Business Valuation and Financial Analysis Essay

Business Valuation and Financial Analysis - Essay Example ATO is an indicator of the efficiency of utilization of assets to generate earnings for the company, and a forecast of this indicator ATO is provided in table no. 2. The value forecasted is considered to be stable over the next five years. Furthermore, it was necessary to forecast the net dividend payout and taking into consideration that it is usually a stable indicator over the years, it was considered to be 35%. The small percentage considered has the intuition that the company will reinvest the other part of the profit in investments, which can provide growth to the company (Fabozzi and Drake, 2009). The forecast for this indicator is provided in table no. 4. The last indicator forecasted was the after-tax cost of debt, which is important considering also the level of leverage of the company (depicted in figure no. 2). The value for this indicator is considered to be stable and is provided in table no. 5. The forecasted leverage is decreasing for the period 2011-2013, and after that is considered an increase in the amount of borrowed resources. A higher leverage ratio can be attractive for the company because debt is deductible, and can be more beneficiary for the company. In order asses the company’s performance for past years and opportunities for the future years, it were analyzed some financial ratios because (Elliot and Elliot, 2011). These financial ratios were computed by using information from the balance sheet and income statement. According to Needles and Powers (2010), the liquidity ratios (e.g. current, quick ratios) measure the company’s ability to meet its short-term obligations. An overview of the most important financial ratios is provided in table no. 6. In order to reach the forecasted sales growth ratios the company will need to invest more in marketing for its products, and probably a more

What Opportunities Made Cinemexs Success Possible Finance Essay

What Opportunities Made Cinemexs Success Possible Finance Essay Several factors made it possible for Cinemex to emerge as a highly successful exhibition movie theatre chain. First, the Mexican exhibition market was highly regulated for decades and these regulations established a fixed, low ticket price. This provided a disincentive for exhibition owners to invest in their properties since they were unable to raise ticket prices to compensate for their investments. The end-result was a growing collection of old and dilapidated theatres. When the regulations were lifted, Cinemex co-founders Matt Heyman, Adolfo Fastlich, and Miguel Angel Davila believed that an opportunity to provide a high-end movie watching experience by constructing state-of-the-art theatres existed. The team followed a strategy of differentiation through branding. Cinemex improved moviegoers experiences by installing larger screens, providing better sound, employing courteous staff, and making other improvements over what was considered the typical Mexican exhibition. Based on t he information available, this quality advantage seemed to last at least until Cinemex was acquired by Canadian buyout firm Onex. Next, Cinemex capitalized on the declining value of the peso in late 1994 and early 1995. This decline allowed Cinemex to purchase land at a cheaper price. Furthermore, it fortuitously (for Cinemex) discouraged potential competitors in the high-end field, such as AMC and Lowes, from entering the Mexican market. The value of the Mexican Peso continued to substantially decline. This made it continuously cheaper for Cinemex to use US Dollars to purchase new land to build Mexican movie theatres. Further, the improving Mexican economy, population growth in Mexico City, and continued emergence of middle class in Mexico all provided opportunities for Cinemex. Graph the time series of attendance and prices for each Wednesday in 2001. What factors account for the week-on-week differences in attendance for Cinemex and the city as a whole? What is the interpretation in terms of a demand curve? Several factors account for the week by week differences in attendance for Cinemex and Mexico City theatres. Factors such as the ticket price, time of the year, popularity of current films, local weather conditions, and timing of holidays all made attendance highly variable from week to week. In terms of the demand curve, it may move out or in depending on the combination of the above variables. In Spring 2001, Cinemexs main competitor introduced 2-for-1 pricing. Describe, in conceptual terms (and using a demand diagram), the effect this had on Cinemexs demand curve. In the same diagram show the effect of Cinemexs price response. Conceptually, when Cinemexs competition introduced 2-for-1 pricing, the demand curve for Cinemex moved in (or left). At a given ticket price, a certain percentage of moviegoers who would typically choose to see a film at Cinemex would instead choose to forego the additional quality of Cinemexs theatres and take advantage of Cinemexs competitions lower prices. In the chart below, D0 (blue line) is the demand at a given price for Wednesday showings at Cinemex before the 2-for-1 pricing was introduced by competitors. D1 (red line) represents the reduced demand for Cinemex after 2-for-1 pricing was introduced by competitors. Finally, the bullet point outlined in yellow on line D1 reflects Cinemexs new Wednesday 2-for-1 price. 0: Equilibrium before price changes 2: Cinemex lowers price on Wednesdays 1: Cinemex demand moves left after competitors introduce 2-for-1 pricingC:Program FilesMicrosoft OfficeMEDIAOFFICE14BulletsBD21298_.gifC:Program FilesMicrosoft OfficeMEDIAOFFICE14BulletsBD21434_.gifC:Program FilesMicrosoft OfficeMEDIAOFFICE14BulletsBD21434_.gifC:Program FilesMicrosoft OfficeMEDIAOFFICE14BulletsBD21434_.gifC:Program FilesMicrosoft OfficeMEDIAOFFICE14BulletsBD21298_.gif Please note, D1 is shown to the left of D0 since we are speaking in conceptual terms. In actuality, other factors beneficially impacting Cinemex may place the true location of D1 to the right of D0. Further, the price change took place over a year after the initial placement of D0. Therefore, there is some time for beneficial factors to have a sum impact that is relatively more positive than the negative impact Cinemex competitors price drop would have. We explore these possibilities in later answers. How would you construct a counter-factual scenario for what would have happened had this 2-for-1 pricing by competitors not occurred? [Suggestion: one useful place to start might be to compare 2001 to 2000. Explain your answer in terms of the diagram you drew in the previous question. The 2-for-1 pricing by Cinemex competitors did not occur until after week 13 in 2001. Therefore, by comparing the weeks 2 through 13 in 2000 and 2001, we can estimate the increase in attendance from comparable periods in the remaining weeks. This growth factor, or ratio, can then be applied to the 2000 attendance figures in order to estimate what the attendance in 2001 would have been if Cinemexs competitors had not put forth the 2-for-1 deal. Applying the growth factor eliminates the effects of Cinemexs competitors 2-for-1 deal and creates counterfactual data that takes into account other socioeconomic factors driving increased attendance over time. These socioeconomic factors include low unemployment, low inflation, population and GDP growth, and the continued emergence of the middle class. Essentially, this methodology allows our team to reconstruct the original demand curve (D0) and account for growth in the overall market. Construct this counterfactual for attendance. Discuss how you isolate the effect of the competitors price change from the effect of all the other things pushing demand around (the stuff you discussed in part (b)). Be clear about the extent to which you are able to do this (remember no analysis of real data is ever perfect in this regard, but it is important to be able to spot the limitations of whatever methodology you do employ). The table below illustrates attendance at Cinemex on Wednesdays. Weeks 2 through 13 can be analyzed between 2000 and 2001 to determine a growth factor for Cinemex. This growth factor is determined by taking the ratio between the average attendance numbers of 2000 and 2001 for Block 1. In this case, the growth factor is equal to 1.09 (it is the same between 2001 and 2002). The predicted Cinemex attendance for 2001 (depicted in the table below) is determined by multiplying the 2000 attendance numbers, for Blocks 2 through 5, by 1.09. The result of this calculation gives the attendance numbers that Cinemex would have seen had its competitors not established the 2-for-1 deal. Wednesday Attendance Figures Cinemex 2000 2001 (without 2-for-1) 2001 (with 2-for-1) Block Weeks Actual (Avg) Predicted (Avg) Actual (Avg) 1 2 to 13 51602 56445 56445 2 14 to 22 60762 66231 57305 3 23 to 27 66626 72622 67124 4 28 to 34 97717 106511 105479 5 35 to 48 46195 50353 *60642 NOTE: The year was broken down into 5 blocks in order to better analyze the effect of seasonal demand. Week 1 and weeks 49 to 52 were omitted due to the volatility of the holiday seasons attendance. Also, predicted and actual numbers match for Block 1 due to this period being utilized for determination of the growth factor. *- Indicates that both Cinemex and its competitors are using 2-for-1 pricing. Using this counterfactual, quantify the impact of competitors 2-for-1 pricing in Cinemexs Wednesday attendance? Our team analyzed the difference in predicted and actual weekly attendance on Wednesdays at Cinemex during the time period when Cinemexs competitors utilized the 2-for-1 deal and Cinemex maintained its pricing (Blocks 2, 3 and 4). The data indicates that the competitors 2-for-1 deal adversely impacted Cinemexs actual attendance. We observe attendance figures that are lower than the predicted attendance figures. The below table quantifies the average weekly impact of the competitors 2-for-1 deal. To arrive at the estimated dollar impact, we multiplied the difference between predicted and actual attendance by the average ticket prices during each Block. For example, the average ticket price during Weeks 14 to 22 was $20.98. Therefore, $20.98 times 8962 equals $187,288.41. Weekly Impact on Cinemexs Wednesday Attendance 2001 2001 2001 Block Weeks Predicted minus Actual (Avg/week) % Dollar Value of lost Attendance (Avg/week) 1 2 to 13 0 0.00% $ 0.00 2 14 to 22 8926 -13.48% $ 187,288.41 3 23 to 27 5498 -7.57% $ 114,216.15 4 28 to 34 1032 -0.97% $ 21,552.93 Please note, Block 5 was not included in this impact analysis because it encompasses the time period during which Cinemex matched its competitors 2-for-1 deal. Cinemex was most adversely impacted during Weeks 14 to 22 and Weeks 23 to 27. Fortunately for Cinemex, the 2-for-1 deal offered by competitors had only a minimal impact on the summer months. This is likely due to the superior quality of socioeconomic conditions and movies offered during this time (i.e, summer blockbusters). It appears that individuals are willing to pay a higher price to watch superior movies in a superior environment. Overall, Cinemexs actual attendance during Weeks 14 to 34 was 1,589,718. Our team predicted that had the competitors not implemented a 2-for-1 pricing strategy, Cinemex would have had attendance numbers of 1,704,766. This represents an impact of 6.7%, or 115,048, on attendance over the 21 week period in which Cinemex did not offer a 2-for-1 deal and its competitors did. Taking the average ticket prices during Blocks 2, 3, and 4 ($20.98, $20.77, and $20.88 respectively) and multiplying it both actual and predicted revenues allows us to evaluate the dollar impact. Total actual revenue was $33,213,977 and predicted revenue was $35,621,524, a difference of $2,407,547 or 6.76%. Building on the strategy you developed, quantify the impact of Cinemexs own 2-for-1 deal on its Wednesday attendance? Discuss your methodology in terms of a demand diagram framework. Cinemex matched its competitors 2-for-1 deal in Block 5. Based on the data, it appears that this time period has reduced demand compared to the summer months. Demand appears to be similar to Block 2 (Weeks 14 to 22). Therefore, had Cinemex not matched the 2-for-1 deal and maintained their prices, we assume that their attendance numbers for Block 5 would have dropped by the same percentage as Block 2, or 13.48%. Wednesday Attendance Figures Cinemex 2001 No 2-for-1 Deals Both Use 2-for-1 Only Competitors Use 2-for-1 Block Weeks Predicted (Avg) Actual (Avg) Predicted (Avg) 5 35 to 48 50353 60642 43565 As illustrated in the table above, Cinemexs actual average weekly attendance during this period was 60,642. Cinemexs predicted average weekly attendance for Block 5, assuming no 2-for-1 deals, is estimated by using the aforementioned 1.09 growth factor. This provides an estimate of an average weekly attendance of 50,353. If Cinemex had not engaged in the 2-for-1 deal, and its competitors did engage in the 2-for-1 deal, then we predicted the average weekly attendance for Cinemex would decline the same as it did in Block 2, by 13.48% of the No 2-for-1 Deals figure, or a total weekly average of 43,565. This decrease is identical, in terms of percentage (13.48%), as the predicted impact of competitor pricing on Block 2. Blocks 2 and 5 represent the worst case scenario for Cinemex in terms of attendance totals and represent the point of highest demand elasticity. Overall, Cinemexs actual attendance during Weeks 35 to 48 was 848,988. Our team predicted that if Cinemex chose to not use the 2-for-1 promotion, attendance would have been 690,910. This is a difference of 239,078. The actual average ticket price for Block 5 was $15.20. Our team assumed that the average ticket price would have remained roughly the same in Block 5 as it had been in Blocks 2, 3, and 4 had Cinemex not chosen to do the 2-for-1 promotion. The average ticket price for Block 5, therefore, would have been the same as the average ticket price for Blocks 2, 3 and 4, or $20.88. This results in actual ticket revenue of $12,908,555 versus predicted revenue of $12,734,921. The 2-for-1 promotion improved ticket revenue by $173,634.h) Extending the analysis from the previous question, provide an estimate of Cinemexs demand elasticity (with respect to its own price) for Wednesdays. Extending the analysis from Part G, two points on the D1 demand curve have been established and the elasticity (within the 2-for-1 market) can now be estimated for Wednesdays. At the $15.20 ticket price, elasticity is -0.75. This represents a relatively inelastic demand and Cinemex should increase price. Demand Elasticity Estimate Cinemex Block 5 Attendance Block 5 Attendance Cinemex Not Using 2-for-1 Cinemex using 2-for-1 Attendance 43565 60642 Price $20.88 $15.20 Elasticity -0.75 The equation for the 2001 Cinemex Demand Curve is: , or, in other words, . Knowing that ; we can determine elasticity at any point of the curve. Taking the derivative of the Demand curve gives us: ; and so the elasticity equation becomes: ; for any point along the demand curve. Bottom line: Was Heyman right to match the 2-for-1 pricing? Discuss Our team believes that Cinemex should not introduce yearly 2-for-1 pricing. As illustrated in the chart below, our team developed a scoring system to determine which pricing strategy would be most effective. Cinemex Employs 2-for-1 Deal 2-for-1 customer Regular customer 20.43% 79.57% Revenue Ticket Price $15.20 $15.20 Concession Per Person $10.00 $13.96 Other Revenue Per Person $0.20 $0.24 Total Revenue $25.40 $29.40 Expenses Concession Expense Per Person $2.70 $3.77 Payroll Per Person $3.82 $3.82 Supplies Per Person $3.18 $3.18 Occupancy Expense Per Person $6.10 $6.10 Total Expenses $15.80 $16.87 Total Income Per Person $9.60 $12.53 Weighted Average $11.93 x20.43% Attendance Growth Final Score $14.37 The following assumptions were made: We took year 2000 actual attendance for Block 5, multiplied by the expected growth rate of 1.09, and arrived at 50,353. From here, we saw the actual attendance in 2001, when Cinemex did match prices, to be 60,642. This is an increase of 20.43%. Therefore, on average, we expect a 20.43% increase in attendance as a result of the 2-for-1 promotion. This increase in customers would be made up of a stingier group of individuals. These individuals, instead of paying $13.96 on average for concessions, would pay $10.00. Also, the other revenue would drop by roughly the same proportion to $0.20. We found the average income per moviegoer and arrived at the weighted average of $11.93. Then, seeing as attendance increased by 20.43%, we arrived at a final score for this solution of 14.37. Finally, we assumed screen advertising would stay the same since Cinemex is now playing to more full theatres rather than half-empty theatres. Argument can also be made that scale could reduce per-ticket costs, but we did not believe the attendance boost was substantial enough for that. In contrast, had Cinemex not implemented 2-for-1 pricing, the final score would be higher, 18.51. Cinemex Does Not Employ 2-for-1 Deal Regular customer Income Ticket Price $21.18 Concession Per Person $13.96 Other Revenue Per Person $0.24 Total Revenue $35.38 Expenses Concession Expense Per Person $3.77 Payroll Per Person $3.82 Supplies Per Person $3.18 Occupancy Expense Per Person $6.10 Total Expenses $16.87 Total Income Per Person / Final Score $18.51 The final score here is 18.51, higher than 14.37. This is because Cinemex cant discriminate against the type of customer. By reducing the ticket price for all customers, it negatively impacts its box office revenues. 80% of the customers would have attended had prices not been reduced. Furthermore, our assumption that the growth will be fueled by stingier customers reduces concession stands sales. These factors combine to make it a money-losing proposal to offer 2-for-1 deals. If Cinemex could somehow strategically target certain Wednesdays or certain customers, the 2-for-1 proposal may be more viable. Overall, as it stands now, Cinemex should not offer a 2-for-1 deal for all Wednesdays.

Step into my Parlor… : Perceptions of Cultural Survival among the Kyapo and Yanomani :: Essays Papers

Step into my Parlor†¦ : Perceptions of Cultural Survival among the Kyapo and Yanomani When caught in the web of global media, the â€Å"cultural survival† of indigenous communities becomes a potent international issue. As affirmed in a 1997 UN declaration, international communities receive, â€Å"with gratitude, the message of harmony and respect for all life brought to us by ancient [indigenous] people whose culture may†¦make a worthy contribution to the world community† (Neizen 2). With the â€Å"politics of shame† winnowing away at the public integrity of Brazil, the two cultures of the Kayapo and Yanomami are strategically set in the international web as endangered peoples suffering â€Å"onslaught of civilization†, yet still worth some â€Å"contribution to the world†. Yet to what degree is their â€Å"worthy contribution† qualified by dominant international definitions of their ‘culture’? The global reception of "threatened" indigenous cultures is colored with pre-existing values and assumptions. In contrast to the dominant consumerist culture pulsing in global politics, indigenous groups are seen to offer elements of fantasy rather than diplomacy, and provide a kick-back to the â€Å"primitive† ideology of early man. As the general public enjoys indigenous romanticism like a favorite Hollywood movie, romanticizing indigenous cultures through media is quite common. Yet, romanticism creates an indigenous cultural dichotomy. Sustained interaction with governments broker change among indigenous people and elements of culture assimilate. Interaction provokes Kayapo demands for goods â€Å"from fish hooks to cooking pots† (Rabben 48). The Kayapo became dependent on whites â€Å"for goods they wanted but had no way of producing themselves† (47). Dominant society assumes that â€Å"cultural survival† is only achieved by preserving a static and untransformed people. To safe guard indigenous authenticity and exotic appeal, the common assumption is such that native ways of life must not be influenced or changed in anyway. However, to survive as a people in the modern world, indigenous cultures must be aware of their civil rights, for negotiations with imperialistic governments are essential. In 1981, the Kayapo were cheated out of 99.99% of their mining profits because they did not know â€Å"enough arithmetic to perceive the trick† in the white man’s contract (71). Only after years of litigation were they able to win 5% profit. The Yanomami are constantly pressured to â€Å"assimilate into Brazilian society as the poorest of the poor† rather than remain a fractioned culture (86). â€Å"Cultural survival† thus becomes a question of protecting the collective rights of an indigenous people from governmental abuse, while educating the people to the extent that they people may choose and protect their own future in a world of inescapable influence.

Old aged and retired people Essay

The new customers can be the group of old aged and retired people, which have not been addressed before. This potential group can also play an important role in the expansion of the customer base. Since by satisfying the needs of this group Bob’s Bicycle can get exposure to other customers group. Hence by selecting the group from the target market which have exposure to more masses the number of addressed individuals can be increased without putting additional efforts. Young and Adults: The youngster can also play an important role in the expansion of the customer base masses. 2. 4 Long Term Objectives: After achieving short-term goals, the vision of marketing plan will be enlarged to the long-term goals, which are as follows: SMART Objectives for the Bob’s Bicycle Objectives Activity Time Scale Required Responsibility Promotional Objective: Improvement in promotion by introducing new methods. methods 1. By implementing Web based advertising. 2. By sending e- newsletters. 3. By using the relationship with media more effectively. 4. By hanging billboards on important educational places January 2009 Marketing Staff. Market Share Objectives: Increase in visitors for 25% 1. By using aggressive marketing techniques. 2. By gaining knowledge about the competitors steps through continuous research 3. By continuous performance evaluation and improvement. 4. By introducing new services. January 2009 Management & Marketing Staff. Profitability Objectives: Increasing revenue for 30-35% 1. After gaining promotional and market share objectives. Increase in profit to be attained by continuing above-mentioned tasks. 2. By introducing new and attractive programs for other age groups. 3. By improving the presentation of shop. June 2009 Management Product variety variables: Bob’s bicycle should apply the strategy of unique special features to offer its customers such as maps and information regarding different routes in London and outside London. The company should undertake special educational programs for the school children. Programmes should also be arranged for special social groups. Services: A range of customer services should be provided to serve the needs of customers. Arrangement will be made in future for the needs of special customers. To facilitate the facility to use credit cards and other modes of payments will be implemented. The reservations for institutional can be undertaken on Internet. Customer satisfaction will be seen as the foremost priority. A comment box will be placed at the most prominent place in the outlet and in all the shops to take the comments of the visiting customers, which will help, in undertaking service betterment process. The customers will also able to register their complain through these boxes and on Internet. The quick complaint handling will be undertaken in order to satisfy the customers. Position: In order to increase the sale income and generate the revenue the company needs to attract the customers from the target group of old ages and retired people as they will constitute the major part of the population in the UK in coming years. The second important group, which needs to be targeted, is the school going children and youth. Price: Keeping reasonable and competitive prices can increase the income of the Company. Special discount programs can be announced to old aged and retired customers. Establishment design: Interior layout will be designed in an effective manner to attract the customers. All the items in the shop must be displayed in an easy to reach and highly visible manner. To keep the environment clam and pleasing atmospherics—scent, lighting, colour, mirrors and music, should be used. Promotion: In order to establish a brand image it is strongly suggested that the company should establish a logo and advertising message. In order to promote the products and services to the target audiences the management needs to follow the persuasive advertising. Advertisements can be given in newspapers and magazines. The company can place ads in trade publications/tourism guidebooks in order to attract the earning individuals. In order to effectively approach the target market it is important to advertise on television on regular basis. Another cost effective technique is to send mails and promotional promos through Emails. Another important approach is telemarketing. Direct mail is another option. The advertisement campaign should include direct mailing, ads in magazines and newspapers, advertisements on Internet and promotional emails. In order to undertake a frequent strategic evaluation an annual plan control should be undertaken through setting small term objectives. The management should keep on analysing the performance in the market place. If there is deviation in the performance from the goals specified in the annual plan the reasons should be analysed. Conclusion: The company can take the advantage of the product differentiation but in order to make the most of it is important to design a successful marketing plan to support the strategy of the company. Marketing variables play an important part in the presentation and exposure to the target population. Age and geographic variables are also important factors. It is important for the company to target new segments in order to remain at the cutting edge. In order to remain competitive in the market it is important to present timely and effective information for the target population. The creation of a proper Marketing Information System and its updating on regular basis is very important for the Bob’s Bicycle to not only keep its presence felt but also to increase its marketing share. A step by step marketing plan should be undertaken in order to achieve the desired result. The management should undertake an annual evaluation of the plans and goals designed to achieve. This will help the company to correct its action towards the right direction. Continuous updating and promotion will make it possible for Bob’s Bicycle to achieve its goals in future. References †¢ Kotler, P. , (2000). Marketing Management, Millennium Edition, Prentice Hall, United States. †¢ Noorwood, G. , (2005). Retirement homes on the coast: The tide is turning away from urban amenities and back towards houses by the shore. Published: 26 October 2005, available at †¢ Warnes, T. , Lowles R. , and Kyeung M. O. , (2002). Older people in Yorkshire and the Humber, Sheffield Institute for Studies on Ageing, University of Sheffield, available from < http://www. ageconcern. org. uk/AgeConcern/Documents/regions_YH-DemographyReport-Part1. pdf> †¢ Woodland, R. , (2008). Cycling in UK schools trebles. News Monday 5 May, 12:01 am BST, Bikeradar. com, available at http://www. bikeradar. com/news/article/cycling-in-uk-schools-trebles-16102.

Is Life Fair? Essay

Is life fair? This is a question which has always been asked by people from all walks of life since time immemorial. It was always asked by people who have less in life. For people from Africa – they who have always been featured in international magazines looking like skeletons wrapped in desiccated skin, life certainly is unfair. They are the people who cannot even eat one whole nutritious meal in one week. They only exist because of the kindness of others. If help comes, then they can eat; if none arrives, they have to forgo eating and patiently wait for another day. They could not even afford to wrap themselves in the flimsiest garment to protect their bodies from the elements. When they get sick – which happens very often because of their state of deprivation – they cannot get their hands on the simplest medicine because none is available to them. They are supposed to be our brothers and sisters in God who were given free will just like ours. However, in their situation, one could not help asking the question: Are they in any position to exercise their free will? The answer is undoubtedly a resounding NO! How could they when they could not even lift a finger to defend themselves from biting insects? They who have been photographed in an apparently weakened state being watched by waiting vultures preparing to eat their remains as soon as they close their eyes in dying surrender? These unfortunate people of Africa could not be heard asking if life is fair because even their voices have already been swallowed by poverty and deprivation. In spite of their silence, however, nobody can deny that life has indeed been very unfair for these ill-fated, luckless, forgotten children of God. The situation in Africa is by all means extreme. One does not need to cite such severe cases nor go to far-off Africa, however, just to establish that life has never, or could never be fair. There are numerous examples of life’s unfairness right here in the country. Even in America, the unequal distribution of wealth is very evident. There are parents who could barely send their children to school because of poverty. There are high school graduates (in fact majority of them) who choose not to proceed to college because they would rather work and help support their families. Some defenders of the American way of life would often flaunt that this is because jobs are readily available in America. This is merely a smoke screen, however. Who would not aspire to have a college degree if given the opportunity? It is not unknown to everybody that the high-paying jobs are only available to college graduates and holders of master or doctoral degrees. As a result, these people enjoy more of life’s blessings than their fellow citizens who work after high school. Of course, there are student loans available to those who qualify. Unfortunately, this program is not readily available to everybody, aside from the fact that the loan has to be paid with interest some years after graduation. Meanwhile, the family members are already reeling from the effects of poverty. So instead of availing of these student loans and go to college, young people choose to work instead. In the meantime, rich kids go to college, work for their master’s degrees and even proceed to the doctoral programs and get as much as five, six, or even ten times higher salaries afterwards. So is life fair in the United States? The picture becomes slightly different when one visits the third world countries. Because college education is comparatively cheaper in such countries, many of the high school graduates could afford to go to college and in fact do so. Unfortunately for them, jobs are not available even to college graduates. Some of the more fortunate find their way to developed countries like the United States and land good-paying jobs. The rest, however, have no other option but to stay at home and basically work for loose change, become underemployed, or even join the ranks of the unemployed despite their diplomas. In such countries, it is usual to find college graduates working as busboys in restaurants, crews in supermarkets, and taxi drivers. Is life, then, fair?