Macbeth as tragic hero Essay Example for Free

Macbeth as tragic hero Essay The play Macbeth, by William Shakespeare, is a tragedy about a Scottish lord, Macbeth, who becomes too ambitious. He starts off as a brave, loyal and noble man, but his ambition and thirst for power lead him onto a path of ruthlessness and self-destruction, and ultimately his own death. While Macbeth is manipulated by various people and occurrences, the main ones being the witches, Lady Macbeth and Fate, one theme that remains constant throughout the play is the power of choice. Macbeth does have the ability to choose, and it is this ability that makes him a tragic hero, not a victim. There are certain characteristics that someone must have in order to be considered a full tragic hero. One of the main ones is that the character must have a fatal flaw. In Macbeths case, it is his vaulting ambition (1:VII:27). Ambition can be a good thing, but when in large doses as Macbeths was, it can be dangerous, and, as Macbeth proved, even fatal. Another important characteristic of a tragic hero is the conflict between good and evil, and the choice between these two things. Macbeth consciously chooses evil over good. A victim, on the other hand, has no power over what happens to them. Macbeth did have some control over the situation, which means that he was not a victim. However, Macbeth himself cant be entirely to blame. He was influenced and manipulated, particularly by the witches. If the three Weird Sisters (1:V:7) had not said anything to Macbeth in the first place then none of it would have happened. The Weird Sisters put the idea of becoming king hereafter (1:III:49) into Macbeths head, and, consequently, the idea of murdering King Duncan. The witches knew that this would happen, they wanted it to happen. They also manipulated Macbeth later on in the play, with the three apparitions. They gave him false confidence, and, once again, they knew and wanted this to happen. They created toil and trouble (1:IV:10), and they created it on purpose, to lead Macbeth to his demise. However, Banquo was also present at the first meeting with the Weird Sisters, and they made a prophesy for him, too. But Banquo chooses to ignore what they say. Macbeth could have made this choice as well, but he didnt. Although the witches did manipulate Macbeth, he wanted to believe their prophesies, and he chose to believe them. Another person who was a big influence on Macbeth was his wife, Lady Macbeth. He was going to let chance crown me king (1:III:43), but Lady Macbeth knew that this wouldnt lead to anything. She also knew that Macbeths sense of loyalty and honour could stop him from killing Duncan and therefore becoming king and fulfilling his ambitions. She urges him to look like the innocent flower, but be the serpent undert (1:V:63-64). She also questions Macbeths manliness, another weak spot of his. She knows that he doesnt like her doing this, and she knows that its a good way of persuading Macbeth to do what she wants him to do that its a good way of manipulating him. But Macbeth wanted to be manipulated. He let his wife influence him. If he really didnt want to murder Duncan then he wouldnt have. Even before he spoke to Lady Macbeth he was having horrible imaginings (1:III:37). Even though Lady Macbeth helped turn these into realities, she did not physically force her husband to commit murder. Once again, Macbeth had the freedom, power and ability to choose. Another important role in the Macbeth is the role of Fate and destiny. Being a tragic hero, Macbeth was destined to die from the beginning. It could have even been Fate that Macbeth made the wrong choices. However Fate cant manipulate, Fate just is. Macbeth says that he is going to leave everything up to chance, but he doesnt. He chose not to. Perhaps this was also due to Fate, but what would have happened if Macbeth had chosen not to kill Duncan? This is another thing that makes Macbeth a tragic hero the audience is left feeling sympathetic about what might have been. No matter how manipulated, everybody has the power of free will. The fact is that Macbeth chose his path himself, and although Fate may have played some part in his downfall, the power of choice played and even bigger part. The ability to choose overrides Fate and destiny. The entire play could just be put down to human nature. Greed, power, ambition; greed for power and ambition is a part of human nature. However human nature is a bit like Fate, in that it cannot manipulate, it just is. Nearly everyone would like to believe that they can be great, and if they are told so would want to believe it. Macbeth just takes it one step further  by making it happen. In a way Macbeth is taking Fate into his own hands. His vaulting ambition drives him to do this. It is Macbeths ambition that leads him to murder people, as well as leading to his own death. His ambition ultimately becomes his nemesis, which makes him a full tragic hero. Macbeths ambition and his greed for power is like a fire. The witches, Lady Macbeth and Fate did manipulate him and add fuel to the fire, but the spark had to be there first in order for them to do this. Although Macbeth was influenced and manipulated a great deal, he still had the power and the freedom to choose. It is the choices he made that make Macbeth not a victim, but a full tragic hero.

Ethical Dilemma Essay Example for Free

Ethical Dilemma Essay The situation at hand involves an ethical decision between two possible courses of action relating to the promotion of tobacco as a product in the market. R. J. Reynolds Tobacco Co. is a corporation that earns huge amounts of money in selling tobacco and is concerned about keeping its profits despite the negative image now associated with tobacco. Therefore, R. J. Reynolds Tobacco Co. hired Acme Global Advertising to again promote the product in the market. Being recommended by the company’s Director for Global Accounts as the new head of the R.   J. Reynolds Tobacco Co. account, I am constrained to decide whether to accept the position or not. There is no doubt that this is a once in a lifetime career opportunity, as the last manager to handle the R. J. Reynolds Tobacco Co. account had already retired after receiving a huge sum of money after his successful campaign. Indeed, a successful promotional campaign would result in huge profit for both R. J. Reynolds Tobacco Co. and Acme Global Advertising, which would translate into big earnings for me. On the other hand, a simple refusal on my part would mean another eager person would immediately be taking my place and my big opportunity. The problem is not as simple as it looks, however. This is because the World Health Organization already declared tobacco as the second major cause of death in the world. Therefore, any effort on my side in promoting the consumption of tobacco would mean that I am personally exerting effort in favor of a product that causes death to millions of people arounf the world. It is clear, therefore, that the present situation presents an ethical dilemma that needs serious consideration. I have to make a decision between personal success and the health of innumerable people. In order to solve this dilemma, I turn to the philosophical writings of Aristotle in his work entitled Nicomachean Ethics, as well as utilitarian ethical philosophy as explained by well-known ethical philosophers John Stuart Mill and Jeremy Bentham. Based on these ethical principles, I shall explain why it would be ethical for me to accept the challenge and exert my best effort in promoting the sales of tobacco products of R. J. Reynolds Tobacco Co. this paper shall discuss the relevant principles characteristic of each theory, and then apply such principles to the facts of this particular scenario. In Aristotle’s Nicomachean Ethics, he expounded on the notion called virtue, which to him is that which determines the character or nature of anything, be it a person or a specific thing (Ross). Virtue is that thing which makes a knife a good knife, and it is also that which makes a man a good person (Ross). Aristotle makes a distinction between two kinds of virtue, namely natural virtue and moral virtue (Kilcullen). For him, the former relates to characteristics that humans possess from birth, such as a particular temperament (Kilcullen). On the other hand, the latter kind of virtue refers to the act of submitting one’s acts to reason (Kilcullen). It is in the latter kind of virtue that habit, an essential part of Aristotle’s ethical philosophy, enters the scene (Kilcullen). Aristotle posits that moral virtue is developed through habituation, whereby the exercise of reason results in a specific course of action (Kilcullen). Applying Aristotle’s ethical philosophy based on virtue and habit, I conclude that accepting the challenge would determine my character as a person in general, and as a leader in an advertising firm in particular. Accepting a project such as the one in the case would help me develop habits that would hone my leadership and creative skills, which would increase my competence as a leader. The other ethical philosophy that supports my decision is utilitarianism, which is a notion that belongs to the normative ethics tradition. Since the late 18th- and 19th-century, utilitarianism had been in existence to attempt to answer the question, â€Å"What ought a man to do? (West). † Utilitarian philosophers Jeremy Bentham and John Stuart Mill were the foremost believers in the school of thought, and their main thesis was that an action would only be considered morally right if it tends to promote happiness for the greatest number of people. This has been popularly known as the â€Å"Greatest Happiness Principle. † John Stuart Mill explained said ethical principle in 1863, when his published work entitled Utilitarianism came out. He explained, thus: The creed which accepts as the foundation of morals, Utility, or the Greatest Happiness Principle, holds that actions are right in proportion as they tend to promote happiness, wrong as they tend to produce the reverse of happiness. By happiness is intended pleasure, and the absence of pain; by unhappiness, pain, and the privation of pleasure (Mill). It appears therefore, that utilitarianism attaches moral value, not on the motive behind man’s actions, but on the effect that such action makes on people. Bentham and Mill assumed that pleasure and pain are the basic motivations of man, such that he avoids pain and seeks pleasure (West). Applying this principle to my ethical dilemma, I deduce that accepting the project would promote the happiness of many people, namely, myself and the executives of the two corporations that would derive monetary benefits from the success of the project. The people who could be consuming tobacco would likewise find happiness in the availability of a product that they enjoy having, albeit this happiness comes with the danger of disease or even death. Nevertheless, I leave such choice to the holders of the lives concerned, namely, the consumers. It is, after all, ultimately their choice whether to remain healthy or otherwise. In sum, two ethical principles, namely Aristotelian and utilitarian ethics, support the decision to accept the position as head of the project and promote tobacco products.

Benefits Of Staying With Parents After Marriage Young People Essay

Benefits Of Staying With Parents After Marriage Young People Essay Every time you get off work and walk into that the community where your home is, you must overhear a lot of juicy news while you walk past those full-time housewives, sitting together and gossiping what happened recently in their neighbors home. It is true that the contents are mostly about the tough relationship between mother-in-law and daughter-in-law. Even though you may not be interested about this, you cannot deny those things have happened to you, or, unfortunately, you are coping with it now. Well, to be honest, that is also the main reason why so many couples choose to live away from their parents-in-law. But, is that the right way to solve all the problems? And is that a good choice? For me, actually, to solve all these complicated problems are just staying with parents after married. Living with parents can make the relationship more stable, benefit childrens education and slow down the process of aging of parents. Firstly, living with parents leads to a happy marriage. I think it is not a solution but an excuse that living away from parents is for a harmony relationship with parents-in-law. Mostly, this kind of decision is made by young couples. There are some brides who insist on not living with her husbands parents. They dont want to change their own, as well as protecting their own living space from parents. Too many of them have already tired of the fierce competition from their career. All they want to do is just go back home to have a good rest instead of racking their brains to do something to please parents. Therefore getting away from parents-in-law can make it easier. That is what they say distance helps. We can see so many words, such as we, own, want. They just turn out to be nothing but selfish. Is that so bad as the couples describe ¼Ã… ¸ How can young people say that they are too tired to make effort to make an improvement? Family is the most important thing to everyone. People who care about us most are parents. Most of us can bear with the defects of others. However, when it comes to parents, they behave differently. It is like putting the cart before the horse. It is said that the divorce rate in China has increased by almost 20% over past year, with 1.4m couples filing for separation during 2007 (see the news published on Friday, 25 January 2008). It is also said that since Chinas one-child policy was established, in 1973. The number of people getting divorce has quadrupled. That policy has produced a generation of adults focused on their own needs and unable to sustain a relationship. To build a harmonious family relationship, living with parents-in-law can make sense, because the older generation can deal with problems much better. The new couples will learn from them, learn to compromise and cooperate to make a marriage work well. Obviously, the relationship will be more stable. Secondly, it can benefit childrens education to live with parents. So busy the young couples are, it is almost impossible for them to set aside more time for their own children. As a result, these children are sent to their grandparents. However, grandparents always spoil children more than childrens parents do, which cause the children to be selfish and moody. Moreover, for the lack of time with parents, it can be even worse after children grow up. Parents will not be able to communicate with their children well when there has been a barrier between them. If children can live with both parents and grandparents, doting grandparents will have the awareness of being strict to children, and children will enjoy more time with their parents. Being around by eldership and their children, couples will think twice before doing anything, which, at the same time, avoids being unfaithful to their partner. Growing up in a family with such a harmonious atmosphere, these children will be more like ly to get a happy marriage contributed by easygoing, optimistic, and responsible personalities. The last but not least, living with parents can also slow down their aging process. The rapid decrease in the birth rate, combined with improving life expectancy, has led to an increasing proportion of elderly people and an increase in the ratio between elderly parents and adult children. In China, the percentage of the population over the age of 65 years was 5 percent in 1982 and now stands at 7.5percent but is expected to rise to more than 15 percent by 2025(The Effect of Chinas One-Child Family Policy after 25 Years Therese Hesketh, Ph.D., Li Lu, M.D., and Zhu Wei Xing, M.P.H.). The mental health of senior is increasingly important. Company from families is the best doctor for them avoiding the feeling of loneliness. Living together can not only decrease the speed of being slow reaction but also let the young couples have a good knowledge of their parents condition. As a result, parents will gain a longer lifespan which is also a gift to couples. In return, taking good care of the old parents is a good example to their children. They will learn that from young couples on their own. Parents are always the best teacher to children. Even so, many newly married wives still get along well with their parents-in-law. That is reasonable. They dont have same living habit. Everyone in family will adjust themselves to the new situation. It must need time. Everybody knows that family is a cell of the whole society. We are obliged to make it work well. Marriage is not only about couples themselves. Trust me, rainbow comes after storm. A better understanding can be got after living with parents. To sum up, it can only have good results by living with parents, for it can lead to a happy marriage, benefit childrens education and slow down the process of aging of parents. Outline I. Topic: Talking about whether the couples should live with their parents or parents-in-law after married. II Thesis Statement: Living with parents can make the relationship more stable, benefit childrens education and slow down the process of aging of parents. III Antithesis: It is better for them to live separated with their parents 1. Couples do not have their own living space. 2. They have to make efforts to please parents after get off work. 3. Get away from parents can avoid misunderstanding. IV Reasons: 1. living with parents leads to a happy marriage. i. Now young couples are more selfish than before so that they dont know how to get along well with each other ii.The divorce rate are increasing rapidly because of the one-child policy. 2. it can benefit childrens education to live with parents. i. The young couples sent children to parents. The old always spoil their grandchildren. ii.Children can have more time with parents if family members live together. iii.Growing in a happy family, children will be more positive and responsible than others. 3. living with parents can also slow down their aging process. i. Living with children and grandchildren can make them feel they are younger. ii.Children can know the condition of old parents very well. iii.It is a good way to teach children how to be good children. Strategies: Use Tactful, Courteous Language; Point Out Common Ground; Acknowledge Differing Viewpoints. Introduction: For me, actually, to solve all these complicated problems are just staying with parents after married. Living with parents can make the relationship more stable, benefit childrens education and slow down the process of aging of parents. Conclusion: To sum up, it can only have good results by living with parents, for it can lead to a happy marriage, benefit childrens education and slow down the process of aging of parents Body: Firstly, living with parents leads to a happy marriage. I think it is not a solution but an excuse that living away from parents is for a harmony relationship with parents-in-law. Mostly, this kind of decision is made by young couples. There are some brides who insist on not living with her husbands parents. They dont want to change their own, as well as protecting their own living space from parents. Too many of them have already tired of the fierce competition from their career. All they want to do is just go back home to have a good rest instead of racking their brains to do something to please parents. Therefore getting away from parents-in-law can make it easier. That is what they say distance helps. We can see so many words, such as we, own, want. They just turn out to be nothing but selfish. Is that so bad as the couples describe ¼Ã… ¸ How can young people say that they are too tired to make effort to make an improvement? Family is the most important thing to everyone. People who care about us most are parents. Most of us can bear with the defects of others. However, when it comes to parents, they behave differently. It is like putting the cart before the horse. It is said that the divorce rate in China has increased by almost 20% over past year, with 1.4m couples filing for separation during 2007 (see the news published on Friday, 25 January 2008). It is also said that since Chinas one-child policy was established, in 1973. The number of people getting divorce has quadrupled. That policy has produced a generation of adults focused on their own needs and unable to sustain a relationship. To build a harmonious family relationship, living with parents-in-law can make sense, because the older generation can deal with problems much better. The new couples will learn from them, learn to compromise and cooperate to make a marriage work well. Obviously, the relationship will be more stable. Secondly, it can benefit childrens education to live with parents. So busy the young couples are, it is almost impossible for them to set aside more time for their own children. As a result, these children are sent to their grandparents. However, grandparents always spoil children more than childrens parents do, which cause the children to be selfish and moody. Moreover, for the lack of time with parents, it can be even worse after children grow up. Parents will not be able to communicate with their children well when there has been a barrier between them. If children can live with both parents and grandparents, doting grandparents will have the awareness of being strict to children, and children will enjoy more time with their parents. Being around by eldership and their children, couples will think twice before doing anything, which, at the same time, avoids being unfaithful to their partner. Growing up in a family with such a harmonious atmosphere, these children will be more like ly to get a happy marriage contributed by easygoing, optimistic, and responsible personalities. The last but not least, living with parents can also slow down their aging process. The rapid decrease in the birth rate, combined with improving life expectancy, has led to an increasing proportion of elderly people and an increase in the ratio between elderly parents and adult children. In China, the percentage of the population over the age of 65 years was 5 percent in 1982 and now stands at 7.5percent but is expected to rise to more than 15 percent by 2025(The Effect of Chinas One-Child Family Policy after 25 Years Therese Hesketh, Ph.D., Li Lu, M.D., and Zhu Wei Xing, M.P.H.). The mental health of senior is increasingly important. Company from families is the best doctor for them avoiding the feeling of loneliness. Living together can not only decrease the speed of being slow reaction but also let the young couples have a good knowledge of their parents condition. As a result, parents will gain a longer lifespan which is also a gift to couples. In return, taking good care of the old parents is a good example to their children. They will learn that from young couples on their own. Parents are always the best teacher to children. Even so, many newly married wives still get along well with their parents-in-law. That is reasonable. They dont have same living habit. Everyone in family will adjust themselves to the new situation. It must need time. Family is a cell of the whole society. We are obliged to make it work well. Marriage is not only about couples themselves. Trust me, rainbow comes after storm. A better understanding can be got after living with parents. Prewriting Every time people get off work and walk into that residence community, we must overhear much juicy news when you pass by those full-time housewife sitting together talking about the things happened recently in their families. It seems that they know everything there. However, most of them are the tough relationship between mother-in-law and daughter-in-law. Even you may not be interested in that, but you can not deny those things have happened to you, or, unfortunately, you are in that now. Well, to be honest, that is also the reason why so many couples choose to live separated with their parents-in-law. I always think that is not a solution but an excuse to live alone for a good relationship with parents-in-law. Living separated with parents-in-law is a choice made by young couples. There are some new wives who insist not live with her husband parents. They dont want to make a change to their own, as well as protecting their own living space from parents. To many of them, they are t ired of the fierce competition of their career. All they want to do is just go back home to have a good rest. They dont want to rack their brains to do something to please parents. So getting away from parents-in-law can make it easier. Distance helps. We can see so many words, such as we, own, want à ¢Ã¢â€š ¬Ã‚ ¦They just turn out to be nothing but selfish. Is that so bad as the couples describe? How can young people say that thing they are too tired to make effort to make a improvement? Family is the most important thing to everyoneà ¢Ã¢â€š ¬Ã‚ ¦The people who care us most are families. Most of us can bear with defects of others, but when it comes to parents, it is another thing. It is putting the cart before the horse. Divorce rate in China has increased much. The number of people getting a divorce has quadrupled. That policy has produced a generation of adults focused on their own needs and unable to sustain a relationship. To build a harmonious family relationship, living with parents-in-law can make sense, because the preceding generation can deal with problems much better than them. The new couples will learn from that, even do as their parents do. Obviously, the relationship will be more stable. It is difficult for them t o set aside more time for their children. As a result, these children are sent to their grandparents. However, grandparents always spoil children more than childrens parents do. And the lack of time with parents will make problems after they grow up. If children can live with both parents and grandparents, the parents can reduce that spoiling, and children will get more happiness with their parents. Growing up in a family with such a harmonious atmosphere, children will have a great advantage to have a happy marriage depending on their optimistic and responsible personality. Marriage does not only involve two people. It influences almost everything. Living with parents after married can be a good solution to many problems we face today.

A World Without Engineers :: essays research papers

A World Without Engineers Once upon a time, in a galaxy far, far away, on the planet Zovirax, there was an evil king, King Syphilis, who was mighty pleased with himself, for he had just banished all the engineers on the planet to work in the Pixie Stick Powder mines on the moons of Gluteus. "You see," he told his sycophantic servants and lackeys, "I have solved two problems with one simple executive order. I have rid the planet of those annoying, nerdy, know-it-all, engineers." (King Syphilis was actually quite envious of them, because he went to a Junior University in Palo Alto, and didn't know very much at all.) "And secondly," he explained, "I have provided cheap slave labor for the Pixie Stick Powder mines, thus ensuring a limitless supply of this heavenly confection for all to enjoy." All of King Syphilis' staff applauded loudly, because he tended to behead those who didn't. "Bring us intoxicating chemicals, so that we may celebrate," ordered the king. "I'm sorry, Mr. King Syphilis," replied the servant. "You banished all the chemical engineers to the powder mines, so we cannot make the intoxicating chemicals anymore." King Syphilis was quite mad. Nobody talked back to him and go away with it. "Bring me my plutonium phasor gun, so that I may vaporize this impudent guy," ordered the king. "I'm sorry, my good King Syphilis," replied another servant. "Since you deported all the nuclear engineers to the powder mines, we have been unable to operate the plutonium powered phasor gun." Now the king was really mad. "I'm really mad!" said the king. "Bring me my limousine, so that I may repeatedly run over these contumelious servants of mine." "No can do, Mr. King," said the third servant, whose part will be played in the movie version by Keanu Reeves. "All the mechanical engineers are in the mine place, and everyone knows, you can't drive cars without mechanics." "Go jump off a bridge!" said King Syphilis. Another of his servants interrupted, "We have no more bridges, since all the civil engineers have been exiled to the powder mines. Perhaps we should bring them all back." But the king was not the brightest of kings, so he didn't agree to that just yet. "Bring me my vibrating pleasure device, so that I may relax and think about this dilemma of ours," ordered the king. "We are unable to do that, my king, because all the electrical engineers who design the vibrating pleasure devices are in the powder mines." "Hmmm," thought the king. "Perhaps I was wrong in banishing the

Essay --

Kaylee Miller ENG 2413, 3 period C. Windham 10 December 2013 Helping Hand Mary Shelley was not an ordinary nineteen-year-old. She was the daughter of major novelist William Godwin and woman activist Mary Wollstonecraft, and the wife of one of the primary second-generation poet. In life, Mary had to face many situations without her mother, because she was only eleven days old when she passed away. Throughout Mary’s life, she lost three of her four children prematurely. Her only surviving child was named Percy Florence, and she was born in 1819. Frankenstein was released when Mary was twenty-one years old. The central idea came to Shelley in a dream where she saw a student placing parts together of a male’s body and working through an engine to animate it. In Mary’s Shelley’s novel, the Creature goes from being innocent, to a harmful individual, and results in being a kind hearted helping hand. The Creature had a tough life to begin with, and he was an innocent creature. He was forced to provide for himself with knowing nothing and without a leading hand. He describes his first expe...

Queen Isabella I Essay -- Biography

She was born into a family of a long line of royal decedents. She became Queen at the age of twenty four. She was the first women to be on an US commutative coin. Who is this very accomplished person? Queen Isabella. Bold and daring, Queen Isabella accomplished many things in her thirty years of rein as Queen of Castile and Aragon. Queen Isabella was born on April 22, 1451 in Madrigal, Old Castile. Her mother was Isabella of Portugal and her dad was John the II of Castile. Her mom and dad were King and Queen of Castile. She had two brothers, Alfonzo and Henry (â€Å"Isabella of Castile† par13). At the age of three Isabella’s father died. After his death He4nry became King of Castile. A few years after he was crowned King he sent Alfonzo and Isabella to Segovia to be safe (â€Å"Isabella of Castile† par13). While they were in Segovia Henry got married twice, and finally had a baby. After the baby was born the people of Castile believed they needed a new king, so they summoned Isabella and Alfonzo back. The people of Castile decided that Alfonzo will be the heir to the throne. But while there was a war going on in Castile Alfonzo was killed. Now Isabella was the heir to the throne (â€Å"Isabella of Castile† par16). Henry believed that Isabella should get married if she wanted the crown. With that in mind he thought she should marry Don Carlos Prince of Vienna. But Isabella had other thoughts in mind. She wished to marry Ferdinand Prince of Aragon. Her brother would not fight with her so he allowed her to marry him. But she would have to wait until she got back from her trip. Isabella did not listen and married him during her trip. Therefore they got married in 1469 in Juan de Vivero (â€Å"Queen Isabella I† par3-5). When they ... ...w country of Spain. She mostly impacted religions. When she was alive she always taught people that everyone in this world is equal (â€Å"Isabella of Castile† par 5). She made huge sacrifices when she was young. She even turned down an offer to be Queen. She believed that unless both her brothers died it was not her right to be Queen (â€Å"Queen Isabella’ par 4). Being an educated Catholic girl, Isabella was mostly influenced by god. Her parents taught her to always follow the word of god (â€Å"Isabella of Castile† par43). Isabella wanted to be remembered as someone to look up to. Today she has accomplished that. Many people in Spain wish to make Isabella a Saint. But fro right now she is called a servant of god (â€Å"Isabella of Castile† par 39). â€Å"The distance is great beyond firm belief to the realization from concrete experiences.† Queen Isabella.

Marriott Corp: the Cost of Capital

To : President, Marriott Corporation From : FLO299 Subject : Marriott Corporation – The Cost of Capital Date : April 6, 2010 The Importance of the Cost of Capital The cost of capital is important as it forms the basis for Marriott’s investing and financial decisions. By understanding and knowing the cost of capital, Marriott is able to select relevant investment projects for the company, determine incentive compensation, and repurchase undervalued shares when needed. The returns of a project were found by discounting the appropriate cash flows against the appropriate hurdle rates. Without knowing the cost of capital, Marriott would not be able to determine hurdle rates that would help Marriott’s growth. Also, knowing the cost of debt would allow Marriott to optimize the use of debt in the company’s capital structure. Knowing the hurdle rates on a divisional level would also enable Marriott to reward their managers using incentive compensation. By using hurdle rates, Marriott managers would be â€Å"more sensitive to Marriott’s financial strategy and capital market conditions† and would give the company a more accountable method of rewarding their employees. Lastly, Marriott’s method of calculating a â€Å"warranted equity value† for its common shares required knowing the company’s equity cost of capital. A share price that was below the â€Å"warranted equity value† signaled to Marriott when the company needed to step in to repurchase its stock as the company believed that repurchases of shares were a better use of Marriott’s cash flow and debt capacity than acquisitions or owning real estate. Computing Marriott’s WACC The cost-of-capital was computed both divisionally and overall for the company. It required using the formula WACC = (1-t_)RD(D/V) + RE(E/V). D and E are the market values of the debt and equity respectively and V (market value) = D+E. RD and RE are the pretax cost of debt and cost of equity respectively and t is the corporate tax rate. The Numbers Used in Marriott’s WACC A 34% tax rate rate will be assumed for simplicity's sake so more effort can be focused on other issues . The above WACC calculation uses market value of debt. Cost of debt can be observed directly by calculating the yield to maturity of outstanding bonds, but since the bond market is not very transparent and we know Marriott's unsecured debt is A-rated, the company can expect to pay a spread above some base rate. Which index to use should be determined by project life, and as lodging is based on a long term business model, a 30-year treasury bond is appropriate. In this case, the base is 8. 95% according to Tabe B and the spread for the overall company is 130 basis points according to Table A. Also found in Table A, Marriott set a target of the debt percentage in its capital structure to be 60% for the overall company. Because there is no way of directly observing the return that equity investors require, we rely on a couple of methods to estimate it. A dividend growth model can be used, and although simply to use, this approach assumes steady dividend growth. This approach also does not directly adjust for the riskiness of a project. An alternative approach is to use CAPM, which does not rely on dividend growth and does take both the market risk premium and systematic risk into consideration. Using CAPM to estimate the cost of equity we use the following formula: _E(R)=Rf+ {draw:frame} *MRP_. Rf is the same risk-free base rate used to calculate cost of debt, in this case, 8. 95% from Table A. The {draw:frame} is obtained from regression using market data and therefore is affected by leverage. To adjust for this, the B is unlevered and then relevered so that it is the B for business risk only, independent of capital structure. With due consideration given to each input, Appendix A is a computation of Marriott's WACC, 11. 87%, which is also the required rate of return for the company overall. The Use of Marriott’s WACC in Divisional Decisions Marriott can use the computed WACC to support its stock repurchasing decisions because it allows the equity cash flows to be discounted at a company level rate. But because each cost of capital input could differ amongst its divisions, the cost of capital varies across each. If Marriott used the above calculated WACC for all divisional decisions, it would cause the company to take on riskier projects, projects that once risk adjusted would likely cause the company to lose money in the long run. A better approach would be to use individual {draw:frame} for each project with CAPM to calculate the WACC for each project and compare it to IRR. Determining Divisional WACC To estimate the WACC for each division, we need their corresponding {draw:frame} . To do this we use comparable companies for each division; this is because we cannot run regressions at the divisional level as that information is not available. For the lodging division, we compare other hotel companies, for the restaurant division, we compare other restaurants, and for the contract services division we use the identity: {draw:frame} M=WL* {draw:frame} L+WR {draw:frame} R+WCS {draw:frame} CS. The identifiable assets in Exhibit 2 will be used to compute the weights of each division. Once again, because the information is actual market numbers, {draw:frame} E is affected by leverage and must be unlevered by multiplying it by 1 – market leverage. This results in {draw:frame} A which is business risk, independent of capital structure. Asset risk is the only thing that is comparable across firms. Within each divisional comparison to comparable companies, weighted average of {draw:frame} A is used as smaller companies have less impact on the overall segment. These numbers are shown in Exhibit 3. The WACC for each division is found in Appendix B to D. Differences in WACC Appendix A: Marriott’s Overall WACC Calculation Appendix B: Marriott’s WACC for Lodging Appendix C: Marriott’s WACC for Restaurants Appendix D: Marriott’s WACC for Contract Services Identifiable lodging assets = 2777. 4 WL = 60. 61% {draw:frame} L = . 57 Identifiable restaurant assets = 567. 6 WR = 12. 39% {draw:frame} R = . 75 Identifiable contract services assets = 1237. 7 WCS= 27. 00% {draw:frame} CS = solve for this below {draw:frame} M=WL* {draw:frame} L+WR {draw:frame} R+WCS {draw:frame} CS 0. 57 = . 6061*0. 42 + . 12390. 75 + . 2700 {draw:frame} CS {draw:frame} CS = 0. 57