Magma Versus Lava How It Melts, Rises, and Evolves

In the textbook picture of the rock cycle, everything starts with molten underground rock: magma. What do we know about it? Magma and Lava Magma is a lot more than lava. Lava is the name for molten rock that has erupted onto the Earths surface - the red-hot material spilling from volcanoes. Lava is also the name for the resulting solid rock. In contrast, magma is unseen. Any rock underground that is fully or partially melted qualifies as magma. We know it exists because every igneous rock type solidified from a molten state: granite, peridotite, basalt, obsidian and all the rest. How Magma Melts Geologists call the whole process of making melts magmagenesis. This section is a very basic introduction to a complicated subject. Obviously, it takes a lot of heat to melt rocks. Earth has a lot of heat inside, some of it left over from the planets formation and some of it generated by radioactivity and other physical means. However, even though the bulk of our planet - the mantle, between the rocky crust and the iron core  - has temperatures reaching thousands of degrees, its solid rock. (We know this because it transmits earthquake waves like a solid.) Thats because high pressure counteracts high temperature. Put another way, high pressure raises the melting point. Given that situation, there are three ways to create magma: raise the temperature over the melting point, or lower the melting point by reducing the pressure (a physical mechanism) or by adding a flux (a chemical mechanism). Magma arises in all three ways - often all three at once - as the upper mantle is stirred by plate tectonics. Heat transfer: A rising body of magma - an intrusion - sends out heat to the colder rocks around it, especially as the intrusion solidifies. If those rocks are already on the verge of melting, the extra heat is all it takes. This is how rhyolitic magmas, typical of continental interiors, are often explained. Decompression melting: Where two plates are pulled apart, the mantle beneath rises into the gap. As the pressure is reduced, the rock begins to melt. Melting of this type happens, then, wherever plates are stretched apart - at divergent margins and areas of continental and back-arc extension (learn more about  divergent zones). Flux melting: Wherever water (or other volatiles like carbon dioxide or sulfur gases) can be stirred into a body of rock, the effect on melting is dramatic. This accounts for the copious volcanism near subduction zones, where descending plates carry down water, sediment, carbonaceous matter and hydrated mineral with them. The volatiles released from the sinking plate rise into the overlying plate, giving rise to the worlds volcanic arcs. The composition of a magma depends on the type of rock it melted from and how completely it melted. The first bits to melt are richest in silica (most felsic) and lowest in iron and magnesium (least mafic). So ultramafic mantle rock (peridotite) yields a mafic melt (gabbro and basalt), which forms the oceanic plates at the mid-ocean ridges. Mafic rock yields a felsic melt (andesite, rhyolite, granitoid). The greater the degree of melting, the more closely a magma resembles its source rock. How Magma Rises Once magma forms, it tries to rise. Buoyancy is the prime mover of magma because melted rock is always less dense than solid rock. Rising magma tends to remain fluid, even if its cooling because it continues to decompress. There is no guarantee that a magma will reach the surface, though. Plutonic rocks (granite, gabbro and so on) with their large mineral grains represent magmas that froze, very slowly, deep underground. We commonly picture magma as big bodies of melt, but it moves upward in slim pods and thin stringers, occupying the crust and upper mantle like water fills a sponge. We know this because seismic waves slow down in magma bodies, but do not disappear as they would in a liquid. We also know that magma is hardly ever a simple liquid. Think of it as a continuum from broth to stew. Its usually described as a mush of mineral crystals carried in a liquid, sometimes with bubbles of gas too. The crystals are usually denser than the liquid and tend to slowly settle downward, depending on the magmas stiffness (viscosity). How Magma Evolves Magmas evolve in three main ways: they change as they slowly crystallize, mix with other magmas, and melt the rocks around them. Together these mechanisms are called magmatic differentiation. Magma may stop with differentiation, settle down and solidify into a plutonic rock. Or it may enter a final phase that leads to eruption. Magma crystallizes as it cools in a fairly predictable way, as we have worked out by experiment. It helps to think of magma not as a simple melted substance, like glass or metal in a smelter, but as a hot solution of chemical elements and ions that have many options as they become mineral crystals. The first minerals to crystallize are those with mafic compositions and (generally) high melting points: olivine, pyroxene, and calcium-rich plagioclase. The liquid left behind, then, changes composition in the opposite way. The process continues with other minerals, yielding a liquid with more and more silica. There are many more details that igneous petrologists must learn in school (or read about The Bowen Reaction Series), but thats the gist of crystal fractionation.Magma can mix with an existing body of magma. What takes place then is more than simply stirring the two melts together, because crystals from one can react with the liquid from the other. The invader can energize the older magma, or they can form an emulsion with blobs of one floating in the other. But the basic principle of magma mixing is simple.When magma invades a place in the solid crust, it influences the country rock existing there. Its hot temperature and its leaking volatiles can cause portions of the country rock - usually the felsic part - to melt and enter the magma. Xenoliths - whole chunks of country rock - can enter the magma this way too. This process is called assimilation. The final phase of differentiation involves the volatiles. The water and gases that are dissolved in magma eventually start to bubble out as the magma rises nearer to the surface. Once that starts, the pace of activity in a magma rises dramatically. At this point, magma is ready for the runaway process that leads to eruption. For this part of the story, proceed to Volcanism in a Nutshell.

Is It Really Costing Us - 895 Words

America is the largest meat producer and the second largest meat consumer in the world (Willett, 2014). I used to be one of these consumers eating meat at nearly every meal. After learning more about the beef, dairy, pork, and poultry industries I became a vegan for ethical reasons. You may have heard of â€Å"factory farming† which is how most of our food is produced today. Factory farming has negative results including pollution, related health risks to humans, and cruelty to animals. While factory farming can keep up to society’s ever growing demand for meat, what is it really costing us? Pollution is a huge concern to a lot of people. It can come in many forms and from many sources. Most people don’t think about the fact that the food they eat causes pollution. Regardless of how it is packaged or how far it has traveled to get to you, there are other pollution factors. Pigs are raised in cramped spaces in overcrowded buildings with slotted floors. The pigs eat, sleep, and defecate in these cages. The farmers spray down the pig houses, and the feces washes through the slots in the floors to large lagoons outside. When the lagoons get full the farmers spray the feces filled water into the air to fertilize nearby fields (Peach, 2014). The potential threat for water pollution is very serious. Bacteria in the waste lagoons are dangerous to our lakes and streams, and the creatures that live in them. When the land floods from excessive rain the waste from the lagoons is carriedShow MoreRelatedThe Usefulness Of Traditional Costing System1646 Words   |  7 Pagesabou t their costing methods to ensure that the product cost is rightly allocated, in view that the product cost has a clear aftermath on the pricing decision of a product which also affect profitability. Product costing is a crucial subject especially if the business is considering the application of the cost leadership strategy developed by Michael Porter, (1980), as a tool to gain a competitive edge over its rivals. In this essay, we will assess the usefulness of traditional costing system to managersRead MoreLandau Company1113 Words   |  5 PagesManagerial accounting â€Å"Case: 19-4 Landau Company†Ã¢â‚¬  Question 1: * The income statements prepared under absorption costing and variable costing usually produce different net operating income figures. Under absorption costing if inventories increase then some of the fixed manufacturing costs of the current period will not appear on the income statement as part of cost of goods sold. Instead, these costs are deferred to a future period and are carried on the balance sheet as part of the inventoryRead Morecase study GG Toys1080 Words   |  5 PagesG.G.   Toys   Ã¢â‚¬â€œ   Nele   Rieve   Ã¢â‚¬â€œ   E01487695   Ã¢â‚¬â€œ   10/14/2014       G.G.    Toys    is    a    leading    manufacturer    of    high- ­Ã¢â‚¬ quality    dolls    located    in    the    US.    The    company    is    popular    for    its    â€Å"Geoffrey    dolls†    but,    due    to    rising    product    costs,    has    included    customized    dolls    and    cradles    in    its    product    mix.    Two    plants    are    used    for    the Read MoreCigarettes are Harmful and Should Be Made Illegal Essay1235 Words   |  5 PagesMariana Islands, and the US Virgin Island agreed to the largest manufacture of tobacco in US history (introduction). That was a horrible decision because in 2011 a study done in the United States estimated that 43.8 million adults are current cigarette smokers. 440,000 of those 43.8 million adults died of tobacco related causes (centers). Of those 43.8 million 34.1 million smoke at least once a day and the remaining 9.7 million of them smoke every once in a while. According to US law adults have theRead MoreCost Management Strategies For An Organization1590 Words   |  7 Pagesorganizations than small organizations, especially service sector have greater interest in it. pricing tools helps us to identify the relationship with client, gain experience from new market, need to keep resources available, helps to sell other services for an organization. Budgeting tools: Managerial accounting people use budgeting tool and technique to manage money related information that assure us that a task is supported sufficiently and can be finished inside of the assigned budget. Utilizing modelsRead More Activity-Based Costing ( ABC ) Essay1439 Words   |  6 PagesActivity Based Costing ACTIVITY BASED COSTING AND MANAGEMENT : AN OVERVIEW Activity Based Costing (ABC) is more relevant than traditional costing in companies, where product mix is diverse in; batch sizes, physical sizes, degree or complexity, and raw material characteristics. ABC will also provide more decision useful information for the service industry, characterized by diversity in range of services provided. If the products in a plant or services provided posses similar characteristicsRead MoreWhat Are The Two Major Uses Of Managerial Accounting Information1313 Words   |  6 Pagesrestaurant a would only notice a 25% decrease in net profits despite losing half of its customer base to restaurant B. 4. Compare and contrast job costing and process costing systems. Process costing – uses the total cost of large production runs of identical products. In the case of a paint factory that is producing 50,000 gallons of white paint, process costing would require that all of the chemicals and materials used in the process of manufacturing the paint would be accumulated into a cost accountRead MoreModule 1 Case Absorption vs. Variable Costing1401 Words   |  6 PagesThis case study will look at Jokkmok Industries and one of its managers, Mr. Rosen, who is bucking for a promotion to CEO. His division uses absorption costing and has the ability to produce 50,000 units a quarter with a fixed overhead amount of $600,000. While the sales forecast shows that the company will only sell 25,000 units during each of the next two quarters, Mr. Rosen wants to double his budgeted production for the second quarter from 25,000 to 50,000 units. We will look at Mr. Rosen’sRead MorePros And Cons Of Debt Or Degree752 Words   |  4 Pageslooking at student loans to cover costs. What is that degree really costing you? We need to have a standard cost for college classes nationally. There is just no reason for tuition to so high that students are focused to jeopardies their future. Student’s today are starting their adult lives with a mountain of debt and no outlook of the life they had hoped for. Did you know that student loan debt is the second largest debt category in the US? It falls right under the mortgage debt category. A mortgageRead MoreEssay On Nasa852 Words   |  4 Pagesfinally come true. All due to one man’s devotion, Elon Musk’s SpaceX has made new deep developments. NASA has fallen a big time in the past 10 years or so, due to the fact US spends $600 billion on military and not in showing America is the most advance in the Space and Technology. SpaceX has made the cheapest rocket costing only $61 million per launch and the Rocket is called Falcon 9. Falcon 9 is able to return to the launching pad without having to crash into the Ocean like NASA’s Space rockets

Why Do You Feel Down If You Just Graduated

Youve been looking forward to graduation since you first started college or grad school. Its finally here—why arent you happier? Pressure Graduation is supposed to be a happy time! Why arent you happy? Be happy! Is this running through your mind? Stop pressuring yourself to feel the way you think youre supposed to. Allow yourself to be yourself. Ambiguous feelings about graduation are more common than you think. Most graduates feel a little nervous and uncertain—its normal. Dont make yourself feel worse wondering, Whats wrong with me? Youre ending one chapter of your life and beginning a new one. Thats always a little scary and anxiety-provoking. What can you do to feel better? Recognize that endings, as well as beginnings, are inherently stressful. Its normal to feel nostalgic over what was, and to worry about what will be. Transition-Related Anxiety If youre graduating college and planning on attending graduate school, you may feel anxious because youre embarking on a long path through the unknown. Youre also encountering mixed messages. Your graduation ceremony says, Youre at the top of the pack. Youve jumped through the hoops and are finished, whereas the orientation program at your new graduate institution says, Youre an incoming runt, the bottom rung of the ladder. That discrepancy can get you down, but the feelings will pass as you move on to this new stage in your life. Overcome the transition anxiety by relaxing and congratulating yourself on your accomplishment. Achieving a Goal Means Having to Find a New One Believe it or not, graduation blues is also common among graduates from masters and doctoral programs. Feeling somewhat detached and sad about graduating? Sound crazy? Wonder why anyone would feel sad after such an achievement? Thats just it. After working towards a goal for years, achieving it can be a let-down. No, you dont feel any different—even if you thought you would. And once you achieve a goal its time to look ahead for a new goal. Ambiguity—not having a new goal in mind—is stressful. Most graduates both from college and graduate school feel anxiety over whats next. Thats entirely normal, especially in an uncertain job market. What can you do about the graduation blues? Take control of your emotions, allow yourself to feel blue, but then work your way out of it by focusing on the positive, such as what youve achieved. Then consider new goals and a new plan to attain them. Focus on the career readiness traits that employers seek in college graduates and prepare to take that next step.  Nothing like a new challenge to excite and motivate you out of the graduation blues.

`` Dear Grads, Don t Do What You Love - 864 Words

In the article Dear Grads, Don t Do What You Love McCoy states that every year college graduates are urged to do what they love, but that it may be misleading. Often graduates are romanticized into believing they should do what they love, not taking into account how the job market or economy may affect their job prospects. McCoy believes that its unwise to build a career on the notion that we should all be paid for our passions That is only the half of it. Instead graduates should find a deeper purpose in their vocation, especially if they may love doing more than one thing. Also when love what you do is taken to heart literally, graduates strive to attain it at all costs but as in McCoy’s case, he states, When you are working two or three jobs and you cannot pay your bills, it doesn t matter how much you love any of them. You just get worn out. In this article McCoy feels like the solution for the disillusion in college graduates once they have their jobs, is for the comme ncement speakers to go a different way about how they present their speeches. Such as them talking about the consequences of meaningful work instead of the motivation for it, or perhaps doing what they do for a purpose. In the midst of emotions at graduation one might literally take to heart the typical â€Å"love what you do† speech, but who is to say that’s so wrong? As McCoy stated â€Å"that the speech should be balanced in its message with a more timeless message to find work that, even inShow MoreRelatedDear Grads : Don t Do What You Love1453 Words   |  6 Pageswriter, McCoy’s article â€Å"Dear Grads: Don’t Do What You Love† first appeared in the Wall Street Journal. In â€Å"Dear Grads: Don’t Do What You Love,† Carl McCoy argues that advising college students or students in general to do what they love and find their passion in their workplace might be ill-advised. He finds it absurd that each person has one particular career path, and argues that the notion of doing what you love is supporting that belief. The illusion of doing what you love is you’ll be living aRead MoreBusiness Plan on Indoor Sports Complex5579 Words   |  23 PagesThe abstract is typically a short summary of the contents of the document.] 2013 3/28/2013 TabTable of Contents 1.1 Business Model 7 1.1.1 Company Overview 7 1.1.3 Objectives 8 1.1.4 Mission 8 1.1.5 Vision 8 What is Futsal? 8 1.1.6 Facilities 9 1.1.7 SERVICES 10 1.1.8 Pitch 10 1.1.9 Sports Store 10 1.1.10 Food Court 10 1.2.1 Concept: 11 1.2.2 Location 11 1.2.3 Management 12 Company Ownership 12 1.2.4 Personnel 12 2 The marketing Plan 13 Read MoreShes Dating the Gangster149221 Words   |  597 PagesShe s Dating the Gangster - Credits to the Author [Chapter 1] You wanna know a secret? Ok ok..   He s not my first love and I m NOT his first love. Definitely not.   So what is it that made me love and cling to him this much?   Well, he s irritating, loud, and he s not sweet! He s weird, he smokes, he drinks, he goes clubbing on a weekday, and he fights and bullies a lot. Take note, A LOT. He is very moody and a bit blunt. Oh yeah, he even threatened to kill me. -- for short, HERead MoreTop 1 Cause for Project Failure65023 Words   |  261 PagesAnish Mathai Mathew [PMP|MBA] Temenos T24 PROGRAM MANAGER at Union National Bank Featured discussion In your experience, what is the TOP #1 cause for Project failure? From experience, the following are the TOP10 causes of Project failure that Mathew can think of (they are not in any kind of order): #1. Lacking Sponsor s Involvement/Ownership #2. Halo Effect (Wrong Man for the Job) #3. Poor HR Management #4. Poor/Inadequate Project Communications #5. Ignoring Project Stakeholders Read MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 Pagesmechanical, photocopying, recording, or likewise. To obtain permission(s) to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458, or you may fax your request to 201-236-3290. Many of the designations by manufacturers and sellers to distinguish their products are claimed as trademarks. Where those designations appear in this book, and the publisher was aware of a trademark claim, theRead MoreDeveloping Management Skills404131 Words   |  1617 Pagesmymanagementlab is an online assessment and preparation solution for courses in Principles of Management, Human Resources, Strategy, and Organizational Behavior that helps you actively study and prepare material for class. Chapter-by-chapter activ ities, including built-in pretests and posttests, focus on what you need to learn and to review in order to succeed. Visit www.mymanagementlab.com to learn more. DEVELOPING MANAGEMENT SKILLS EIGHTH EDITION David A. Whetten BRIGHAM YOUNG UNIVERSITY

Analysis of the Film, Into the Wild, Directed by Sean Penn

When people read a book that they like they cant wait to see the movie that is based on the book. Many people criticize the movie or are not satisfied. While you watch this movie it is visually breathtaking and easily relatable. Chris McCandless is played by Emile Hirsch who does an outstanding job of portraying McCandless. McCandless’s parents are Walt and Billie McCandless. In the book they are portrayed as a little stuck up and snobbish. Sean Penn is a screenwriter and director for the movie adaptation of Into the Wild by John Krakauer. Sean Penn portrays Chris’s parents in a negative way in order to show that they were essentially responsible for him breaking away from society. When Walt has his birthday in the movie and†¦show more content†¦The opening scene to the movie is Billie waking up from a nightmare screaming and hysterical that she heard McCandless say he wanted his mom. This shows that she also blames herself for not stopping him. Carine knew tha t if she stopped her brother he wouldn’t be the same person and needed this journey to prove to himself that he could survive in the wild. Although they all knew deep inside that they needed to let him go they never did get to say there goodbye. In the movie there is a fight scene where Walt and Billie are arguing he threatens to cancel Christmas he also said that he was God. Walt views himself so highly that he believes that he can cancel Christmas. Another form of narcissism is that they believe they have fantasy expectations towards impossible things like ideal love or beauty, unlimited power, unlimited success etc(Psychological Personality Disorders). He believed that he was God. Which Walt believed that he was so amazing that he was at the same level of importance and influential to the world just like God. Many people believe this is a psychological disorder. He also was so mad at his wife that he wanted his children to watch them fight. He wanted his children to view this fight to show that he can control everything in their lives including holidays. During this scene he tries to blame it all on Billie and control her. People often try to blame their problem on others, which could be considered

Risk Assessment for Auto Fishing Group - MyAssignmenthelp.com

Question: Discuss about theRisk Assessment for Auto Fishing Group. Answer: Introduction The Information security hazard or risk assessment is a continuous as well as an on-going procedure of discovering, preventing and correcting information security difficulties. The risk evaluation or assessment is a constituent part, or method of the risk management procedure designed to furnish the appropriate planes of security for the information methods. The Information safety risk evaluation is a part of effective security practices and is needed by almost every organization to build the organizations information safety policies. Information Security Management Risk Assessment Qualitative and Quantitative Risk Assessment Evaluating the relative hazard for every weakness is proficient by means of a procedure named as risk assessment. As indicated by conventional and though a true way of thinking, the data security administration of Auto-Angling Group must begin with a quantitative hazard examination. Such an investigation works fine in principle, yet it scarcely works practically (Bernard, 2015). The standard prerequisites, defenselessness administration, and subjective hazard examination can consolidate to give a practical option. Quantitative appraisal performs the resource valuation with real values or gauges which might be hard to assign particular qualities so the Auto-fishing Group could utilize subjective appraisals rather than utilizing scales and particular assessments. The subjective hazard evaluation affected examination is that it organizes the dangers and distinguishes the zones for prompt change in tending to the vulnerabilities (Management of Information, 2017). The drawback of the subjective or qualitative investigation is that the qualitative assessment doesn't give particular quantifiable estimations of the magnitude of the security impacts, therefore, making a money saving advantage examination of any prescribed controls difficult. On the other hand, the quantitative effect examination is that it gives an estimation of the effects' extent, which can be utilized as a part of the money saving advantage investigation of suggested controls inside the Auto-fishing Group. The inconvenience is that, contingent upon the numerical extents used to express the measurement, the importance of the quantitative effect examination might be hazy, requiring the outcome to be deciphered in a subjective way (Bucur-Marcu, 2013). Risk Controlling Strategies for risk control which Auto-fishing Group must apply Auto-fishing Group must determine controls and protects to diminish the hazard exhibited by every danger or weakness match with a direct or high hazard level as distinguished in the Risk Determination Form (Wangen, 2017). While recognizing a control and a safeguard, the Auto-fishing Group must consider: Information Security region of the Auto-fishing Group, such as, management, technical and operational departments must be ensured with the information security policies and the policy and structural parameters necessary for the usage of protections in the organization's environment (Risk Management: Controlling Risk, 2017). Whether the expenses or the cost of the defense is similar with its diminishment in hazard. Auto-fishing Group must pick one of the five fundamental procedures to control the dangers Defense: Applying shields that wipe out or diminish the staying uncontrolled hazard. Transference: Shifting dangers to different ranges and also to outside substances. Mitigation: Reduce the misuse of data resources which cause vulnerability or weakness. Acceptance: Understanding the outcomes of leaving a hazard uncontrolled and afterward legitimately recognizing the hazard and its remaining parts without an endeavor at control. Termination: Removing as well as continuing the information liability from the Auto-fishing Groups operating environment (Risk Management: Controlling Risk, 2017). Risk Appetite Before Auto-fishing Group can or ought to continue, they need to comprehend whether the present level of safeguards or controls recognized toward the finish of the hazard appraisal prepare to bring about a level of hazard administration that it can acknowledge. The measure of the hazard that the remaining parts after every present control are actualized is leftover or residual risk (Tregear, 2012). The Auto-fishing Group might just achieve that point in the hazard administration handle process that they inspect the archived leftover hazard, basically state, "Yes, our firm can surely live with that, as well as after that record everything for the future danger administration survey cycle. The KPMG way to deal with characterizing hazard appetite includes the understanding of the Auto-fishings key destinations, characterizing hazard profiles for each real current hierarchical action and also for the future vital arrangement, characterizing a hazard edge for each profile, lastly, reporti ng the formal hazard appetite proclamation (Risk Management: Controlling Risk, 2017). Rules and Techniques for Risk Control The senior administration, and the mission proprietors of Auto-Angling Group, knowing the possible risks and prescribed controls, may ask some questions from itself, such as, when as well as under what conditions would it be advisable for them to make a move? When should they can actualize these controls to moderate the risks in the information security and ensure the data of the Auto-Angling Group? This procedure is additionally explained in the accompanying dependable guidelines, which give directions on activities to moderate risks from purposeful dangers: At the point, when a risk or vulnerability exists in a vital information resource of the Auto-fishing Group, the association must actualize the security controls or safeguards to lessen the probability of the risk or vulnerability being misused (Saleh, Refai and Mashhour, 2011). At the point, when the assailant's potential pickup is more prominent than the expenses of the assault Auto-fishing Group, then they must apply assurances to build the attackers cost and diminish the assailant's pickup by utilizing the specialized and administrative controls. At the point, when the potential misfortune is significant, the Auto-fishing Group must apply plan standards, structural outline, and specialized and non-technical insurances to confine the degree of information assault, in this way the organization can surely lessen the potential for the information loss (Risk Management: Controlling Risk, 2017). Documentation The System Documentation Phase gives a depiction of the framework and the information it handles, as processing resources utilized to satisfy the Auto-fishing Group business missions. This stage builds up a structure for resulting the risk evaluation phases. The framework proprietor gives the framework distinguishing proof, including the framework depiction, business capacity and resources (Management of Information, 2017). The ISO 27000 arrangement incorporates a standard for the execution of proper Risk Management. The 27005 records or document incorporates different risk management techniques: Risk Assessment Risk Acceptance Risk Treatment Conclusion This study concludes that the fruitful risk management plan or program totally depends on the higher level administration's dedication, the complete participation and the assistance of the organization's IT group. The capability of the risk evaluation group, which surely have the skill to apply the threat appraisal technique to a particular site and framework and give financially savvy defends that address the issues of the Auto-Angling Group. It has been reasoned that the participation and awareness of individuals from the client group, must follow methods as well as comply the actualized controls to shield the information of Auto-Angling Group; and a continuous assessment and evaluation of their IT-related mission dangers. References Bernard, R. (2015). Information Lifecycle Security Risk Assessment: A tool for closing security gaps.Computers Security, 26(1), pp.26-30. Bucur-Marcu, H. (2013). The Institutionalization of Security Risk Assessment.Connections: The Quarterly Journal, pp.118-124. Management of Information. (2017). . Risk Management: Controlling Risk. (2017). . Saleh, Z., Refai, H. and Mashhour, A. (2011). Proposed Framework for Security Risk Assessment.Journal of Information Security, 02(02), pp.85-90. Shamala, P., Ahmad, R. and Yusoff, M. (2013). A conceptual framework of info structure for information security risk assessment (ISRA).Journal of Information Security and Applications, 18(1), pp.45-52. Tregear, J. (2012). Risk Assessment.Information Security Technical Report, 6(3), pp.19-27. Wangen, G. (2017). Information Security Risk Assessment: A Method Comparison.Computer, 50(4), pp.52-61.

Capital Structure Theories - Click Now to Get Solution

Questions: Task 1With reference to contemporary academic literature, you are required to review any three (3) relevant capital structure theories. Your discussion must identify the conflicts and similarities between theories. Ensure your discussion is not dominated with textbook description of the subject matter but rather a critical analysis of theories.Task 2Extract profitability and capital structure ratios for a period of 3-5years.: The ratios may include-Profitability (Return on capital employed - ROCE; Return on Equity ROE; Return on Total Assets; etc.) and Gearing Capital Structure ratios (Gearing; Interest Cover; Debt to Equity Ratio etc.)Task 3Using the two firms chosen, investigate the relationship between capital structure and profitability by (i) Plotting the graph of the profitability and capital structure ratios for each firm;(ii) Comparing the two firms with the aid of descriptive statistics (if possible some inferential statistics) Answers: Introduction This report is prepared to evaluate and critically analyze the grounds on which decisions can be for long term investments. It is basically framed to show the importance of different capital structures, ratios and other strategies while making decision in the organization as well as while deciding about the organization as an investor. The two firms which have been chosen for the analysis are British Petroleum Plc. (BP) one of the most successful energy supplying company in the world. Their sustainability lies in minimizing and mitigating environmental impacts. The other organization is Exxonmobil (Exxon) which is worlds largest publicly traded American multinational oil and gas company. Both the organizations are from the same industry working in a highly competitive environment being most successful. (Exxonmobil) (BP) Review of Theories Some of the capital structure theories we are discussing here are ModiGillani-Miller Theorem, Trade-off theory and Pecking-Order Theory. In the ModiGillani-Miller approach it has been emphasized that the value of the firm levered as well as the value of the firm unlevered i.e. firm financed only by equity is the same. This approach has certain unrealistic assumptions which cannot be applicable in real life situations. Such assumptions are transaction costs are nil and individual and corporations both borrow at the same rates. Due to such assumptions this approach is eventually criticized but is yet applied for simplified understanding. This theory is criticized because it assumes that the operating activities of the firm generate constant cash flows at all time till perpetuity which is not possible. It also assumes that both insiders and outside investors have the same symmetry of information which is practically not possible since organizations have to maintain confidentiality on mu ch information. It also assumes that the capital structure of the company consists of borrowings at the risk free rate which is not realistic. It also assumes that there is no cost of bankruptcy which can be said correct as it is the cost of legal procedures during the event of liquidation and will have to be incurred. (Klimenok, 2014) Trade off theory of capital structure is like the above mentioned approach the difference being that this approach includes the factor cost of bankruptcy. In the changing world the organizations capital structure are getting more levered and thus due to increasing debt the threat of bankruptcy is also increasing. Thus the firm has to minutely evaluate the merits and demerits of incorporating debt in its capital structure. This theory has also incorporated the effect of agency costs, since the lenders tries to satisfy themselves on the ground of recovery prospects so they conduct audit of the borrowers, in that scenario borrows are required to keep themselves well represented that incurs agency costs. (Chand) In the Pecking-order Theory it is stated that if insiders are properly informed about the affairs of the firm more than the outside investors then the company shares will be undervalued by the market. Due to this undervaluation the financing of investment projects though IPO gets costlier. This also makes the stocks less attractive to the third party who is financing. This capital structure theory has the following nature and influence. Its profitability is inversely proportional to the financial leverage and thus it requires lesser experience for the foreign investment. The large scale company also lowers the financial leverage since the cost of issue of shares gets cheaper. (Reddy, 2014) Therefore we can see that the above mentioned capital structures are similar to each other in some respects whereas different in other. The major conflicts about the above theories are its unrealistic assumptions or its incomplete coverage of overall scenarios. Profitability and Gearing/Capital Structure Ratios In order to make decision we are evaluating the two companies on the basis of some financial ratios i.e. profitability ratios and capital structure and capital gearing ratios. The profitability ratios that are discussed here are P/E ratio, Return on equity, Return on Capital Employed and return on total assets. Whereas for the capital structure/ gearing ratios we will analyze on interest coverage ratio, debt to equity ratio, etc. (Oberoi, 2014) Price-earnings ratio is the most commonly used parameter in all the financial ratios to decide whether to invest in the company or not. This ratio brings out the real valuation of the company. If the P/E ratio is too high it denotes that the company is overvalued and it is not suitable as a long term investment prospects whereas if the ratio is low then the company is undervalued and should be longed on. (Loth) Return on equity is compared to see whether the annual income earned by the company is sufficient for the equity shareholders. Here as per our research we have computed that the ROE of Exxon is 0.19 for the year 2014 whereas of BP it is 0.04. It denotes that the investors money is less at risk if invested in Exxon. (Jan) Similarly the return on capital employed ratio also shows the earning earned against each penny of capital employed in the business. The difference between ROE and ROCE is that in the latter the availability for earnings before interest and tax is evaluated against all the capital employed including the debts whereas in the former only shareholders fund is considered. The ROCE of Exxon is 0.4 whereas of BP it is 0.03. Exxon is better of BP even in the ROCE denoting that Exxon is utilizing its fund in much more profitable manner and creating higher shareholders wealth. Return on Total Assets Ratio shows how strategically and profitably the assets of the company are utilized to generate funds. Here also Exxon is far better off BP having the ratio of 0.32 as compared to 0.02 of BP. It simply imprints that Exxon is completely tactical in its asset utilization for creation of wealth and generate higher annual earnings. We have analyzed two gearing ratios one is the interest coverage ratio in which Exxon has no competition with BP as its interest expense is very low. The interest coverage ratio of Exxon for the year 2014 is 397.01 whereas of BP it is 4.39. This denotes that BP is much more dependent on debts for its source of fund while same is not the case with Exxon. The other gearing ratio is the debt to equity ratio which is compared to see the availability of shareholders equity in comparison with its creditors to evaluate the risk in the event of any mishap. The lower the ratio the lower is the risk and better it is. The debt equity ratio of Exxon is lower than that of BP which is favorable for Exxon when investment decision is made. (Gearing Ratio) Below is shown some of the profitability ratios graphically of the Exxonmobil for the past three years. As per the graph we can see that apart from P/E ratio there is a decreasing trend for all the other profitability ratios. The table given below is showing all the profitability as well as gearing ratios of Exxonmobil. (Summary Annual Reports, 2014) Company : Exxonmobil Ratios Year 2014 Year 2013 Year 2012 Average P/E Ratio 12.16 13.73 8.92 11.61 ROE 0.19 0.19 0.27 0.21 ROCE 0.40 0.44 0.55 0.46 ROTA 0.32 0.35 0.44 0.37 Interest Coverage 397.01 13504.33 449.60 4783.65 Debt Equity 0.37 0.41 0.39 0.39 Similarly, the graph below is showing the profitability ratio of British Petroleum. In the below mentioned graph we can see that the data for the year 2014 is drastically low as compared to the graph for the year 2013. (Annual Reports 2013, 2014) The table given below shows the profitability as well as gearing ratio for the past three years of British Petroleum Company. Only the P/E ratio has increased all other profitability ratios have decreased if compared with the last years data. Company : British Petroleum Ratios Year 2014 Year 2013 Year 2012 Average P/E Ratio 1.85 0.39 0.72 0.99 ROE 0.04 0.18 0.09 0.10 ROCE 0.03 0.14 0.09 0.08 ROTA 0.02 0.10 0.07 0.06 Interest Coverage 4.39 20.52 12.07 12.33 Debt Equity 0.57 0.56 0.65 0.59 As per the given research made we can analyze that the profitability ratios of Exxonmobil is much better than the ratios of British Petroleum. The interest coverage ratio is Exxonmobil is very good as it has very low interest expense which denotes that the company is not much dependant on leverage effect. It is doing business more on its own funds rather than from the borrowed funds where as in the BP the company depends upon leverage much more than Exxon do. Therefore it can also be said that Exxon is less risky for getting short of funds or being liquidated. (Historical Prices, 2015) Advantages and Disadvantages of Debt Debt is one of the sources of financing the business. The fund required may be for any purpose such as starting up a business, launching a new product or purchasing and installing new equipment. It is very popular source of funding. The basic advantages of debt funding are that it does not affect the ownership of the company. Borrowers have no right of ownership in the company unless the debts issued are convertible in nature. Debt financing is nothing more than borrowing money and repaying it off. It is treated as a liability. Repayment is done as per the loan contract entered at the inception of the agreement. Thus if a company has higher debt equity ratio it means that it is leveraging more and has funded its most of the projects through debt source. (Kokemuller) However, some of the disadvantages are that since it is the liability no matter company has enough liquidity or not it has to pay off its creditors. Due to this many a times company goes into liquidation for the inability to pay off its lenders and creditors. When debt is raised an additional liability of interest payment is also added to it. In that case the future earnings which could have been utilized for the growth prospects of the organization are used to pay off the installments. (Merritt) Other than debt financing some of the sources of financing are listed here equity financing, venture capital, angel investors, government grants or retained earnings. It seems that Exxon does not prefer debt financing much therefore it can use the above listed sources to finance its further projects. It can go for equity financing but it will only further liquidate its ownership stake however it is recommended that it should go for leveraging. But BP should not debt finance more it should rather opt for other sources. (Houfstrand) Conclusions And Recommendations We have researched and analyzed the data of two companies both being the oil and gas corporation. Both the companies are successful and compete in a highly competitive environment. We have computed few profitability and capital structure/ gearing ratios of both the companies (appendix attached as working sheet). All the financial ratios computed shows that being in the same industry if compared Exxonmobil is a better long term investing target when compared with the British Petroleum Plc. Exxonmobil has higher price earnings ratio which denotes that the company have higher valuation. Though if analyzed from a different perspective then BP if have any future growth prospects then is good buy since it is undervalued and can be invested in it for a long time period. In all the ratios Exxon wins over BP so we recommend the investor to invest its 200 million dollars in Exxon to earn profits in future. The investor will have a high dividend yield; it can even gain in the wealth created by the company. Therefore it is recommended to invest in Exxonmobil rather than on British Petroleum. References Annual Reports 2013. (2014). Retrieved 2015, from BP.com: https://www.bp.com/content/dam/bp/pdf/investors/BP_Annual_Report_and_Form_20F_2013.pdf BP. (n.d.). Retrieved 2015, from https://www.bp.com/en/global/corporate/sustainability/environment.html Chand, S. (n.d.). Theories of Capital Structure. Retrieved 2015, from Your Article Library: https://www.yourarticlelibrary.com/financial-management/theories-of-capital-structure-explained-with-examples-financial-management/29398/ Exxonmobil. (n.d.). Retrieved 2015, from https://corporate.exxonmobil.com/ Gearing Ratio. (n.d.). Retrieved 2015, from Accounting Tools: https://www.accountingtools.com/gearing-ratio Historical Prices. (2015). Retrieved 2015, from in.finance: https://in.finance.yahoo.com/q/hp?s=BPa=11b=31c=2012d=11e=31f=2014g=dz=66y=462 Houfstrand, D. (n.d.). Types and sources of financing. Retrieved JUNE 2015, from Extension.iastate: https://www.extension.iastate.edu/agdm/wholefarm/html/c5-92.html Jan, I. (n.d.). Return On Equity. Retrieved 2015, from Accounting Explained: https://accountingexplained.com/financial/ratios/return-on-equity Klimenok, A. (2014). Master Thesis. Retrieved June 2015, from University of Nordland: https://brage.bibsys.no/xmlui/bitstream/id/240485/Klimenok.pdf Kokemuller, N. (n.d.). The advantages and disadvantages of debt and equity financing. Retrieved 2015, from small business: https://smallbusiness.chron.com/advantages-disadvantages-debt-equity-financing-55504.html Loth, R. (n.d.). Investment Valuation Ratios. Retrieved 2015, from Investopedia: https://www.investopedia.com/university/ratios/investment-valuation/ratio4.asp Merritt, C. (n.d.). The advantages and disadvantages of debt equity financing. Retrieved 2015, from budgeting.the nest: https://budgeting.thenest.com/advantages-disadvantages-debt-equity-financing-22700.html Oberoi, R. (2014, September). Between The Numbers. Retrieved June 2015, from Money Today: https://businesstoday.intoday.in/story/key-financial-ratios-analyze-company-stock-investment/1/209789.html Reddy, D. B. (2014, March 25). 5 Capital Structure Theories. Retrieved June 2015, from Slideshare: https://www.slideshare.net/ShahidAfzalSyed/5-capital-structuretheories-32694984 Summary Annual Reports. (2014). Retrieved 2015, from Exxonmobil: https://cdn.exxonmobil.com/~/media/global/Reports/Other%20Reports/2015/2014%20Financials