from your view. You may understand there what there expressing, but your though is what counts. Beowulf - The Ideal Hero EssayMy view pointSeeing things from my point of view, Id have to agree with the argument of the Individualist view. Where each person is responsible for there own actions. They make there own decisions in life and should be responsible for them too. But in making those decisions there are consequences that you may pay for them. In our society there comes a time where we are working half the time for other people. And we have to accept that role in life. When we make money we can only spend about two0thirds of that because the rest of it is taken away for other peoples needs. That can be both good and bad, but I like to think that the money that I never see is going somewhere or to someone for a good reason. We all need help at some point in time, and I hope that after we get that help we can see that weve been helped and maybe now is a good time for me to help out someone else. Another means of money giving is to charity. Just like welfare, charity is anot her good reason for our society to help people or even groups that are in need for help or research. In our society there are many people that count on others for help. The people that need help for medical reasons or what have you deserve the right to benefit from charities or other outside donations. The one thing that our society can not do is take advantage of these actions and right them off on our taxes. We can not take advantage of the taxpayers money. We need to use our society in the best way we can ethically. Cavalier, Robert http://caae.phil.cmu.edu/CAAE/80130/part1/sect4/BenardandMill.html, 2/9/00. Barry, Vincent, Applying Ethics: A Text With Readings, Wadsworth Publishing,Belmount, 1983. Cohen, Warren, Ethics in Thought and Action, Ardsley House Publisher, New York, 1995.