Cardiovascular Respiratory System During Exercise Physical Education Essay

Cardiovascular Respiratory System During Exercise Physical Education Essay A good understanding of anatomy and physiology is the basis of all medicine. Without knowing how the body works, how it is made up and how it can go wrong, we cannot even begin to design effective treatments and interventions, including surgery or new pharmaceutical drugs. The body has many different systems which help to maintain the body’s normal function. Three of these functions are; the cardiovascular system, respiratory system and the musculoskeletal system. In this assignment I will be looking at how these three systems work both at resting and during exercise. Cardiovascular System Wilmore, J.H; Costill, D.L (2004) states that the cardiovascular system consists of; the heart, which acts as a pump, blood vessels acting as a system of channels and it also consists of blood which acts as a fluid medium. The cardiovascular system has three main functions: Transports oxygen and nutrients to the body’s cells and transports carbon dioxide and waste products from the b ody’s cells. Protects the body from infection and loss of blood. Helps to regulate pH balance of the body, body temperature and the balance of fluid. (Plowman, A. S; Smith, D.L; 2010). Below is a diagram which shows the circulation of the cardiovascular system. http://agingresearch.buffalo.edu/assets/images/chf_circulatory_system.jpg (Image from http://agingresearch.buffalo.edu/†¦/chf_circulatory_system.jpg) As the diagram above shows the heart pumps oxidized blood to the body so the nutrients can be distributed to the cells and remove the waste which is then returned to the heart and then into the lungs to be oxidized again to return to the body. Response to Exercise Exercise uses up a lot of energy, which the cells derive from oxidizing glucose. Both glucose and oxygen have to be delivered by the blood. This means that the heart has to work harder to pump more blood through the body. This means it has to beat faster in order to achieve a higher throughput. The cardiova scular system responds to exercise by increasing the activity level. The adrenal gland increases the production of the hormones adrenaline and nor adrenaline. These have direct effects on the heart. These hormones cause an increase in the heart rate and the force with which the heart contracts each beat. This increases the total amount of blood that is circulated in the body every minute. That increase in blood circulation is required to meet the increased demand for nutrients and oxygen that the muscles and other tissues. There are several types of exercise and they all affect the cardiovascular system in a similar way, an example of some of these are; short term light to sub maximal aerobic, long term moderate to heavy sub maximal aerobic, incremental aerobic, static exercise and resistance exercise. For the purpose of this essay I will be looking at and comparing; short term to sub maximal aerobic exercise and heavy sub maximal aerobic exercise and how they affect the cardiovascu lar system. img010img011 This image shows the graphs of the changes in the cardiovascular system during light exercise (left) and moderate to heavy exercise (right).

Marketing Manager Essay Example | Topics and Well Written Essays - 750 words

Marketing Manager - Essay Example Hiring a competent manager may be a difficult task, especially if you are not equipped with relevant interview questions. It is important to plan the interview because in a new company, the qualities of a marketing manager are very vital. Estimable behavioral qualities may comprise self-direction, motivation, high energy, financial ambition, and persuasive communication. At a beginning, the entrepreneur usually needs someone who is like moldable clay, not somebody who has the traits of a steel rod. They want somebody who will go an extra mile because small industries operate differently from big companies. A marketing manager is charged with the responsibility of making important decisions on behalf of the company (Einhorn, 2010). In this case, the questions for the job interview for the marketing manager aim at assessing their interpersonal communication skills, their analytical skills, marketing approach, and background. Any marketing practitioner is supposed to find out and identify what is trending in the market, the demand of products, their competitors, and prospective customers. They also need to define the product design and observe the development of the product. After developing the product’s pricing strategies, they also need to launch the new product. Finally, marketers need to use various marketing tools to sell the product (Smitt & Albaum, 2004). Open-ended questions are preferred in interviewing a marketing manager. As you ask these open-ended questions, listen not only to the content of a candidates response, but also to the voice and manner behind it. The questions to be asked should be narrowed down to professional experience of the interviewee. Sample questions are; These questions enable the candidate to know why the plan they designed failed and what they can learn from the failure. They are meant to scrutinize the

Definition of Common Law Term Paper Example | Topics and Well Written Essays - 1750 words

Definition of Common Law - Term Paper Example The name "common law" is also used to refer to the conventional and long established, precedent-based element in the law of any common-law jurisdiction, as disparate to its statutory law or legislation. As well it the term common law is also used to signify that part of the legal system that did not develop out of equity, maritime law, or other special branches of practice. (Eldon) In addition to England, common law is practiced in all of Canada except Quebec and all of the United States except Louisiana. All of these areas follow common law and U.S. state statutes usually provide that the common law, equity, and statutes in effect in England in 1603, the first year of the reign of James I, shall be deemed part of the law of the jurisdiction. (Homes) Decisions of the English courts that were made later only have persuasive authority. There are particular characteristics and features of common law that distinguish it from other types of law. The one feature that distinguishes common law is the fact that it represents the law of the courts as expressed in judicial decisions. "The grounds for deciding cases are found in precedents provided by past decisions, as contrasted to the civil law system, which is based on statutes and prescribed texts." (Holmes) In addition, the system of judicial precedents, other characteristics of common law include trial by jury and the doctrine of the supremacy of the law. In the beginning, the supremacy of the law meant that not even the king was above the law; however today it can be translated as meaning that acts of governmental agencies are subject to scrutiny in ordinary legal proceedings. Judicial precedents gain their force from the doctrine of stare decisis [Lat., =stand by the decided matter], i.e., that the previous decisions of the highest court in the jurisdiction are binding on all other courts in the jurisdiction. (Holmes) However, in the when conditions change they make most decisions inapplicable except as a basis for an analogy, and a court must consequently frequently look to the judicial experience of the rest of the English-speaking world. "This gives the system flexibility, while general acceptance of certain authoritative materials provides a degree of stability." (Eldon) On the other hand in many occurrences, the courts have failed to keep speed with social developments. As a result of this, it has become necessary to enact statutes to bring about needed changes. Without a doubt in recent years statutes have superseded a great deal of common law. This is especially true in the fields of commercial, administrative, and criminal law. Characteristically, however, in statutory interpretation, the courts have recourse to the doctrines of common law. (Eldon) In consequence increased legislation has limited but has not ended judicial supremacy. Â  

The anti-Federalists Essay Example for Free

The anti-Federalists Essay Republicans. These were people who were strongly opposed to the United States Constitution. They wanted a strong state government instead of a strong central government. To them if the central government was too strong then it would threaten the peoples liberties and right to life, liberty and the pursuit of happiness. The anti-Federalists were made up of anyone who was poor and not a big landowner, anyone tired of being controlled, anyone who wanted the peoples votes to directly count and anyone who wanted to protect their rights. The anti-Federalists were made up of all different types of people, while the Federalists were mainly upper class. The anti-Federalists represented the United States population as a whole better than the Federalists. When it came to the way the government was run the anti-Federalists wanted the complete opposite of the Federalists. The anti-Federalists wanted their power in the legislature, mainly the lower house where every state has one vote. They wanted the terms of office to be shorter, with limits on how many terms you could serve. These officials were not to be elected by representatives but directly by the people of the United States. The only way the anti-Federalists would ever even consider helping to ratify the Constitution was if it contained a Bill of Rights, which they thought was essential for preserving the individual liberties (www.consitutioncenter.org) of the people. Without this document the government could control every one like a tyranny. To them the Constitution without the Bill of Rights was just a weapon of the upper class against the poor. The figurehead of the anti-Federalists was Thomas Jefferson who later became President of The United States. The funny thing about Jefferson was for a long time he would not choose sides between the Federalists and the anti-Federalists, he was totally against political parties. He was for a strong central government, which was more of a Federalists view. What made Jefferson come to his senses was Alexander Hamilton and his implied powers Implied powers were powers which were not stated directly in the  Constitution (http://www.constitutionfacts.com/gbody.shtml), in other words powers that were assumed by the government. Jefferson was totally against this, he believed that the Constitution could do the things which the Constitution states it can and nothing should be assumed. This was the start of a great feud between Hamilton and Jefferson, the first real battle of political parties for election in office. In the fight between Federalists and anti-Federalists propaganda played a large role on both sides. It first started in speeches and local newspapers when three Federalists wrote in to share their opinions. The anti-Federalists followed suit and read their own speeche

Argumentative Essay: Gun Control Violates the Second Amendment :: Constituton Bill Rights Right To Bear Arms

Few issues incite americans more than the issue of rising crime and violence. This problem can easily be linked to the availability of guns."The debate over whether guns are a hallowed tradition and a right guaranteed by the Second Ammendment of the U.S.constitution or whether they are a fearful danger contributing to crime and violence." ("gun control") Due to the outbreak of violence in our society, some people feel that repealing the Second Ammendment would solve the problem. These people feel that repealing the Second Ammendment would solve the problem. These people feel that there are two reasons for the repeal; One is the rising of violence among teenagers, the second reason is their interpertation of the Second Ammendment which could be considered a strict one. The side opposing these views use arguments like how it would be immpossible to repeal the Second Ammendment, and a long western civilizations history with a right to bear arms. Finally one can see the conflict of views dealing with the Second Ammenment, but one would also see that repealing the ammendment wouldn't solve the problem facing our society. The contriversy of this issue that has the potential to pulverise this country is why it is such a good topic to discuss, people should be better informed and make a decision based on fact and not fiction. Many advocates of the limitations of guns can quote numerous examples of increasing violence and homicide crimes. But the area which hits the closest to home is the issue of violence among the teenagers of our society. The years have changed on how students deal with their problems "Twenty-five or thirty years ago, when teenage boys got into a fight... it usually meant a fist fight. In more and more neighborhoods... it now means a shoot out" ("Gun Control"320). Violence like that is a major problem on our streets and even in our schools. Almost everywhere now "youngsters are packing weapons, Some are involved in drugs or gangs; others carry them for self-defense... One study says at least one in every three male juveniles is armed"(Muller 2). Now more than ever before an "increasing number of children under the age of 18 arrested each year for murder has jumped 55% in the past decade,... Juvenile arrests for aggravated assault are rising dramatically" (Henkoff 2). The results of this rising trend in violence has led to the release of a "center for disease center reports that since 1988, American teenage boys have been more likely to die from gunshot wounds than from... All other natural diseases" ("Gun Control" 83).

Factors Affecting Share Prices

International Research Journal of Finance and Economics ISSN 1450-2887 Issue 30 (2009)  © EuroJournals Publishing, Inc. 2009 http://www. eurojournals. com/finance. htm Determinants of Equity Prices in the Stock Markets Somoye, Russell Olukayode Christopher Dept. of Banking & Finance, Faculty of Management Science Olabisi Onabanjo University, Ago Iwoye, Nigeria P. O. Box 1104 Ijebu-Ode, Ijebu-Ode, Ogun State, Nigeria E-mail: [email  protected] com Akintoye, Ishola Rufus Dept. of Accounting, Faculty of Management Science Olabisi Onabanjo University, Ago Iwoye, Nigeria E-mail: [email  protected] com Oseni, Jimoh Ezekiel Dept. f Banking and Finance, Faculty of Management Science Olabisi Onabanjo University, Ago Iwoye, Nigeria E-mail: [email  protected] com Abstract Brav & Heaton (2003) alleges market indeterminacy (a situation where it is impossible to determine whether an asset is efficiently or inefficiently priced) in the stock market. Kang (2008) argue that empirical tests of linear asset pricing models show presence of mispricing in asset pricing. Asset pricing is considered efficient if the asset price reflects all available market information to the extent no informed trader can outperform the market and / or the uninformed trader.This study examined the extent to which some â€Å"information factors† or market indices affect the stock price. A model defined by Al-Tamimi (2007) was used to regress the variables (stock prices, earnings per share, gross domestic product, lending interest rate and foreign exchange rate) after testing for multicollinarity among the independent variables. The multicollinarity test revealed very strong correlation between gross domestic product and crude oil price, gross domestic product and foreign exchange rate, lending interest rate and inflation rate.All the variables have positive correlation to stock prices with the exception of lending interest rate and foreign exchange rate. The outcomes of the study agree w ith earlier studies by Udegbunam and Eriki (2001); Ibrahim (2003) and Chaudhuri and Smiles (2004). This study has enriched the existing literature while it would help policy makers who are interested in deploying instruments of monetary policy and other economic indices for the growth of the capital market. Keywords: Stock prices, CAPM, models, coefficient, efficient, stock market. International Research Journal of Finance and Economics – Issue 30 (2009) 78 1. 0. Introduction The price of a commodity, the economist makes us to believe is determined by the forces of demand and supply in a free economy. Even if we accept the economists’ view, what factors influence demand and supply behavior? Price? Yes, but not all the time, at least there are some other factors. In the securities market, whether the primary or the secondary market, the price of equity is significantly influenced by a number of factors which include book value of the firm, dividend per share, earnings p er share, price earning ratio and dividend cover (Gompers, Ishii & Metrick, 2003).The most basic factors that influence price of equity share are demand and supply factors. If most people start buying then prices move up and if people start selling prices go down. Government policies, firm’s and industry’s performance and potentials have effects on demand behaviour of investors, both in the primary and secondary markets. The factors affecting the price of an equity share can be viewed from the macro and micro economic perspectives. Macro economic factors include politics, general economic conditions – i. e. how the economy is performing, government regulations, etc.Then there may be other factors like demand and supply conditions which can be influenced by the performance of the company and, of course, the performance of the company vis-a-vis the industry and the other players in the industry. In a study of the impact of dividend and earnings on stock prices, Ha rtone (2004) argues that a significantly positive impact is made on equity prices if positive earnings information occurs after negative dividend information. Also, a significantly negative impact occurs in equity pricing if positive dividend information is followed by negative earning information.Docking and Koch (2005) discovers that there is a direct relationship between dividend announcement and equity price behavior. Al-Qenae, Li & Wearing (2002) in their study of the effects of earning (micro-economic factor), inflation and interest rate (macro-economic factors) on the stock prices on the Kuwait Stock Exchange, discovered that the macro-economic factors significantly impact stock prices negatively. A previous study by Udegbunam and Eriki (2001) of the Nigerian capital market also shows that inflation is inversely correlated to stock market price behaviour.A number of models developed for asset pricing are two variable models. For instance the Capital asset pricing model (CAPM) developed by Sharpe (1964) considers the risk-free return and volatility of the risk-free return to market return as the determinants of asset price. Asset price as described by CAPM is linearly related to the two independent variables. Many studies have concluded that over the years assets were being underpriced (Smith, 1977; Loderer, Sheehan & Kadlec, 1991) and this raises the question of the adequacy of the various asset pricing models to ensure efficient asset pricing.Brav & Heaton (2003) alleges market indeterminacy, a situation where it is impossible to determine whether an asset is efficiently or inefficiently priced. Kang (2008) found that empirical tests of linear asset pricing models show presence of mispricing in asset pricing. Asset pricing is considered efficient if the asset price reflects all available market information to the extent no informed trader can outperform the market and / or the uninformed trader. This study aims at examining the extent to which some â⠂¬Å"information factors† or market indices affect the stock price.The rest of the paper is designed as follows: Section 2 reviews literature on factors influencing asset prices, effects of inefficient asset pricing and some of the existing asset pricing techniques. Section 3 states the data and the sources, the data restructuring and the model used for data analysis while Section 4 discussed and interpret the results of the data analysis. Lastly, section 4 is the conclusion. 2. 0. Conceptual Framework and Literature Review 2. 1. Conceptual Framework Several attempts have been made to identify or study the factors that affect asset prices.Some researchers have also tried to determine the correlation between selected factors (internal and external, 179 International Research Journal of Finance and Economics – Issue 30 (2009) market and non-market factors, economic and non-economic factors) and asset prices. The outcomes of the studies vary depending on the scope of the st udy, the assets and factors examined. Zhang (2004) designed a multi-index model to determine the effect of industry, country and international factors on asset pricing. Byers and Groth (2000) defined the asset pricing process as a function utility (economic factors) and non-economic (psychic) factors.Clerc and Pfister (2001) posit that monetary policy is capable of influencing asset prices in the long run. Any change in interest rates especially unanticipated change affects growth expectations and the rates for discounting investment future cash flows. Ross’ (1977) APT model which could be taken as a protest of one factor model of CAPM which assumes that asset price depends only on market factor believe that the asset price is influenced by both the market and non-market factors such as foreign exchange, inflation and unemployment rates.One of the defects of APT in spite of its advancement of asset pricing model is that the factors to be included in asset pricing are unspecif ied. Al – Tamimi (2007) identified company fundamental factors (performance of the company, a change in board of directors, appointment of new management, and the creation of new assets, dividends, earnings), and external factors ( government rules and regulations, inflation, and other economic conditions, investor behavior, market conditions, money supply, competition, uncontrolled natural or environmental circumstances) as influencers of asset prices.He developed a simple regression model to measure the coefficients of correlation between the independent and dependent variables. SP = f (EPS, DPS, OL, GDP, CPI, INT, MS) Where, SP: Stock price; EPS: Earnings per share; DPS: Dividend per share; OL: Oil price; GDP: Gross domestic product; CPI: Consumer price index; INT: Interest rate and MS: Money supply. He discovered that the firm’s fundamental factors exercise the most significant impact on stock prices.The EPS was found to be the most influencing factor over the mark et. Studying the effects of the Iraq war on US financial markets, Rigobon and Sack (2004) discovered that increases in war risk caused declines in Treasury yields and equity prices, a widening of lower-grade corporate spreads, a fall in the dollar, and a rise in oil prices. A positive correlation exists between the price of oil and war. They argue that war has a significant impact on the oil price.Tymoigne (2002) argue that in the financial market, banking convention and financial convention work together to fix the assets’ market prices. According to him the financial convention creates a speculative sentiment of whether capitalists are more prone to sell, or to buy assets while the banking convention determines the state of credit as evidenced by the confidence of the banking sector and ability of investors accessing credit leverage for asset acquisition purpose.He concluded that â€Å"conventions do not determine asset-price, it is the â€Å"law of supply and demand† that does so, conventionsâ€Å"only† influence the behaviors of financial actors† Inflation as an external factor exerts a very significant negative influence on the stock prices in Nigeria (Zhao,1999 & Udegbunam and Eriki, 2001). Factors affecting asset prices are numerous and inexhaustible. The factors can be categorized into firm, industry, country and international or market and non-market factors, and economic and noneconomic factors. All the factors can be summarized into two classes – micro and macro factors.Factors in each class of the classification are inexhaustible. For instance, the firm factors include, ownership structure, management quality, labour force quality, earnings ratios, dividend payments, net book value, etc. have impact on the investor’s pricing decision. Molodovsky (1995) believes that dividends are the hard core of stock value. The value of any asset equals the present value of all cash flows of the asset. 2. 2. Effects Of In efficient Asset Pricing Inefficient asset pricing could be a catalyst to inefficient resource allocation among competing productive investment opportunities.Underpricing can serve as positive signal to the market (Giammariano & Lewis, 1989) to compensate the uninformed and get them to participate in the new International Research Journal of Finance and Economics – Issue 30 (2009) 180 offer (Rock, 1986; Allen & Faulhaber, 1989; Grinblatt & Hwang, 1989; Welch, 1989). The market is information-sensitive. Prices tend to take a declining trend few days to the release of a firm’s new offer and the price recovery starts few days after the completion of the offer, especially if he offer is fully subscribed (Barclay and Litzenberger, 1988). Easley, Hridkjaer and O’Hara (2001) agree that market is information sensitive at least to the extent that private (insider) information affect asset returns and advised that it should not be ignored for efficient asset pricing. The f irm’s beta ratios, its market value to book value, its current price to earnings ratio and the historical growth rate in earning per share are identified by Moore & Beltz (2002) as possessing strong influence on the equity price of the firm.They also argue that the identified factors have varying effects on the price and the effects vary from time to time, sector to sector and even from firm to firm within the same industry. For instance, they argue that equity prices of individual firm in heavy industries (chemical, petroleum, metal and manufacturing) are exclusively influenced by the firm’s beta and market to book value while firms in the technology sector are influenced by the historical growth rate in earning per share as well as beta and market to book value ratio.The equity price in transportation industry is affected by beta and price to earning ratio. Though, Moore & Beltz (2002) constructed a tree relating the impact of each identified factors in each of the s elected model but did not construct a model that could be used in assessing direct impact of the identified factors on the equity price. Asset pricing could be a challenge.Hordahl & Packer (2006) argue that a clear understanding of the asset’s stochastic discount factor and future payoffs is necessary to understand the factors that determine the price of an asset. Unfortunately, only Government instruments provide their stochastic discount factor in advance while the future payoffs are not observable directly but could be derived from some other data. Corwin (2003 identifies uncertainty and asymmetric information as a strong influence on the firm’s equity pricing and as a matter of fact lead to underpriced instrument.In the light of the preceding literature review, many factors both micro and macro-economics, have impact on equity pricing in the stock market, the impact differs from firm to firm, industry to industry, economy to economy and from time to time, but one c omforting conclusion is that most of the factors appear to have the same behaviour regardless of time, industry or firm constraints.For instance, increased inflation and interest rates, declining dividends, earnings, poor management leave negative impact on equity pricing and vice-versa 2. 3. Asset Pricing Techniques There are several asset pricing models aside from CAPM and APT which are both linear model. A few of the available (non-linear) asset pricing techniques are reviewed in this section. 2. 3. 1. Residual Income Valuation This is one of the oldest valuation model with a trace to the work of Preinreich (1938).The valuation model discounts the future expected dividends and potential value of shareholders’ funds to the present value, giving effect to a proposition that the price of equity can be derived from the present value of all future dividends. Lo and Lys (2000) reviewed the Olhson Model (OM) developed in by Ohlson (1995) and which has been acknowledged with wide acceptance (Joos & Zhdanov, 2007; Chen & Zhao, 2008). The OM provides a platform for the empirical test of the residual income valuation (RIV).Lo and Lys (2000) defined RIV as: RIV = Pt = ? R-r Et (dt+r) Where Pt is defined as the equity market price at time t, dt represents dividends at the end of time t, R is the unity plus the discount rate (r) and Et is the expectation factor at time t. The RIV from the present value of expected dividend is based on the assumptions that (i) the accounting system meets the â€Å"clean surplus relation† i. e. 181 International Research Journal of Finance and Economics – Issue 30 (2009) To derive RIV from PVED, two additional assumptions are made.First, an â€Å"accounting system† that satisfies a clean surplus relation (CSR) is assumed: bt = bt-1 + xt – dt, bt represents the book value of equity at time t, xt represents the earnings at time t, and (ii) it is assumed that the book value of equity would grow at a rate les s than R, that is R-r Et (bt+r) —————) 0 The assumptions form the basis to argue that the present value of expected dividend is a function of both the book value and discounted expected abnormal earnings.In that case RIV signifying the price of the asset can be stated thus: Pt = bt +? t=1 R-r Et (xat+r) Where xat = xt – rbt-1. Testing RIV empirically could be a contention on the premises that it has only one sided hypothesis: asset price is a function present value of future dividends. A rejection of the hypothesis when tested empirically may arouse dissenting voices from researchers who had believed in the efficacy of the model. In fact, Lee (2006) expressed the view that residual income valuation model provides a better valuation than the dividend model.John and Williams (1985), and Miller and Rock (1985), argue that dividend is a communication tool for the firm to pass information to the market in the event of information asymmetry which implies that there is a positive correlation between information asymmetry and a firm’s dividend policy. 2. 3. 2. Economic Valuation Model This model traced to Tully (2000) is developed to recognize economic profits as against the use of book profit in the valuation of asset.The model builds on the premises of profit maximization by owners of the firm and the profit is not to be restricted to book value, rather it covers the opportunity cost of not investing in profitable projects. Economical profit is differentiated from the book profit as the difference from revenues and economical costs (i. e. book costs plus opportunity cost of failure to invest in profitable project. The book profit can be defined as revenue less costs while economic profit is defined as total revenue from investment less cost of capital.Economic profit is higher than normal book profit because of the opportunity cost considered in the former. There are two approaches to the estimation of economic value added (Koller, Goedhart & Wessels, 2005; Jennergren, 2008). The first is NOPLAT less capital charge (i. e. WACC multiplied by initial capital outlay). The value of the operating assets is therefore the initial capital outlay plus the present value of cash flows derived from economic value added.To obtain the equity value, the value of debt is deducted from the value of the operating assets. The second approach involves EBIT less taxes (i. e. PAT). PAT less capital charge after recognizing deferred taxes as part of the invested capital. The operating assets remain as the initial capital outlay (having considered the effect of deferred taxes) plus the present value of all income derived from the economic value added.Economic Valuation of Asset (EVA) Model as defined by Kislingerova (2000) is stated as: EVAt = Pt = NOPATt – Ct x WACCt where NOPATt is Net Operating Profit After Tax or the profit after tax (PAT), Ct is long-term capital (Ct is the sum of equity and invested capita l or alternatively, it is the total of fixed assets and net working capital), WACC is Weighted Average Cost of Capital. Whenever EVA > O, the shareholders’ wealth is maximized, if EVA =0 then there is a break-even point and at EVA < 0 the shareholders’ wealth is in decline.EVA model serves as a tool in measuring both the performance of the firms as well its value. WACC serves a dual purpose. It is used in the calculation of EVA and its serves as the rate for discounting the present value of future earnings to the present time t. The value of the firm is therefore the addition of the book value of capital and the present value of future EVA. To derive the value of equity the value of debt would be deducted from the value of the firm. International Research Journal of Finance and Economics – Issue 30 (2009) 182 2. 3. 3.Discounted Cash Flow Model The model uses accounting data as input and the objective of the model is to derive equity value of a going concern. The value of equity is derived by deducting the value of debt (excluding deferred taxes and trade credits) from the total assets. Deferred taxes are regarded as part of equity (Brealey, Myers & Allen, 2006). There are several variations to the adoption of the model (Jennergren, 2008). The discounted cash flow (DCF) is more adaptable to the valuation of a firm with high level of assets in place and low level of uncertainty about future cash flows (Joos & Zhdanov, 2007).Cash flows available for discounting include dividends, free cash flow to equity and free cash to the firm (debt and equity). A firm can experience three types of growth ranging from stable growth, high growth to stable growth and high growth through transition to a stable growth. The discount rate could be either cost of equity, cost of debt or the weighted cost of capital (WACC). The choice of discount rate should depend on the type of cash flow (equity or firm) to be discounted. At least two models can be derived from the cash flow model.The Dividend Discount (DD) Model is suitable for a firm that pays dividends close to the free cash flow or where it is difficult to estimate the free cash flow to equity. The second model, Free Cash Flow Model is suitable where there is a significant margin between dividends and free cash flow to equity or if dividends are not available. The value of firm witnessing stable growth is given as: C:UsersjoseniD esk top D esk to pDISCOUNTED CA SHFLOW MODELS WHA T THEY A RE A ND HOW TO CHOOSE THE RIGHT ON E__filesImage8. if or a firm that experiences two stages of growth (i. e. high growth to stable growth), the value of the firm is: C:UsersjoseniDesk topDesk topDISCOUNTED CA SHFLOW MODELS WHA T THEY A RE A ND HOW TO CHOOSE THE RIGHT ONE__filesImage9. gif The value of a firm experiencing three levels of growth (i. e. high growth through transition to stable growth) is given as: C:UsersjoseniDesk topDesk topDISCOUNTED CA SHFLOW MODELS WHA T THEY A RE A ND HOW TO CHOOSE THE RIGHT ONE__filesImage10. gifWhere V0 represents equity value or firm value depending on which is discounted, CFt represents cash flow at time t, r represents cost of equity (for dividends or free cash flow to equity) or cost of capital ( for free cash flow to firm), g represents expected growth rate, ga represents initial expected growth (high growth period) and gn represents growth in a stable period; n and n1 are defined as the period in a two stage growth and high growth in a three stage growth models respectively while n2-n1 represents the transition period in the three stage growth model. . 3. 4. Dividend Valuation Model This is one of the commonest and simplest models for valuation of equity in the secondary market. The equity value is taken as the summation of discounted dividends receivable each year till the year of maturity and the price the equity is expected to be sold at maturity. The value of an investment is taken to be the discounted value of the cash flows.There are different variations to the model ranging from: One period valuation one Period to multi-periods Po = D1/(1 + ke) + P1/(1 + ke) Po = D1/(1 + ke)1 + D2/(1+ke)2 +†¦+ Dn/(1+ke)n + Pn/(1+ke)n – multi- period and to indeterminate length of time Infinity and, growth Po = D/(1+ke) (including Gordon growth) variations. D0(1+g)1 + D0(1+g)2 +†¦.. + D0(1+g)? Po = (1+ke)1 (1+ke)2 (1+ke)? or 183 Po = International Research Journal of Finance and Economics – Issue 30 (2009) D0– ke – g) Where: D = dividend paid / expected g = dividend’s growth rate = cost of equity or equity rate of return ke 1 – – n = period variation One of the motives behind the use of this valuation model is to identify over and underpriced shares. Moving away from the simplest form of this model Go and Olhson (1990) introduced a more tasking process for generating dividends and returns on equity investment which they adopted in some more specific valuation models .The process is based on some assumptions such that equity holders would receive net dividends and there exists a linear relationship between variables. John and Williams (1985), and Miller and Rock (1985) argue that dividend is a communication tool for the firm to pass information to the market in the event of information asymmetry which implies that there is a positive correlation between information asymmetry and a firm’s dividend policy. 3. 0. Research Methodology We define the research hypotheses, sampling and data collection techniques as well as the statistical techniques used to test the data. . 1. Research Methodology We test the following hypotheses: Ho1: The earning per share significantly affects the stock price Ho2: The national gross domestic products significantly affect the stock price Ho3: The lending interest rate significantly affect the stock price Ho4: The foreign exchange rate significantly affect the stock price 3. 2. Model From the hypotheses, the stoc k price is a function of the impact of earning per share, dividend per share, gross domestic, interest rate and oil price.We restricted the influencing factors to five as representatives of the firm’s fundamental factors and external (country) factors. A simple linear regression model derived from Al-Tamimi (2007) is adopted for the study. Unlike Al-Tamimi (2007) who included consumer price index (CPI) and money supply (MS) as independent variables, those variables were replaced with inflation rate (INFL) and foreign exchange rate (FX) in view of the significant impact they have on the economies of developing countries.SP = f (EPS, DPS, GDP, INT, OIL, INFL, FX) Where, SP is the stock price; EPS is the earnings per share; DPS is the dividend per share; GDP is the gross domestic product, INT is the lending interest rate, OIL is the oil price; INFL is inflation and FX is the foreign exchange rate. SP is the dependent variable and it is used to regress the other independent varia bles (EPS, DPS, GDP, INT, OIL, INFL, FX) in the stock market. The outcome of the regression would be the variance on the dependent variable as resulting from the impact of the independent variables.To explain the effects of multicollinearity normally associated with multi-variables in regression analysis, multicollinearity test is conducted to explain the extent of correlation between the independent variables.. A multiple regression software (WASSA) was used to test the multicollinearity among the independent variables before proceeding to conduct the regression analysis. International Research Journal of Finance and Economics – Issue 30 (2009) 3. 3. Data Sampling 184 There are over 130 companies whose shares are being traded in the Nigerian capital market.The Banking sector in the last five years has dominated the market in terms of trading volumes and market performance. The earning per share (EPS) and dividend per share (DPS) of twelve companies listed on the Nigerian Sto ck Exchange (NSE) and (average) annual GDP, crude oil price (OIL), lending interest rate (INT), inflation rate (INFL) and foreign exchange rate (FX) are used are analysed for effect on the stock price. The period covered by the data is year 2001 to 2007. The choice of the companies and period used for the data gathering depend on availability of data. . 4. Data Restructuring Weights are attached to EPS and DPS for each of the companies sampled for each of the year. The weight is derived as a ratio of the company’s EPS or DPS to the total EPS or DPS of all the companies for each of the years. The weight is thereafter multiplied with the respective company EPS or DPS to derive â€Å"weighted stock price (SP), EPS or DPS and thereafter all the companies weighted SP, EPS or DPS are summed together for each of the year (APPENDIX I). 4. 0. Findings and InterpretationIn a linear expression where more than two variables are deployed, multicollinearity between variables may not be ru led out. A multicollinearity test is therefore conducted for all the independent variables. Using the Pearson coefficient of correlation, we consider any correlation between two variables > + 0. 75 as strong. For instance, from Table 1 below there is no significant correlation between earnings per share and dividend per share. Our explanations for it are into parts.First, all the companies in the sample reported earnings per share for each of the years covered by the study though in some instances the EPS are negative but not all the companies declared and /or paid dividends throughout all the periods. Secondly, EPS movement unlike DPS is largely outside the control of the Management. There is a strong correlation between crude oil price and GDP. The justification for the correlation between crude oil price and GDP can be found in the fact that the Nigerian economy predominantly depends on oil revenue.Table I: DPS EPS GDP OIL INT INF FX Outcomes of the Multicollinarity Test (Pearson Coefficient of Correlation DPS 1 -0. 302 0. 609 -0. 395 -0. 498 -0. 521 0. 724 EPS 1 -0. 523 -0. 596 0. 366 0. 778 -0. 037 GPD 1 0. 959 -0. 702 -0. 492 0. 795 OIL INT INFL FX 1 -0. 706 -0. 434 0. 614 1 0. 988 -0. 424 1 -0. 313 1 A strong correlation also exist between INFL and INT which might be the result of manufacturers and service providers passing increased lending interest rate to consumers. A strong correlation exists between FX and GDP.Unexpectedly, there is a strong correlation between INF and EPS, we do not have any explanation for this relationship. For our regression analysis, OIL and INFL were dropped from the model. Though there is a strong correlation between FX and GDP, both variables are used in the regression. FX and GDP variables are significant to the economy of developing nations like Nigeria, therefore their exclusion from the regression would result in a very high constant (? ). 185 International Research Journal of Finance and Economics – Issue 30 (20 09)A regression analysis was run on the independent variables DPS, EPS, GDP and INT after dropping OIL, INFL and FX. Table I shows the result of the regression analysis. Table II: Summary of the Regression Analysis R2 0. 99996 ? – 67. 2385 0. 3835 0. 0869 0. 3805 – 0. 8236 – 1. 9741 Adjusted R2 0. 99978 T – Test – 9. 597 36. 259 33. 369 21. 809 – 7. 375 – 11. 214 Standard Error of Estimates 0. 4752 F – Test 5385. 033 R 0. 99998 Constant DPS EPS GDP INT FX The stock price (P) is highly sensitive to variation as indicated by R2 of 0. 99996. In other words there is 99. 9% and as a matter of fact 100% in stock variation caused by the independent variables. The variability as measured by coefficient of variation (? ) is expectedly positive for DPS, EPS and GDP and expectedly negative for lending interest (INT) though quite significantly. The ? for DPS and EPS though positive were not significant. Many of the companies resorted to bo nus issues instead of dividends and the Nigerian investors are more interested in incomes rather than capital appreciation especially where the stock market performance is poor.The failure to declare and pay dividend leaves two negative impacts on stock prices. The existing investors are denied additional funds to invest and the potential investors seeking investment incomes are discouraged. The hypothesis that EPS affect stock price significantly is accepted. The positive GDP’s coefficient in relation to the stock price is in agreement with some other studies (Udegbunam and Eriki,2001; Ibrahim 2003; Mukherjee and Naka 1995; Chaudhuri and Smiles, 2004). The ? is insignificant at 0. 805 and this might not be unconnected with the increasing foreign reserve maintained by CBN from the proceeds of crude oil sales. The proceeds of the crude oil sales are not released to the economy for investment in various productive sectors of the economy but rather held in foreign economies as p art of the CBN’s monetary policies. The domestic economy is denied of the investments that would have occurred if the funds in the foreign reserve are released for spending in the domestic economy. The hypothesis that the GDP affects stock price significantly is accepted.The coefficient of interest which is negative is expected and found to be significant. The negative coefficient of the lending interest rate is in agreement with the findings of Al-Qenae, Li & Wearing (2002), and Mukherjee and Naka (1995). Lending interest rate is a strong tool in the hands of CBN to influence the economy and where the interest is high as it is Nigeria where lending interest rates hovers between 22% and 25%, the accessibility of the investors to access funds is curtailed and the impact on the stock price would be negative as shown.The hypothesis that lending interest rate affects the stock price significantly is accepted The foreign exchange rate’s coefficient is significantly negative at significant level of 10%. This is not unexpected. Local and foreign investors tend to invest in an economy that has a very high currency exchange rate to foreign currencies. The local investors are discouraged from taking their funds out of the economy for fear of reduced purchasing while foreign investors are encouraged otherwise for increased purchasing power. The hypothesis that foreign exchange rate affects the stock price significantly is accepted.Lastly, the constant (? ) is 67. 2385 (negative). This suggests that the minimum stock price in the market is < 0. We had initially excluded FX from the regression for the reason of its collinearity with GDP but the constant was negative and excessively high. The inclusion of FX has reduced the negativity which is an indication that there are other important variable(s) that significantly affect the stock prices but not considered in this study. The stock price cannot be < 0 except the company is in liquidation. International Rese arch Journal of Finance and Economics – Issue 30 (2009) 186This raises an important question of what factor(s) could have accounted for the extra ordinary stock market performance in Nigeria between 2005 and 2007 where some stocks return over 1000% per annum. The nation House of Representative’s Committee on Capital Markets expressed disgust at the hike in the stock prices of companies in the banking and oil sectors (Thisday Newspapers, 2008). The â€Å"hike† which may not be a non-economic factor (such as political, unhealthy competition, profiteering by issuers who are at the same time market investors) may be the omitted important variable accounting for the high ?. . 0. Conclusions and Recommendations The forces of demand and supply have direct effect on the stock price while the other indeterminate number of firm, industry and country factors influences the demand and supply factors. The effect, positive or negative the other factors apart from the demand a nd supply leave on stock price are not static rather changes. For instance, lending interest rate effect could be positive or negative depending on the aim of the CBN in deploying it as one of the tools for implementing monetary policy.The study has contributed to existing literatures in confirming or raising new issues with respect to other factors influencing stock prices. Interest researchers may want to identify and examine the non-economic factor that account for the high constant (? ) which may not be unconnected with the current meltdown in the Nigerian stock market. Lastly, policy makers who are concerned about the growth of the capital market are better informed on how to deploy the monetary policies instruments as well other economic indices to achieve the desired market growth. Bibliography [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] Allen, F. nd G. R. Faulhaber, 1989. â€Å"Signaling by Underpricing in The IPO Market†, Journal of Financial Economics, 23 Al – Tamimi, Hussein (2007), â€Å"Factors Affecting Stock Prices in The UAE Financial Markets†, Singapore Economic Review Conference, https://editorialexpress. com/conference/SERC2007 Al-Qenae, Rashid; Li, Carmen Wearing, Bob (2002) â€Å"The Information Content of Earnings on Stock Prices: The Kuwait Stock Exchange,† Multinational Finance Journal, 6 Barclay, M. , and R. Litzenberger. (1988). â€Å"Announcement Effects of New Equity Issues and The Use of Intraday Price Data†. Journal of Financial Economics 21 Brav, Alon and J.B. Heaton (2003) â€Å"Market Indeterminacy† Journal of Corporation Law, Vol. 28 Brealey, Richard A. , Stewart C. Myers, and Franklin Allen, (2006). â€Å"Corporate Finance†, 8th Ed. , Mcgraw-Hill/Irwin, New York Byers, S. S. and John C. Groth (2000) â€Å"Non-Economic Factors and Asset Valuation† Conference Papers on Alternative Perspective on Finance and Accounting, http://www. departments. bucknell. edu/manageme nt/apfa/dundee%20papers. htm Chaudhuri, K. and Smiles, S. (2004), â€Å"Stock Market and Aggregate Economic Activity: Evidence from Australia,† Applied Financial Economics, (14) Chen, J. (2005), â€Å"The Physical Foundations of Economics†, World Scientific Publishing Co. , London. Clerc, Laurent and Christian Pfister (2001) â€Å"The Role of Financial Factors in the Transmission of Monetary policy† Bank for International Settlements, BIS Papers No 19, http://www. bis. org/publ/bppdf/bispap19h. pdf Corwin, Shane, A (2003) â€Å"The Determinants of Underpricing for Seasoned Equity Offers† Journal of Finance 58(5) Docking, Diane S. ; Koch, Paul D. (2005), â€Å"Sensitivity of Investor Reaction to Market Direction And Volatility: Dividend Change Announcements,† Journal of Financial Research 87 [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] International Research Journal of Financ e and Economics – Issue 30 (2009) Easley, David, Soeren Hvidkjaer, and Maureen O’Hara, 2002, Is Information Risk a Determinant of Asset Returns? Journal of Finance, 57 Giammarino, Ronald M. , and Tracy Lewis, (1989), â€Å"A Theory of Negotiated Equity Financing†, Review of Financial Studies, 1 Gompers, Paul A. , Joy L. Ishii, and Andrew Metrick (2003) â€Å"Corporate Governance and Equity Prices† Grinblatt, M. and C. Y.Hwang, (1989). † Signalling and The Pricing Of New Issues†, Journal of Finance, 44 Hartono, Jogiyanto. (2004), â€Å"the Recency Effect of Accounting information,† Gadjah Mada International Journal of Business, Vol. 6 No. 1 Hordahl, Peter and Frank Packer, (2007), â€Å"Understanding asset prices: an overview† 2006 Autumn Meeting of Central Bank Economists, Bank for International Settlements, BIS Papers, No. 34 Ibrahim, Mansor H. (2003), â€Å"Macroeconomic Forces and Capital Market Integration: A VAR Analysis fo r Malaysia,† Journal of the Asia Pacific Economy, 8 (1) Jennergren, L. P. 2008) â€Å"A Tutorial on The Discounted Cash Flow Model For Valuation of Companies†, Working Paper Series in Business Administration, Stockholm School of Economics John, K. and J. Williams, (1985), â€Å"Dividends, Dilution, and Taxes: A Signaling Equilibrium,† Journal of Finance, 40 Joos, Philip and Alexei Zhdanov (2007) â€Å"Earnings and Equity Valuation in the Biotech Industry: Theory and Evidence† http://papers. ssrn. com/sol3/papers. cfm? abstract Kang, H. G. (2004) â€Å"Disclosure-Risk Premium: Asset Pricing Under Asymmetric Information, Manipulation and Ambiguity†, Working Paper Series, Social Science Research Network, http://papers. srn. com/sol3/cf_dev/AbsByAuth. cfm? per_id=333508 Kislingerova, Eva, (2000) â€Å"Using of The Economic Value Added Model for Valuation of a Company†, Narodna Banka Slovenska, BIATEC, Rocnik, 8, 11 Koller, Tim, Marc Goedhart, and David Wessels, (2005), â€Å"Valuation: Measuring and Managing The Value of Companies†, Wiley, Hoboken, New Jersey, 4th Ed. , Lee, Bong-Soo (2006) â€Å"An Empirical Evaluation of Behavioral Models Based on Decompositions of Stock Prices† Journal of Business, Vol. 79, issue 1 Lo, K. and T. Lys, (2000) â€Å"The Ohlson Model: Contribution to Valuation Theory, Limitations, And Empirical Applications. Journal of Accounting, Auditing and Finance, 15 (3) Loderer C. F. , Sheehan D. P. , and Kadlec G. B. , 1991, â€Å"The pricing of equity offerings†, Journal of Financial Economics, 29 Miller, M. and K. Rock, (1985), â€Å"Dividend Policy Under Asymmetric Information,† Journal of Finance 40 Molodovsky, Nicholas (1995),â€Å"A Theory of Price-Earnings Ratios†, Financial Analysts Journal, 51( 1) Moore, J. S & Beltz, J. C (2002) â€Å"Share Price Performance and Observable Factors: A Perspective from Rule Induction†, Small Business Advancement Natio nal Centre, http://www. sbaer. uca. du/research/TemporarilyDisabled—- wdsi/2002/pdffiles/toc. pdf Mukherjee, Tarun K. ; Naka, Atsuyuki (1995) â€Å"Dynamic Relations Between Macroeconomic Variables and The Japanese Stock Market: An Application of Vector Error Correction Model,† The Journal Of Financial Research, XVIII. (2) O'hara, M. , (1995), â€Å"Market Microstructure Theory†, Blackwell Publishers Ltd, Malden, Ma O'hara, M. , (2003), â€Å"Liquidity and Price Discovery†, Journal of Finance, 58, 4 Preinreich, G. A. D. (1938), â€Å"Annual Survey of Economic Theory: The Theory of Depreciation† Econometrica, 6 Rigobon, Roberto and Brian P.Sack (2003) ’’Spillovers Across U. S. Financial Markets, National Bureau of Economic Research (NBER), Working Paper W9640 International Research Journal of Finance and Economics – Issue 30 (2009) [37] [38] [39] [40] [41] [42] [43] [44] [45] [46] [47] [48] 188 Rock, Kevin, (1986), â€Å"Why Ne w Issues Are Underpriced†, Journal of Financial Economics, 15 Ross, Stephen A. (1976) â€Å"An Arbitrage Theory of Capital Asset Pricing†. Journal of Economic Theory, 13 Sharpe, W. F. , (1964), â€Å"Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk†, Journal of Finance, Vol. 19 Smith, Clifford W. (1977), â€Å"Alternative Methods For Raising Capital: Rights Versus Underwritten Offerings†, Journal of Financial Economics, 5 Thisday Newspapers (2008) â€Å"Nigeria: SEC – Capital Market Loses N3 Trillion in Six Months†, http://allafrica. com/stories/200810210014. html Tully, Shwan (2008) â€Å"The Real Key to Creating Wealth†: Fortune Magazine cited in Kislingeriva, Eva â€Å"Using of the Economic Value Added Model for Valuation of a Company† Narodna Banka Slovenska, BIATEC, Rocnik 8, 11 Tymoigne, Erick (2002) â€Å"Financial Inflation and Financial Convention† Oeconomicus, Volume V, Winter 2002, Udegbunam, R.I. and P. O. Eriki (2001), â€Å"Inflation and Stock Price Behavior: Evidence from Nigerian Stock Market,† Journal of Financial Management & Analysis, XX (14) Welch, I. , (1989) â€Å"Seasoned Offerings, Imitation Costs, And The Underpricing Of Initial Public Offerings†, Journal of Finance 44 Wessa, P. (2008), Free Statistics Software, Office for Research Development and Education, version 1. 1. 23-r3 Zhang, X. Frank (2004) â€Å"Information Uncertainty and Stock Returns† An Article Submitted to The Journal of Finance Manuscript 1149 www. afajof. rg/afa/forthcoming/zhang_information. pdf Zhao, Xing-Qiu (1999), â€Å"Stock prices, inflation and output: evidence from China,† Applied Economics Letters, 6 Appendix Appendix I: Selected Market Indices (2001 – 2007) YEAR PRICE* DPS* EPS* GDP** INT** 42. 53 430. 00 393. 29 431,783. 10 21. 34 2001 43. 70 432. 72 412. 52 451,785. 60 29. 70 2002 109. 21 577. 63 459. 83 495,007. 10 22. 47 2003 116 . 76 552. 48 600. 59 527,576. 00 20. 62 2004 110. 56 466. 97 708. 90 561,931. 40 19. 47 2005 102. 33 553. 87 1,666. 03 595,821. 61 18. 43 2006 95. 87 549. 93 894. 96 561,776. 34 19. 1 2007 Source: Central Bank of Nigeria Statistical Bulletin** : Cashcraft Asset Management Limited / APT Securities and Fund Limited * OIL** 24. 50 25. 40 29. 10 38. 70 57. 60 66. 50 54. 27 INFLE** 18. 90 12. 90 14. 00 15. 00 17. 90 8. 20 13. 70 FX ** 111. 94 120. 97 129. 36 133. 50 132. 15 128. 65 131. 43 189 International Research Journal of Finance and Economics – Issue 30 (2009) Appendix II: Regression Analysis Of Selected Market Indices (2001 – 2007) Multiple Linear Regression – Estimated Regression Equation SP[t] = +0. 38353330161483 DPS[t] +0. 086971432931437 EPS[t] +0. 38049146437789 GDP[t] -0. 82357353121514 INT[t] -1. 740597666311 FX[t] -67. 238476376193 + e[t] Multiple Linear Regression – Ordinary Least Squares Variable DPS[t] EPS[t] GDP[t] INT[t] FX[t] Constant Var iable %DPS[t] %EPS[t] %GDP[t] %INT[t] %FX[t] %Constant Variable Parameter 0. 383533 0. 086971 0. 380491 -0. 823574 -1. 97406 -67. 238476 Elasticity 2. 201042 0. 359282 2. 221624 -0. 200986 -2. 822992 -0. 75797 Stand. Coeff. S. E. 0. 010577 0. 002606 0. 017447 0. 111666 0. 17603 7. 006084 S. E. * 0. 060703 0. 010767 0. 101869 0. 027251 0. 25173 0. 078979 S. E. * T-STAT H0: parameter = 0 36. 259468 33. 368601 21. 808584 -7. 375331 -11. 214366 -9. 597156 T-STAT H0: |elast| = 1 19. 785697 -59. 07274 11. 992081 -29. 320395 7. 241855 -3. 064493 T-STAT H0: coeff = 0 2-tail p-value 0. 017553 0. 019073 0. 029171 0. 085794 0. 056618 0. 066096 2-tail p-value 0. 032148 0. 010697 0. 052964 0. 021704 0. 087356 0. 200805 2-tail p-value 1-tail p-value 0. 008776 0. 009536 0. 014585 0. 042897 0. 028309 0. 033048 1-tail p-value 0. 016074 0. 005349 0. 026482 0. 010852 0. 043678 0. 100402 1-tail p-value 0. 008776 0. 009536 0. 014585 0. 042897 0. 028309 0. 5 S-DPS[t] 0. 763848 0. 021066 36. 259468 0. 017 553 S-EPS[t] 0. 69251 0. 020753 33. 368601 0. 019073 S-GDP[t] 0. 729372 0. 033444 21. 808584 0. 029171 S-INT[t] -0. 09814 0. 013307 -7. 75331 0. 085794 S-FX[t] -0. 48017 0. 042817 -11. 214366 0. 056618 S-Constant 0 0 0 1 Computed against deterministic endogenous series *Note Multiple Linear Regression – Regression Statistics Multiple R 0. 999981 R-squared 0. 999963 Adjusted R-squared 0. 999777 F-TEST 5385. 033289 Observations 7 Degrees of Freedom 1 Multiple Linear Regression – Residual Statistics Standard Error 0. 475177 Sum Squared Errors 0. 225793 Log Likelihood 2. 086595 Durbin-Watson 3. 380955 Von Neumann Ratio 3. 944448 # e[t] > 0 3 # e[t] < 0 4 # Runs 6 Runs Statistic 1. 333946 NB: Regression analysis was done using a software developed by Wessa (2008)

Adult moral reasoning

For an intellectual Fowler’s framework could be the next â€Å"big thing† in terms of serious theoretical positions on the formation of morality and moral reasoning and the substance of faith. In a human perspective, Fowler successfully attempted to provide a picture that illustrates and guides both the individual being studied and the observer/scientist via the stages (Berger, 1994).Though these stages are not as explicitly applicable to all persons, like other psychologists such as Erikson and Maslow, Fowler’s important contribution apparently is more than expansion of Kohlberg or Piaget. His own personal journey, lengthy and in-depth research has given him a solid premise to work on (Berger, 1994).My personal journey may probably be described closely in the perspective which is described by Fowler. I don’t have much experience and enough intellectual prowess and scholarship to be in the position to do a thorough critique on the theory and theorist.Howev er, since it is a personal response paper, there is one segment that I can truly say that speaks a lot about who I am and my own journey. For instance, faith and morality are intricately intertwined just as faith, ethics and values are almost synonymous (Berger, 1994).Fowler may be correct to a certain extent in attributing specific concepts which indeed are descriptive of universal experiences (Berger, 1994), and I cannot argue with this theorist on this issue. It is altogether important to me that individuals must come to grips to the effects of personal faith on conduct and decision making process, and such issues as personal priorities.It is when a person decides to commit to what may be attributed as a mystical Being (i.e., in the conception of God) that spells a difference to that person’s worldview or way of life. I would still like to argue with Fowler that he has reduced so much to an intellectual explanation something which cannot be explained since there is a diffe rence (in my perspective and understanding) between mere knowledge of God and real spirituality.I personally don’t like it when intellectuals and philosophers settle to â€Å"study God† or morality and departing from real substantive and life changing faith.Reference:Berger, K. S. (1994). The developing person through the life-span. (3rd ed). Worth.