Coke

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I. INTRODUCTION AND PURPOSE

This article illustrates a systematic approach for teaching fundamental investment analysis.

Students analyze the investment potential of a publicly traded corporation. The semester project

consists of three parts a complete ratio and DuPont analysis to determine the current financial

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position of the company, a strategic analysis to determine the major strengths and weaknesses of

the company, and a forecast of the future performance and discounted future cash flow analysis

to determine the companys intrinsic investment value.

II. THE IMPORTANCE OF HISTORIC RATIO ANALYSIS

At the core of fundamental investment analysis is the ability to calculate, analyze, and

interpret the meaning of financial ratios to determine the financial position of the firm. Ratios

are used to discern changing patterns and potential trouble spots that may arise in the future

business life of a firm. They allow the analyst to standardize key financial variables from the

balance sheet and income statement for comparison to industry averages or those of a major

competitor. The semester project requires each student to obtain financial data on his or her target firm

from the SEC website (www.sec.gov) and, using integrative Excel spreadsheets supplied by the

professor, to calculate relevant ratios in the four financial management areas liquidity, asset

utilization, employed leverage, and profitability.

III. ANALYSIS OF THE COCA COLA COMPANY

The Excel spreadsheet (Exhibit 1) is set up with logic statements to make assessments

regarding time-series trends and cross-sectional analysis. The cross-sectional analysis allows the

student to compare his/her selected company to the industry average, while the time-series

analysis allows for a trend comparison over the past three years.

Coca Colas liquidity is substandard when compared with the industry. The current ratio for

16 is below industry average. In addition, its quick ratio also indicates less liquidity than the

industry average with no discernable trend of improvement over the last three years. Therefore,

Coca Colas liquidity position could be characterized as substandard.

The activity ratios reveal a second dimension of the Coca Cola Company. These ratios

indicate the relative efficiency with which the company uses investors assets. The inventory

turnover ratio measures how rapidly the company turns over or uses dollars invested in

inventory. In the case of Coca Cola, there are positive values reported based on industry average

and cross-sectional comparisons. The inventory turnover for 16 was 7.08 in comparison to an

industry average of 5. Likewise, the three-year trend indicates a continual improvement in

inventory turnover. Other activity ratios indicate similar positive results based on both cross-

sectional and time-series analysis.

The third group of ratios deals with the use of debt in the capital structure as well as the

ability to meet interest payments from operating income. Both the total debt ratio and the debt-

to-equity ratio indicate a favorable assessment based on cross-sectional and time-series analysis.

In addition, the times-interest-earned (TIE) ratio indicates that the company covers interest

charges over 16 times. This again compares favorably to the industry average of 15 times.

The fourth category ratios deal with profitability. Coca Colas gross profit margin is clearly

superior in comparison with the industry average. It is also obvious that Coca Cola does a

superior job of cost cutting, resulting in higher operating profits when compared to the industry.

In addition, the net profit margin of 18.8 percent net return on sales compares well to only 15

percent for the industry.

Next, return on total assets also indicates favorable performance. Coca Colas 16 return

on total assets is percent compared to 16 percent for the industry. Further, the return on

equity for 16 was 57 percent, more than twice that of the industry average of percent.

The DuPont analysis for Coca Cola (Exhibit ) allows the students to consider all the parts

that affect the stockholders return on equity. The 16 return on equity of 56.7 percent is a

function of three triggers the financial manager has to control the performance of the firm the

net profit margin, total asset turnover, and the financial leverage multiplier. The strength of the

DuPont system is its ability to dissect the balance sheet and income statement and isolate

financial areas of low performance or concern. A comparison of the firms net profit margin,

total asset turnover, and financial leverage multiplier to the industry averages can pinpoint

area(s) of substandard performance that led to a low average return on equity.

Exhibit

DuPont Analysis 1

14 15 16

Return on Equity 48% 55% 57%

Net Profit Margin 16% 17% 1%

Total Asset Turnover 1.x 1.x 1.x

Financial Leverage Multiplier .7x .8x .6x

1 numbers are rounded

In summary, the ratio analysis suggests superior performance over the last three years. Coca

Cola is an excellent example of a fundamentally sound, long-term growth company that

continues to return to its shareholders in excess of 40 percent return on investment per year. It

meets the criteria of a franchise product company, one whose product is unique with few

substitutes, has a high demand, and has little or no government regulation. In addition, Coca

Cola continues to be an aggressive cost cutter as reflected by a continual increase in the

operating profit margin.

IV. STRATEGIC ANALYSIS

The strategic analysis includes an assessment of the companys strengths, weaknesses,

opportunities, and threats. In addition, the student is required to do an environmental scan of the

industry in order to determine who the competition is, what the relative market share is and could

be, and the degree to which the company has a competitive advantage in both domestic and

international markets.

The Coca Cola Company has many strengths and opportunities and only minor weaknesses

and threats to face. First, the companys product is clearly a franchise-that is its major strength.

Second, its ability to get the product to the customer at the least cost, when they want it, is a

strength that is surpassed only by its advertising prowess. Coca Cola recently entered both the

Chinese and Indian markets with distribution networks that have been in place for a number of

years. Its relative success in these markets will ultimately determine if sales will double every

three years, according to the companys CEO.

The strategic analysis requires the student to consider the non-quantitative factors that

contribute to the overall fundamental soundness of the company. The student is required to

consider these non-quantitative factors in the final analysis of whether the company should be a

prospective investment.

V. FORECASTS OF FUTURE PERFORMANCE

In the final phase of the semester project the student determines the intrinsic investment

value of Coca Colas stock. The intrinsic value is based on the present value of the annual cash

flows the stockholders receive over the next 10 years. Exhibit uses historic data for the last six

years to determine the stockholders cash flow, the annual growth rate of stockholders cash

flow, and the six-year average past growth rate of stockholders cash flow.

EXHIBIT

Return on Equity Calculations

Calculations

11 1 1 14 15 16

Price Per Share 14.884 0.664 1.084 .75 1.8 4

Owners Cash Flow

(NI + Dep - Capl Exp) 1085.4 11.147 175.7 06.75 507.77 40

Annual CF Growth Rate 0.04117 0.5748 0.176 0.116 0.1755

5-Year Average CF Growth .10%

Annual Sales Growth 10% 0.101 0.0686 0.1581 0.1104 0.015

5-Yr Average Sales Growth

Value Added 7.674 0.18 0.8440 7.715 6.4856

Average Value Added $4.7

Owners CF Per Share

0.40848 0.4158 0.6687 0.811056 1.00166 1.187878

Using the 16 shareholders cash flow ($.4 billion) the cash flow to the shareholders is

projected to grow at the six-year average past growth rate (Exhibit 4) over the next 10 years.

Next, using the dividend valuation model, the capital asset pricing model, and the bond

yield-plus-risk-premium model, the investors required rate of return for investing in Coca Cola

is estimated to be approximately 15 percent. This rate is used to discount the stockholders

future cash flows to their present value. Finally the terminal value of Coca Colas stock 10 years

from now is estimated using the dividend valuation model (P 10 = D 11 k s g) and also

discounted to the present value at the investors required rate of return. The sum of the present

value of each of the next 10 years cash flows to the stockholders and the present value of Coca

Colas stock 10 years from now represents the intrinsic investment value of Coca Colas stock.

Finally, the student compares Coca Colas intrinsic value to its actual stock price to make an

investment decision.

VI. CONCLUSIONS

This paper presents a systematic approach, using Excel spreadsheets, to teach fundamental

analysis. The student semester project consists of three major parts, a complete ratio analysis

based on historic financial statements, a strategic analysis that identifies the companys strengths,

weaknesses, opportunities, and threats, and a present value analysis of stockholders future

expected cash flows. The discounted future cash flows to the stockholders represent the intrinsic

value of Coca Colas stock and is compared to the actual stock price.

While the project appears to be extensive, the Excel spreadsheets tend to make short work of

the analysis. Students have found the experience quite rewarding.

V. REFERENCES

Copeland, Tom, Koller, Tim, and Jack Murrin, McKinsey & Company, Inc.,

000, Valuation,

Measuring and Managing the Value of Companies

, John Wiley & Sons, Inc.

Fraser, Lyn M., and Aileen Ormiston,

000, Understanding Financial Statements

, Prentice Hall,

Inc.

Higgins, Robert C., 15,

Analysis for Financial Management

, Richard D. Irwin, Inc.

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Cold War

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Open yet restricted rivalry and hostility that developed after World War II between the U.S. and the Soviet Union and their respective allies. The U.S. and Britain, alarmed by the Soviet domination of Eastern Europe, feared the expansion of Soviet power and communism in Western Europe and elsewhere. The Soviets were determined to maintain control of Eastern Europe, in part to safeguard against a possible renewed threat from Germany. The Cold War (the term was first used by B. Baruch during a congressional debate in 147) was waged mainly on political, economic, and propaganda fronts and had only limited recourse to weapons. It was at its peak in 148-5 with the Berlin blockade and airlift, the formation of NATO, the victory of the communists in the Chinese civil war, and the Korean War. Another intense stage occurred in 158-6 with the Cuban missile crisis, which resulted in a weapons buildup by both sides. A period of dtente in the 170s was followed by renewed hostility. The Cold War ended with the collapse of the Soviet Union in 11.

Open yet restricted rivalry and hostility that developed after World War II between the U.S. and the Soviet Union and their respective allies. The U.S. and Britain, alarmed by the Soviet domination of Eastern Europe, feared the expansion of Soviet power and communism in Western Europe and elsewhere. The Soviets were determined to maintain control of Eastern Europe, in part to safeguard against a possible renewed threat from Germany. The Cold War (the term was first used by B. Baruch during a congressional debate in 147) was waged mainly on political, economic, and propaganda fronts and had only limited recourse to weapons. It was at its peak in 148-5 with the Berlin blockade and airlift, the formation of NATO, the victory of the communists in the Chinese civil war, and the Korean War. Another intense stage occurred in 158-6 with the Cuban missile crisis, which resulted in a weapons buildup by both sides. A period of dtente in the 170s was followed by renewed hostility. The Cold War ended with the collapse of the Soviet Union in 11.

Open yet restricted rivalry and hostility that developed after World War II between the U.S. and the Soviet Union and their respective allies. The U.S. and Britain, alarmed by the Soviet domination of Eastern Europe, feared the expansion of Soviet power and communism in Western Europe and elsewhere. The Soviets were determined to maintain control of Eastern Europe, in part to safeguard against a possible renewed threat from Germany. The Cold War (the term was first used by B. Baruch during a congressional debate in 147) was waged mainly on political, economic, and propaganda fronts and had only limited recourse to weapons. It was at its peak in 148-5 with the Berlin blockade and airlift, the formation of NATO, the victory of the communists in the Chinese civil war, and the Korean War. Another intense stage occurred in 158-6 with the Cuban missile crisis, which resulted in a weapons buildup by both sides. A period of dtente in the 170s was followed by renewed hostility. The Cold War ended with the collapse of the Soviet Union in 11.

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Japanese vs chinese immigatrtion

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The Chinese and Japanese immigrated to America and other countries in search for money. Most who immigrated to America were poor farmers (almost all male) who wanted to find a better life for themselves and their family. The early experience of the Chinese and Japanese immigrants was racism, hard work, and a rough life to adapt in a culture that was not the same as their own.

During the period of the gold rush many Chinese people came to California and sought after the gold in the mountains. At first the Chinese were welcomed into America because they took over jobs Americans didn¡¦t want to do, but than these Chinese were used to deal with white laborers who went on strike. Most Chinese people who immigrated worked at mines, plantations and railways.

After China lost to Britain in the Opium War, there was a dramatic increase of immigration to the U.S. Their self sufficient economy came to a halt and most peasants became bankrupt and had to leave the country in order to survive. Some Chinese immigrants used the credit ticket system to get into the U.S., it¡¦s when they borrow money to get a ticket to the U.S. and they pay the person back with a lot of interest.

There were the Chinese society in the U.S. was mostly a bachelor¡¦s society and some married, the men needed to satisfy their needs, so they went to prostitutes. Women and children were not allowed entry unless their husband or father was a merchant, which was a small percentage of Chinese men. Some even tried to pose as merchants in order to bring their family in.

In 188 the Chinese exclusion act was passed because of the increasing amount of immigrants coming into the country after the disaster in 106 by an earthquake. These Chinese exclusion act prohibited Chinese entry in the U.S. for ten years. Soon after the Chinese exclusion act was passed, there were more Japanese immigrating to the United States.

During the Meiji restoration, the Japanese required farmers to pay taxes on their land. Many farmers began to feel the economic destitution. Hawaii offered a chance for the Japanese to survive. The Japanese government encouraged their citizens to go to America as contract laborers during 1885 to 184. They signed agreements for a fixed pay of nine dollars a month with food, housing, and some medical care. They were told they could save a lot of money if they immigrated to Hawaii. Japan was ruled by a strong central government so there were specific groups of people who immigrated to the U.S., and they were able to control immigration population.

The Japanese worked hard as farmers, laundry workers, grocery stores, and barber shops for the Japanese community. The only real success of the Japanese in these jobs were the farmers, they began to make more rice. Every job required them to work long hours and long weeks; it was a rough life for the Japanese too.

The Japanese didn¡¦t want their citizens to be involved with prostitution, gambling and other bad habits. They allowed the immigration of women to the U.S., unlike the Chinese women who were not allowed in, Japanese women began to over populate the Chinese women that are in America.

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Paradox of value

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Both diamonds and water are scarce resources. A diamond is composed solely of carbon and its formation takes many billions of years. Exposed to intense heat and pressure hundreds of kilometers below sea level, the magical objects of desire are shaped by a powerful, natural process. Water is a daily necessity to each and every one of us. We need to drink water everyday, shower, washing and basically to survive.

Why are diamonds which have relatively little use to society; so costly, yet water which is fundamental to our way of life, so inexpensive?

Adam Smith (17-170) certainly believed that water is necessary for life (we will perish without it). By contrast, diamonds have little of such utility. They are only useful for adornment. It is possible to do without diamonds entirely yet diamonds cost so much more. Smith's "paradox" as it has come to be known, highlights these two incongruous facts

1. If a product's demand is largely dependant on its usefulness, then we would expect water; being the more useful of the two; to command a higher price.

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. Diamonds are more costly.

The scarcity of diamonds will always ensure a high marginal value because an extra pound of diamonds has valuable uses that are not currently being met. Conversely, water is tremendously abundant and thus has a high total value and a low marginal value. A mere extra gallon of water is not particularly important.

For example, we assume that a person consumes units of water but no diamonds. The fourth unit of water would gives her only 10 additional units of utility. However, the first diamond would give her 150 units of utility (the marginal utility of diamonds increases as she consumes more diamonds). Therefore, she would be willing to spend 15 times as much for a 1 carat diamond as for a unit of water.

Conclusion

Consumers clearly get more total utility from water than diamonds. The last liter of water we drink or use in the shower gives us very little marginal utility. However, the last diamond still makes a big difference. People are willing to pay more for extra diamonds than for extra water because diamonds are rare and its value is greater than water. The total utility and marginal utility for diamonds will always increase. William Jevons (185-188) clearly states- "Cost of production determines supply, supply determines final degree of utility, final degree of utility determines value." (Begg, Fischer and Dornbushch, 00, P. 71)

In view of this "paradox", it has been maintained that it is not the usefulness of an object but scarcity that determines its price. Diamonds are expensive because they are rare. Water is inexpensive because it is widely found.

1. Jevons, William. ( 170 ) The Theory of Political Economy, Penguin, Harmondsworth

. Smith, Adam. ( 11 ) An Enquiry into the Nature and Causes of the Wealth of Nations, Oxford University Press, Oxford

. Beggs, David, and Fischer, Stanley and Dornbusch, Rudiger, Economics ( seventh edition ), McGraw- Hill Companies, Inc., 00

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Organizatinal Analysis

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Organizational Analysis of the YWCA

I. Introduction

a. The Young Women's Christian Association states its mission as the following "The YWCA of the United States of America is a women's membership movement nourished by its roots in the Christian faith and sustained by the richness of many beliefs and values. Strengthened by diversity, the Association draws together members who strive to create opportunities for women's growth, leadership and power in order to attain a common vision peace, justice, freedom and dignity for all people" (YWCA Mission). The Richmond branch of the YWCA strives to empower women, children, and families through their current programs addressing family violence, sexual assault, and homelessness.

b. The YWCA currently employs 65 part-time and full-time staff. In addition to the staff, the YWCA utilizes many volunteers and interns to assist the agency in providing various services to women and children in the community. The agency is located in a newly renovated building on 5th Avenue in downtown Richmond. The building is comprised of four levels that have been built to accommodate those with physical disabilities. When entering the edifice, one is located on the first floor that houses the secretary, two conference rooms, the gymnasium, and the only two enclosed offices of the Executive Director and the Assistant Executive Director. The basement is a newly constructed children's center. This location includes several classrooms, a computer room, and a cafeteria. The second floor consists of a break room for the staff, an art room designed for the children, and a large play area that the children partake in many activities including riding tricycles to taking their naps. The third floor contains cubicles that house the student unit, the rest of the full-time and part-time staff (excluding childcare workers), three private rooms for the purpose of counseling services, and a large room utilized for support group meetings. The entire agency atmosphere produces an environment that is conducive to feelings of support, comfort, and an overall sense of openness. This is demonstrated by not only the structure and design itself, but by the employees staffed at the YWCA. Please refer to Figure 1.1 for an organizational chart of the agency.

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c. The YWCA offers a variety of services to women, children, and families located in the Richmond community. For example, the agency maintains two twenty-four hour crisis hotlines operated by crisis hotline specialists and has two confidential emergency shelters for victims of domestic violence and sexual assault. The two shelters are located in the Richmond and Chesterfield areas that each can accommodate twenty women and children. The shelters provide individual and group counseling for women and their children, case management services, employment and legal assistance and childcare for victims of domestic violence, and serve as temporary emergency shelter for victims of sexual assault. The main office, located on 5th street, provides individual short-term crisis counseling for women, men, and adolescents who are victims. In addition, group counseling is available for victims of domestic violence with a concurrent group for their children. Groups are also available for adults and teenagers who are victims of sexual assault. Furthermore, a trained volunteer or staff member is available 4-hours a day to meet sexual assault clients at the hospital emergency room to provide support and information. Another example of the services provided by the YWCA is the childcare program implemented for low and no income families. The YWCA Children's Center is the only source of free childcare for families living in area homeless shelters. As one of Richmond's largest Head Start sites, the YWCA serves over sixty preschoolers each day with comprehensive programming (YWCA Children's Center). After school and during the summer, homeless and low-income children enjoy field trips, homework assistance, and educational activities in a safe, nurturing environment. Last, but certainly not least, the YWCA provides educational programs on the issues of domestic violence, sexual assault, and healthy relationships for organizations, businesses, prisons, schools and youth groups.

d. The YWCA serves women, children, and families of all ages, races, and income levels. Specifically, the agency serves any and all primary or secondary victims of domestic violence and sexual assault. The majority of the client population lives in the Greater Richmond area. However, clients are welcome from any location. Moreover, the agency serves the children of no and low-income

families.

II. Theory

a. The political economy model, as presented in Hutchinson (1), reflects the organizational theory that best applies to the YWCA. This model focuses on the dependence of an agency on environment resources in its ability to function and provide appropriate and necessary services to the community (Hutchinson, 1). Specifically, the political economy model addresses two main resources necessary for such organizations (1) political resources and () economic resources (Hutchinson, 1). The interplay of these two sources results in the overall operation of the agency. It is also important to note that this model recognizes clients as a potential resource for advocacy and power in the political arena (Hutchinson, 1).

b. The YWCA is a non-profit organization that depends on both political and economic resources to fund the agency. Therefore, the actions of the political arena directly effect the operations of the YWCA. If the government officials in power have elected to campaign for issues concerning domestic violence and sexual assault, the YWCA can ultimately benefits from such interactions and attention. Often, when political figures get involved in advocating for domestic violence, private donators become more aware of the need for such services provided by the YWCA. This awareness is a potential avenue to raise donations for the agency. Moreover, political figures make the decisions concerning federal and state laws. These political resources provide potential for additional granting and funds for the organization. In addition, several large organizations and businesses, including United Way and Capital One, provide funding for the YWCA. These funds are accompanied with expectations and obligations by such businesses. Therefore, they claim power over what type of services and programming they would prefer to fund. The YWCA is directly affected by their major contributors in that fashion, often creating limitations for the organization. However, the agency depends on these resources to operate effectively and efficiently. A number of other funds and grants are needed to run the YWCA. Whether or not these grants are approved on a yearly basis, seriously affects the clients, community, and the staff. For example, one part-time staff member was recently dismissed from her position because the grant the agency needed to continue funding her position was lost. As a result, they lost the only staff member that ran the Teen Advocacy Program. Since her departure, the YWCA has had to cancel over thirty scheduled teen public education seminars. Due to the political economy model, these types of decisions are often the result of the interplay between political and economic interest. The YWCA had no other feasible options, because of economic resources, other than to eliminate her position within the organization.

III. Critique

a. The YWCA performs poorly under the political economy model. Unfortunately, due to the nature of a non-profit organization, these conflicts will always be an issue and effect the organization on some level. Because the YWCA is so heavily dependent on political and economic resources, it is not always possible to provide efficient and effective services to clients, nor is there always the possibility of implementing additional programs the community addresses as needs. It is also important to reflect on the aforementioned staff member who was dismissed due to lack of funding. Now that her position is eliminated, the Teen Advocacy Program has no available staff to take her place resulting in the elimination of a community educational program. Therefore, this indicates a lack of efficiency and effectiveness to service those potential client populations. Moreover, the lack of government and overall funding is causing the agency to collapse positions together resulting in staffing patterns that are inappropriate the services being provided. For example, the Director of Domestic Violence has additionally been assigned the position and responsibility of Director of Community Outreach. She is not only handing an abundance of individual domestic violence clients, but is now responsible for follow-up and outreach counseling in the community. It would be impossible for her to adequately, efficiently, and effectively serve each client to the best of her ability. Unfortunately, many of the other staff members are encountering the same problems and issues. Another example are the childcare workers. They often have more children in their care than they can feasibly manage. In addition, they are not trained appropriately to provide the necessary services to the population of children. The problem here arises in the issues of salary. The YWCA cannot afford to hire qualified individuals in their childcare programs. As a result, the programs offered to these children are not performing to their highest expectations. As a whole, there are not enough people within the organization to accomplish the expectations given to them on a daily basis. This could, and probably is, affecting the way clients are being served at the agency. However, there does seem to be a common understanding among management and line staff within each program about problems, populations to be served, services to be provided, and client outcomes to be achieved. The problem arises when such needs, issues, and problems are not being met. Most of the issues concerning efficiency and effectiveness of the YWCA stems from the political and economic resources the organizations depends on for its existence. On a more positive note, the YWCA does utilize their clients as resources in the political arena. Often, the clients return to collaborate with the YWCA on political issues. Together they advocate for new governmental policies and regulations. These collaborations have proven to be effective process for change.

b. The contingency theory should be considered as a possible model that might prove to be effective for the YWCA. This theory states that there is no "one best way" to organize (Hutchinson, 1). It maintains that flexibility within the organization is key to identifying and adapting to the changing environment. Since the YWCA is consistently redefining issues of importance within the community, a more flexible theory would assist in the organization of the agency. However, the failure to recognize the strong influences of political and economic forces regarding the agency may ultimately be a limitation.

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Franklin's Tone

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Franklin's Tone

Benjamin Franklin is a world renowned writer, and essayist, his works have become strong literary works in American history. He has had strong perspectives and opinions in various subjects. One in which he shows the attitude of the early missionaries toward the Indian culture, and religion. "Remarks Concerning the Savage of North America", is an essay in which two men are discussing their beliefs in a certain area of their religion. The Swedish minister explains the story of Adam and Eve, where they eat an apple, and must be saved my Christ. The Swedish minister reveals this history with much pride, and is appreciated by the Indian orator. Thus the Indian orator begin to tell a tale of two young hunters, who gave a piece of their catch to a beautiful woman who needed food, and how the two young men were soon rewarded for their kindness. After explaining this tale to the missionary, he became disgusted, and refused to even think twice at the chance that this might be true. Franklin expresses the minister more on the evil side of the spectrum, because his tone changes while going from the orator to the minister.

Christian beliefs differ in a large way, from those beliefs of the native Americans. And the Christians were not tolerant at all of those people who expressed these beliefs in public, or in any way preached them. The Swedish minister is portrayed as a man who believes that his way of thinking is totally and utterly correct, and is the only belief in the world which has any true meaning. Franklin shows this by the choice of words he uses with the minister. " The good missionary, disgusted with this idle tale,…", by using the word disgusted, Franklin shows that the minister is not going to accept the Native American story, but try to tear it down, and make the orator feel insignificant.

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The Indian is shown as an accepting humble person, and Franklin obviously appreciates this way of thinking. By portraying the Indian orator as a gracious man. "When he had finished the Indian orator stood up to thank him…", this is showing that Franklin, likes the orator, because he is portraying him as the humble victim, who does not understand the hostility used in the ministers deliverance of the tale.

"What I delivered to you were sacred truths; but what you tell me is mere fable, fiction, and falsehood.", this is a direct quote from the minister himself, who shows no gratitude towards the orator for sharing his story with him. " What you have told us… is all very good. It is indeed bad to eat apples. It is better to make them all into cider. We are much obliged by your kindness in coming so far, to tell us these things which you have heard from your mothers." this is a quote from the orator, who is showing his appreciation towards the minister, and wishes to thank him for the brief story.

Franklins attitude towards the two men differ completely, this is shown through his choice of words. Using stronger words when in text with the minister, and softer, more allusive words with the orator. Franklins tone is this passage is more angry towards the minister, because Franklin wrote the essay, to show the discrimination the natives were put against with the Christians.

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The Minister's Black Veil

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Perfection is an idea that has challenged man in his own society, but is man actually capable of obtaining and maintaining a complete and steady state of perfection within his own inner being? As Plato would say, "Perfection cannot exist without the 'idea perfection' in the mind of an individual." There is really no accurate state of perfection that exists in human nature. Perfection is determined by the different interpretations given to it man himself.

Many times man is caught in a trance to become better than his spiritual father, God. Many individuals believe that if they can outdo their Creator than they will obtain a "free scholarship" to the University of Heaven that contains the best teachers in the universe, rated number one above Harvard University. Yet, doesn't this mean that to outdo God would make man his own god? This would be hypocritical to everything that man attempts to teach his fellow species in church every Sunday from the biblical scriptures. In that case man would be worshipping his own identity and following his own set of "commandments," refusing to follow what Jesus Christ established centuries ago. The battle for perfection continues today as many individuals strive to live a pure life like the Creator of heaven and hell. So does this mean that the Creator and His Son only love those with pure hearts and souls? Jesus himself loved Mary Magdalene, the prostitute in the biblical era, some much that he was willingly to teach her the correct path to heaven and peace, leading her to become one of the most prominent Christian figures in the Roman Catholic Church.

The famous first "true" Christian writer, Nathaniel Hawthorne, wrote a series of short stories that deal with the "fall of man's society" as well as the hypocrisy that occurs in the church today, leading man to break the first commandment, " Thou shall have no other Gods before me." Each short story is connected with the other in many important factors such as hypocrisy in the church and man becoming his own God. Hawthorne utilizes great imagery of biblical illusion in his work to bring his message across to "the sinners of our Father."

In Hawthorne's, The Scarlet Letter, the minister, Arthur Dimmesdale represents that all people are just human and potentially they are entitled to commit mistakes in their life. Dimmesdale lives a thousand faces but the primary face is that of hypocrisy as he is faced with a battle against his own conscience. Dimmesdale has committed the ultimate sin, yet his cowardly reputation restricts his mouth from reciting the truth to his fellow villagers. Dimmesdale has acted against everything he has preached in his sermons. The minister is no hypocrite! He is perfect!

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This is the reputation that man has interpreted for the authorities of the Holy Church, demonstrating the "perfection" of God here on earth. Because Dimmesdale is a minister he is not entitled to make any mistakes himself; he is paralleled to Jesus Christ who taught his people "truth and honor" for one another. The bible only gives you the human interpretation, which man has created over the years but the real truth lies undiscovered. Only Jesus could tell his people about the life he lived here on Earth free from evil and temptation. In a symbolic way, he did not live a life free from evil and hate for he was persecuted for the sins of all mankind. We all make up part of our Father and through our sins we cause him to lose His sense of purity.

Hawthorne illustrates through the character of Pearl, the sin of Dimmesdale, that she is the perfect "perfection" that man battles for in life here in their society. She is symbolic of God's pure forgiveness of mankind's sins against themselves. Pearl also symbolizes that true perfection is maintained only as a natural birth of your own identity. The vision of Pearl is a constant reminder to Dimmesdale that he has sinned against his Father and has failed to keep his commitment to the church of his Creator. Dimmesdale foreshadows the actions of one other character created by Hawthorne Mr. Hooper.

In The Minister's Black Veil, the character of Mr. Hooper, the hypocrite of his congregation, symbolizes man's quest to surpass his own Creator and judge his people based on the laws of hypocrisy. The black veil which lies upon the face of the minister is symbolic of the distance which he has placed himself from his congregation. He is too perfect for the presence of his sinners. Likewise, the congregation can sense that their minister has not been faithful to them.

The minister displays his cowardness through wearing the veil, which distorts his image of the world around him. Although the veil distorts the images from his sight, the small light, which he can see through his mask, symbolizes God's hope for Mr. Hooper. God will not give up on this individual, causing the veil to remain transparent rather than opaque. The veil also serves as a reminder to society that they have caused a veil to form between themselves and their Creator every time they choose to sin against His will. Through the veil, Mr. Hooper attempts to hide his sins and cover his track in the ministry. The character of Mr. Hooper is that total opposite of Jesus Christ, who never once shunned himself from society because he was too perfect.

Although Mr. Hooper displays the acts of hypocrisy in his church, leading to him become God himself, he does teach a valuable lesson to his congregation. " Why do you tremble at me alone?" "Tremble also at each other! … "I look around me, and lo! on every visage a Black Veil!" Mr. Hooper reminds his society that my making faces at him and gossiping about him around the church, they too have sewn a black veil on their face. They have sinned without knowing it. His entire congregation has become hypocrites of their own. They have also attempted to play the role of God through trying to judge Mr. Hooper for the veil that symbolizes "the fall of man's society." Man will cause his own destruction as Hawthorne has displayed through Dr. Rappaccini in his next story.

One of the most symbolic works of Hawthorne is Rappaccini's Daughter, the story about a doctor who will go to any extent to gain powerful knowledge about life and the nature around him. In this work of Hawthorne, Dr. Rappaccini enacts the role of God by creating an experiment out of his naïve daughter. Her father's experiment causes for Beatrice to bring death to every thing she lays her hand upon. Hawthorne utilizes a great biblical allusion in this story about the hunger for power and the deadly power of love. The scene with Beatrice and Giovanni are symbolic of Adam and Eve in the Garden of Eden and story of the tree of life. Giovanni falls in love with "the plant experiment" out of lust; he falls in love with her after the fact that he sees her beauty. He is tempted to visit her in the garden, arriving with purple flower that is symbolic of the apple of sin. The flower wilts after Beatrice infects it with poison. This is symbolic of the rise of Death. After Adam and Eve ate the apple from the tree, God created death. Death is inherited as part of our life when we are born into this world. The flower's wilting signifies all the sacrifices which man must make in life to survive in his constructed society.

Dr. Rappaccini emotionally and physically "rapes" his daughter from life after his sins are the result of his beautiful Eve's death. Once again man has tried to succumb the power and knowledge of his own Creator and results in a total tragedy causing the death of many innocent lives. Dr. Rappaccini "would sacrifice human life, his own among the rest, or whatever else was dearest to him, for sake of adding so much as a grain of mustard seed to the great heap of his accumulated knowledge." The flower from the garden of life is symbolic of his own sacrifice of his daughter to gain this knowledge, which his brain hungers. Dr. Rappaccini has gone against every word that is read in the bible. His greed has overtaken his soul; he no longer loves his daughter but views her as the experiment that will gain him that "grain of mustard-seed of knowledge." He has become a hypocrite of society's rules to love and protect your loved ones.

Hawthorne has utilized these characters to teach us humans' valuable lessons about the world around us. Should they been forgiven or condemned for their ignorance to realize that God is the supreme being of the world? If man continues to seek for happiness in the idea of perfection, he will remain lost in melancholy for eternity. Hippocrates believed that moderation, harmony, and a "sound mind in a sound body" lead an individual to a healthy lifestyle, physically and emotionally. Antithenes believed that true happiness lies in not being dependent on such random and fleeting things. Perfection will only be an idea that has no true definition. According to St. Augustine, evil comes from mankind's disobedience. The good will is god's work and evil is the falling away from God's work. We are entirely at his mercy.

No one can judge the creations of Hawthorne because we have all committed sins in our life. He, who has not sinned, be the first to cast the first stone at these characters. Condemning these characters would only put you in their place as hypocrites of the church. They can receive "financial aid" for being the minority of society so that they can still get accepted into the University of Heaven. But are these hypocrites truly the minority or are they the majority that can be found around the corner in the hall of your school. We must remove the black veil that we each wear before we can make any statements. We must review our past, accepting our own faults and condemning ourselves first before condemning our neighbor. Man should live a life full of peace and happiness within their heart rather than competing with each other for the power of "perfection". We are God's family and if we destroy ourselves amongst each other it is like symbolically crucifying him once again. Hypocrisy is a natural instinct of man and he must learn to overcome it before ever developing the "idea perfection."

Please note that this sample paper on The Minister's Black Veil is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on The Minister's Black Veil, we are here to assist you. Your persuasive essay on The Minister's Black Veil will be written from scratch, so you do not have to worry about its originality.

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