Walter Is Frustrated With His Current Position In Essay Example For Students

Walter Is Frustrated With His Current Position In Essay Life, And Every DisappointmentWalter is frustrated with his current position in life, and every disappointment he has encountered thus far.His position is symbolic of every black male struggling to provide for his family by any means necessary.Hansberry stated in her meeting with Robert Kennedythe first thing that must be achieved is equal opportunities for Negroeswhen unemployment is six percent nationally it is as high as thirty percent among Negroes.Although Walter has a job, it seems inadequate for his survival.As a result, he has become frustrated and lacks good judgement.His frustrations stem from him not being able to act as a man and provide for his family andgrasp hold of his ideals to watch them manifest into a positive situation. We will write a custom essay on Walter Is Frustrated With His Current Position In specifically for you for only $16.38 $13.9/page Order now Walter wants the best for his family and he thinks the liquor store will provide him the financial security needed to boost them out of poverty.Im thirty five years old; Ive been married eleven years and I got a boy who sleeps in living room (Hansberry 34). best describes the sympathy and compassion Walter feels for his son.Although his familys financial position is strained, Walter doesnt want his son to see him struggle.Children are very impressionable.Walter displays an unselfish characteristic that is overshadowed by unwise decisions later in the play.In one particular scene,his son Travis asked both parents for money. Walter acts out of pride and little motivation by giving Travis his last pocket change.This symbolizes Walters willingness to be a good father.In a different situation, Walter wouldnt display his selfish intentions.This behavior can be attributed to working in a degrading, underpaid position and not seeing results.The overcrowded living conditions and lack of priva cy in the ghetto help make people who live there as tired as their furnishings(Carter 45). Metaphorically speaking, Walter is like the furniture inthe small apartment, tired and broken in spirit.Every black males plight in America is to be regarded as a provider for his family.However, society doesnt afford black males the benefit of feeling secure about providing for their families.Its easy to criticize society and place the blame on America for not affording Walter the opportunities of his white counterparts.The fact is,he does not seem to have control over his own responsibilities.Therefore, if he was given all the resources needed to provide his family his poor judgement and lack of business sense would create further stress on the family.His wife, Ruth, Mama, and his sister Beanetha attack him from every angle about his doubtful ideals.Ironically, those ideals are what Walter needs to shape and justify his manhood.Without ideals and proper resources to obtain them, a mans exist e..nce is insignificant.In Essence, Walters determination to open the liquor store can be viewed as means to an end. As Walters dreams become bigger and bigger, he seems to neglect the smaller things such as his family. Here I am a giant surrounded by ants!Ants who cant even understand what the giant is talking about (Hansberry 85).Walter has big ideals, but his methods of achieving his goals and ideals are somewhat irrational.Walter is more concerned with becoming self-employed without really thinking about the consequences, which may be imposed on his family.Later in play, Walter learns thathe needs to set his dreams aside for the sake of the family.Also, he learns that pride in himself and his family is inseparable and that anything that harms one harms the other. Walter gains our sympathy by his struggle against the economic and social pressure of a oppressive society(Carter 58). Walter certainly should be applauded for trying to rise above his current condition.Most individuals would have succumbed to poverty and tried unhealthy alternatives for achieving success.Walters ideal of achieving success through a liquor store should not be thought of as exploiting the hardship of blacks, but as the only opportunity adequate to providing.This situation mirrors the youth of today thats selling marijuana to each other blacks to provide the basic needs for their families. In the midst of us pursuing our ambitions there exist the possibility to behave selfishly.Walter must learn that the quest for manhood is long and tedious. So, sacrifices must be made and responsibilities must prioritized.Sometimes, people are unwilling to put their dreams aside for a bigger cause.The test of a real man is relinquishing control of his personal ambitions to benefit the whole or in Walters case the family.Certainly it would be unfair for Walter give up his aspirations.The issue is whether Walter can distinguish between a fantasy of realityand a dream deferred. .u83a14e43b91e09c6f28a665d0eebecfc , .u83a14e43b91e09c6f28a665d0eebecfc .postImageUrl , .u83a14e43b91e09c6f28a665d0eebecfc .centered-text-area { min-height: 80px; position: relative; } .u83a14e43b91e09c6f28a665d0eebecfc , .u83a14e43b91e09c6f28a665d0eebecfc:hover , .u83a14e43b91e09c6f28a665d0eebecfc:visited , .u83a14e43b91e09c6f28a665d0eebecfc:active { border:0!important; } .u83a14e43b91e09c6f28a665d0eebecfc .clearfix:after { content: ""; display: table; clear: both; } .u83a14e43b91e09c6f28a665d0eebecfc { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u83a14e43b91e09c6f28a665d0eebecfc:active , .u83a14e43b91e09c6f28a665d0eebecfc:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u83a14e43b91e09c6f28a665d0eebecfc .centered-text-area { width: 100%; position: relative ; } .u83a14e43b91e09c6f28a665d0eebecfc .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u83a14e43b91e09c6f28a665d0eebecfc .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u83a14e43b91e09c6f28a665d0eebecfc .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u83a14e43b91e09c6f28a665d0eebecfc:hover .ctaButton { background-color: #34495E!important; } .u83a14e43b91e09c6f28a665d0eebecfc .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u83a14e43b91e09c6f28a665d0eebecfc .u83a14e43b91e09c6f28a665d0eebecfc-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u83a14e43b91e09c6f28a665d0eebecfc:after { content: ""; display: block; clear: both; } READ: Why Did the Polls Get it Wrong in 1992? Essay ThesisEssentially this play is the story of Walter Lee Young , passionate, ambitious, and bursting with energy and dreams. Walter Lee was a desperate man, shackled by poverty and prejudice, and obsessed with his own sense of success, which he felt would be the end of all of his social and economic problems. Unfortunately Walter had to learn the a hard lesson life,pride and greed will eventually lead to unhappiness. Work Cited PageCarter Steven, R. 1991 HansberrysDrama ,Commitment amidComplexity, University of Illinois Press. Hansberry,Lorraine.A Raisin in the Sun. 1958.New York: Vintage Books. Robinson, Laymond.Robert Kennedy Consults Negroes Here About The North. New York Times 25 May 1963:1, 8 Meeting with Baldwin, Hansberry, Belafonte, et al.

Significance of Words Dying and Death in To Build Essays

Significance of Words Dying and Death in To Build Essays Significance of Words Dying and Death in To Build a Fire Dying and Death in To Build a Fire Modern Lit. Paper Significance of Words Dying and Death in "To Build a Fire" Dying and Death in "To Build a Fire" The significance of the words "dying and death" in Jack London's 1910 novel, "To Build a Fire" continuously expresses the man's dwindling warmth and bad luck in his journey along the Yukon trail to meet "the boys" at camp. London associates dying with the man's diminishing ability to stay warm in the frigid Alaskan climate. The main characters predicament slowly worsens one level at a time finally resulting in death. The narrator informs the reader "the man" lacks personal experience travelling in the Yukon terrain. The old-timer warned the man about the harsh realities of the Klondike. The confident main character thinks of the old-timer at Sulphur Creek as "womanish." Along the trail, "the man" falls into a hidden spring and attempts to build a fire to dry his socks and warm himself. With his wet feet quickly growing numb, he realizes he has only one chance to successfully build a fire or face the harsh realities of the Yukon at one-hundred nine degrees below freezing. Falling snow from a tree blots out the fire and the character realizes "he had just heard his own sentence of death." Jack London introduces death to the reader in this scene. The man realizes "a second fire must be built without fail." The man's mind begins to run wild with thoughts of insecurity and death when the second fire fails. He recollects the story of a man who kills a steer to stay warm and envisions himself killing his dog and crawling into the carcass to warm up so he can build a fire to save himself. London writes, "a certain fear of death, dull and oppressive, came to him." As the man slowly freezes, he realizes he is in serious trouble and can no longer make excuses for himself. Acknowledging he "would never get to the camp and would soon be stiff and dead," he tries to clear this morbid thought from his mind by running down the trail in a last ditch effort to pump blood through his extremities. The climax of the story describes "the man" picturing "his body completely frozen on the trail." He falls into the snow thinking, "he is bound to freeze anyway and freezing was not as bad as people thought. There were a lot worse ways to die." The man drowsed off into "the most comfortable and satisfying sleep he had ever known." The dog looked on creeping closer, filling his nostrils with the "scent of death." London's portrayal of the man does not initially give the reader the theme of dying, but slowly develops the theme as the story develops. The story doesn't mention death until the last several pages. The main character changes from an enthusiastic pioneer to a sad and desperate man. The conclusion of the story portrays the man accepting his fate and understands the old-timer at Sulphur Creek had been right; "no man must travel alone in the Klondike after fifty below." Typically, short stories written in the early 1900's often conclude the story with a death or tragedy. London's story is no exception. This story follows the pattern by illustrating events leading up to and including death. Thesis Statement- The significance of the words "dying and death" in Jack London's 1910 novel, "To Build a Fire" continuously expresses the man's dwindling warmth and bad luck in his journey along the Yukon trail to meet "the boys" at camp.

Choose an important person that you have looked up to and who has Essay

Choose an important person that you have looked up to and who has helped you in your life - Essay Example He was an optimist who made things easy, even if it was so difficult. When I was small, I almost gave up on learning how to ride a bike. Paw made it look so easy to ride a bike that it made want to try and try again, no matter how many bruises or out balancing acts I made. Through this, he taught me how to persevere and work hard, no matter how difficult it would be. When I was having trouble in school, Paw was the one to defend me from some bullies. But at home, he taught me that fighting is not always the best solution to a problem. The act of goodwill and the power to always stay positive are only a few of the important virtues that make a person strong and must bear in mind when faced with adversities. And because of him, I managed to befriend the bullies who once made fun of me. Most of the time, Paw would tell jokes all day long. As I reminisce over his silly jokes, I never really got tired of hearing them, no matter how funny or how corny it would seem. To me, it was not the j oke that made me want his company, it was his eagerness to have a great time with me that always mattered. He always made sure that I was having a blast, from a silly board game or even to a melted ice cream we were eating. But, not all things turn out the way it should have been.

Characteristic Development in Primary Education Research Paper

Characteristic Development in Primary Education - Research Paper Example Suggestions aim towards complete personality development of the child and the role that teacher training and parental observation plays in making these new approaches a success. Children are the main assets of the country and when the community is sure of educating its children right, it can be sure of a secure future. There is no doubt that although the position of child education is at topmost priority in our country, the quality of education needs to be optimized for best developmental growth. Characteristic development is a major field in children’s education today. It deals entirely with the chances of a child being able to recognize, nurture and flourish in characteristics which come naturally to him or her. While parents and teachers (Burchinal et al, 2008, p.141) play a major role in identifying these characteristics, it is the main responsibility of the education system to create opportunities for the growth and development of characteristic in students right from their early ages. The main aim of the present study is to highlight the various aspects of characteristic development in school curriculum and approach and also develop suitable propositions that will bring in new dimensions to existing characteristic development protocols in primary education. The study is based on literature review found in the past ten years and correlating the findings with the present scenario and probable requirements that may come up in the future. Whether it is related to child centered play or developmentally appropriate practice, the approaches in characteristic development will have to be re-evaluated to create the right combination for children of today’s world. Findings in sub-fields of child centered play have shown a definite growth in certain tracks over the past couple of years. Several educationists agree that focusing on child centered play is good for the community as it

International English Essay Example for Free

International English Essay Introduction English is termed as the universal language (Crystal 2003). In almost all regions of the world, English is either their official or second language. Most of the countries in the Western, particularly North America, are using the English language (Burchfield 2003). In addition, some European countries, like the United Kingdom, and Asian countries, like Singapore, India, Pakistan and the Philippines, are more inclined to use the English language than their native languages (Cheshire 2007). It is true that the English language is being used by different countries in the world. Some have also different ways of using it by having a distinct style and structure of speaking and writing the English language. Nevertheless, it is also said that there is a common ground in which the English language is being expressed and used (Burchfield 2003). Having the same vocabulary expressions, meaning and senses, and concepts and contexts, the English language is understood if not universally at least internationally (Graddol 1996). Truly, the English language plays a very vital part in the international scene. For a very diverse and sundry character of the world, it needs a general or common medium that would serve as the channel for communication among different countries globally (Crystal 2003). It is to be noted that every country has its own official or native language. And this language may be understood only by its mother country. In this case, such country would really have to use a second language that other countries and the international community understand in order for such country to have access of communication toward them (Cheshire 2007). This paper would discuss the role of the English language in different countries and in the international community. Further, this paper would try to elucidate on the different approaches that different countries have in using the English language. History of the English Language The English language is originally the language of the Anglo-Frisian civilizations. Around the fifth century A. D. , people from the northwest of Germany occupied the Eastern England. The Old English language became a combination of the language spoken by the displaced primordial people and the language which was spread by the aggressor or the ruling class (Burnley 2000) Some say that it is either the displaced people or the aggressor that adapt to the kind of English language that was being used by the protagonist regions then. Others say that the now known, Old English language was the result of coalescent of the languages used by the displaced people and by the aggressor (Burchfield 2003). Nonetheless, the Old English language was regarded as an artificial composition closer to that of the Proto-Indo-European (Graddol 1996). It was only that, it adopted the West Saxon scribal rules (Fennell 2001). Due to this influence of the West Saxon scribal rules or conventions, the Old English language was said to lose its distinct noun case system. The use of prepositions and constant word-order were the chief mechanisms used to transmit meaning. Such structure is manifested in the Middle English era (Cheshire 2007). In 1066, The Norman Conquest of England overwhelmingly influenced the development of the English language (Burnley 2000). There are huge numbers of Norman terms and expressions that became included in the Old English specifically those in the legal and administrative genres. Eventually, the Old English language was also influenced by the Greek and Latin terms (Fennell 2001). This signaled the rise of the Middle English. The fifth century, however, marked the new shift of the English language from Middle English to Early Modern English. The evolution was characterized as the Great Vowel Shift which means that the change was motivated by the transformation on the uses and roles of vowel (Burchfield 2003). The Community of the English Language It is true that the English language cannot be owned by one nation. It is for the reason that English language is not really owned by a single country or region. Moreover, the English language is constructed and utilized by different countries all over the world according to their culture and tradition. This entails that the English language may be used differently by different nations. Yet the English language, as mentioned earlier, has distinct common features that are universal to all English-users. The sentence structure, concepts and meanings, and style and phonology may vary according to the established standard for English language among different countries (Cheshire 2007). The United States of America has the largest population of English-speakers. United Kingdom, Canada and Australia ranked second, third and fourth respectively. Although U. S. and U. K. have the highest number of population that speaks the English language, the English language was not even considered as their official language. In addition South Africa is also a known region of English-speaking people. Singapore ranked first in Asia having a great number of populations which speaks the English language (Kachru 1992). Although the English language only placed third in the category of the major language by native speakers (Mandarin Chinese and Spanish placed first and second respectively), it is the most commonly used language in the world. India ranked in the category of country which uses the English language as the second language (Kachru 1992). And because English is extensively used and spoken by many countries in the world, it is labeled as the global language or universal language of the modern period (Crystal 2003). Though it is not really being used as an official language by other countries, it is more likely that it is taught as the second language. According to some linguists, the English language that is being used by different people all over the world does not really have a uniform character (Cheshire 2007). Conversely, it is the very one that absorbs the culture of particular countries that make use of it as a medium of language. In the international community or in the international scene, the English language is being used to announce international declarations. It is also the official language used in aerial and maritime communications. Moreover, it is used as one of the official languages of the United Nations, European Union, and the majority of the international athletic organizations (Crystal 2003). Such importance of the English language is also manifested in the printings and publications of books, newspapers and magazines in which the English language is used (Crystal 2003). It was also reported that most articles produced and published were written in English albeit only half of them came from countries which official language is English. Though there are regions and parts of the world which are not really proficient speaking the English language, it is undeniably that somehow they know and understand some of it (Crane 2004). This is the reason behind the idea that at any rate the English language is the most commonly used language in the world – that even if you go to a foreign land, you can survive with regards to communication by using the English language (Cheshire 2007).

The European Court of Justice and its Interlocutors Essay -- policies,

Member state governments of the European Community began with a fundamental role in making EC policies and standards; but throughout the 1960s and 1970s the European Court of Justice gradually began to expand its role and developed an unprecedented regime comparable to the constitutional order of a federal state. The ECJ permitted itself to decide on matters traditionally considered to be the exclusive competence of member states; including social policy, gender equality and competition policy. Remarkably, the majority of national courts and governments of the member states have conformed to ECJ rulings and have harmoniously surrendered their jurisdiction over key policy areas – deferring to the ECJ’s authority. Consequently, the member states have struggled to enjoy international legal latitude of compliance in their relationship with the ECJ and commentators such as Weiler J.A have labelled the process a â€Å"quiet revolution. † It is necessary to address the means and opportunities the Court of Justice employed in order to inaugurate itself as a superior court to that of the members’. In pursuance of this objective, it should be borne in mind whether member states desired ECJ supremacy and thus voluntarily handed the ECJ their competences; or whether a â€Å"competence creep† materialised, gradually increasing the superiority of the ECJ. The answer is not easily deciphered; ample EU scholars have proposed explanations for the apparent gift of superiority. ‘Neo-functionalists’ notably argue that the early choice of national governments to place determined areas within the power of European institutions produced pressure to extend the powers of these institutions to further policy areas. The phrase ‘functional spill-over’ was coined by ... ...man, and Heiner Schulz. 1998. The European Court of Justice, National Governments, and Legal Integration in the European Union. International Organization 52 (1):292 Neill Nugent. 2006. The Government and Politics of the European Union, Sixth Edition. Durham: Duke University Press: 292. Nugent [2006] 291 Weiler, J.A. (1994) ‘A Quiet Revolution: The European Court of Justice and its Interlocutors’ Mark A. Pollack. 2005. Theorizing EU Policy-Making. In Policy-Making in the European Union, 5th edition, edited by Helen Wallace, William Wallace, and Mark A. Pollack. Oxford: Oxford University Press: 15. Andrew Moravscik. April 2005. The European Constitutional Compromise and the Neofunctionalist Legacy. Journal of European Public Policy 12 (2): 350. Martha Finnemore. 1996. National Interests in International Society. Ithaca: Cornell University Press: 5.

Facebook IPO Essay

Facebook, a social networking site, has grown at an exponential rate that far surpasses market expectation, so much so that its growth rate is referred to as the â€Å" Facebook phenomenal†. In 2004, Facebook had 1million monthly active users, and in comparison, it had reached 845million monthly active users in 2011. This phenomenal led to one of the biggest initial public offerings (IPO) the market had seen in recent years, with total capital raised to be valued at $16B, given the $38 per share offering price. Facebook was valued at around $96.6B in total. Prior to the IPO, the market perceived the valuation with positive approval signaled by both Facebook’s private market share auctions and analyst’s reviews. However, as it will be examined below, Facebook has been significantly over-valued by the underwriters. In addition, the market changed its opinion of Facebook shortly after the IPO, criticizing the valuation of the company was too high. The differences in market reaction showcase shortfalls in valuation, and it is recommended that analysts and Facebook should have used real option to valuate its market value. Over-valuation There are three main reasons why Facebook is overvalued at $38 per share. Aggressive Assumptions made by underwriters The first reason is the $38 per share price is based on overly aggressive assumptions made on Facebook’s future revenue. Facebook generates its revenue in two ways – display advertisements on its website and retain royalties from third-party developers for using Facebook’s online payment platform. Out of the two streams of revenue, advertisement accounts for about 82% of the total revenue, and royalty payment only accounts for 18%. Lead underwriter Morgan Stanley, has justified its pricing based on the assumptions that Facebook’s revenue will grow moderately considering the increasing popularity of its mobile app. Morgan Stanley estimated Facebook revenue to grow at 28% CAGR from 2013 – 2016, with advertising revenue growing at 31% and payment revenue growing at 17% per year. However, it is arguable that these assumptions are overly aggressive, and they will be extremely hard to realize. Upon examining the future prospect of revenue generated from advertising, it can be said that the estimated 31% growth rate cannot be achieved. First of all, given the online advertising market size, and current Facebook market share, Facebook will not be able to achieve the projected annual growth. In 2011, Facebook’s share of the online advertising market is 27% of the $25B industry. It is projected that the online advertising sector will grow to $45B in 2015, and given Facebook’s current market share, Facebook should be able to generate $12.15B in advertising revenue in 2015. However, this only accounts for 20% CAGR. Second, it is uncertain whether Facebook will be able to continue maintain its 27% market share. Facebook disclosed to the public that its current advertisers do not have long-term advertising commitment with Facebook, and many of its advertisers only spend a small proportion of their marketing budget with Facebook. In addition, many companies have started to question the effectiveness Facebook ads. Facebook differentiates its service by emphasizing the premise that ads are more effective if a friend recommends it on Facebook compares to traditional online advertising. It can be observed that companies, such as GM, are starting to doubt the effectiveness of the so-called social advertising by pulling out their ads on Facebook. This can significantly impact Facebook’s share of online marketing in the future. In addition, Facebook disclosed to the public that it might not be able to retain advertisers if it does not reduce its current ad price. However, considering that Facebook is already pricing its ads lower compares to other websites – Facebook charges $0.58 per click vis-à  -vis the industry norm of $1, it is hard to argue that Facebook will maintain its current revenue level even if it retains 27% of market share as it continues to reduce its ad price. Given the factors mentioned, it can be concluded that the estimated 31% growth rate in advertising revenue is overly aggressive. In addition, Morgan Stanley estimated royalty revenue would grow by 17%; however, by looking at the current royalty revenue, it is unlikely that Facebook will achieve the predicated growth rate. Facebook collects royalty payments from developers that use its payment infrastructure to charge players. Currently, Zynga accounts for a substantial portion of the royalty. Considering the intensified competition that Zynga is facing, and its lack of ability to monetize mobile apps, Zynga will continue to experience sagging growth and will not be able to contribute a substantial amount of royalty to Facebook in the foreseeable future. Thus, it is unlikely that Facebook will achieve 17% growth in its royalty revenue. Lastly, Morgan Stanley made these aggressive assumptions based on the premise that Facebook will be able to monetize its mobile app. However, Facebook has not been able to monetize its mobile app to-date. In addition, with the growing number of users using the mobile app as a substitute for accessing Facebook, Facebook is starting to see a decrease in its revenue, which led to the decrease in its stock prices after the IPO. Overall, the assumptions made by underwriters to justify the $38 per share IPO price are overly aggressive. Estimated fair value of common shares is much lower than $38 Facebook has estimated its Class B common stock to be at $30.89 per share as of Jan 31, 2012, and even if one continues with the aggressive estimation method that Facebook used, one will not reach the $38 per share valuation. Facebook adopted a mix of Discounted Cash Flow Method (â€Å" DCFM†), Guideline Public Company Method (â€Å"GPCM†), and Market Transaction Method (â€Å"MTM†) to determine its business enterprise value and fair value of its private share price prior to the IPO. To achieve the price of $30.89, Facebook assigns a 50% weight to the MTM, where it considers the volume of transaction of its private shares, the timing of these transactions, the pricing of private shares in the secondary market, and whether the investors involved in the transaction have access to Facebook’s financial information. It then assigns 25% weight to GPCM and DCFM each to determine fair value. GPCM uses multiples of financial ratios in comparable companies in the same industry, and DCFM sums up the net present value of future cash flow at a discount rate of 15%. The discount rate is conservative, given the risk free rate is at 2.3%, beta for IT services is at 1.06, and the market risk premium of 7%. The assigned weight of the method is questionable. Facebook assigns a significant weight to MTM due to the large volume of third-party private stock sales. But considering that the volume transaction and pricing of the private shares were driven by the hype of the Facebook IPO and the positive reactions from the market prior to the IPO, it is hard to justify that the MTM valuation represents the true value of Facebook instead of an inflated hyped-up value. It is arguable that Facebook should have assigned less weight to MTM, and more weight to DCFM and GPCM. In addition, it is hard to justify the $7.11 increase of fair market value in a span of 4 months considering that Facebook share only increased by $5.35 in estimated fair market value between 2011 and 2012. The methods discussed above and the historical estimates support the conclusion that Facebook IPO price is over-priced. Comparable Company Valuation The last reason is based on multiples generated by comparable companies, namely Google and Apple, it can be calculated that Facebook valuation is not close to the $96.6B valuation. See Appendix A. Market Reactions The market has perceived the IPO with positive remarks. One analyst even valued Facebook to be at $234B compares to the $96.6B IPO valuation. Most analysts either thought Facebook was valued right on the spot or thought it was undervalued. The hype about the stock was more obvious in the private market. Prior to its IPO, Facebook stocks were trading at a high of $42 compares to its $30 estimated fair market value. In contrast, immediately after the fall, most analysts jumped on the bandwagon of claiming the underwriters have overvalued the company. Some investors even blamed Mark Zuckerberg for failing to signal to the investors that the company has been overvalued. The difference in market reaction showcased three shortfalls in valuation. They are objective valuation method that fails to account for dynamic business environment, asymmetry of information, and low level of corporate governance. First, the valuation method that most analysts used to valuate Facebook is based on some types of discounted cash flow method. Analysts will look at future growth prospective of the company, and discount the estimated profit by a discount rate that would be appropriate to capture risks that are foreseeable given the historical financial record. In addition, the traditional discounted cash flow method depends on obtaining information that would allow one to correctly forecast future earnings and free cash flow, and to assess the strength of company management and future earning abilities. The model ignores that companies could change their business practices to the dynamic business environment that cannot be properly valuated based on historical data. Facebook does not provide adequate information to allow analysts to generate reliable valuations. It has limited record of its profits, its revenue has been highly volatile, and the business environment it operates in changes frequently. One instance that the underwriters may have overlooked is Facebook’s ability to monetize its mobile app as mentioned above. The underwriters may have ignored the importance of substitution of web-accessed Facebook usage by the mobile app accessed usage at the time of the valuation given that this risk was not reflected in historical revenue record. The second challenge relates to valuation is asymmetry of information, which is arguable that it had drove up investor expectation that a â€Å"free lunch† scenario will take place. Morgan Stanley was sued and fined for only disclosing softer revenue and profit forecasts to selective investors prior to the IPO and for failing to disclose the cannibalization of Facebook revenue by the increasing popularity of its mobile app adequately to retail investors through the prospectus. Investors with the additional information were able to make a better-informed decision of whether to purchase Facebook share or not. The asymmetry of information also led to market hype. Investors, without the softer revenue and profit forecasts, interpreted the market price to be much higher than the private trade price prior to the IPO and the IPO price. This drove the private share price to $42 from $34 on the secondary market. Investors thought by buying shares before IPO, they would be able to rip a bigger profit considering that the market price will be higher than $38. Lastly, the asymmetry of information led investors to believe that it will be extremely hard to buy Facebook stocks at IPO price given the mentality that the demand for the shares will not meet the supply despite the fact that  ¾ of Class B shares are locked in to be sold at a later time. The market hype, combined with the surging demand of shares and the lack of investor rationality drove the valuation of the company to be higher than what it really is. The last challenge is the lack of corporate governance. As investors have pointed out, the CEO of the company and the underwriters should have disclosed the information adequately in the prospectus. The lack of corporate governance could be driven by the lack of serious fine for improper disclosure of information. Morgan Stanley was only fined $5M compares to the $68M underwriting fee it gained from the deal. Also, the lack of governance was driven by hubris and greed. The underwriters stand to gain a bigger underwriting fee for a higher IPO price, and the company stands to gain more capital for higher IPO price. In addition, it is also easier for the underwriter to justify its valuation for a company that cannot be properly valuated based on the traditional discounted cash flow method. The combinations of driver lead to lack of corporate governance in this case. Suggested Valuation Method It is suggested that analysts and Facebook should have used real options to valuate the company given the volatility of the business environment Facebook is in, and the ever-changing business practices to meet these volatilities. Real option valuation allows the company to include R&D, brand development, and technology initiatives to be built into its valuation. It is also flexible enough to account for company’s ability to change its business practices in the future. Valuation will change in accordance to the options that management will take to delay, expand, contract, switch uses, outsource or abandon projects. Real options would allow Facebook to valuate its new platforms, new mobile apps, and new technology initiatives to renovate Facebook’s current operations. In addition, real option does capture the benefits of discounted cash flow model by assigning weights to future cash flow given the past company performance in the market. Given the current Facebook operation model, it is commended that real options should be used to valuate the company. Conclusion It is extremely hard to valuate a company properly, especially given a company, such as Facebook, which does not have a long history of stable income nor information that would solidify its future earnings. Market reaction prior to and after the Facebook IPO indicates issues within the current valuation models that companies and analysts are using. It is recommended that companies should start to consider using the real option method to valuate companies with similar business characteristics as Facebook. Bibliography Primary source: Facebook. (2012). Registration statement – facebook inc.. (p. 47). Retrieved from http://sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm. Secondary source: Berthelsen, C. (2012). Massachusetts hits morgan stanley on facebook ipo. 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Calculating value during uncertainty: Getting real with â€Å"real options†. Retrieved from http://www-935.ibm.com/services/hk/igs/pdf/g510-3248-calculating-value.pdf. Martin, S. (2012). Zynga shares slide nearly 5%. USA Today, Retrieved from http://www.usatoday.com/story/tech/2012/12/17/zynga-apple-app-store-ios-iphone/1775403/. Olanoff, D. (2012, 12 17). Morgan stanley fined $5m over facebook research and handling of ipo by massachusetts. Retrieved from http://techcrunch.com/2012/12/17/morgan-stanley-fined-5m-over-facebook-research-by-massachusetts/. Raice, S. (2012). Is facebook worth $100 billion? . Wall Street Journal , Retrieved from http://online.wsj.com/article/SB10001424052702304584404576442950773361780.html. Smith, R. (2012). Hot item: Pre-ipo facebook shares. Wall Street Journal , Retrieved from http://online.wsj.com/article/SB10001424052970203833004577249512827646658.html. US Treasury. (2012). Daily treasury long term rate data. Retrieved from http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=longtermrate. ——————————————– [ 1 ]. Facebook. (2012). Registration statement – facebook inc.. (p. 47). Retrieved from http://sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm. [ 2 ]. Ibid. p.1 [ 3 ]. Ibid. p.13 [ 4 ]. Olanoff, D. (2012, 12 17). Morgan stanley fined $5m over facebook research and handling of ipo by massachusetts. Retrieved from http://techcrunch.com/2012/12/17/morgan-stanley-fined-5m-over-facebook-research-by-massachusetts/. [ 5 ]. Ibid. [ 6 ]. Raice, S. (2012). Is facebook worth $100 billion? . Wall Street Journal , Retrieved from http://online.wsj.com/article/SB10001424052702304584404576442950773361780.html. [ 7 ]. Ibid. [ 8 ]. Supra Note 1 at p.13. [ 9 ]. Gustin, S. (2012). Do facebook ads work? . Time Magazine, Retrieved from http://business.time.com/2012/08/07/do-facebook-ads-work/. [ 10 ]. Buley, T. (2009). Facing up to facebook’s value. Forbes, Retrieved from http://www.forbes.com/2009/04/06/facebook-advertising-rates-technology-internet-facebook.html. [ 11 ]. Martin, S. (2012). Zynga shares slide nearly 5%. USA Today, Retrieved from http://www.usatoday.com/story/tech/2012/12/17/zynga-apple-app-store-ios-iphone/1775403/. [ 12 ]. Supra Note 1 at p.14. [ 13 ]. Supra Note 1 at p.76. [ 14 ]. Ibid at p.77. [ 15 ]. Ibid. [ 16 ]. Damodaran. (2012). Betas by sector. Retrieved from http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/Betas.html; US Treasury. (2012). Daily treasury long term rate data. Retrieved from http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=longtermrate. Re = 2.3%+1.06(7%) = 9.72% Facebook does not have any long term debt. [ 17 ]. Supra Note 1 at p.78. [ 18 ]. Ibid at p.77 and 78. The estimated fair value of Facebook’s shares $25.54 on Mar 31, 2011, and $30.89 on Jan 31, 2012. [ 19 ]. Supra Note 6. [ 20 ]. Smith, R. (2012). Hot item: Pre-ipo facebook shares. Wall Street Journal , Retrieved from http://online.wsj.com/article/SB10001424052970203833004577249512827646658.html. [ 21 ]. Joiner, S. (Interviewee), & Ruggeri, C. (Interviewee) (n.d.). Valuation issues in a down market Mergers and Acquisitions series : Part 1. [Audio podcast]. Retrieved from http://www.deloitte.com/view/en_LB/lb/centers/cfo-center/3e9619288f709210VgnVCM200000bb42f00aRCRD.htm?theme=cfo. [ 22 ]. Berthelsen, C. (2012). Massachusetts hits morgan stanley on facebook ipo. Wall Street Journal , Retrieved from http://online.wsj.com/article/SB10001424127887324407504578185580869680410.html. [ 23 ]. Supra Note 20.