Saturday, February 22, 2020

Bonds mod 2 case Essay Example | Topics and Well Written Essays - 750 words

Bonds mod 2 case - Essay Example 5.35% 1.125381 Bond 3 has the highest percentage change and bond 1 has the lowest percentage change. Table 3: Price for the four bonds (after increase of 0.5% in yield to maturity) and the percentage change from base case Bond number Maturity (years) Coupon ($) Price ($) Yield to maturity (%) Change from original (%) 1 2 50 974.1183 6.42% -1.8026 2 3 45 958.3473 6.06% -1.34675 3 4 60 994.5793 6.16% -1.72141 4 6 55 958.6585 6.35% -3.77975 Bond 4 has the highest percentage change and bond 2 has the lowest percentage change. From the results, it can be inferred that under normal circumstances and for normal bonds, the yield increases as the maturity period increases, so, if an investor is holding the bond for longer time, then, he/she will have greater yield as compared to an investor who holds the bond for shorter period. There are various corporate bonds, wherein, the companies raise funds by issuing bonds and make the interest payments to the bond holders. However, in case of corporate bonds, there is a probability of default, if the company defaults, the bond-holder will not be able to generate returns on the bonds. Any investor who wishes to invest in bonds should consider the probability of default. All the above calculations are done on the basis of the assumption that there is no risk of default. Dividend Growth Model The three factors which affect the stock prices in case of dividend growth model are as follows. The current dividend Growth of the dividend Required rate of return The formula which relates the above mentioned parameters with the value of the stock is as follows. (Dividend Growth Model) Value = (Current Dividend * (1 + Dividend Growth)) / (Required Return - Dividend Growth) Some of the inferences from this formula are as follows. The value of... There are various corporate bonds, wherein, the companies raise funds by issuing bonds and make the interest payments to the bond holders. However, in case of corporate bonds, there is a probability of default, if the company defaults, the bond-holder will not be able to generate returns on the bonds. Any investor who wishes to invest in bonds should consider the probability of default. All the above calculations are done on the basis of the assumption that there is no risk of default. The value of stock increases with dividend growth if the dividend growth is less than 50% and it decreases of dividend growth is more than 50%. (Calculated by differentiating the equation with respect to dividend growth)

Thursday, February 6, 2020

Article Review responses Assignment Example | Topics and Well Written Essays - 250 words

Article Review responses - Assignment Example Enron reaction of the public, creditor and regulatory agency’s increasing awareness of company’s attempt to used financial acrobatics to make the company appear stable and profitable. In the case of Penguin, it removed depreciation from its Cost of Goods Sold which is a standard cost of recognizing wear and tear to make it appear to have a more than above industry average Gross Profit Margin of 39.56 percent. It may be less in severity but it is no different from Enron’s â€Å"future’s marketing† where they recorded future sales (sales which are not realize) to make the company appear profitable even if those sales are not yet realized. This of course looks good on paper thereby increasing the valuation of its stock in the market duping its investors to invest on its stocks. Penguin may have said it to be unintentional but again, this practice is far from desirable. If indeed Penguin did not intend to commit a shady accounting practice to make the company appear to have a higher Gross Profit Margin, it should then revise its accounting method according to GAAP and follow absorption costing that would reflect the true cost of its product and

Tuesday, January 28, 2020

Genetically modified organism Essay Example for Free

Genetically modified organism Essay Everywhere where you go, there are fast food companies advertising their products. You take a road trip to your familys house, and what do you see? Rest stops filled with fast food restaurants. According to Google maps, there are close to 50,000 fast food chains across the United States. (with Mcdonalds being the largest restaurant chain. ) Fast food companies go above and beyond to lure you to buy their products. But what exactly is in their food? Not many people look into that. All theyre looking for is a quick fix and convenient food. But, what is this food doing to your body? How do you know what youre eating is good for you? In this essay, I explain in full detail about the pros and cons of consuming fast food. During the past 20 years, there has been a dramatic increase in obesity in the U. S; and Also an increase in obesity-related medical problems. Such problems include: including type II diabetes, hypertension, caridiovascular disease, ect. In particular, diabetes has become the seventh leading cause of death in the United States. Whats the cause of this? Genetic modification is a process in which the genetic make up of living organisms such as plants, animals bacteria, ect are altered. Thus the resulting organism is called genetically modified, genetic engineered or transgenic. By using the genetic information from one organism and inserting or modifying it into another organism, scientists can make food crops stay fresher, grow bigger, and have the crops create their own pesticides. Over the past 10 years, food has been improved in many ways. Before the second World War, all American beef was grass-finished, meaning that cattle ate pasture grass for the duration of their lives. Today, the vast majority of cattle spend anywhere from 60-120 days in feedlots being fattened with grain before being slaughtered. Most cattle today are being fed genetically modified corn, thanks to the Monsanto Corporation. Monsanto Corporation has been feeding the world with its genetically engineered food crops for many years. In 2001, Monsantos genetically modified crops accounted for 91% of the total area of genitcally modified crops planted worldwide. This resulted in Monsanto suing good farmers for copyright infringement. Monsantos crops would spread to neighborhood crops, and contaminate their vegetables. When farmers purchase a patented seed variety, they sign an agreement that they will not save and replant seeds produced from the seed they buy from Monsanto. They CANNOT outline the rules of use, for example, they are not allowed to save any of the seed from their crop to plant the next season. Saving seed is a common practice used for thousands of years, but Monsanto forbids it, requiring farmers to buy new seeds from the company every year. This moves on to farmers feeding their cattle genetically engineered maize. In factory farms in eastern Colorado, genetically modified corn grows next to the confined animal pens. Its DNA-altered pollen is blown over the stockyards, adding further to the contamination of the animals. Even worse, the urine-soaked manure from these animals is recycled as fertilizer in the adjacent corn fields, then contaminating the soil. That cycle of genetically modified toxin is then passed on to you in your meat. This brings us to beef sold in markets and in fast food chains. The artifical growth hormones in beef production poses a potential risk to human health. These six hormones include three which are naturally occurring: Oestradiol, Progesterone, and Testosterone; and three which are synthetic: Zeranol, Trenbolone, and Melengestrol. People have also questioned whether hormone residues in the meat of growth enhanced animals can disrupt human hormone balance, causing developemental problems, interfering with the reproductive system, and even leading to the developement of breast, prostate or colon cancer. Fast food chains such as Mcdonalds claims to use 100% beef though, that isnt entirely true. Americans are literally bombarded with ads for McDonals, Burger King, and Wendys. Icons like Michael Jordan to Drew Bledsoe are featured in Mcdonalds ads.. Even children are lured into their restaurants with the indoor playgrounds, and must have toys. Little do people know that consuming fast food can cause serious health damage. 52 million people are served at Mcdonalds daily, worldwide. 27 million americans out of that 52 eat Mcdonalds daily. Mcdonalds restaurants today seldom have their nutritional information charts up but which to be fair, isnt very nutritional at all. Their Big Mac is made up of 450 calories, 29 grams of fat, 1040 grams of sodium, and 9 grams of sugar. This is way too unhealthy. Mcdonalds promote their food as nutritious, but the reality is that it is junk food. Its high in fat, sugar and salt, and low in fiber and vitamins. Most Americans today eat fast food atleast 3-4 times a month. A diet of this type is linked with a greater risk of heart disease, cancer, diabetes, obesity, and other diseases. A good question is how does Mcdonalds sell their cheeseburger so cheap? Heres how. Rumor has it that their meat is made from eyeballs, and intestines. Well, not true. Those things have a distinctly different texture and flavor than even the most finely ground muscle meat (Also more expensive. ) Mcdonalds meat is scraps of meat from the tough parts of the animal that arent sold at higher prices at your local grocery store. Its the strips, and scraps, and the unedible parts of the animal. This, obviously, is not fit for human consumption. But, there is technology in America that can turn that into edible food we eat today in fast food restaurants. After it being stripped of its fat, its then soaked in ammonia. The ammonia kills the pathogens lurking in the meat (E-Coli, Salmonella, ect.) It is then drained, and minced. After thats done, its shipped off to be sold at the cheapest price on their menu. Mcdonalds isnt the main reason why most Americans are obese, though their highly processed food is full of high fructose corn syrup all of which CAUSES obesity, heart disease, and diabetes, the amount of food and the frequent visits Americans choose is what causes the obesity. So, as you can see, genetically modified food has had a huge impact on American life. Advertising of unhealthy foods and products have spread worldwide and dangered the lives of many people (diabetes, hypertension, cardiovasular disease, ect).

Monday, January 20, 2020

vote for me :: essays research papers

It has been a year since the networks called the election for Al Gore, then for George W. Bush, which caused Gore to concede to Bush, after which the news of the closeness of the Florida vote caused Gore to retract his concession. Armies of lawyers then descended upon Florida and the nation was buried in a flurry of dimpled ballots and falling chads. Almost immediately, a number of influential academics, pundits, and political leaders seized the opportunity of confusion in Florida to blame the Electoral College and urge us to throw it out in favor of a simple national vote. Their cry for a more direct democracy makes a nice bumper sticker for their Volvos, but would it make good law? A new study released this week by the McConnell Center for Political Leadership at the University of Louisville casts doubt on the wisdom of those who would abolish our constitutional system of presidential elections and shows that much of what we think we know about the Electoral College is wrong. " Electing the President in the 21st Century" is based on survey responses of leading academic observers from across the nation. It provides sober warnings for those who would urge the abandonment of the system of presidential elections that has served the nation well for more than two centuries. Among the misunderstandings corrected by this study are several myths that have grown up around the Electoral College. Myth 1: An Election based on a national popular vote would have spared us the Florida debacle of hanging chads and dimpled ballots. Actually, the Electoral College saved us from a much worse national nightmare. The existence of the Electoral College that made the outcome of the election hinge on the winner of Florida's 25 electors served to focus the attention of the parties and the media in one state (and, in fact a few counties in that state). Imagine the trauma that would have befallen the nation in such a close election if a simple plurality of the national vote determined the outcome of the election? With just a few hundred thousand votes separating the candidates, every vote in every precinct, in every state would have been worthy of a recount and every recount in every county subject to suit and countersuit. When would it ever have ended? Myth 2: A direct national election would be more representative of the diversity of the nation.

Sunday, January 12, 2020

Wisdom of Whores

She then goes on to say hat â€Å"religious dogma crushes our efforts to translate good data into good HIVE prevention. † (Pl 88, Plans) In the book It goes on to say that power follows religion, and then money follows power and everyone follows money. To me I feel as If religion would be a good way to slow down the HIVE epidemic because, at a younger age if you're told about how sex and how it can cause HIVE which can cause death it would scare a lot of kids. If kids are learning about sex in a religious manner I feel as if adolescents would follow it more. If I was growing up with this I would be abstinent till marriage.George W. Bush thought the same way that the only way to avoid HIVE Is to teach our children to be abstinent. Yes Plans brings In the argument of sperm between women and men and how they need sex, but there's always ways around that like religion, and being taught to control that urge. She then goes on to say the increase of premarital sex and the decrease of prostitution would ultimately cut the risk of HIVE. She goes on to bring out an example of Thailand saying that they have taught us that with fewer men paying for sex from prostitutes lowers the risk for HIVE Infection. Also with that, there would be a larger condom use.I would have to disagree with this because if there was an Increase of premarital sex, it would just be a whole bunch of uneducated teenagers just going around having sex all the time. The only difference would be is that the men wouldn't have to be paying for this. She claims that condom use would be a lot higher, but if your increasing premarital sex, condoms defiantly would not be used and the HIVE epidemic would be still be around. Yes I agree that the numbers would go down, but I feel It wouldn't go down that much to make this a great development. The teenagers would have to be educated about HIVE and educated about safe sex.One of Aphasia's quotes had been â€Å"there's enough HIVE for everyone†, but in this little island of East Timer, there's actually wasn't enough HIVE for everyone. On this island there were many different HIVE organizations working on this island with not that many documented infected people. On this island there were only about seven people with HIVE. From Plane's conclusion she thought poverty, street children and joblessness does not make an HIVE epidemic In this society. Just because there wasn't enough prostitution or drug injection HIVE couldn't be high and all this money going onto this country about HIVE prevention wouldn't matter.In a society, I feel like poverty could cause HIVE because sooner or later people in the society will be selling there bodies for money. From what I understand, is that not everyone on this island is educated enough to get an HIVE test, because they are not educated about what HIVE Is. There should be different programs In this country to educate the people of east Limbo sot at n HIVE does not spread around Ana It stays ten s ame . Inure snout programs on safe sex using condoms, programs on not doing drugs and even prostitution.From reading this novel, the most interesting of points that caught my eye is the battle between how AIDS and HIVE is spread throughout the world. Is it spread through sex and drugs? Or is it spread over poverty and gender inequality? Pisa believes that sex and drugs is the main dilemma when it comes to the HIVE epidemic. Pisa brings up the point with Africa because 2/3 of the people infected in the world live in the countries around Africa. She brings out a good quote that caught my eye, â€Å"A schoolgirl in South Africa is thirteen times more likely to be infected with HIVE than a woman who sells sex for a living in China. Pl 24-125, Pisa) Ultimately, I would have to agree with Meads that poverty and gender inequality causes HIVE in poorer countries. In Africa, there is a humongous gap between the rich minority and the poor minority. With gender inequality, if men in a specifi c region are more literate then women HIVE will spread or of the population of a city is more males than women then HIVE will spread. Education is the biggest for me, where there is poverty, there are more uneducated people, and if those people don't know about safe sex, and diseases, then people will be infected.Where there is a society of poverty and uneducated people, both women and males will sell there bodies to make money and HIVE will be spread because unprotected sex would be taking place. On the other hand I do agree with Pisa but in another circumstance. I believe sex and drugs does cause HIVE and AIDS but only in high industrial countries like the United States or France. When the HIVE epidemic came into place in the United States, it was said that it was spread through party drugs and also sex with gay men. In a poorer country, like Africa poverty and gender inequality spreads aids because of the structural violence.

Saturday, January 4, 2020

The Importance of West Side Story Essay - 980 Words

West Side Story is one of the great contributors to musical theatre, in particular Broadway where it originally opened on September 26 1957 at the Winter garden Theatre. The production ran for 732 performances before entering the world of film in 1961. However, I believe its significance lies in the heart of the theatre where the audience is subjected to different styles of music, dance and of course an adaptation of Shakespeares Romeo and Juliet. In fact, Leonard Bernstein first decided to call his play East Side Story but opted against it, due to social relevancy. Instead the story would take place on the West side of New York; Brooklyn, under a realistic urban setting, hence West Side Story. This decision may have improved the way†¦show more content†¦In my opinion, this story cold not be portrayed under typical musical direction. Although West Side Story is based predominantly upon love, there are also acts of bigotry, attempted rape and murder. Previous musicals such as Cole Porters Kiss Me Kate and Roger Hammersteins Oklahoma! used many up-tempo songs to uplift audiences and leave them feeling cheerful. W.S.S offers a more realistic approach demonstrating the problems all over the world. One noticeable element of the production is the unpredictability of the story. Both Acts end with the death of strong personalities (Riff and Bernado in The Rumble, and Tony in The Finale). This was almost certainly against audience anticipation during the late fifties and even today. It is not only the story, but also the music and dance which offer surprise. Whereas many musicals were creating songs in straight 4/4, 2/4 time, West Side Story introduced time signatures which new to any form of modern entertainment e.g. 6/4 in the Tonight Ensemble and 12/8 for the Dance in the Gym. Coincidentally the latter incorporated so many different styles of music with a jazz number for the dance sequence, a pomp and circumstance for the promenade and a Latin jive for the Mambo. The Mambo is a typical example of the use of ostinatos e.g. Bar 71-78 where the Contrabass plays across the beat accompanied by someShow MoreRelatedThe period between early 1940s to mid-1960s or so, alternatively, the p eriod between when the700 Words   |  3 Pagespaper, I choose to elaborate more on the musical – Arthur Laurents’s West Side Story. In the first part of this paper, I discuss the plot, songs and other aspects of the musical such as the awards etc. Later on, I explain how this musical revolutionized the theatre and the cultural effects it had on Americans. Finally, I conclude in the end the historical importance of this musical piece. West Side Story: The musical West Side Story is based on Shakespeare’s Romeo and Juliet. This musical was possibleRead MoreDancers At West Side Dance Studio1524 Words   |  7 PagesWest Side Dance Studio is a dance studio in Pembroke Pines, Florida. I used to dance in that studio for four years. Out of the four years, the most important concept I learned is that dancers do not use their words to express emotion, they use their body. The teachers at West Side Dance Studio always express how important it is to tell a story with our bodies. That is why we dance, to express emotion and tell a story to our audience when performing and even in class. Dancers at West Side Dance StudioRead MoreWest Side Story : Race Discrimination1594 Words   |  7 PagesWest Side Story: Race Discrimination Introduction West Side Story, based on the book by Arthur Laurent, is a musical about a modern Romeo and Juliet involved in New York street gangs in the 1950’s. Aside from the movie portraying a love that was forbidden between the Sharks, a Puerto Rican gang and the Jets, an Anglo-Americans gang; it also represents the discrimination, violence and economic exploitation Puerto Ricans faced when migrating to New York in the 1950’s. When West Side Story cameRead MorePick Two or Three Settings from the Great Gatsby and Explain Their Significance to the Novel.817 Words   |  4 Pagesbeing important as it helps the reader understand the story better. The settings in The Great Gatsby are specifically very significant as it superbly fits with the storyline. The story is set in the early 1920s in New york because it focuses on the society of that time and is particularly focused on the factors such as prohibition of alcohol, the glamour of new york and also the way that Tom, Nick Gatsby and daisy all escape from the mid west, a small minded town, and become successful living theRead More What aspects of Charlotte Brontes Essay876 Words   |  4 Pagescriticism. Rhys demonstrates how both social and narrative conventions mandate that certain categories of women must be devalued if other categories of women are to assume importance. She does this by exposing to the reader how Charlotte Bronte in Jane Eyre, in order for her reader to give Jane an assumed importance, devalued by the Creole character Bertha; showing her to be made and giving us Jane’s description of her as â€Å"[she] seemed†¦a woman†¦ [she] reminded me†¦ [of] the foul German SpectreRead MoreTheatre As A Cultural Expression For Societys Theatrical Tradition1390 Words   |  6 Pagesthoughtful and sharp commentary on interaction between cultures? (Berson, 2011, pg. 155). The answer to the question is West Side Story, the musical about love and life in-between Puerto Rican and American cultures. West Side Story is just one example of a musical or play that has explored deep questions of how cultures communicate, or do not. Set in the 1950s, West Side Story tells the story of two lovers caught in-between their rival gangs: one an American gang, the other a Puerto Rican gang. Through songRead MoreThe Prime Minister Of Canada1189 Words   |  5 Pagesreleased in 1967, giving recommendations to the federal government on steps to be taken for equality across ethnicities. The primary recommendation was for the implantation of a policy for official bilingualism, making both English and French of equal importance in Canada (Language rights and judicial wrongs: O fficial bilingualism jurisprudence in Canada’s provincial courts. Pg 11). The report also recommended that bilingualism be increased in all of the provinces. Once Pierre Trudeau gained office oneRead More West Side Story Essay1120 Words   |  5 PagesWest Side Story 1. Point out how the general setting of the play is established. Give at least two examples. The play West Side Story takes place in a suburb on the West Side of New York City. We can conclude that we are talking about a socially disadvantaged suburb as the surrounding area is described with high brick walls, not very attractive and by the presence of the two gangs – the Jets and the Sharks. We are also able to say in which time period the actions take place. As anRead More Inevitability of Change in Stephen Cranes The Bride Comes to Yellow Sky1056 Words   |  5 PagesStephen Crane considers this apparent truism as well as its sometimes unfortunate consequences. In the story, Scratchy Wilson and Jack Potter face a dramatically changing society. Although their actions and emotions concerning the changes in their town differ, Scratchy and Potter are both very fearful of the inescapable easternizing influences. Through Scratchy and Potters embracing of the Old West, their responses to the East, and their optimism, Stephen Crane illustrates that whether attachment orRead MoreAnalysis of The Decline of the West1095 Words   |  5 Pageseven capitalism itself, comes with a price. Mike, a hardworking father of two, and the main character of Hanif Kureishi’s short story â€Å"The Decline of the West† from 2010, is an example of one who suddenly finds himself in a very precautious situation when he loses his job after both he and his family have been used to his rather substantial pay. In The Decline of the West, Hanif Kureishi employs a limited third-person narrator, which is bound to the main character, Mike. As a result of this choice

Friday, December 27, 2019

Masco Corporation - Free Essay Example

Sample details Pages: 16 Words: 4940 Downloads: 8 Date added: 2017/09/22 Category Advertising Essay Type Argumentative essay Tags: Leadership Essay Organization Essay Did you like this example? Bottom of Form Masco Corporation Address: 21001 Van Born Road Taylor, Michigan 48180 U. S. A. Telephone: (313) 274-7400 Fax: (313) 374-6135 https://www. masco. com Statistics: Public Company Incorporated: 1929 as Masco Screw Products Company Employees: 42,500 Sales: $6. 3 billion (1999) Stock Exchanges: New York Ticker Symbol: MAS NAIC: 33711 Wood Kitchen Cabinet and Countertop Manufacturing; 326199 All Other Plastics Product Manufacturing; 33251 Hardware Manufacturing; 332913 Plumbing Fixture Fitting and Trim Manufacturing Company Perspectives: By leveraging on our collective strengths, by more effectively combining entrepreneurship and professional management, and by combining our historically successful sales and marketing programs with new cost-reduction, technology, logistics and other initiatives, we are determined to regain our image as a premier growth company with operating returns unmatched in our industry. By building a new Masco on the best of the old, it is ou r intent to once again achieve a record of performance that should result in the restoration of the premium common share valuation that we enjoyed for many years. We are confident that our strategies are sound, that our people throughout the organization are committed to enhancing shareholder value, and that we have the broadest offering of quality leadership products available in the markets that we serve. Key Dates: 1920: Alex Manoogian immigrates to the United States. 1929: Masco Screw Products Company is formed. 1937: Masco begins selling shares on the Detroit Stock Exchange. 1954: Masco launches the Delta Faucet. 1961: Masco acquires Peerless Industries, Inc. 1968: Richard Manoogian becomes company president. 1984: Masco Industries Inc. is formed. 993: Masco Industries becomes MascoTech Inc. 1996: Masco sells furniture unit to Furnishings International, Inc. 2000: Masco sells remaining interest in MascoTech to Heartland Industrial. Company History: Masco Corporation is the w orlds largest faucet manufacturer as well as the leading U. S. cabinet manufacturer. The company manufactures hundreds of building specialty and home improvement products, including kitchen appliances, whirlpools and spas, bath and shower tubs and enclosures, residential and commercial locks and hardware, venting systems and ventilating products, electrical outlet boxes, and water pumps. Masco Corporations best-known product is the single-handled Delta faucet, developed and promoted in the 1950s by the companys founder, Alex Manoogian. Mascos 20 lines and 250 styles of cabinets include stock, semi-custom, and custom cabinetry for the replacement/remodeling and new construction markets. Origins as a Screw Machine Business in 1929 In 1920 Alex Manoogian, at the age of 19, immigrated to the United States from Smyrna, Turkey, fleeing political persecution and danger that threatened him as a Christian Armenian in Moslem Turkey. After holding several odd jobs in Bridgeport, Connecti cut, including brief employment in a screw machine business, Manoogian came in 1924 to Detroit, Michigan, where he worked in a screw machine business and learned about metalworking for automobile components. In 1929, six weeks after the stock market crash, he founded Masco Screw Products Company with two partners, Harry Adjemian and Charles Saunders, who left during the first year. They began with a few thousand dollars, several used screw machines, and a truckless than $33,000 in assets. Masco was derived from the first letters of the partners last names plus co for company. The automobile industry was still young and largely untested, and Mascos initial years were difficult. Hudson Motor Car Company was the first customer, with a $7,000 contract, but Masco could not yet afford to pay salaries. Manoogian was sales manager, estimator, foreman, press operator, and repairman. The first plant was located on the fifth floor of an old building, with a furniture manufacturer on the floor below. Soon after business began, oil from the Masco machines leaked through the floor, ruining newly upholstered furniture. Manoogian was able to remain in business by arranging extended payments for the furniture damage. During the 1930s, Masco worked mainly with Chrysler and had contracts with Ford, Graham Page, Spicer Manufacturing, and Budd Wheel. Since Masco produced parts to the specifications of these firms, the company did not distinguish itself through product design and, instead, focused on providing excellent service. In 1931 Manoogian brought his family to the United States and married Marie Tatian. In 1934 his brother Charles joined the company, followed a few years later by another brother, George. By 1936, all sales were to the automotive industry and had increased almost fourfold since the first year, to $234,000. In 1937, Masco went public, its shares selling for $1 on the Detroit Stock Exchange. Later in 1937, the plant caught fire. Fortunately, snow that ha d accumulated on the roof of the building melted and poured over the heavy machinery, reducing the fires damage. Although Masco was in business again three months later, this was the one year in its history when the company lost money. Like most U. S. metalworking companies during World War II, Masco worked exclusively for the defense industry. In 1942, its sales reached $1 million and continued to increase for two years. When the war ended in 1945, sales declined as Masco returned to manufacturing for the automotive industry, and three years later, Masco offered more stock to the public. The sale of 13,000 shares generated the capital to buy the Ford Road Plant in Dearborn, Michigan, which then became the company headquarters. In 1950, just after the Korean War began, Masco resumed production for the defense industry. Although sales increased, profits remained flat, due to the payment of wartime excess-profits taxes. Masco began work on a new kind of artillery-shell timing me chanism, a precision-made part that demonstrated the companys expertise in metalworking. Chrysler asked Masco to bid on a contract that required a new metalworking technique called cold extrusion, one unfamiliar to Masco engineers. Soon the company was producing satisfactory parts by cold extrusion. In 1953, when wartime contracts ended, Masco could not afford to continue developing the new technology and did not resume using cold extrusion until 1967. The Launch of Delta Faucet in 1954 Proves Pivotal The year 1954 was a turning point for the company when Alex Manoogian won a small contract to manufacture parts for a new type of faucet being produced in California. At the time, Masco was still an automotive parts manufacturer with little experience in plumbing fixtures. The unusual design of this faucet was its single handle, which controlled both cold and hot water. Unfortunately, the faucet, nicknamed by plumbers the one-armed bandit, did not operate properly, and orders for it ceased. Because of his metalworking expertise, Manoogian detected the deficiencies in the faucet and redesigned it. He paid the original owners for licensing rights to produce and market his own version. At first, he formed a separate company to protect Masco if the new faucet did not sell. He tried to interest plumbing manufacturers in marketing the faucet, but they claimed there was no market for it. Eventually, Manoogian transferred the rights to Masco, which produced and marketed the Delta faucet. Sales increased rapidly, topping $1 million by 1958. In 1959 Masco bought a separate plant in Greensburg, Indiana for faucet manufacturing. That year also, Manoogians son, Richard, graduated from Yale University and helped launch the new faucet operation. From the beginning of his career, Richard Manoogian led the company toward expansion. He engineered Mascos first major acquisition in 1961, that of Peerless Industries, Inc. , a manufacturer of plumbing products, to widen Masco s production capabilities. In the same year, Masco closed its Dearborn plant and moved automotive parts production to Ypsilanti, Michigan. The faucet sector, which continued with steady success, offset the cyclical nature of the automotive industry. By 1962, Delta faucet sales reached $7 million and accounted for more than half of Mascos sales. By then, Masco Screw Products Company was an inappropriate name for a supplier to both the automotive and construction industries and the name was changed to Masco Corporation. In 1962, Masco acquired Mascon Toy Company, a manufacturer of toy telephones and play furniture, but Mascon was sold in the late 1960s, because of its low profit margins and its incompatibility with Mascos other interests. Later in 1962, Masco was placed on the American Stock Exchange, and Smith Barney, the investment banking firm, accepted Masco as a client, opening new sources of financing. Masco began an aggressive plan of acquisition and diversification spear headed by Richard Manoogian. In 1962 Masco acquired Steel Stamping Company, and in 1964 it acquired Nile Faucet Corporation, broadening its capabilities in the automotive and plumbing parts sectors. Over the next few years, as the construction industry flourished, the company began to expand its product line, acquiring Auto-Flo Company and Auto-Flo Corporation, which produced air-handlers, such as ventilators, and furnaces, and Gibbs Automatic Molding Company, a plastics firm. Masco headquarters moved in 1967 to new facilities in Taylor, Michigan. The company began using the technique of cold extrusion, a process that resulted in greater structural strength and improved energy efficiency. In 1968, Masco acquired the Burns Companies, which manufactured components by cold forging and by automatic screw machines, followed by a series of acquisitions in the metalworking industry throughout 1970, including Punchcraft, Inc. , Molloy Manufacturing Company, Century Tool Company, Keo Cutt ers, Inc. , and Commonwealth Industries. In 1968 Richard Manoogian was made president of Masco, and Alex Manoogian became chairman of the board. Masco had become a major manufacturer of plumbing products for the kitchen and bathroom, with sales of $5. 5 million. In 1969, Masco was listed on the New York Stock Exchange. Acquisitions Continue in the 1970s and 1980s During the 1970s, Mascos two main markets, the automobile industry and the construction industry, fared badly in the countrys recession. American automobile companies faced increasing foreign competition. Inflation and high interest rates caused a 34 percent decline in the number of new homes by 1974. Nevertheless, Masco earnings continued to grow at an average of 20 ercent per year. Masco had become the leading supplier of many household items, and it continued to diversify. Plumbing products for do-it-yourself home improvement continued to do especially well, and renovation and replacement accounted for more than half of Mascos faucet sales by 1975. In 1972 Masco began to market a new faucet design, a double-handled faucet called the Delex, based on the same rotating-ball principle as the Delta. Masco continued to introduce new models over the next few years, and by 1975 had increased its market share to 22 percent. In 1971 Masco entered the communications business when it acquired Electra Corporation, which manufactured scanning monitor radios. That year Masco began to manufacture parts for trailers and other recreational vehicles with its purchase of Fulton Company in 1971 and Reese Products in 1973. In 1972 Masco bought several small manufacturing companies for its automobile sector, and in 1973 it bought American Metals Corporation. In 1973 Masco made its first foreign acquisition with Holzer and Company, a West German manufacturer of air-handlers. That same year, Masco entered the petroleum equipment sector, acquiring 47 percent of Emco, a Canadian manufacturer of oil pipes and plumbin g hardware. Foreign sales in 1973 accounted for four percent of the companys total, increasing one year later to seven percent. Between 1973 and 1974, when the automobile and construction industries hit their worst slump of the decade, Mascos stock value plummeted from 46 times earnings to a multiple of 20, although sales were up 23 percent and earnings were up 22 percent. In 1975, Manoogian took advantage of the growing market for citizens band (CB) radios and acquired Royce Electronics. CB sales continued to soar at the beginning of 1976, but, by the end of the year, the supply of CBs exceeded demand. When the federal government expanded the available channels from 23 to 40, the 23-channel radios became virtually obsolete. Royces sales plummeted from $53 million to $17 million, and the company suffered $1 million in losses. Masco sold 51 percent of Royce in 1976 and its remaining shares in 1977. Nevertheless, the company remained in the communications sector. Electra continued to make scanning monitor radios and other electronic products. In 1976 Masco sued RCA Corporation, Teaberry Electronics Corporation, and Sanyo Electric Company for infringing on Electras patents for scanning radio receivers. Sanyo produced the radios in Japan for the other two companies, but Masco required that firms sign a licensing agreement to sell the scanners. The case was settled in court when Sanyo agreed to pay Electra royalties under a new licensing agreement. Masco continued to penetrate the petroleum equipment market in 1976, acquiring A-Z International Companies and Grant Oil Tool Company, both manufacturers of drilling tools, as well as Dansk Metal and Armaturindistri of Denmark. Masco also created Forming Technology Company, a firm with technologically advanced equipment that produced larger metal components swiftly and economically. In 1977, Masco acquired Walker McDonald Manufacturing Company and R ; B Manufacturing Company, producers of petroleum equipment, an d, in 1978, Rieke Corporation, which made closures for oil drums and other large containers. In 1979 Masco purchased Jung-Pumpen, a West German maker of sump pumps, and Arrow Specialty Company, a maker of engines and engine repair parts. During the late 1970s, Masco began to advertise its faucets on network television. In a March 16, 1981 interview with Forbes, Richard Manoogian stated, Everybody thought we were crazy. They told us that the only time you buy a faucet is when your old one leaks. Masco realized that there was a steady consumer demand for the product and continued to expand its line of faucets. By 1980, Masco had increased its market share to 28 percent. In 1980, while automobile production slowed 24 percent, Masco worked with car manufacturers on design, to create additional car parts. In 1981, while the housing industry was in its worst state since the mid-1970s, Mascos sales in that sector continued to grow. Mascos products in the home improvement area were not subject to extreme economic swings, and the home improvement sector was growing faster than the industrial one. Masco continued to expand in 1980, acquiring AlupKompressorenPressorun, a West German maker of air-compressors, Lamons Metal Gasket Company, and Arrow Oil Tools, a manufacturer for the petroleum industry. In 1981 Masco introduced a nonceramic toilet, which used much less water and was insulated to muffle the sound of flushing. Diversification continued in 1982. Masco acquired two small companies that made valves and related products for the oil industry, as well as Evans-Aristocrat Industries, which made steel measuring tapes. That same year it also purchased Baldwin Hardware Manufacturing Company, which made hardware for builders, and Marvel Metal Products, manufacturer of steel work stations for the office. The year 1982 was the first since 1956 that earnings for operations did not increase, because of the effects of the recession. Mascos sales in the cold extrusi on industry declined 17 percent, primarily because of the depressed automobile and construction industries. In 1983 Masco acquired Brass Craft Manufacturing Company, a maker of plumbing supplies. Building and home improvement product sales were up more than 50 percent to $500 million, because of profitable acquisitions and steady faucet sales. At the same time, decline in oil prices spurred a drop in petroleum equipment sales. Industrial Businesses Spin-Off in 1984 For many years, the cyclical industrial sectorspetroleum and construction equipment and automobile partshad lowered Mascos overall yearly results, even though total annual sales had continued to grow. In 1984 Richard Manoogian spun off Mascos industrial businesses into a separate, publicly held company, Masco Industries Inc. (MI). This change gave Masco Corporation a firmer identity as a home improvement and building products company, enabling it to focus on that sector. While the move allowed both companies to expa nd more quickly, it also gave Masco Corporation continued access to MIs metalworking technology. Richard Manoogian became CEO of the new company, and its headquarters remained in Taylor, Michigan, with Masco Corporation. Masco Corporation distributed 50 percent of MI stock to shareholders as a dividend and retained the other half, worth about $50 million. A year later, Masco ownership of MI decreased to 44 percent. In the restructuring, the two companies formed Nimas Corporation as a vehicle to facilitate Mascos leveraged buyout of NI Industries, a large diversified company. NI Industries manufactured many building products, including Thermador cooking equipment, Weiser locks, Waste King appliances, Artistic Brass faucets, and Bowers electrical outlet boxes (Mascos first entry into the electrical equipment business). NI also produced several automobile and defense products. Masco paid $483 million for the company; using Nimas allowed Masco Corporation and MI to make an expensi ve acquisition without placing the debt on either companys balance sheet. During the next few years, MI focused on developing its manufacturing technology and expanding through acquisitions, investing more than $1 billion. As a result, yearly earnings suffered, although sales increased from $545 million in 1984 to $1. 7 billion in 1989. Erwin H. Billig became president of Masco Industries in 1986. Between 1986 and 1989, MI diversified into architectural products, acquiring manufacturers of steel doors, door frames, metal office panels, security grills, sectional and rolling doors, and similar items. By 1989, it had become one of the largest U. S. producers of steel door products. MI also entered a new sector of automotive parts in 1986, acquiring several manufacturers of components such as windshield wiper blades, roof racks, brake hardware repair kits, and front-wheel-drive components. MI focused on establishing its own niches in the market, which continued to expand as the n eed for replacement parts for longer lasting automobiles increased. MI production of customized goods for the defense industry, including cartridge casings, projectiles, and casings for rocket motors and missiles, declined in the late 1980s, as the U. S. government began to decrease defense spending. After the creation of MI, Masco Corporation continued its expansion, acquiring, in 1984, Trayco and Aqua Glass, both kitchen-and-bathroom-products manufacturers with sales of about $70 million. At the same time, Masco phased out its Electra personal communications products, a market no longer suited to the companys criteria for growth. In 1985 Masco acquired Merillat Industries, a manufacturer of cabinets, and Flint and Walling Water Systems, which made water pumps. Masco also introduced the largest faucet selection in the history of the plumbing industry. Wayne B. Lyon became president of Masco in 1985, and Richard Manoogian served as chairman and CEO of both Masco Corporation and M asco Industries. In the early 1980s, Richard Manoogian saw a great potential for growth abroad and acquired the Berglen group of companies, which distributed faucets in the United Kingdom, and 25 percent of Hans Grohe, the top European hand-shower manufacturer. Because of disadvantageous foreign currency rates, sales in dollars in Europe had remained stagnant for several years, but European sales in domestic currencies were thriving. In 1986 Masco filed lawsuits against several plumbing suppliersWaxman Industries, Keystone Franklin, and Radiator Specialty Companyfor infringement on the Delta faucet trademark. The following year, Mascos competitors agreed to mark packages more clearly, following the trademark specifications. It was the first of several trademark infringement cases involving the Delta name. Expanding into Furniture in the Late 1980s Masco moved into the furniture industry in 1986, acquiring Henredon Furniture Industries and Drexel Heritage Furniture and, one yea r later, Lexington Furniture Industries. The three companies represented about $700 million in sales. Masco also acquired Walkins Manufacturing Corporation, a producer of spas, and Fieldstone Cabinetry. In 1987 Masco purchased Marbro Lamp Company and Hueppe Duscha, a West German maker of shower equipment. Masco also issued 1. 2 million shares to finance its acquisition of La Barge Mirrors; two new furniture companies, Hickorycraft and Alsons Corporation; and Marge Carson, Inc. , a manufacturer of plumbing products. By 1988 furniture sales accounted for about 25 percent of the companys $2. 9 billion sales, and Masco continued to expand, acquiring American Textile Company and the Robert Allen Companies. In 1988, MI transferred nine of its smaller businesses to TriMas Corporation, a publicly traded spin-off, primarily a manufacturer of industrial fasteners. Two years later, Masco Corporation sold TriMas its recreational vehicle accessories and its insulation products businesses. Initially, Masco held a 19 percent (by the mid-1990s reduced to four percent) stake in TriMas, and MI held a 48 percent stake (by the mid-1990s 37 percent). In 1989 earnings declined, and Masco Corporations stock sold at discounted rates, due to investor uncertainty about the future of the home improvement sector. Consequently, the company repurchased four million of its common shares in 1989, and, in 1990, the board voted to repurchase up to ten million additional common shares. Expansion continued in 1989, as Masco bought Universal Furniture of Hong Kong, its largest overseas acquisition. Foreign sales, mainly in Canada and Europe, accounted for about 13 percent of Mascos total revenues. In 1990 Masco bolstered its cabinetry operations through the acquisition of KraftMaid Cabinetry, Inc. Refocusing on Home Improvement and Building Products in the 1990s Mascos move into furniture turned out to be a major mistake. Part of the problem was bad timing, as the furniture industry i n 1988 entered into a deep recession, which it did not pull out of until 1992. However, furniture also simply turned out to be a bad fit for Masco, unlike the companys move into cabinetry, a product sector that was much more closely aligned to such Masco mainstays as faucets than furniture was. Following its move into cabinet making, Masco had been able to achieve manufacturing efficiencies, thus improving upon the businesses it acquired; furniture manufacturing, however, as less sophisticated and thus did not lend itself to the kinds of management techniques Masco typically used. Furthermore, Masco had great difficulty marketing its furniture lines, whereas it had been able to sell its cabinets through many of its existing channels. By the early 1990s the companys furniture group was a major drag on company earnings. Despite this, Masco continued to increase its investment in furniture by making additional acquisitions, including the mid-1994 purchase of Berkline Corp. a Tennessee- based maker of recliners and upholstered family room furniture that had sales of $165 million in 1993. Meanwhile, Masco also felt the effects from a troubled Masco Industries, which was suffering from the effects of the early 1990s recession, a downturn that hit the auto industry particularly hard. Prospects had improved by 1993 thanks to a restructuring and an improving economy and Masco took advantage of MIs stronger position by reducing its stake in its sister company that year to 35 percent. Also in 1993, MI changed its name to MascoTech Inc. By 1997 Masco Corporation had further simplified its holdings by reducing its MascoTech stake to 17 percent, with the prospect of completely eliminating this noncore holding by the turn of the century. An even more important divestment occurred in 1996 when Masco sold its furniture unit. In June of the previous year, the company had decided to sell the unit, finally concluding that it would be unable to turn the unit around and that it w ould be best for Masco Corporation to return to an exclusive focus on home improvement and building products. Masco had been unable to increase the furniture units operating profits, which had ranged from three to six percent, nowhere near the 15 to 20 percent generated by the companys other operating units. In November 1995 Masco announced that Morgan Stanley Capital Partners would buy the furniture unit for nearly $1. 2 billion, but in January of the following year the deal was abandoned without explanation. Then, in August 1996, Masco sold the troubled unit to an investment group, Furnishings International Inc. , with proceeds exceeding $1 billion, $708 million of which was cash. As part of the agreement, Masco gained a 15 percent stake in Furnishings International. Masco soon used a large portion;mdashout $550 millionof the cash it gained to reduce its long-term debt, which had been fairly high. Following its abandonment of furniture, Masco made several acquisitions that e xtended its existing products lines in brand-name and geographic terms. In 1996 three European companies with combined 1995 sales of $140 million were acquired: The Moore Group Ltd. , a leading U. K. maker of kitchen cabinets; Horst Breuer GmbH, a German manufacturer of shower enclosures for the do-it-yourself market; and E. Missel GmbH, a leading German manufacturer of proprietary specialty products for the new construction, remodeling, and renovation markets. In March 1997 Masco acquired Franklin Brass Manufacturing Company, a California-based maker of bath accessories and bath safety products, and LaGard Inc. , another California company, which was an electronic lock manufacturer. Later in 1997 two more cabinetry companies were acquired: Liberty Hardware Manufacturing Corporation of Boca Raton, Florida, a maker of cabinet hardware; and Texwood Industries, Inc. a leading maker of kitchen and bath cabinetry based in Duncanville, Texas. Masco expanded further outside the United S tates in July 1997 when it acquired The Alvic Group, a leading Spanish manufacturer and distributor of kitchen and bath cabinetry, and The SKS Group, a leading German maker and distributor of roller shutters and aluminum balcony railing systems. As the new century approached, with its ill-fated furniture adventure more or less behind it and its holding in MascoTech substantially reduced, Masco Corporation appeared ready to reclaim some of its past glory. Newly committed to its core home improvement and building products businesses, the company was likely to continue to seek out targeted acquisitions both at home and abroad to strengthen its already commanding position. Heading into the 21st Century In 1997 one of Mascos lesser known subsidiaries emerged as a major source of revenue for the corporation. Considered a minor acquisition when it was obtained in 1994, Vapor Technologies Inc. assumed a more prominent role in company operations in 1995 with the release of Brilliance, an anti-tarnish and anti-rust metal finish. By 1997 Masco was applying the innovative finish to a number of its faucets and locks. The financial results were impressive, as faucet sales rose from $757 million in 1996 to over $900 million in 1997; the following year, Masco announced plans to expand its line of Brilliance faucets from 60 models to 2,000. The company also began exploring the possibility of wider applications for Brilliance, and use of the versatile finish on light fixtures, lamps, and other brass furnishings eventually helped boost sales of Mascos brass products by 300 per cent. Overall the company enjoyed record profits for 1997, with net income reaching $382. 4 million, compared to $295. 2 million in 1996. A number of key overseas acquisitions in 1998 helped bolster the companys share of the European home furnishings market. In March Masco acquired Vasco Corporation, a Belgian manufacturer of hydronic radiators and heat convectors, key components of heating system s in the majority of European homes. A similar manufacturer, Brugman Radiatorenfabriek B. V. in Holland, was purchased in July, and in November the company acquired the British bath fixture company Heritage Bathrooms. During this period the company also made an effort to establish a stronger niche in the Japanese home furnishings market, establishing Masco Japan Ltd. in February 1998. The Japanese market showed significant room for growth, with over a million new houses being built annually, and a faucet, cabinet, and lock market estimated at $7. 2 billion. In the midst of these new ventures Masco sold its Thermador subsidiary to Bosch-Siemens in June, signaling the companys formal exit from the appliance manufacturing business. The year 1998 again brought record earnings, with net profits exceeding $475 million. In 1999 the company embarked on a major acquisition campaign, beginning in March, when it purchased Spanish household and kitchen equipment manufacturer GMU. A series of key acquisitions came in April, with Faucet Queen, Inc. , A ; J Gummers, The Cary Group, and Avocet Hardware (U. K. ) entering the Masco fold. Masco completed its largest purchase in September, when it acquired five companies with combined yearly sales of over $1. 5 billion. The companieswhich included Arrow Fastener Company, Behr Process Corporation, Inrecon, Mills Pride, and Superia Radiatoren N. V. of Belgiumexpanded Mascos role as a major supplier to Home Depot, and business with the home furnishings chain was expected to rise from $500 million in 1998 to $1. 5 billion in 2000. In May 1999 Masco also entered into a strategic alliance with Pulte Corporation, which made Masco subsidiaries Merillat Industries and Quality Cabinets the primary cabinet suppliers for the homebuilder through 2002. While the company continued to enjoy record profits in 1999, with net earnings nearly reaching $700 million, a decline in the home furnishings business was approaching. A combination of decreased sales and high energy costs resulted in low share value for the companys stock, and profits for 2000 and 2001 were expected to be lower than previously projected. The company was also hit by unfavorable exchange rates during this period, with a strong U. S. dollar resulting in lower international earnings. In an effort to phase out its less profitable holdings, in August 2000 the company sold its remaining interests in MascoTech to Heartland Industrial for $2 billion. In general, however, the slight economic slump not deter the company from continuing to pursue its aggressive acquisition strategy. In January 2000 Masco acquired Danish firm Tvilium-Scanbirk, a leading manufacturer of ready-to-assemble shelving, cabinetry, and other furniture products in Europe, and a major supplier for Staples. In May the company acquired Masterchem Industries, a specialty paint products company, and Glass Idromassaggio, an Italian manufacturer of bathtubs, shower enclosures, and whi rlpools; in November it purchased BSI Holdings and Davenport Insulation. While Mascos profits for 2000 may not have topped the $700 million mark, as it forged ahead into the new century the company could still boast a significant share of the home furnishings market. Principal Subsidiaries: A ; J Gummers, Ltd. (U. K. ); Alfred Reinecke GmbH ; Co. KG (Germany); Alma Kuchen Aloys Meyer GmbH ; Co. (Germany); Alsons Corporation; The Alvic Group (Spain); American Metal Products; American Shower ; Bath Corporation; Aqua Glass Corporation; Arrow Fastener Company; Avocet Hardware, plc (U. K. ); Baldwin Hardware Corp. ; Behr Process Corporation; Berglen Group, Ltd. (U. K. ); Brass Craft Mfg. Company; Brugman Radiatorenfabriek B. V. (Holland); BSI Holdings, Inc. ; The Cary Group; Cobra Products, Inc. ; Computerized Security Systems; Damixa A/S (Denmark); Davenport Insulation; Delta Faucet Co. E. Missel GmbH (Germany); Faucet Queen; Fieldstone Cabinetry, Inc. ; Franklin Brass Mfg. Co. ; Gal e Industries, Inc. ; Gamco (General Accessories MFG. Co. ); Gebhardt Ventilatoren GmbH ; Co. (Germany); Ginger; Glass Idromassaggio S. p. A. (Italy); GMU-XEY (Spain); Grumal (Spain); Heritage Bathrooms, PLC (U. K. ); Horst Breuer GmbH ; Co. (Germany); Huppe GmbH ; Co. (Germany); Inrecon, L. L. C. ; Jung Pumpen GmbH ; Co. (Germany); KraftMaid Cabinetry Inc. ; La Gard, Inc. ; Liberty Hardware; The Marvel Group; Masterchem Industries, Inc. ; Melard Manufacturing Corp. ; Merillat Industries, Inc. Mills Pride; Mirolin Industries Corporation; Moores Furniture Group Ltd. (U. K. ); Newteam Limited (U. K. ); Peerless Faucet Company; Rubinetterie Mariani S. p. A. (Italy); SKS (Stakusit Bautechnik GmbH) (Germany); StarMark, Inc. ; S. T. S. R. (Italy); Superia Radiatoren, NN (Belgium); Texwood Industries, L. P. ; Tvilum-Scanbirk A/S (Denmark); Vapor Technologies Inc. ; Vasco plc (Belgium); Watkins Manufacturing Corporation; W/C Technology Corporation; Weiser Lock, Inc. ; Zenith Products Corpora tion. Principal Competitors: American Standard Companies Inc. ; Fortune Brands, Inc. ; U. S. Industries, Inc. Don’t waste time! Our writers will create an original "Masco Corporation" essay for you Create order