costa rica :: essays research papers

The population here is approximately 3.6 million. It’s attached to Central America and is south of Honduras and north of panama. Costa Rica is situated between the Caribbean Sea and the Pacific Ocean. The country’s economy is based on agriculture, electronic exports and tourism. Coffee has historically been the country's most important crop. The banana is the second most important export crop, with vast plantations covering parts of the Caribbean lowlands, but there is also significant land dedicated to such things as pineapples, sugar, oranges, rice, cattle, hardwoods and ornamental plants.   Ã‚  Ã‚  Ã‚  Ã‚  I have seen many beautiful national parks here such as the Manuel Antonio national park that has 105 000 visitors per year. Another park such as Irazu has 104 000 visitors per year. Poqs has the most visitors per year with 175 000 per year. A lot of other things that have attracted me are surfing, snorkeling, and scuba diving. The nature here is spectacular with some amazing rain forests. I am even trying to learn a little bit of Spanish because that is the official language here. All year round there are numerous festivals, parades, fiestas with fireworks and even bullfights.   Ã‚  Ã‚  Ã‚  Ã‚  There were certain things that I didn’t like about the island and that is the poverty I see everyday. I hope there won’t be a storm while I’m staying here because lots of hurricanes pass by Costa Rica. Something you might not now about Costa Rica is that there are One million tourists here every year! Also, the new TV program Temptation Island 2 is being filmed in Costa Rica. I have been staying in the city of San Josà ©, which seems to be one of the more popular cities on this island. I am currently staying at an inn called El Rodeo Country Inn. It’s located only 5 minutes from the San Jose Airport and just 12 minutes from the city center. It was just built in July 1996; the El Rodeo Country Inn is a countryside village. There are amazing scenic views of the nearby volcanic mountains, vegetable farms, pastures and fields. Right now I am relaxing in the Jacuzzi and just came from the sauna and swimming pool. All the rooms are air conditioned with cable TV, hot water, bathtub and telephone, hairdryer and safety deposit box. Costa Rica's system of government is very similar to that of the United States of America.

Mercury Footwear Questions Essay

1. Is Mercury an appropriate target for AGI? Why or why not? Yes, we do think so. In the case, we could find some characteristics of footwear industry: (1) It is a mature, highly competitive industry marked by low growth, but stable profit margin. (2) Performance of individual firms could be quite volatile for they need to anticipate and exploit fashion trend. (3) Except some global footwear brands, athletic and casual shoes market is still fragmented, which means each company could has its own market because of its characteristic. (4) In this market, it is important for the brand image, specialized engineering for performance and price. (5) Life cycle is short. (6) Inventory management and production lead times are critical for the success. (7) Main sale channels are department stores, independent specialty retailers, sporting goods stores, boutiques and wholesalers. (8) Most of the firms outsource the manufactures in China. Below are some characteristics for Mercury and AGI we need to focus on during the analysis: AGI Mercury Target Customer Target customers are urban and suburban family members aged 25 to 45. Youth market, mainly 15 to 25. History Among the first companies to offer fashionable walking, hiking and boating footwear. Its mother company decided to extend the brand by creating complementary line of apparel. Because of the poor performance, it was decided to sold. Style Logo is marked with prosperous, active and fashion-conscious lifestyle. Its main customers are not interest in its apparel. Financial performance Among the most profitable firms. Had poor performance after acquisition by WCF. Revenue contribution 42% of revenue from athletic shoes and balance from casual footwear. Revenue and operating income were 470.3 million and 60.4 million in 2006. Revenue and EBITDA were 431.1 million and 51.8 million.. Products Athletic shoes developed from high-performance footwear to athletic fashion wear. Four main segments: men’s and women’s athletic and casual footwear. Casual shoes focus on mainstream market. In order to emphasizing individual products, it began to monitor styles and images from global culture Focus on smaller portfolio of classic products with longer lifecycles and could maintain simple production and supply chains. Sales channels Mainly sold in department stores, specialty retailers, wholesalers and independent distributors. Small percentage is sold through website. Department stores, specialty stores, catalogs, discount retailers and internet. Inventory management Good at inventory management in the industry. Inventory management performance is worse than the average level. Outsource Outsource manufacture in China. Outsource main materials in foreign suppliers. Advantages &Disadvantages It takes small size as its competitive disadvantages. And it faced with some problems in the consolidation of manufacturers. Price cuts and promotion in apparel line hurts operating margins but helped to the growth in sales. Sales growth is lower than the average because of there is little discount in  price. We could learn that managers of AGI want to enlarge the scale of its company and gain larger market share because of the stable profit margin. And since the revenue is almost the same, it is a good choice to merge with Mercury, which means that revenue would be doubled after acquisition. And these two companies have some similar factors, such as : (1) They could use the same sale channels after acquisition, and internet channel could be enlarged. (2) They could combine manufacturers to get a powerful bargain in suppliers. (3) The product segments are almost the same, which means that there should be little work to do after acquisition in product adjustment. (4) Thanks to the profitable ability of AGI, it is much easier to make a better financial performance of Mercury. (5) It is good for them to increase the performance of inventory management if they merge together. (6) Although their target customers are different, especially in ages, which means that style and brand are different in the very beginning, this factor could turn into an advantage for the new company could have a fully segment of customers with a wider age ranges. Therefore, take into above factors into account; we think that Mercury should be an appropriate target for AGI. 2. Review the projections formulated by Liedtke. Are they appropriate? How would you recommend modifying them? In the case, we could find that Liedtke used historical averages to assume the overhead-to-revenue ratio. However, historical data is usually useless for future. Some studies found there is little evidence that firms grew fast continued to grow fast in the next period. And sometimes there are even negative correlations between growth rates in the two periods. Besides, smaller firms tend to be more volatile than others, which we could find the same characteristics in these two firms we are talking about. And just as we mentioned in the question 1, revenue may be doubled after  acquisition, it just fits the theory that it is difficult to maintain historical growth rates as firms double or triple in size. Therefore, based on the above analysis, we think that it is not reasonable to use historical data for future projections. And sometimes, analyst should be better than the historical growth. Considering that there are five main channels for analyst forecasts: firm-specific information, macroeconomic information, information revealed by competitors on future prospects, private information about the firm and public information other than earnings, we think Liedtke could find more information from above channles to get more accurate assumption. And since performance of Mercury is poorer than the average of the industry, it is better to use industry average level for the benchmarking of Mercury when predicting, instead of a discount rate of AGI for example. And from the comparison of 2007 to 2006, we can find Liedtke’s forecast need great input from AGI to support the development of Mercury, whether he has taken this into consideration? And he estimate debt/equity ratio remains the same as AGI, that is also unreasonable, for it is not possible to change that in short period. 3. Estimate the value of Mercury using a discounted cash flow approach and Liedtke’s base case projections. ï ¼Ë†1ï ¼â€°first of all, to calculate the cash flows from 2007 to 2011, Net Income – (Capital Expenditures – Depreciation) – Changes in non-cash Working Capital = Free Cash flow to Firm We can get the result. Free Cash flow -17,192 26,867 21,740 25,158 29,319 (2) then we need to calculate the terminal value. a. Cost of Capital For cost of capital, we know the debt ratio is 20%, and cost of debt is 6%, we need to find the cost of equity. We assume the cost of equity equal return on equity, we can calculate the historical return on equity from 2007- 2011 is as below, Return on equity 12.8% 14.1% 14.5% 14.8% 14.9% We take 14% as reference. Based on the formula: Cost of Capital =debt ratio *cost of debt +equity ratio * cost of equity, We can get the cost of Capital in 2012, 12.7% b. growth rate in future We can find during the period from 2007- 2011, the growth rate of net income is not stable, so we assume from 2012, Mercury enter into stable and slow development stage. And it is necessary to calculate the cash flow in 2012. From 2007- 2011, the growth rate ranged from 4.74%- 16.3%, we assume the growth in future will be not that high. We can find during the period from 2008- 2011, the reinvestment rate 15.57%- 37.1%, we just take a middle one 24.37%, by multi reinvestment rate and cost of capital (assume cost of capital =return on capital), to reach growth rate afterwards= 3.09%. c. based on the growth rate is 3.09%, we can get EBIT in 2012 is 39,930.. We have assumed ROC=WACC Terminal Value=EBIT n+1*(1-t)/cost of Capital, we can get Terminal Value in 2011 is 315,237. (3)Present value of cash flows: We have get the cash flows of 2007-2011 and terminal value in 2011, and the cost of capital is 12.7%, we can get the respective present value of them and reach the total present value 226,514, which is the estimate Firm value of Mercury. (4) Alternative method to calculate cost of capital, then value of Mercury: a. beta We have learnt from Exhibit 3 of peer companies information in this business, we can calculate cost of capital in alternative ways. Unlevered beta for business= Beta comparable firms/[1+(1-t)(D/E ratio comparable firms)] From information provided in Exhibit, we can get average Beta and D/E ratio, is 1.56, 24.9% respectively. Therefore Unlevered beta for business= 1.35 We know the D/E ratio and tax rate of Mercury, then get levered beta for Mercury =1.52 b. risk free rate and risk premium we assume risk free rate is 5%, and risk premium as the historically one 4.3%. The cost of equity will be 11.5%. Then the cost of capital will be 10.6%. c. expect g and terminal value in 2011 expect g and terminal value in 2011 will be 2.6% and 374,576 respectively. d. total present value of Mercury Total value of Mercury will be 247,479, which is the estimate Firm value of Mercury under the alternative method. In my opinion, the value calculated via alternative method will be more reliable. 4. Do you regard the value you obtained as conservative or aggressive? Why? I think my valuation is conservative, the reason is as follows: (1) Under the  basic method, the expected g is much lower than the average g from 2007-2011, even lower the lowest one within this period and the reinvested rate is lower than the average one from 2007-2011 and also not a high one in general business, and we can also found the EBIT Margin is lower than the average one in that business. (2) (3) Under alternative method, the expected g is much lower as 2.6%, the risk free rate is also a medium one, and the risk premium is a historical one, which is much higher than recent risk premium in USA. 5. How would you analyze possible synergies or other sources of value not reflected in Liedtke’s base case assumptions? We have conduct some simulation in the spreadsheet, we can find the present value of Mercury is very sensitive to cost of capital, under basic model if the cost of capital reduce to 10%, the value will rise up to 304,882. As for debt ratio and expect g, it is not so sensitive, but has some influence. To my surprise, the reinvestment rate is not sensitive to the outcome, I have not figure out the reason. Under the alternative model, beta, risk free rate and risk premium are all sensitive to the outcome, but not significant as capital in basic model. As for synergy, the management of inventory has not shown great synergic effect to the outcome, for from 2007 to 2011, inventory level has not reduced. I think if AGI can reduce the cost of capital, which will show the great synergic effect to the acquisition.

The Difference Between Hispanic and Latino

Hispanic and Latino are often used interchangeably though they actually mean two different things. Hispanic refers to people who speak Spanish or are descended from Spanish-speaking populations, while Latino refers to people who are from or descended from people from Latin  America. In todays United States, these terms are often thought of as racial categories and are often used to describe race, in the way that we also use white, black, and Asian. However, the populations they describe are actually composed of various racial groups, so using them as racial categories is inaccurate. They work more accurately as descriptors of ethnicity, but even that is a stretch given the diversity of peoples they represent. That said, they are important as identities for many people and communities, and they are used by the government to study the population, by law enforcement to study crime and punishment, and by researchers of many disciplines to study social, economic, and political trends, as well as social problems.  For these reasons, its important to understand what they mean literally, how they are used by the state in formal ways, and how those ways sometimes differ from how people use them socially. What Hispanic Means and Where  It Came From In a literal sense, Hispanic refers to people who speak Spanish or who are descended from Spanish speaking lineage. This English word evolved from the Latin word  Hispanicus, which is reported to have been used to refer to people living in Hispania — the Iberian Peninsula in todays Spain —  during the Roman Empire. Since Hispanic refers to what language people speak or that their ancestors spoke, it refers to an element of culture. This means that, as an identity category, it is closest to the definition of ethnicity,  which groups people based on a shared common culture. However, people of many different ethnicities can identify as Hispanic, so its actually more broad than ethnicity. Consider that people who originate from Mexico, the Dominican Republic, and Puerto Rico will have come from very different cultural backgrounds, excepting their language and possibly their religion. Because of this, many people considered Hispanic today equate their ethnicity with their or their ancestors country of origin, or with an ethnic group within this country. Reports indicate that it came into use by the United States government during Richard Nixons presidency, which spanned 1968‒1974. It first appeared on the U.S. Census in 1980, as a question prompting the Census taker to determine whether or not the person was of Spanish/Hispanic origin.  Hispanic is most commonly used in the eastern U.S., including Florida and Texas. People of all different races identify as Hispanic, including white people. In todays Census people self-report their answers and have the option to choose whether or not they are of Hispanic descent. Because the Census Bureau recognizes that Hispanic is a term that describes ethnicity and not race, people can self-report a variety of racial categories as well as Hispanic origin when they complete the form. However, self-reports of race in the Census indicate that some identify their race as Hispanic. This is a matter of identity, but also of the structure of the question about race included in the Census. Race options include white, black, Asian, American Indian or Pacific Islander, or some other race. Some people who identify as Hispanic may also identify with one of these racial categories, but many do not, and as a result, choose to write in Hispanic as their race. Elaborating on this, Pew Research Center wrote in 2015: [Our] survey of multiracial Americans finds that, for two-thirds of Hispanics, their Hispanic background is a part of their racial background – not something separate. This suggests that Hispanics have a unique view of race that doesn’t necessarily fit within the official U.S. definitions. So while Hispanic might refer to ethnicity in the dictionary and governmental definition of the term, in practice, it often refers to race. What Latino Means and Where It Came From Unlike Hispanic, which refers to language, Latino is a term that refers to geography. It is used to signify that a person is from or descended from people from Latin America. It is, in fact, a shortened form of the Spanish phrase latinoamericano —  Latin American, in English. Like Hispanic, Latino does not technically speaking refer to race. Anybody from Central or South America and the Caribbean can be described as Latino. Within that group, like within Hispanic, there are varieties of races. Latinos can be white, black, indigenous American, mestizo, mixed, and even of Asian descent. Latinos can also be Hispanic, but not necessarily. For example, people from Brazil are Latino, but they are not Hispanic, since Portuguese, and not Spanish, is their native language. Similarly, people may be Hispanic, but not Latino, like those from Spain who do not also live in or have lineage in Latin America. It was not until the year 2000 that Latino first appeared on the U.S. Census as an option for ethnicity, combined with the response Other Spanish/Hispanic/Latino. In the most recent Census, conducted in 2010, it was included as Another Hispanic/Latino/Spanish origin. However, as with Hispanic, common usage and self-reporting on the Census indicates that many people identify their race as Latino. This is especially true in the western United States, where the term is more commonly used, in part because it offers a distinction from the identities of Mexican American and Chicano  Ã¢â‚¬â€ terms that specifically refer to descendants of people from Mexico. Pew Research Center found in 2015 that 69% of young Latino adults ages 18 to 29 say their Latino background is part of their racial background, as does a similar share of those in other age groups, including those 65 and older. Because Latino has come to be identified as a race in practice and associated with brown skin and origin in Latin America, black Latinos often identify differently. While they are likely to be read simply as black within U.S. society, due to their skin color, many identify as Afro-Caribbean or Afro-Latino  Ã¢â‚¬â€ terms which serve to distinguish them both from brown-skinned Latinos and from descendants of the North American population of black slaves. So, like with Hispanic, the standard meaning of Latino  often differs in practice. Because practice differs from policy, the U.S. Census Bureau is poised to change how it asks about race and ethnicity in the coming 2020 Census. The possible new phrasing of these questions would allow for Hispanic and Latino to be recorded as the respondents self-identified race.