Pepsi Co And Competitors Example For Free - Free Essay Example

Sample details Pages: 8 Words: 2421 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? In this report it has been critically done the analysis of financial statements of PepsiCo along with the comparison of close and distant competitors existing in the industry. In this report it has also been tried the way how to calculate financial statements ratios with definitions and their calculated ratios interpretations in an easy language to make this report easily understandable for any potential reader. I tried to explain how companies try to get tax benefits and the possibilities to reduce taxable amount paid to the government. Don’t waste time! Our writers will create an original "Pepsi Co And Competitors Example For Free" essay for you Create order I also provided suggestions how to maintain senior debt rating. Debt side of the balance sheet has been investigated critically in depth to provide sound knowledge to the actual and potential readers of financial statements of PepsiCo. The possible advantages and disadvantages of debts have also been listed. I am sure this report is easy to read and understand for those who do not have accounting and finance background knowledge. 1. Calculate PepsiCos net debt ratio, assuming that the present value of operating leases is five times the annual rental expense and that remitting the cash and marketable securities to the United States reduces them by 25% due to taxes and transaction costs. 20 marks Net Debt Ratio (L): L= Market value of total debt + present value of operating lease commitments cash and marketable securities à · ( No. of common shares ÃÆ'Æ’- Common Stock Price ) + Market value of total debt + Present value of operating lease commitments Cash and marketable securities L= (D + PVOL CMS)__ (NP + D + PVOL CMS) Where; D is the total market value of debt; $18,119,000,000 PVOL is the present value of operating lease commitments; 294,000,000 ÃÆ'Æ’- 5 = $1,470,000,000 CMS is cash and marketable securities; 382,000,000 + 116,000,000 = $498,000,000 N is the number of common shares 790,000,000 P is the common stock price $55.875 L= 18,119,000,000 + 1,470,000,000 498,000,000______________________ (790,000,000 ÃÆ'Æ’- 55.875) + 18,119,000,000 + 1,470,000,000 498,000,000 L = 19,091,000,000 63,232,250,000 L = 0.301 ÃÆ'Æ’-100 L = 30.1% If the present value of operating lease is reduced by 25%: D is the total market value of debt; $18,119,000,000 PVOL is the present value of operating lease commitments; 294,000,000 ÃÆ'Æ’- 5 = $1,470,000,000 ÃÆ'Æ’- 0.75 = 1,102,500,000 CMS is cash and marketable securities; 382,000,000 + 116,000,000 = $498,000,000 N is the number of common shares 790,000,000 P is the common stock price $55.875 L = 18,119,000,000 + 1,102,500,000 498,000,000_____________________ (790,000,000 ÃÆ'Æ’- 55.875) + 18,119,000,000 + 1,102,500,000 498,000,000 L = 18,723,500,000 62,864,750,000 L = 0.297ÃÆ'Æ’-100 L = 29.7% 2. For each firm in Exhibit 5, calculate the interest coverage ratio, the fixed charge coverage ratio, the long-term debt ratio, the total debt to adjusted total capitalization (recall that adjusted capitalization includes short-term debt), the ratio of cash flow to long-term debt, and the ratio of cash flow to total debt. 20 marks Interest Coverage Ratio: This analysis tool is used to measure how many times a company can pay interest payments on its debts on its earnings before interests and taxes. If the interest coverage ratio is higher, the company has low debt load and there is a less chances of bankruptcy. This ratio is important for those who have provided debt to the company or they are going to provide debt to the company because by analyzing this ratio they can find that the company can make interest payments easily when debt is provided to them. The higher the ratio, the lesser the risk is supposed by the creditors. A company usually prefers to have debt in order to take tax benefit when deducting interest payments as expenses which decrease the income which has to be taxed. This ratio is dependent on earnings before taxes by a company. The higher the earnings, the higher the ratio and the lower the interest payments, the higher the ratio. Interest Coverage Ratio = Earnings before Interest Taxes Interest Expenses Pepsi: = 3,114 682 = 4.565 Times Cadbury Schweppes: = 661 135 = 4.896 Times Coca-Cola: = 4,600 272 = 16.911 Times Coca-Cola Enterprises: = 471 326 = 1.444 Times Mc Donalds: = 2,509 340 = 7.379 Times Interest Coverage Ratio-Summary: Pepsi Cadbury Schweppes Coca-Cola Coca-Cola Enterprises Mc. Donalds 4.565 Times 4.896 Times 16.911 Times 1.444 Times 7.379 Times Interpretation: Pepsi has competitive interest coverage ratio amongst the competitive firms. 4.565 exhibits that Pepsi can make 4.565 times payment of the total interest payment which are basically interest on debts acquired by Pepsi. Fixed charge coverage ratio: A measure of a companys ability to pay its  fixed expenses, such as  rent  and  interest, on debt without resorting to more  debt. A ratio over 1 indicates that the company is able to pay its fixed charges, while a ratio below one indicates the opposite.  (Farlex Financial Dictionary, 2009) This analysis tool is used to calculate how many times a company can pay its fixed interest payments. This ratio gives high value if the earning before taxes increases over the years. This ratio is important for those institutions which are planning to provide long term debt to the company and are supposed to receive fixed amount of payments i.e. interest over the years. Fixed Charge Coverage Ratio = Earnings before Interest Taxes + Fixed Charges (before taxes) Fixed Charges (before taxes) + Interest Expenses Pepsi: = 3,114 + 479 + 682 479 + 682 = 3.682 Times Cadbury Schweppes: = 661 + 25 + 135 25 + 135 = 5.131 Times Coca-Cola: = 4,600 + 272 272 = 17.911 Times Coca-Cola Enterprises: = 471 + 31 + 326 31 + 326 = 2.319 Times Mc Donalds: = 2,509 + 498 + 340 498 + 340 = 3.994 Times Fixed charge coverage ratio-Summary: Pepsi Cadbury Schweppes Coca-Cola Coca-Cola Enterprises Mc. Donalds 3.682 Times 5.131 Times 17.911 Times 2.319 Times 3.994 Times Interpretation: Pepsi has competitive fixed charge coverage ratio amongst the competitive firms. 3.682 exhibits that Pepsi can make 3.682 times payment of the fixed payment which are basically interest on long term debts. Long-term debt ratio: This analysis tool is used to measure a companys financial leverage. Long term debt is usually referred to debt acquired by the company for more than financial year of the company. Firms do debt financing to take tax benefits. This ratio is calculated by using data of previous financial year which is beneficial to the firms which are planning to provide long term debt to the firm. A firm has to maintain balance between debt financing and equity financing. Long-term debt ratio = Long term debt_________________ Long term debt + Preferred Stock + Common Stock Pepsi: = 8,747_____ 8,747 + 44,029.5 = 0.165 ÃÆ'Æ’- 100 = 16.5% Cadbury Schweppes: = 864_____ 864 + 8,702.2 = 0.090 ÃÆ'Æ’- 100 = 9% Coca-Cola: = 1,141______ 1,141 + 100,810.15 = 0.011 ÃÆ'Æ’- 100 = 1.11% Coca-Cola Enterprises: = 4,138____ 4,138 + 3,856.5 = 0.517 ÃÆ'Æ’- 100 = 51.7% Mc Donalds: = 4,258_____ 4,258 + 33,585.6 = 0.112 ÃÆ'Æ’- 100 = 11.2% Long-term debt ratio-Summary: Pepsi Cadbury Schweppes Coca-Cola Coca-Cola Enterprises Mc. Donalds 16.50% 9% 1.11% 51.70% 11.20% Interpretation: Pepsi has a good long term debt ratio which exhibits that 16.50% of total assets own by the creditors who provided long term debt to Pepsi. Although close competitor i.e. Coca-cola has less long term debt ratio than Pepsi which shows less risky long term debt financing obtained by Coca-Cola. The total debt to adjusted total capitalization: This analysis tool is used to measure a companys total equity contribution by the shareholders and creditors. Company raises total equities by offering shares to the market and by acquiring debt from the financial institutions. Total debt includes long term debt and short term debt. Long term debt is usually referred to debt acquired by the company for more than financial year of the company, whereas, short term debt is referred to debt acquired by the company for less than its financial year. Firms usually do debt financing to take tax benefits. This ratio is calculated by using data of previous financial year which is beneficial to the firms which are planning to provide long term and short term debt to the firm. A firm has to maintain balance between total debt and total shareholders equity. Lenders mostly want a firm to maintain low this ratio because it guards and decrease risk for both the company and lenders in order to efficiently meet liquidity situation easily. A company has to maintain this ratio which varies company to company and industry to industry. The total debt to adjusted total capitalization = Total debt____ Total debt + Equity Pepsi: = 9,453______ 9,453 + 44,029.5 = 0.176 ÃÆ'Æ’- 100 = 17.6% Cadbury Schweppes: = 1,490____ 1,490 + 8,702.2 = 0.146 ÃÆ'Æ’- 100 = 14.6% Coca-Cola: = 1,693______ 1,693 + 100,810.15 = 0.016 ÃÆ'Æ’- 100 = 1.6% Coca-Cola Enterprises: = 4,201____ 4,201 + 3,856.5 = 0.521 ÃÆ'Æ’- 100 = 52.1% Mc Donalds: = 4,836_____ 4,836 + 33,585.6 = 0.125 ÃÆ'Æ’- 100 = 12.5% The total debt to adjusted total capitalization-Summary: Pepsi Cadbury Schweppes Coca-Cola Coca-Cola Enterprises Mc. Donalds 17.60% 15% 1.60% 52.10% 12.50% Interpretation: Pepsi has more total debt ratio if compared with the close competitor i.e. Coca-Cola which has 1.60% total debt ratio. 17.60% exhibits that this percentage of total assets has been provided by the lenders. In other words, lenders own 17.60% assets of Pepsi or 17.60% of total equity is provided by the lenders. The ratio of cash flow to long-term debt: The  cash flow to long term debt ratio  appraises the adequacy of available funds to pay obligations. A cash flow coverage ratio that measures how much cash is available to pay for long-term debt. This ratio is a good indicator of potential bankruptcy. (Your Dictionary, 2010) The ratio of cash flow to long-term debt = Operating cash flow_____ Market value of long-term debt Pepsi: = 3,742 8,747 = 0.427 ÃÆ'Æ’- 100 = 42.7% Cadbury Schweppes: = 492 864 = 0.569 ÃÆ'Æ’- 100 = 56.9% Coca-Cola: = 3,115 1,141 = 2.730 ÃÆ'Æ’- 100 = 273% Coca-Cola Enterprises: = 644_ 4,138 = 0.155 ÃÆ'Æ’- 100 = 15.5% Mc Donalds: = 2,296 4,258 = 0.539 ÃÆ'Æ’- 100 = 53.9% The ratio of cash flow to long-term debt-Summary: Pepsi Cadbury Schweppes Coca-Cola Coca-Cola Enterprises Mc. Donalds 42.70% 57% 273.00% 15.50% 53.90% Interpretation: Pepsi has 42.70% of availability of cash flow to pay long term debt obligations. Pepsi has less cash flow to long term debt as compared with close competitor i.e. Coca-Cola which has a very good 273% of cash flow to pay long term debts. Pepsi should increase the percentage of cash flow to long term debt to maintain competitive percentage with the close and distant competitors of it in the industry. The ratio of cash flow to total debt: This analysis tool is used to explain the availability of cash flow to pay total debt acquired by a firm. According to me this is a rational way to consider the payments because companies cash flow statements changes drastically on the daily basis. This may be calculated to answer a question that something is better to evaluate than nothing. Ratio of cash flow to total debt = Operating cash flow Total debt Pepsi: = 3,742 9,453 = 0.395 ÃÆ'Æ’- 100 = 39.5% Cadbury Schweppes: = 492 1,490 = 0.330 ÃÆ'Æ’- 100 = 33% Coca-Cola: = 3,115 1,693 = 1.839 ÃÆ'Æ’- 100 = 183.9% Coca-Cola Enterprises: = 644_ 4,201 = 0.153 ÃÆ'Æ’- 100 = 15.3% Mc Donalds: = 2,296 4,836 = 0.474 ÃÆ'Æ’- 100 = 47.4% The ratio of cash flow to total debt-Summary: Pepsi Cadbury Schweppes Coca-Cola Coca-Cola Enterprises Mc. Donalds 39.50% 33% 183.90% 15.30% 47.40% Interpretation: Pepsi has 39.50% of availability of cash flow to pay total debt commitment. Pepsi has less cash flow to total debt as compared with close competitor i.e. Coca-Cola which has a very good 183.90% of cash flow to pay total debts acquired from lenders. Pepsi should increase the percentage of cash flow to total debt to maintain competitive percentage with the close and distant competitors of it in the industry. 3. Suppose PepsiCos real objective is to maintain a single-A senior debt rating. Does its net debt ratio target seem reasonable, or would you recommend a different target? 10 marks Senior debt ratings represent the opinions of the rating agencies with respect to the creditworthiness and financial ability of an obligor to meet its senior unsecured financial obligations and contracts. Ratings provide both industry participants and consumers with meaningful information on specific companies and have become an increasingly important factor in establishing the competitive position of companies in the industry. Rating agencies continually review the financial performance and condition of companies and higher ratings generally indicate financial stability and a strong ability to meet financial obligations. Each of the rating agencies reviews its ratings periodically and there can be no assurance that current ratings will be maintained in the future. (Humana, 2010) Advantages of Debt to the Company The cost is limited and known and cheaper than the cost of equity (because it is less risky to the investor who therefore requires a lower required rate of return). The interest is tax-deductible, unlike dividend payments, which makes the cost even cheaper in comparison to equity. There is no dilution of control when debt is issued. The cost of acquiring equity financing is more than the cost of financing that is why debt financing is preferred. The debt can be terminated (if a call provision was included). Disadvantages of Debt to the Company There is always the possibility of default if income is low. The company must pay interest, even if it means taking out additional debt to do so. The cost of equity rises as more debt is used. The higher leverage results in higher risk to shareholders who will require a higher rate of return. The net debt ratio target of PepsiCo of 29.7% exhibits that 29.7% of total assets provided by lenders or creditors. This ratio is useful for lenders which assist them to find out how much they are save if the PepsiCo is declared insolvent. According to my analysis, the method and the derived percentage of target senior debt rating is rational approach because it has the three out of five major elements which are assumed to impact on the capital structure decision making. The debt rating provides the information about the firms capacity to service its debt. It also provide sound information about the degree of protection afforded by the liquidity of the firms assets, and mainly find out t he firms simplicity of access to the capital markets. A target senior debt rating of single-A is a sensible objective for PepsiCo because it is the lowest rating that has allowed historically the issuer to maintain constant access to the capital markets. Net debt ratio seems reasonable because of many reasons. One of them is the cost of equity is not clearly mentioned on the income statement, whereas, the cost of debt i.e. interest expense is recorded. Debt financing is less expensive than equity financing because the debtors can claim firstly if the firm is declared to be insolvent. It is easy to forget that debt is a cheaper source of funding for the company than equity. Debt is less risky than equity that is why investors get low return; this interprets into an  interest rate  that is lower than the expected  total shareholder return  on equity. Firms get tax benefits because the amount of interest paid is tax deductible. Tax is one of the important areas for firms which monitor critically so that the firms can find out ways to decrease the taxable amount paid to the government authority. Debt ratio rated A has a strong capacity to pay interest and repay principal. One reason PepsiCo should adopt a lower percentage of financial leverage in the industry it could be more attractive for the stakeholders of PepsiCo. Another reason would be if the firm had a higher proportion of intangible assets than the cross section of firms. A third reason would be if the firm cannot fully use its interest tax credits. The net debt ratio of 29.7% is low leverage ratio which may decrease PepsiCos coverage to risk and business declination. This decrease in risk brings the potential for lower returns. PepsiCo is generally considered safer because it has a low net debt ratio, though a very low ratio indicates excessive caution. Conclusion: Generally, lower net debt ratio is better because it means that the firm is using more of owners capital and retained earnings to finance its assets. It means less risk to creditors. Company can borrow additional funds with relative ease. Keeping the low net debt ratio is attractive to all the actual and potential users of financial statements of PepsiCo.

Racism in Maya Angelous I Know Why the Caged Bird Sings...

Racism in Maya Angelous I Know Why the Caged Bird Sings Maya Angelou, the current poet laureate of the United States, has become for many people an exemplary role model. She read an original poem at the inauguration of President Clinton; she has also appeared on the television show Touched by an Angel, and there read another poem of her own composition; she lectures widely, inspiring young people to aim high in life. Yet this is an unlikely beginning for a woman who, by the age of thirty, had been San Franciscos first black streetcar conductor; an unmarried mother; the madam of a San Diego brothel; a prostitute, a showgirl, and an actress (Lichtler, 861927397.html). Her book I Know Why the Caged Bird Sings argues persuasively†¦show more content†¦In another instance, Angelou describes an incident in which she had a terrible toothache from two abscessed teeth. Since her grandmother (whom Maya called Momma) had once loaned money to a white dentist, Momma decided to take Angelou to him to see if he would treat her teeth, despite the fact that white doctors did not normally treat blacks. The dentist refused, telling Momma that hed rather stick [his] hand in a dogs mouth than in a niggers (Angelou, 160). In another instance, a group of po white trash children confront Momma at her store, taunting her. As Renee Barlow notes, They were represented as clownish, dirty, and rather silly. On the other hand, Mama simply stood like a rock and sang the Gospel. Her beauty of soul versus their disgusting antics creates a powerful scene about the nature of the oppressed and the oppressor. Marguerite, meanwhile, lies crouched behind the screen in agony at the inability of her class to command respect simply because of their color. Then, as the scene progresses, she understands that in spite of the disparity of power between the powhite trash and Mama, Mama has won (Barlow, 861927397.html). She has won not because she has outsmarted the white youths or even -- strictly speaking -- overpowered them, but because she has outclassed them. This is a powerful lesson for a child to learn, and one that wouldShow MoreRelatedThe Theme of Racism in Maya Angelou’s Novel, I Know Why the Caged Bird Sings 842 Words   |  3 PagesIn this essay I will be talking about how the theme of Racism is developed throughout Maya Angelou’s I Know Why the Caged Bird Sings novel. Angelou on the second page states, â€Å"Wouldn’t they be surprised when one day I woke out of my black ugly dream, and my real hair, which was long and blond, would take the place of the kinky mass that Momma wouldn’t let me straighten? My light-blue eyes were going to hypnotize them, after all the things they said about â€Å"my daddy must have been a Chinaman†Ã¢â‚¬ ¦Ã¢â‚¬  (AngelouRead MoreI Know Why The Caged Bird Sings1482 Words   |  6 Pages Maya Angelou tells of her life experiences and struggles in her book â€Å"I Know Why the Caged Bird Sings† that gives us insight about Maya’s life as a young black girl growing up in a time of racism. The novel discusses various forms of oppression that she had to face as well cope with them. Robert A. Gross wrote an analysis for Newsweek about the book and claimed that Angelou’s book is not only an interesting story of her own experience, but also a portrayal of a Southern black communityRead MoreIgnorance And Racism In I Know Why The Caged Bird Sings706 Words   |  3 Pagesstory or novel. The book I Know Why the Caged Bird Sings by Maya Angelou has three prominent motifs which are represented throughout the book. Ignorance and illiteracy, self-esteem, and racism are all present motifs in Maya Angelou’s autobiographical novel. Ignorance and illiteracy are displayed by Momma and Maya, respectively. Momma displays ignorance when she does not understand the new slang of the times and Maya show illiteracy when she gets pregnant by accident. Maya struggles with being a NegroRead MoreMaya Angelou1001 Words   |  5 PagesMa ya Angelou You may shoot me with your words, you may cut me with your eyes, you may kill me with your hatefulness. But still, like air, Ill rise. Have you ever been so influenced by such a small amount of powerful words? This brilliant quote extracted from Maya Angelous own poem, Still I Rise, basically brings out the spirit and nature of each of her publications. Maya Angelous works of poetry are seen as inspiration for those who have been discriminated for their public appearances. AsRead MoreI Know Why The Caged Bird Sings By Maya Angelou Analysis1661 Words   |  7 PagesSociety today has an upheaving amount of problems that span from racism, poverty, persecution, and war, etc. Banners of books are attempting to eradicate any written piece that touches on the mere obstacles of society. The people who hold the vandalism tools in this situation are parents, who have children in the public school system. One book at a time, they annihilate authors and classic novels, themes, and genres in ord er to get their agenda across. The First Amendment to The United States ConstitutionRead MoreLiterary Elements Of Maya Angelou1976 Words   |  8 PagesLiterary Elements of Maya Angelou and Toni Morrison Maya Angelou was born on April 4, 1928, in St. Louis, Missouri. She was a writer and civil rights activist best known for her 1969 memoir, â€Å"I Know Why the Caged Bird Sings.† As a young child Angelou witnessed her parents’ divorce and she and her brother were sent to live with their grandmother in Stamps, Arkansas. While in Arkansas, she constantly experienced racism and discrimination, and she was able to translate the emotions that she felt, intoRead More Maya Angelou: Hope into Art Essay1343 Words   |  6 PagesMaya Angelou: Hope into Art      Ã‚  Ã‚   Before delving into a discussion of celebrated writer Maya Angelou, a fuller understanding of the worldview that shapes her work can be gleaned from a brief review of a few lines from the 1962 Nobel Prize winning speech of another celebrated writer, John Steinbeck:    The writer is delegated to declare and to celebrate mans proven capacity for greatness of heart and spirit--for gallantry in defeat, for courage, compassion and love. In the endless warRead MoreLiterary Analysis of I Know Why the Caged Bird Sings Essay2756 Words   |  12 PagesEnglish 2 Professor Padilla Themes of Racism and Segregation in I Know Why the Caged Bird Sings By Maya Angelou The purpose of this paper is to introduce, discuss, and analyze the novel I Know Why the Caged Bird Sings by Maya Angelou. Specifically it will discuss the themes of racism and segregation, and how these strong themes are woven throughout this moving autobiography. Maya Angelou recounts the story of her early life, including the racism and segregation she experiences throughoutRead MoreMaya Angelou655 Words   |  3 PagesMa 2(1565443) Maya Angelou is known as the â€Å"most visible black female autobiographer/poet.† She was born, Marguerite Ann Johnson, on April fourth, 1928 in St. Louis, Missouri. Her parents divorced when she was three, and she and her brother were sent to live with their grandmother in Stamps, Arkansas. Seeing all the racial discrimination in the American south strengthened her passion for poetry, music, dance and performance. Maya writes about the struggles people face, racism and freedom. At ageRead MoreMaya Angelou s I Know Why The Caged Bird Sings1888 Words   |  8 Pages Maya Angelou once said â€Å"We may encounter many defeats but we must not be defeated† and this phrase speaks volume in comparison to Angelou’s life story. She was born Marguerite Ann Johnson on April 4th, 1928, in St. Louis, Missouri. The name Maya was given to her by her older brother, Bailey Jr. Maya Angelou is not only a sister, but also an inspirational role model, a mother, an author, a poet, a civil rights activist, and an actor. In 1969 Angelou’s world renowned book â€Å"I Know Why the Caged Bird

Forward the Foundation Chapter 10 Free Essays

6 The weather was holding up over the undomed area of the Imperial Palace grounds-warm and sunny. It didn’t often happen. Hari remembered Dors telling him once how this particular area with its cold winters and frequent rains had been chosen as the site. We will write a custom essay sample on Forward the Foundation Chapter 10 or any similar topic only for you Order Now â€Å"It wasn’t actually chosen,† she said. â€Å"It was a family estate of the Morovian family in the early days of the Kingdom of Trantor. When the Kingdom became an Empire, there were numerous sites where the Emperor could live-summer resorts, winter places, sports lodges, beach properties. And, as the planet was slowly domed, one reigning Emperor, living here, liked it so much that it remained undomed. And, just because it was the only area left undomed, it became special-a place apart-and that uniqueness appealed to the next Emperor†¦ and the next†¦ and the next†¦ And so, a tradition was born.† And as always, when hearing something like that, Seldon would think: And how would psychohistory handle this? Would it predict that one area would remain undomed but be absolutely unable to say which area? Could it go even so far? Could it predict that several areas would remain undomed or none-and be wrong? How could it account for the personal likes and dislikes of an Emperor who happened to be on the throne at the crucial time and who made a decision in a moment of whimsy and nothing more. That way lay chaos-and madness. Cleon I was clearly enjoying the good weather. â€Å"I’m getting old, Seldon,† he said. â€Å"I don’t have to tell you that. We’re the same age, you and I. Surely it’s a sign of age when I don’t have the impulse to play tennis or go fishing, even though they’ve newly restocked the lake, but am willing to walk gently over the pathways.† He was eating nuts as he spoke, which resembled what on Seldon’s native world of Helicon would have been called pumpkin seeds, but which were larger and a little less delicate in taste. Cleon cracked them gently between his teeth, peeled the thin shells and popped the kernels into his mouth. Seldon did not like the taste particularly but, of course, when he was offered some by the Emperor, he accepted them and ate a few. The Emperor had a number of shells in his hand and looked vaguely around for a receptacle of some sort that he could use for disposal. He saw none, but he did notice a gardener standing not far away, his body at attention (as it should be in the Imperial presence) and his head respectfully bowed. Cleon said, â€Å"Gardener!† The gardener approached quickly. â€Å"Sire!† â€Å"Get rid of these for me,† he said, tapping the shells into the gardener’s hand. â€Å"Yes, Sire.† Seldon said, â€Å"I have a few, too, Gruber.† Gruber held out his hand and said, almost shyly, â€Å"Yes, First Minister.† He hurried away and the Emperor looked after him curiously. â€Å"Do you know the fellow, Seldon?† â€Å"Yes, indeed, Sire. An old friend.† â€Å"The gardener is an old friend? What is he? A mathematical colleague fallen on hard times?† â€Å"No, Sire. Perhaps you remember the story. It was the time when†-he cleared his throat, searching for the most tactful way to recall the incident-â€Å"the sergeant threatened my life shortly after I was appointed to my present post through your kindness.† â€Å"The assassination attempt.† Cleon looked up to heaven, as though seeking patience. â€Å"I don’t know why everyone is so afraid of that word.† â€Å"Perhaps,† said Seldon smoothly, slightly despising himself for the ease with which he had become able to flatter, â€Å"the rest of us are more perturbed at the possibility of something untoward happening to our Emperor than you yourself are.† Cleon smiled ironically. â€Å"I dare say. And what has this to do with Gruber? Is that his name?† â€Å"Yes, Sire. Mandell Gruber. I’m sure you will recall, if you cast your mind back, that there was a gardener who came rushing up with a rake to defend me against the armed sergeant.† â€Å"Ah yes. Was that fellow the gardener who did that?† â€Å"He was the man, Sire. I’ve considered him a friend ever since and I meet him almost every time I am on the grounds. I think he watches for me, feels proprietary toward me. And, of course, I feel kindly toward him.† â€Å"I don’t blame you. And while we’re on the subject, how is your formidable lady, Dr. Venabili? I don’t see her often.† â€Å"She’s a historian, Sire. Lost in the past.† â€Å"She doesn’t frighten you? She’d frighten me. I’ve been told how she treated that sergeant. One could almost be sorry for him.† â€Å"She grows savage on my behalf, Sire, but has not had occasion to do so lately. It’s been very quiet.† The Emperor looked after the disappearing gardener. â€Å"Have we ever rewarded that man?† â€Å"I have done so, Sire. He has a wife and two daughters and I have arranged that each daughter will have a sum of money put aside for the education of any children she may have.† â€Å"Very good. But he needs a promotion, I think. Is he a good gardener?† â€Å"Excellent, Sire.† â€Å"The Chief Gardener, Malcomber-I’m not quite sure I remember his name-is getting on and is, perhaps, not up to the job anymore. He is well into his late seventies. Do you think this Gruber might be able to take over?† â€Å"I’m certain he can, Sire, but he likes his present job. It keeps him out in the open in all kinds of weather.† â€Å"A peculiar recommendation for a job. I’m sure he can get used to administration and I do need someone for some sort of renewal of the grounds. Hmmm. I must think upon this. Your friend Gruber may be just the man I need. By the way, Seldon, what did you mean by saying it’s been very quiet?† â€Å"I merely meant, Sire, that there has been no sign of discord at the Imperial Court. The unavoidable tendency to intrigue seems to be as near a minimum as it is ever likely to get.† â€Å"You wouldn’t say that if you were Emperor, Seldon, and had to contend with all these officials and their complaints. How can you tell me things are quiet when reports seem to reach me every other week of some serious breakdown here and there on Trantor?† â€Å"These things are bound to happen.† â€Å"I don’t recall such things happening so frequently in previous years.† â€Å"Perhaps that was because they didn’t, Sire. The infrastructure grows older with time. To make the necessary repairs properly would take time, labor, and enormous expense. This is not a time when a rise in taxes will be looked on favorably.† â€Å"There’s never any such time. I gather that the people are experiencing serious dissatisfaction over these breakdowns. It must stop and you must see to it, Seldon. What does psychohistory say?† â€Å"It says what common sense says, that everything is growing older.† â€Å"Well, all this is quite spoiling the pleasant day for me. I leave it in your hands, Seldon.† â€Å"Yes, Sire,† said Seldon quietly. The Emperor strode off and Seldon thought that it was all spoiling the pleasant day for him, too. This breakdown at the center was the alternative he didn’t want. But how was he to prevent it and switch the crisis to the Periphery? Psychohistory didn’t say. 7 Raych Seldon felt extraordinarily contented, for it was the first dinner en famille that he had had in some months with the two people he thought of as his father and mother. He knew perfectly well that they were not his parents in any biological sense, but it didn’t matter. He merely smiled at them with complete love. The surroundings were not as warm as they had been at Streeling in the old days, when their home had been small and intimate, a virtual gem in the larger setting of the University. Now, unfortunately, nothing could hide the grandeur of the First Minister’s Palace suite. Raych sometimes stared at himself in the mirror and wondered how it could be. He was not tall, only 163 centimeters in height, distinctly shorter than either parent. He was rather stocky but muscular-and not fat, with black hair and the distinctive Dahlite mustache that he kept as dark and as thick as possible. In the mirror he could still see the street urchin he had once been before the chanciest of great chances had dictated his meeting with Hari and Dors. Seldon had been much younger then and his appearance now made it plain that Raych himself was almost as old now as Seldon had been when they met. Amazingly, Dors had hardly changed at all. She was as sleek and fit as the day Raych had first showed Hari and Dors the way to Mother Rittah’s in Billibotton. And he, Raych, born to poverty and misery, was now a member of the civil service, a small cog in the Ministry of Population. Seldon said, â€Å"How are things going at the Ministry, Raych? Any progress?† â€Å"Some, Dad. The laws are passed. The court decisions are made. Speeches are pronounced. Still, it’s difficult to move people. You can preach brotherhood all you want, but no one feels like a brother. What gets me is that the Dahlites are as bad as any of the others. They want to be treated as equals, they say, and so they do, but, given a chance, they have no desire to treat others as equals.† Dors said, â€Å"It’s all but impossible to change people’s minds and hearts, Raych. It’s enough to try and perhaps eliminate the worst of the injustices.† â€Å"The trouble is,† said Seldon, â€Å"that through most of history, no one’s been working on this problem. Human beings have been allowed to fester in the delightful game of I’m-better-than-you and cleaning up that mess isn’t easy. If we allow things to follow their own bent and grow worse for a thousand years, we can’t complain if it takes, say, a hundred years to work an improvement.† â€Å"Sometimes, Dad,† said Raych, â€Å"I think you gave me this job to punish me.† Seldon’s eyebrows raised. â€Å"What motivation could I have had to punish you?† â€Å"For feeling attracted to Joranum’s program of sector equality and for greater popular representation in government.† â€Å"I don’t blame you for that. These are attractive suggestions, but you know that Joranum and his gang were using it only as a device to gain power. Afterward-â€Å" â€Å"But you had me entrap him, despite my attraction to his views.† Seldon said, â€Å"it wasn’t easy for me to ask you to do that.† â€Å"And now you keep me working at the implementation of Joranum’s program, just to show me how hard the task is in reality.† Seldon said to Dors, â€Å"How do you like that, Dors? The boy attributes to me a kind of sneaky underhandedness that simply isn’t part of my character.† â€Å"Surely,† said Dors with the ghost of a smile playing at her lips, â€Å"you are attributing no such thing to your father.† â€Å"Not really. In the ordinary course of life, there’s no one straighter than you, Dad. But if you have to, you know you can stack the cards. Isn’t that what you hope to do with psychohistory?† Seldon said sadly, â€Å"So far, I’ve done very little with psychohistory.† â€Å"Too bad. I keep thinking that there is some sort of psychohistorical solution to the problem of human bigotry.† â€Å"Maybe there is, but, if so, I haven’t found it.† When dinner was over, Seldon said, â€Å"You and I, Raych, are going to have a little talk now.† â€Å"Indeed?† said Dors. â€Å"I take it I’m not invited.† â€Å"Ministerial business, Dors.† â€Å"Ministerial nonsense, Hari. You’re going to ask the poor boy to do something I wouldn’t want him to do.† Seldon said firmly, â€Å"I’m certainly not going to ask him to do anything he doesn’t want to do.† Raych said, â€Å"It’s all right, Mom. Let Dad and me have our talk. I promise I’ll tell you all about it afterward.† Dors’s eyes rolled upward. â€Å"You two will plead ‘state secrets.’ I know â€Å"As a matter of fact,† said Seldon firmly, â€Å"that’s exactly what I must discuss. And of the first magnitude. I’m serious, Dors.† Dors rose, her lips tightening. She left the room with one final injunction. â€Å"Don’t throw the boy to the wolves, Hari.† And after she was gone, Seldon said quietly, â€Å"I’m afraid that throwing you to the wolves is exactly what I’ll have to do, Raych.† 8 They faced each other in Seldon’s private office, his â€Å"thinking place,† as he called it. There, he had spent uncounted hours trying to think his way past and through the complexities of Imperial and Trantorian government. He said, â€Å"Have you read much about the recent breakdowns we’ve been having in planetary services, Raych?† â€Å"Yes,† said Raych, â€Å"but you know, Dad, we’ve got an old planet here. What we gotta do is get everyone off it, dig the whole thing up, replace everything, add the latest computerizations, and then bring everyone back-or at least half of everyone. Trantor would be much better off with only twenty billion people.† â€Å"Which twenty billion?† asked Seldon smiling. â€Å"I wish I knew,† said Raych darkly. â€Å"The trouble is, we can’t redo the planet, so we just gotta keep patching.† â€Å"I’m afraid so, Raych, but there are some peculiar things about it. Now I want you to check me out. I have some thoughts about this.† He brought a small sphere out of his pocket. â€Å"What’s that?† asked Raych. â€Å"It’s a map of Trantor, carefully programmed. Do me a favor, Raych, and clear off this tabletop.† Seldon placed the sphere more or less in the middle of the table and placed his hand on a keypad in the arm of his desk chair. He used his thumb to close a contact and the light in the room went out while the tabletop glowed with a soft ivory light that seemed about a centimeter deep. The sphere had flattened and expanded to the edges of the table. The light slowly darkened in spots and took on a pattern. After some thirty seconds, Raych said in surprise, â€Å"It is a map of Trantor.† â€Å"Of course. I told you it was. You can’t buy anything like this at a sector mall, though. This is one of those gadgets the armed forces play with. It could present Trantor as a sphere, but a planar projection would more clearly show what I want to show.† â€Å"And what is it you want to show, Dad?† â€Å"Well, in the last year or two, there have been breakdowns. As you say, it’s an old planet and we’ve got to expect breakdowns, but they’ve been coming more frequently and they would seem, almost uniformly, to be the result of human error.† â€Å"Isn’t that reasonable?† â€Å"Yes, of course. Within limits. This is true, even where earthquakes are involved.† â€Å"Earthquakes? On Trantor?† â€Å"I admit Trantor is a fairly nonseismic planet-and a good thing, too, because enclosing a world in a dome when the world is going to shake itself badly several times a year and smash a section of that dome would be highly impractical. Your mother says that one of the reasons Trantor, rather than some other world, became the Imperial capital is that it was geologically moribund-that’s her unflattering expression. Still, it might be moribund, but it’s not dead. There are occasional minor earthquakes-three of them in the last two years.† â€Å"I wasn’t aware of that, Dad.† â€Å"Hardly anyone is. The dome isn’t a single object. It exists in hundreds of sections, each one of which can be lifted and set ajar to relieve tensions and compressions in case of an earthquake. Since an earthquake, when one does occur, lasts for only ten seconds to a minute, the opening endures only briefly. It comes and goes so rapidly that the Trantorians beneath are not even aware of it. They are much more aware of a mild tremor and a faint rattling of crockery than of the opening and closing of the dome overhead and the slight intrusion of the outside weather-whatever it is.† â€Å"That’s good, isn’t it?† â€Å"It should be. It’s computerized, of course. The onset of an earthquake anywhere sets off the key controls for the opening and closing of that section of the dome so that it opens just before the vibration becomes strong enough to do damage.† â€Å"Still good.† â€Å"But in the case of the three minor earthquakes over the last two years, the dome controls failed in each case. The dome never opened and, in each case, repairs were required. It took some time, it took some money, and the weather controls were less than optimum for a considerable period of time. Now, what, Raych, are the chances that the equipment would have failed in all three cases?† â€Å"Not high?† â€Å"Not high at all. Less than one in a hundred. One can suppose that someone had gimmicked the controls in advance of an earthquake. Now, about once a century, we have a magma leak, which is far more difficult to control-and I’d hate to think of the results if it went unnoticed until it was too late. Fortunately that hasn’t happened and isn’t likely to, but consider-Here on this map you will find the location of the breakdowns that have plagued us over the past two years and that seem to be attributable to human error, though we haven’t once been able to tell to whom each might be attributed.† â€Å"That’s because everyone is busy protecting his back.† â€Å"I’m afraid you’re right. That’s a characteristic of any bureaucracy and Trantor’s is the largest in history. But what do you think of the locations?† The map had lit up with bright little red markings that looked like small pustules covering the land surface of Trantor. â€Å"Well,† said Raych cautiously, â€Å"they seem to be evenly spread.† â€Å"Exactly-and that’s what’s interesting. One would expect that the older sections of Trantor, the longest-domed sections, would have the most decayed infrastructure and would be more liable to events requiring quick human decision and laying the groundwork for possible human error. I’ll superimpose the older sections of Trantor on the map in a bluish color and you’ll notice that the breakdowns don’t seem to be taking place any oftener on the blue areas.† â€Å"And?† â€Å"And what I think it means, Raych, is that the breakdowns are not of natural origin but are deliberately caused and spread out in this fashion to affect as many people as possible, thus creating a dissatisfaction that is as widespread as possible.† â€Å"It don’t seem likely.† â€Å"No? Then let’s look at the breakdowns as spread through time rather than through space.† The blue areas and the red spots disappeared and, for a time, the map of Trantor was blank-and then the markings began to appear and disappear one at a time, here and there. â€Å"Notice,† said Seldon, â€Å"that they don’t appear in clumps in time, either. One appears, then another, then another, and so on, almost like the steady ticking of a metronome.† â€Å"Do ya think that’s on purpose, too?† â€Å"It must be. Whoever is bringing this about wants to cause as much disruption with as little effort as possible, so there’s no use doing two at once, where one will partially cancel the other in the news and in the public consciousness. Each incident must stand out in full irritation.† The map went out and the lights went on. Seldon returned the sphere, shrunken back to its original size, to his pocket. Raych said, â€Å"Who would be doing all this?† Seldon said thoughtfully, â€Å"A few days ago I received a report of a murder in Wye Sector.† â€Å"That’s not unusual,† said Raych. â€Å"Even though Wye isn’t one of your really lawless sectors, there must be lots of murders there every day.† â€Å"Hundreds,† said Seldon, shaking his head. â€Å"We’ve had bad days when the number of deaths by violence on Trantor as a whole approaches the million-a-day mark. Generally there’s not much chance of finding every culprit, every murderer. The dead just enter the books as statistics. This one, however, was unusual. The man had been knifed-but unskillfully. He was still alive when found, just barely. He had time to gasp out one word before he died and that word was ‘Chief.’ â€Å"That roused a certain curiosity and he was actually identified. He works in Anemoria and we don’t know what he was doing in Wye. But some worthy officer managed to dig up the fact that he was an old Joranumite. His name was Kaspal Kaspalov and he is well known to have been one of the intimates of Laskin Joranum. And now he’s deadknifed.† Raych frowned. â€Å"Do you suspect another Joranumite Conspiracy, Dad? There aren’t any Joranumites around anymore.† â€Å"It wasn’t long ago that your mother asked me if I thought that the Joranumites were still active and I told her that any odd belief always retained a certain cadre, sometimes for centuries. They’re usually not very important, just splinter groups that simply don’t count. Still, what if the Joranumites have kept up an organization, what if they have retained a certain strength, what if they are capable of killing someone they consider a traitor in their ranks, and what if they are producing these breakdowns as a preliminary to seizing control?† â€Å"That’s an awful lot of ‘what if ‘s,’ Dad.† â€Å"I know that. And I might be totally wrong. The murder happened in Wye and, as it so happens, there have been no infrastructure breakdowns in Wye.† â€Å"What does that prove?† â€Å"It might prove that the center of the conspiracy is in Wye and that the conspirators don’t want to make themselves uncomfortable, only the rest of Trantor. It also might mean that it’s not the Joranumites at all but members of the old Wyan family who still dream of ruling the Empire once again.† â€Å"Oh boy, Dad. You’re building all this on very little.† â€Å"I know. Now suppose it is another Joranumite Conspiracy. Joranum had, as his right-hand man, Gambol Deen Namarti. We have no record of Namarti’s death, no record of his having left Trantor, no record of his life over the last decade or so. That’s not terribly surprising. After all, it’s easy to lose one person among forty billion. There was a time in my life when I tried to do just that. Of course, Namarti may be dead. That would be the easiest explanation, but he may not be.† â€Å"What do we do about it?† Seldon sighed. â€Å"The logical thing would be to turn to the security establishment, but I can’t. I don’t have Demerzel’s presence. He could cow people; I can’t. He had a powerful personality; I’m just a-mathematician. I shouldn’t be First Minister at all; I’m not cut out for it. And I wouldn’t be-if the Emperor weren’t fixated on psychohistory to a far greater extent than it deserves.† â€Å"You’re kinda whipping yourself, ain’t you, Dad?† â€Å"Yes. I suppose I am, but I have a picture of myself going to the security establishment, for instance, with what I have just shown you on the map†-he pointed to the now-empty tabletop-â€Å"and arguing that we were in great danger of some conspiracy of unknown consequence and nature. They would listen solemnly and, after I had left, they would laugh among themselves about ‘the crazy mathematician’-and then do nothing.† â€Å"Then what do we do about it?† said Raych, returning to the point. â€Å"It’s what you will do about it, Raych. I need more evidence and I want you to find it for me. I would send your mother, but she won’t leave me under any circumstances. I myself can’t leave the Palace grounds at this time. Next to Dors and myself, I trust you. More than Dors and myself, in fact. You’re still quite young, you’re strong, you’re a better Heliconian Twister than I ever was, and you’re smart. â€Å"Mind you, now, I don’t want you to risk your life. No heroism, no derring-do. I couldn’t face your mother if anything happened to you. Just find out what you can. Perhaps you’ll find that Namarti is alive and operating-or dead. Perhaps you’ll find out that the Joranumites are an active group-or moribund. Perhaps you’ll find out that the Wyan ruling family is active-or not. Any of that would be interesting-but not vital. What I want you to find out is whether the infrastructure breakdowns are of human manufacture, as I think they are, and, far more important still, if they are deliberately caused, what else the conspirators plan to do. It seems to me they must have plans for some major coup and, if so, I must know what that will be.† Raych said cautiously, â€Å"Do you have some kinda plan to get me started?† â€Å"Yes indeed, Raych. I want you to go down to the area of Wye where Kaspalov was killed. Find out if you can if he was an active Joranumite and see if you can’t join a Joranumite cell yourself.† â€Å"Maybe that’s possible. I can always pretend to be an old Joranumite. It’s true that I was pretty young when Jo-Jo was sounding off, but I was very impressed by his ideas. It’s even sorta true.† â€Å"Well yes, but there’s one important catch. You might be recognized. After all, you’re the son of the First Minister. You have appeared on holovision now and then and you have been interviewed concerning your views on sector equality.† â€Å"Sure, but-â€Å" â€Å"No buts, Raych. You’ll wear elevated shoes to add three centimeters to your height and we’ll have someone show you how to change the shape of your eyebrows and make your face fuller and change the timbre of your voice.† Raych shrugged. â€Å"A lotta trouble for nothing.† â€Å"And,† said Seldon with a distinct quaver, â€Å"you will shave off your mustache.† Raych’s eyes widened and for a moment he sat there in appalled silence. Finally he said in a hoarse whisper, â€Å"Shave my mustache?† â€Å"Clean as a whistle. No one would recognize you without it.† â€Å"But it can’t be done. Like cutting off your-Like castration.† Seldon shook his head. â€Å"It’s just a cultural curiosity. Yugo Amaryl is as Dahlite as you are and he wears no mustache.† â€Å"Yugo is a nut. I don’t think he’s alive at all, except for his mathematics.† â€Å"He’s a great mathematician and the absence of a mustache does not alter that fact. Besides, it’s not castration. Your mustache will grow back in two weeks.† â€Å"Two weeks! It’ll take two years to reach this-this-â€Å" He put his hand up, as though to cover and protect it. Seldon said inexorably, â€Å"Raych, you have to do it. It’s a sacrifice you must make. If you act as my spy with your mustache, you may-come to harm. I can’t take that chance.† â€Å"I’d rather die,† said Raych violently. â€Å"Don’t be melodramatic,† said Seldon severely. â€Å"You would not rather die and this is something you must do. However†-and here he hesitated-â€Å"don’t say anything about it to your mother. I will take care of that.† Raych stared at his father in frustration and then said in a low and despairing tone, â€Å"All right, Dad.† Seldon said, â€Å"I will get someone to supervise your disguise and then you will go to Wye by air-jet. Buck up, Raych, it’s not the end of the world.† Raych smiled wanly and Seldon watched him leave, a deeply troubled look on his face. A mustache could easily be regrown, but a son could not. Seldon knew perfectly well that he was sending Raych into danger. How to cite Forward the Foundation Chapter 10, Essay examples

I Tell My Fate What to Do free essay sample

â€Å"I am the master of my fate; I am the captain of my soul.† When I first stumbled upon this quote by William Ernest Henley, it seemed as if, ironically, some higher power had guided me to it. Regardless of how or from whom it came to me, it did so when I needed it most. The few seconds it took me to read a simple line completely revamped a lifetime’s worth of seemingly unbreakable apathy. The majority of my life had been a tremulous and precarious one. It reflected my family, which was split into fragments, which were then flung to different corners of the earth. However, despite our lack of physical unity, I believed in my mind that our familial bonds were our strongest point, our core. The rest of the unit had different plans in mind. In one night, my haloes of naivety and security had been throttled by clouds of shock and anguish. We will write a custom essay sample on I Tell My Fate What to Do or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Thus was my mental and emotional plight as I entered high school. As time passed, my emotions simmered to a mixture of constant depression and resentment. The first two years slithered by in an ungodly blur of fleeting, evanescent escapes. It was in my junior year, as I braced myself for another eternity of depression, that my father sent me a Korean novel containing William E. Henley’s quote. I was dumbfounded. How could I have known that I would find solace in a few scraps of paper and ink, when I had so desperately searched in countless complex drugs, pains, and distorted pleasures? Yet it was also different from the other releases. Instead of fading away, the ink burned brighter into the retinas of my heart. â€Å"I am the master of my own fate.† The words struck deep gongs in my soul. And just like that, I shook the strings off my back, picked them up in my hands, and assumed the role of puppeteer. â€Å"I am the captain of my soul.† The words tapped tinkling chimes in my mind. And just like that, I was shouting orders to my seafaring crew, telling them we were headed back home. I resolved to boldly come forward and grapple with the world, instead of letting my situation consume me in bitter lassitude. I had regained my equilibrium. The change was slow but unwavering. I pulled my grades past the dangerous depths of failure, past C level, and up into the lofty regions of A’s and B’s. I remembered that I still had friends, and that they had not abandoned me, but were waiting for me. And cautiously, tentatively, I started to love once more. I was not yet a complete convert, but I wasn’t the former withered husk that happened to have a human shape, either. Henley’s quote came to me during my darkest hour. Though it was but a tiny island of light in the midst of a turbulent sea of despair, it gave me a foothold from which I could see the shore. During those trials of hardship, if I had left nature to its own devices, I would have inevitably slipped and drowned. But nothing gives me more satisfaction than the knowledge that I had taken my life into my hands, and swam to safety.