How Is the Story Told in Chapter 1 of the Great Gatsby free essay sample

All through section one of The Great Gatsby, Fitzgerald fluctuates in procedure to recount to the story. He utilizes the character Nick Carraway to begin the section by having him describe. Furthermore, all through Chapter 1 we are acquainted with numerous different characters, for example, Tom, Jordan, Daisy and Gatsby. The utilization of narrational voice is significant in The Great Gatsby as Fitzgerald has made the character Nick, not exclusively to portray the story, yet in addition be a key individual in the novel. This includes an individual touch, however it could likewise make portions of story inclination or off base. We get alluded to this error when Nick says I have been tanked twice in my life, and the subsequent time was that evening. We can see that his portrayal might be wrong as he was affected by liquor, so he will be unable to recall portions of the story so well. We will compose a custom exposition test on How Is the Story Told in Chapter 1 of the Great Gatsby or on the other hand any comparative point explicitly for you Don't WasteYour Time Recruit WRITER Just 13.90/page Each character is portrayed through the narrator’s voice and hence the discernments and musings of each character are affected by Nick and his perspectives. The individual conveyance of the story urges us to peruse on. This is down to Nicks innovative style of recounting to the story. Fitzgerald has made the character Nick to basically recount to the story and to have the chance to include individual decisions. In spite of the fact that the character more than once concedes that he doesnt make these decisions; this is a conflicting articulation, and all through the principal section Nick consistently breaks this. The initial hardly any pages can be depicted as a short outline of Nick Carraway and his life where as a peruser we make and build up our view of his character. Through the early synopsis, In my more youthful and more , Nick is summing up his life; it seems as though he is shortening and rapidly portraying previews of his life. Fitzgerald has made the character of Nick as a member of the story, in spite of the fact that he is to a greater extent an observer. The concise starting synopsis is then trailed by And so it happened that on a warm blustery night.. which can stamp the start of the account and again shows the shrewd way that Fitzgerald has utilized Carraways character as a member and an author of the Gatsby story. This account method focuss the perusers consideration and makes a connection between the peruser and the character of Nick as it feels like he is expressly transferring the story. While through the later phases of the Chapter the other young lady, Daisy, made an endeavor is considerably more graphic and film like. By and large Fitzgerald utilizes various strategies to recount to the story on Chapter 1. One of these being, having Nick be a storyteller as well as a character. This adds to the general conveyance of Chapter 1 as well as the entire novel.

Breathless Film Essay Essay Example

Short of breath Film Essay Example Short of breath Film Essay Paper Short of breath Film Essay Paper In the film, Michael Postcard is a frivolous criminal who takes a vehicle and when a pop makes up for lost time to him, postcard frenzies and shoots him dead. He at that point departures to Paris to accumulate cash to disappear to Italy and to get together with his American sweetheart Patricia. The remainder of the film is him going around attempting to persuade Patricia to go to Italy with him and discover Antonio who can assist him with escaping France.. At long last Patricia advises on him to the cops and he is shot in the city however continues running until he crumples and passes on short of breath. Two key snapshots of the film are when Postcard sees Patricia kissing the other American and when Patricia reveals to him that she called the cops. They tooth mirror the unavoidable topic of trust and love found all through the film and appear to offer the expression that affection is blinding and devouring. Indeed, even to his last second, Postcard doesnt quit cherishing Patricia regardless of whether she betrayed him. The arrangement that best speaks to the topical is where, considerably in the wake of being double-crossed by her, he shows he despite everything adores her with the individual faces game and lets her off with a light advising before he dies. The title, Breathless, alludes straightforwardly to the closure of the film where Postcard continues running until he is actually winded and bites the dust. In a less strict understanding the title could speak to how the primary character is exhausted from driving his present way of life (not on the grounds that he needs to transform it but since its getting up to speed to him) just as his blinding affection for Patricia which removes his breath leaving him reluctant and prompting his passing. 1) The melodic subject is rehashed different occasions all through the score and goes about as an approach to elevate emotional inquiry just as add to Michel Postcards portrayal (its smooth yet undermining) . Its unfavorable organization (apropos titled La Mort) blocks passing since the start inning with the cop and at last Postcards own. 6) The altering is striking in that it utilizes exploratory hop cuts intensely which at the time were very against the standard. It makes a truly intriguing impact in light of the fact that while it brings some regard for itself, taking away from the hallucination of genuine congruity, it does as such in a way that is very compelling. Have an inclination that our minds will acknowledge this introduction of a story since sins this precisely what we do while reviewing an occasion: alter out the exhausting parts? For me by and by once you become accustomed to (it felt somewhat abnormal from the start) it truly keeps you occupied with the story since it makes time increasingly effective.

How Common Is Borderline Personality Disorder

How Common Is Borderline Personality Disorder BPD Print How Common Is Borderline Personality Disorder? By Kristalyn Salters-Pedneault, PhD Kristalyn Salters-Pedneault, PhD, is a clinical psychologist and associate professor of psychology at Eastern Connecticut State University. Learn about our editorial policy Kristalyn Salters-Pedneault, PhD Updated on September 18, 2019 Levi Bianco / Getty Images More in BPD Diagnosis Treatment Living With BPD Related Conditions Borderline personality disorder (BPD) is much more common than you might imagine. A recent study on the prevalence of mental health disorders in the U.S. found that about 1.6 percent  of the population has BPD. While that number may sound small, that means that there are more than four million people with BPD in the U.S. alone. Although many people have never heard of BPD, it is actually more common than many well-known disorders, such as schizophrenia. There is a large difference in the prevalence of BPD in women versus men; women are much more likely to be diagnosed with BPD. In fact, about 75 percent of those diagnosed with BPD in the U.S. are women. However, it is not known whether women are actually more prone to develop BPD or whether this is due to gender biases in the diagnosis of BPD. For example, it may be that men with the symptoms of BPD are just more likely to be misdiagnosed with other conditions like post-traumatic stress disorder or major depressive disorder. Misdiagnosis as Bipolar Disorder In addition, that 1.6 percent  statistic may not be accurate because many people with BPD have not yet been diagnosed or they have been misdiagnosed. In one study from Brown University, more than forty percent of those with BPD had originally been misdiagnosed as having bipolar disorder. One hypothesis for this issue is that bipolar disorder is more easily treated through medication, so it is more commonly diagnosed so that symptoms can be quickly managed with a prescription. Misdiagnosis can be a serious problem, as no medications have been approved by the Food and Drug Administration (FDA) for BPD. Medications for bipolar disorder are often ineffective in treating BPD. BPD patients who have been misdiagnosed may then be exposed to dangerous side effects from their prescriptions. Some patients have reported issues with endocrine and cardiac problems after taking these prescriptions. While bipolar disorder and borderline personality disorder may share some symptoms, they are very different diseases. Bipolar disorder can cause severe depression or mood swings, but in between episodes, those with bipolar are able to function normally. Those with BPD may have a more chronic condition that can cause self-harming behaviors or suicidal tendencies. When a bipolar disorder patient is rapidly cycling, they can exhibit destructive or harmful behaviors very similar to BPD. Misdiagnosis is extremely common during these phases. What Is Rapid-Cycling Bipolar Disorder? Another fact that makes defining the two more difficult is that some people can actually have both diseases. About 20 percent  of those with borderline personality disorder have been found have bipolar disorder as well. Finally, other patients with BPD go undiagnosed because they refuse to seek treatment. Whether they feel they dont need help or that counseling will be useless, many people go without therapy and struggle with BPD on their own. With these issues in mind, it is likely that the number of people with borderline personality disorder is much higher than 1.6 percent, but that is the only number researchers have been able to find evidence to support. Why People With BPD Refuse Treatment

How Common Is Borderline Personality Disorder

How Common Is Borderline Personality Disorder BPD Print How Common Is Borderline Personality Disorder? By Kristalyn Salters-Pedneault, PhD Kristalyn Salters-Pedneault, PhD, is a clinical psychologist and associate professor of psychology at Eastern Connecticut State University. Learn about our editorial policy Kristalyn Salters-Pedneault, PhD Updated on September 18, 2019 Levi Bianco / Getty Images More in BPD Diagnosis Treatment Living With BPD Related Conditions Borderline personality disorder (BPD) is much more common than you might imagine. A recent study on the prevalence of mental health disorders in the U.S. found that about 1.6 percent  of the population has BPD. While that number may sound small, that means that there are more than four million people with BPD in the U.S. alone. Although many people have never heard of BPD, it is actually more common than many well-known disorders, such as schizophrenia. There is a large difference in the prevalence of BPD in women versus men; women are much more likely to be diagnosed with BPD. In fact, about 75 percent of those diagnosed with BPD in the U.S. are women. However, it is not known whether women are actually more prone to develop BPD or whether this is due to gender biases in the diagnosis of BPD. For example, it may be that men with the symptoms of BPD are just more likely to be misdiagnosed with other conditions like post-traumatic stress disorder or major depressive disorder. Misdiagnosis as Bipolar Disorder In addition, that 1.6 percent  statistic may not be accurate because many people with BPD have not yet been diagnosed or they have been misdiagnosed. In one study from Brown University, more than forty percent of those with BPD had originally been misdiagnosed as having bipolar disorder. One hypothesis for this issue is that bipolar disorder is more easily treated through medication, so it is more commonly diagnosed so that symptoms can be quickly managed with a prescription. Misdiagnosis can be a serious problem, as no medications have been approved by the Food and Drug Administration (FDA) for BPD. Medications for bipolar disorder are often ineffective in treating BPD. BPD patients who have been misdiagnosed may then be exposed to dangerous side effects from their prescriptions. Some patients have reported issues with endocrine and cardiac problems after taking these prescriptions. While bipolar disorder and borderline personality disorder may share some symptoms, they are very different diseases. Bipolar disorder can cause severe depression or mood swings, but in between episodes, those with bipolar are able to function normally. Those with BPD may have a more chronic condition that can cause self-harming behaviors or suicidal tendencies. When a bipolar disorder patient is rapidly cycling, they can exhibit destructive or harmful behaviors very similar to BPD. Misdiagnosis is extremely common during these phases. What Is Rapid-Cycling Bipolar Disorder? Another fact that makes defining the two more difficult is that some people can actually have both diseases. About 20 percent  of those with borderline personality disorder have been found have bipolar disorder as well. Finally, other patients with BPD go undiagnosed because they refuse to seek treatment. Whether they feel they dont need help or that counseling will be useless, many people go without therapy and struggle with BPD on their own. With these issues in mind, it is likely that the number of people with borderline personality disorder is much higher than 1.6 percent, but that is the only number researchers have been able to find evidence to support. Why People With BPD Refuse Treatment

The New Geopolitics Of Energy Essay - 710 Words

Carlos Pascual, The New Geopolitics of Energy, Center on Global Energy Policy, Columbia University, September 2015, 37 pp. Article Synopsis: â€Å"The new Geopolitics of Energy† is an overall synopsis of how energy is linked to geopolitics, and how the United States has emerged over the past decade as a major hydrocarbon producer and exporter, which has resulted in the changing the nations posture globally. Of note, Pascual highlights the point that the U.S. has found a new borne power that it can wield geopolitically, and can even further its international objectives. However, it must wield that control very carefully and with finesse, because if done poorly could have far reaching ramifications. Managing this power will not be easy and may take some formidable resources, and the U.S. is not well versed in the unique way that OPEC and the major oil producing nations conduct business. He stresses that energy markets and foreign policy are not static and that the U.S. has to fully understand the intricacies of both. The article is broken into three sections. Part one of the paper addresses the fundamentally new foundations for global oil and gas supplies that stem from the unconventional energy revolution in the United States. This was accomplished by employing new technologies that combine horizontal drilling with hydraulic fracturing, also known as â€Å"fracking† to release oil and gas from the layers of shale and new cost reducing technologies. This increased oil production inShow MoreRelatedGlobalization and Geopolitics Energy934 Words   |  4 Pagesbelieved that globalization is rendering the concepts of geopolitics and the great powers, it is only enhancing the strategies of those whose aims it is to take control. Globally, the population provides the excuses many super powers need to carried out their power manipulation and seek out natural resources. Geopolitics has evolved and grown because of globalization and super powers are constantly rewriting their own policies and setti ng new trends for their sustainable doctrines. Globalization hasRead MoreThe Threat Of The Outer Space870 Words   |  4 PagesAdam: You used a sentence of â€Å"The true worth of Airpower in understanding geopolitics seems to come from how airpower makes geography more accessible† about air power, which is correct, and I agree with you. For the outer space, your outcome and principle idea is â€Å"While outer space may be a new geostrategic concern for developed states, the financial cost of its use will make it an impossibility for weaker states. This doesn’t necessarily mean that weaker states do not see the value in outer spaceRead MoreThe Discovery Of Oil And Its Effects On The World With Energy1506 Words   |  7 PagesIn 1958, oil was first discovered in Nigeria. The discovery has led to the transition from agriculture-based economy to that of oil economy. One would believe that a country that produces a numerous amount of oil used to support the world with e nergy would have improved domestic infrastructures and economic development. Unfortunately, this is not the case in Nigeria. Nigeria has suffered since the discovery of oil and is still suffering till this day. Not only has it created conflicts between otherRead MoreSecurity of Pipelines in Eurasia Essay1918 Words   |  8 PagesIntroduction The geopolitics in Eurasia along with the implications of energy security as well as the risks and opportunities it creates for the U.S. is understood when the layers of conflict and negotiations are analyzed through the various topics that affect international policies. Through the concepts based on energy, politics, security pipelines in Eurasia, international transit integration, and the energy world order, can the conceptual argument be made that natural resources are temporaryRead MoreHow The Geopolitics Central Asia Affected China s Ability Of Securing Its Energy Resources From The Region?2032 Words   |  9 PagesHow has the Geopolitics in Central Asia affected China’s ability in securing its Energy Resources from the Region? There is a significant change in the order of energy in the world, and there is the need of China to enforce its ability in becoming one of the major forces in global markets, and in the geopolitics that occur regarding energy. 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The World Energy Outlook 2016Read MoreCorrelations Between Population and Pollution993 Words   |  4 Pagesincrease in goods movement resulting in air pollution. Like this, population growth affects air pollution. In order to solve air pollution, science is applied such as developing renewable energy. Nowadays, there are solar powered cars, heating, etc. These things don’t emit greenhouse gases. The development of renewable energy will solve the air pollution caused from population growth. NASA scientists performed an experiment to examine how the amount of pollution is influenced by the population density inRead MoreArgumentative Essay - Rising Gas Prices: Who Is to Blame?928 Words   |  4 Pagesthe actual mess the pipeline could cause. This pipeline is already running through Canada from Alberta and would continue through Montana, South Dakota, Nebraska, Kansas, Oklahoma and Texas (Amadeo). This oil is a very dirty and expensive form of energy. The tar sands oil is made mostly of sand, clay and water and is very environmentally destructive. During the process it emits poisonous runoff, which would pollute water, uses large amounts of natural gas and water to extract oil. Forming of this

Causes and Preconditions for the Industrial Revolution

Historians may disagree on most aspects of the Industrial Revolution, but one thing they do agree on is that 18th-century Britain experienced a huge change in the economic field of goods, production and technology, and the social sphere (through urbanization and treatment of workers). The reasons for this change continue to fascinate historians, leading people to wonder if there was a set of preconditions present in Britain shortly before the Revolution which enabled or allowed it to take place. These preconditions tend to cover population, agriculture, industry, transport, trade, finance, and raw materials. Preconditions for Industrialization in Britain Circa 1750 Agriculture: As a supplier of raw materials, the agricultural sector was closely linked to the industrial; this was the main source of occupation for the British population. Half of the arable land had been enclosed, while half remained in the medieval open field system. The British agricultural economy produced a large surplus of food and drink and had been labeled the Granary of Europe because of its exports. However, production was labor-intensive. Although there had been some new crops introduced, and there were problems with underemployment. Consequently, people had multiple occupations. Industry: Most industries were small scale, domestic and local, but traditional industries could meet the domestic demands. There was some inter-regional trade, but this was limited by poor transport. The key industry was wool production, bringing in a substantial portion of Britain’s wealth, but this was coming under threat from cotton. Population: The nature of the British population has implications for the supply and demand for food and goods, as well as the supply of cheap labor. The population had increased in the earlier part of the 18th century, especially closer to the middle of the era, and was mostly located in rural areas. The people were gradually accepting of social change and the upper and middle classes were interested in new thinking in science, philosophy. and culture. Transport: Good transport links are seen as a basic requirement for the Industrial Revolution, as the transport of goods and raw materials were essential for reaching wider markets. Generally, in 1750, transport was limited to poor quality local roads — a few of which were turnpikes, toll roads which improved speed but added cost — rivers, and coastal traffic. While this system was limited, interregional trade did occur, such as coal from the north to London. Trade: This had developed during the first half of the 18th century both internally and externally, with a great deal of wealth coming from the triangle slave trade. The main market for British goods was Europe, and the government maintained a mercantilist policy to encourage it. Provincial ports had developed, such as Bristol and Liverpool. Finance: By 1750, Britain had begun to move towards capitalist institutions — which are considered part of the development of the Revolution. The produce of trade was creating a new, wealthy class prepared to invest in industries. Groups like the Quakers have also been identified as investing in areas which contributed to the industrial boom. Raw Materials: Britain had the raw resources necessary for a revolution in plentiful supply. Although they were being extracted in abundance, this was still limited by traditional methods. In addition, the related industries tended to be nearby because of poor transport links, exerting a pull on where industry occurred. Conclusions Britain in 1870 had the following which has all been stated as necessary for an Industrial Revolution: good mineral resources, growing population, wealth, spare land and food, ability to innovate, laissez-faire government policy, scientific interest, and trading opportunities. Around 1750, all of these began to develop simultaneously. The result was a massive change. Causes of the Revolution As well as the debate over preconditions, there has been a closely-related discussion over the causes of the revolution. A wide range of factors is generally considered to have worked together, including: The end of medieval structures changed economic relationships and allowed for change.A higher population because of less disease and lower infant mortality allows for a larger industrial workforce.The Agricultural Revolution frees people from the soil, allowing — or driving — them into cities and manufacturing.Proportionally large amounts of spare capital were available for investment.Inventions and the scientific revolution allowed for new technology to increase and cheapen production.Colonial trade networks allowed the import of materials and the export of manufactured goods.The presence of all the required resources close together, such as coal near iron.Culture of hard work, risk-taking, and the development of ideas.Demand for goods.

Finance Case Study Free Essays

INSTRUCTOR: Mr. Konstantinos Kanellopoulos, MSc (L. S. We will write a custom essay sample on Finance Case Study or any similar topic only for you Order Now E. ), M. B. A. COURSE: MBA-680-50-SUIII12 Corporate Financial Theory SEMESTER: Summer Session III Case Study The Many Different Kinds of Debt (solutions) Konstantinos Kanellopoulos 22nd August 2012 CASE STUDY ON The many different kinds of debt It was one of Morse’s most puzzling cases. That morning Rupert Thorndike, the autocratic CEO of Thorndike Oil, was found dead in a pool of blood on his bedroom floor. He had been shot through the head, but the door and windows were bolted on the inside and there was no sign of the murder weapon. Morse looked in vain for clues in Thorndike’s office. He had to take another tack. He decided to investigate the financial circumstances surrounding Thorndike’s demise. The company’s capital structure was as follows: †¢ 5% debentures: $250 million face value. The bonds matured in 10 years and offered a yield of 12%. †¢ Stock: 30 million shares, which closed at $9 a share the day before the murder. Yesterday Thorndike had flatly rejected an offer by T. Spoone Dickens to buy all of the common stock for $10 a share. With Thorndike out of the way, it appeared that Dickens’s offer would be accepted, mush to the profit of Thorndike Oil’s other shareholders[1]. Thorndike’s two nieces, Doris and Patsy, and his nephew John all had substantial investments in Thorndike Oil and had bitterly disagreed with Thorndike’s dismissal of Dickens’s offer. Their stakes are shown in the following table: | |5% Debentures (Face Value) |Shares of Stock | |Doris |$4 million |1. 2 million | |John |0 |0. | |Patsy |0 |1. 5 | All debt issued by Thorndike Oil would be paid off at face value if Dickens’s offer went through. Morse kept coming back to the problem of motive. Which niece or nephew, he wondered stood to gain most by eliminating Thorndike and allowing Dickens’s offer to succeed? Help Morse solve the case. Which of Thorndike’s relatives stood to gain most from his death? Solutions THE SHOCKING DEMISE OF MR. THORNDIKE Minicase solution, Chapter 25 Principles of Corporate Finance, 9th Edition R. A. Brealey, S. C. Myers and F. Allen After the corpse was removed, police inspectors came to dust the bedroom for fingerprints. Morse knew they would find nothing. He walked down the marble staircase of Rupert Thorndike’s mansion and into the paneled library. He sat at a table in front of the fireplace, scarcely noticing the painting over it, Monet’s portrait of the legendary John D. Thorndike at Giverny. He turned on his laptop computer. Thorndike Oil had three classes of securities outstanding: $250 million of ebentures (face value), 30 million shares, and an issue of subordinated convertible notes. Morse had to calculate the change in the value of each security now that Thorndike was gone, and given the now near-certain acquisition of Thorndike Oil by T. Spoone Dickens. Table 1 reports Morse’s results. The notes summarize his reasoning. With Table 1 in hand, it was easy to calculate the increases in value due to the murder and resulting acquisition. Debt increased by 39. 5% of face value. Common stock increased by $1. 00 per share, and each convertible note increased from 103. 5% to 110% of face value (from $1039. 50 to $1100 per bond). Morse summed the gains to Doris, John and Patsy (see Table 2). Then he reached for his cell phone and dialed Chief Inspector Spillane. Thorndike Oil Table 1 Values of Thorndike Oil Securities Before and After the Murder | |Before |After | |Debt |$151. 25 million, |$250 million | | |60. % of face value |100% of face value | |Equity |$270 million, |$300 million, | | |$9 per share |$10 per share | |Convertible notes |103. 95% of |110% of | | |face value |face value | Notes 1. Debt, before: PV at 12% of the 5% coupon for 10 years, plus repayment of face value (100%) at year 10, is 60. 5% of the $250 million face value, or $151. 25 million. Debt, after: essentially risk-free. The debt will be repaid in short order and should trade very close to face value. The gain in market value is 1 – . 605 = . 395, or 39. 5% of face value. 2. Shares: Share price increases from $9. 00 to $10. 00. 3. Convertible notes: Conversion value before is 110 shares at $9 per share = $990 per $1,000 note. The bonds were trading at 5% over conversion value, or 1. 05? 90 = $1,039. 50. Note holders will convert prior to the takeover, receiving 110? 10 = $1,100. (If they don’t convert, they get only $1,000. ) In other words, the notes increase by 110 – 103. 95 = 6. 05% of face value. Thorndike Oil Table 2 Who Gained Most? (Figures in millions) | |Doris |John |Patsy | | | | | | |Debt |$1. 8 |0 |0 | | |(. 395? 4) | | | | | | | | |Stock |$1. 2 |$0. 5 |$1. | | |(1. 00 ? 1. 2) |(1. 00 ? .5) |(1. 00 ? 1. 5) | | | | | | |Convertible notes |0 |$0. 3025 |$0. 1815 | | | |(. 0605 ? 5) |(. 0605 ? ) | | |___________ |___________ |_________ | |Total |$2. 78 |$0. 8025 |$1. 6815 | ———————– [1] Rupert Thorndike’s shares would go to a charitable foundation formed to advance the study of financial engineering and its crucial role in world peace and progress. The managers of the foundation’s endowment were not expected to oppose the takeover. How to cite Finance Case Study, Free Case study samples Finance Case Study Free Essays INSTRUCTOR: Mr. Konstantinos Kanellopoulos, MSc (L. S. We will write a custom essay sample on Finance Case Study or any similar topic only for you Order Now E. ), M. B. A. COURSE: MBA-680-50-SUIII12 Corporate Financial Theory SEMESTER: Summer Session III Case Study The Many Different Kinds of Debt (solutions) Konstantinos Kanellopoulos 22nd August 2012 CASE STUDY ON The many different kinds of debt It was one of Morse’s most puzzling cases. That morning Rupert Thorndike, the autocratic CEO of Thorndike Oil, was found dead in a pool of blood on his bedroom floor. He had been shot through the head, but the door and windows were bolted on the inside and there was no sign of the murder weapon. Morse looked in vain for clues in Thorndike’s office. He had to take another tack. He decided to investigate the financial circumstances surrounding Thorndike’s demise. The company’s capital structure was as follows: †¢ 5% debentures: $250 million face value. The bonds matured in 10 years and offered a yield of 12%. †¢ Stock: 30 million shares, which closed at $9 a share the day before the murder. Yesterday Thorndike had flatly rejected an offer by T. Spoone Dickens to buy all of the common stock for $10 a share. With Thorndike out of the way, it appeared that Dickens’s offer would be accepted, mush to the profit of Thorndike Oil’s other shareholders[1]. Thorndike’s two nieces, Doris and Patsy, and his nephew John all had substantial investments in Thorndike Oil and had bitterly disagreed with Thorndike’s dismissal of Dickens’s offer. Their stakes are shown in the following table: | |5% Debentures (Face Value) |Shares of Stock | |Doris |$4 million |1. 2 million | |John |0 |0. | |Patsy |0 |1. 5 | All debt issued by Thorndike Oil would be paid off at face value if Dickens’s offer went through. Morse kept coming back to the problem of motive. Which niece or nephew, he wondered stood to gain most by eliminating Thorndike and allowing Dickens’s offer to succeed? Help Morse solve the case. Which of Thorndike’s relatives stood to gain most from his death? Solutions THE SHOCKING DEMISE OF MR. THORNDIKE Minicase solution, Chapter 25 Principles of Corporate Finance, 9th Edition R. A. Brealey, S. C. Myers and F. Allen After the corpse was removed, police inspectors came to dust the bedroom for fingerprints. Morse knew they would find nothing. He walked down the marble staircase of Rupert Thorndike’s mansion and into the paneled library. He sat at a table in front of the fireplace, scarcely noticing the painting over it, Monet’s portrait of the legendary John D. Thorndike at Giverny. He turned on his laptop computer. Thorndike Oil had three classes of securities outstanding: $250 million of ebentures (face value), 30 million shares, and an issue of subordinated convertible notes. Morse had to calculate the change in the value of each security now that Thorndike was gone, and given the now near-certain acquisition of Thorndike Oil by T. Spoone Dickens. Table 1 reports Morse’s results. The notes summarize his reasoning. With Table 1 in hand, it was easy to calculate the increases in value due to the murder and resulting acquisition. Debt increased by 39. 5% of face value. Common stock increased by $1. 00 per share, and each convertible note increased from 103. 5% to 110% of face value (from $1039. 50 to $1100 per bond). Morse summed the gains to Doris, John and Patsy (see Table 2). Then he reached for his cell phone and dialed Chief Inspector Spillane. Thorndike Oil Table 1 Values of Thorndike Oil Securities Before and After the Murder | |Before |After | |Debt |$151. 25 million, |$250 million | | |60. % of face value |100% of face value | |Equity |$270 million, |$300 million, | | |$9 per share |$10 per share | |Convertible notes |103. 95% of |110% of | | |face value |face value | Notes 1. Debt, before: PV at 12% of the 5% coupon for 10 years, plus repayment of face value (100%) at year 10, is 60. 5% of the $250 million face value, or $151. 25 million. Debt, after: essentially risk-free. The debt will be repaid in short order and should trade very close to face value. The gain in market value is 1 – . 605 = . 395, or 39. 5% of face value. 2. Shares: Share price increases from $9. 00 to $10. 00. 3. Convertible notes: Conversion value before is 110 shares at $9 per share = $990 per $1,000 note. The bonds were trading at 5% over conversion value, or 1. 05? 90 = $1,039. 50. Note holders will convert prior to the takeover, receiving 110? 10 = $1,100. (If they don’t convert, they get only $1,000. ) In other words, the notes increase by 110 – 103. 95 = 6. 05% of face value. Thorndike Oil Table 2 Who Gained Most? (Figures in millions) | |Doris |John |Patsy | | | | | | |Debt |$1. 8 |0 |0 | | |(. 395? 4) | | | | | | | | |Stock |$1. 2 |$0. 5 |$1. | | |(1. 00 ? 1. 2) |(1. 00 ? .5) |(1. 00 ? 1. 5) | | | | | | |Convertible notes |0 |$0. 3025 |$0. 1815 | | | |(. 0605 ? 5) |(. 0605 ? ) | | |___________ |___________ |_________ | |Total |$2. 78 |$0. 8025 |$1. 6815 | ———————– [1] Rupert Thorndike’s shares would go to a charitable foundation formed to advance the study of financial engineering and its crucial role in world peace and progress. The managers of the foundation’s endowment were not expected to oppose the takeover. How to cite Finance Case Study, Free Case study samples