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There are various methods of valuing a company. Some of these methods include;

1. P/E ratio
2. Dividend valuation model
3. The Present Value of method among others.

The above valuation methods, however, have some advantages and disadvantages as will be seen later in this paper. Therefore it is important that the investors use the method that provide more relevant information and also correct valuation.

Price earning ratio (P/E ratio)

It uses the market price of the share and the earnings per share to determine the value of the company.

P/E ratio = MPS

EPS

The earnings per share of Mallard plc is obtained by dividing the post tax operating cash flow added with the savings/losses and any incomes that may accrue.

 

 

Therefore then adjusted post tax operating cash flow of mallard P/C will be;

Savings/ losses for current year                 £ ‘000’

Employee savings            (after tax)        502.5

Distribution savings          (after tax)        100.5

Redundancy costs                                     (1200)

Directors fees                                            (300)

Saleof buildings               (after tax)        800    

(97)

Post tax operating cash flow                     3551

Less losses                                                 (97)

3454

EPS = adjusted post operating cash flow

Number of ordinary shares

Number of ordinary shares= 500,000 = share capital

0.1       Par value

=5,000,000 shares

Therefore, EPS= 3,454,000

5,000,000             = 0.6908

Consequently, P/E ratio = MPS

EPS

=3.70

0.6908                          =5 times

 

Dividend Valuation Model

There are two models in this method; the constant growth and the non-constant growth.

Constant growth model= DPS1

Ke-g

Where DPS1 = dividend per share in period 1.

Ke = cost of equity

g = dividend growth rate.

In Mallard plc case, the growth rate over the last 5 years is assumed to be the constant growth rate and hence, g=8%.

The DPS1 = DPS X growth rate

= 842,000

5,000,000 = £ 0.1684

Therefore, DPS1 = 0.1684 x 1.08%

= £ 0.181872

The cost of equity, ke, is determined using the capital asset pricing model (CAPM)

Ke= Rf +Be 9Rm-Rf)

Where Rf= Risk free rate

Be= beta of equity

Rm= returns of the market.

Rf =6% (given)

Rm= 14% (given)

Be= 0.8 (given)

Hence, ke = 6+ 0.8 (14-6)

=12.4%

Value of shares DPS1

Ke-g

=0.181872

12.4-8

= £ 4.13345

Present value model

The cash flow is discounted using the firm’s cost of capital. There are 2 methods of discounting i.e. discounting the cash flow related to equity using the cost of equity to determine the value of equity and discounting the cash flows to get the value of the firm using WACC. The discounting rates used can be nominal or real depending on the nature of cash flows (real or nominal).

The assumption in Mallard plc is that the cash flows shown of £3,551, 000 will remain the same over the 10 year period.

 

period	1	2	3	4	5	6	7	8	9	10
post tax op	3551	3551	3551	3551	3551	3551	3551	3551	3551	3551
redundancy	1200
wage savings	502.5	502.5	502.5	502.5	502.5	502.5	502.5	502.5	502.5	502.5
sales of building	800
advert& distributions	100.5	100.5	100.5	100.5	100.5	100.5	100.5	100.5	100.5	100.5
directors fees	-300	-300	-300
	3454	3854	3854	4154	4154	4154	4154	4154	4154	4154

The discounting rate to be used is the weighted average cost of capital (WACC) calculated as follows.

WACC= KeWe + Kd (1-t) Wd

Where ke- cost equity

We –proportion of equity in capital structure.

Kd- cost of debt

Wd- proportion of debt in the capital structure.

Assumption: reserves in balance sheet is capital

= 12.4%x 500 + 11 %( 1-0.33) 3500

4000                                                  4000

= 8%

The above rate of 8% nominal i.e. not adjusted for inflation. The same applies to the cash flows calculated above.

Period     C.F      discounting factor (8%)          PV

1             3454    0.9259                                     3198

2             3854    (2.5771-0.9259) =1.6512        6364

3             3854

4             4154    (6.7101-2.5771) =4.1330=      17,168

5             4154

6             4154

7             4154

8             4154

9             4154

10           4154

PV £26,730,000

The discounting factor of 1.6512 is for period 2-3 while that of 4.1330 is for period 4-10

 

Critical examination of the methods

Price earnings ratio (P/E Ratio)

It is a valuation method that uses the current market price of the shares of the company over its earnings per share. It is an easy valuation method and is calculated as follows.

P/E = MPS

EPS

It really shows the confidence the investors have in the future performance of the company. In other words, how much the investors are willing to pay for shares of the company.

Generally, the higher the P/E ratio, the better the company because it takes a shorter duration for the investors to recover their monies (Equitymaster.com 2002)

This method, however, has some drawbacks which include that fact that it uses profits instead of cash flows and the benchmark to be used is also not clear.

This has led to the formulation of PEG which incorporates the growth rate in the calculation.

Mallard plc P/E ratio of 5:1 is below the industry average of 6:1. It is also less that the average P/E ratio of companies recently taken over of 7:1

Based on these, therefore, it appears Mallard plc is a less attractive as as investment option.

 

Dividend valuation model

This is a method of valuing companies using the dividends paid out.

The general model is as follows,

 

Po= D1+       D2+             …        +    Dn     +    Pn

(1+ke) 1   (1+ke) 2        (1+ke) n    (1+ke) n

Where P1= Dividend at period 1

Pn= price at period n

The redemption price (pn) is also included in the valuation of the shares. The value of the share is arrived at by discounting the dividends and the redemption price. The above formula has lead to the Gordon’s model which is as follows.

For a constant growth rate of dividends;

Po= Do (1+g)

Ke-g                                    (Globusz Publishing 2008)

Gordon’s model, however, has some disadvantages which include the sensitivity if the cost of equity is close to the constant growth rate and also the assumption that cost the equity be more that the growth rate.

The idea that the dividends will grow over the years may not be true and therefore leading to wrong valuation.

Based on the calculations, it indicates that the firm’s shares are under priced i.e. 370 pence as compared to 413 pence using (Gordon’s model) therefore, it is a good buy because when the market realizes that the shares are undervalued, the demand will increase hence a rise in the price.

Present value of cash flow

It is a valuation technique that uses cash flow (future) to determine the value of an investment. The essence is that the future cash flows are discounted to present terms using a discounting rate determined by the company. This method considers the time value concept of money i.e. what is the future cash flows worth now.

Discounted cash flow method also considers the time value of money i.e. the timing of the cash flows is considered.

Cash flows can either be annuities (where the amount received is same over the years) or single amount (where amounts vary over the years)

The single formula is

PV= Fv (single amount) x (1+r)-n

And the annuity amount formula is

PV= Fv (annuity) X 1-(1+r)-n

r

Where =r = discounting rate

n= period

(Solution matrix.com 2008)

Based on the discounted cash flow method, the company can acquire Mallard plc because it is worth £26,730,000 now compared to the initial investment of £22,000,000. The assumptions made may have caused the difference in values arrived at using the three methods.

 

 

Recommendation

Based on P/E ratio, Oakton plc should not acquire Mallard plc because its P/E ratio is lower. Also using the dividend valuation model, the total value will be 5,000, 000 x 4.13345= £ 20,667,250

Hence, Oakton should not pay £ 22,000,000 based on the two methods.

Use of cash or shares

An acquisition can be financed in several ways. Some of which include the use of cash, shares or debt or a combination of either two or all the three methods. In determining which method to use, the tax implications cost of debt and liquidity position of the company is considered.

In using cash, the company should consider whether there is enough cash to meet all other obligations of the company i.e. the company may use all the available cash to finance an acquisition to the detriment of the liquidity position of the company.

The use of an all cash acquisition also can beneficial in that the company will have total control i.e. without ceding shareholding.

If shares are to be used the amount of shares to be used in the acquisition should be considered i.e. if it is authorized by the regulators.

The management of Oakton plc should also consider if they want to cede their ownership of the company in using shares to finance the acquisition.

Advantages of mergers and acquisition

A merger occurs when two companies of almost the same size agree to work together. This is achieved by forming a company to take over the two companies. The company can adopt a new name with the issue of new shares.

An acquisition on the other hand, is when a big company takes over a relatively smaller company. In this use, the smaller company looses its identity to the larger company.

In either case, a merger or acquisition, there are some potential benefits that will accrue to the companies as seen below.

The most apparent benefit of the acquisition of Mallard plc by Oakton plc is the employee reduction and therefore leads to wage savings to the company. In this case, the acquisition will lead to the redundancy of 50 employees at Mallard plc.

The other benefit that will arise from this acquisition is that of diversification. The two companies are in different industries and therefore this leads to diversification. It is obvious that diversification reduces a company’s business risk and hence safeguarding and enhancing the shareholders wealth.

Mergers and acquisitions also lead to economies of scale. An economy of scale is achieved whereby the company is operating and producing on a large scale basis. When a company produces on a large scale basis, there is a reduced cost of production in the sense that the fixed costs are spread over a large number of goods and services.

The other potential benefit is the fact that the company is able to reach new markets thus improving the company’s profit and revenues. The acquisition may lead to the entry in to new markets which may be more profitable and therefore improving the company’s bottom line (profitability).

In a merger or acquisition, the company can also benefit from the acquisition of new technologies from the acquired company. Therefore with new technologies, the company is able to be efficient in its production and hence improved profitability.

The company can also benefit from an acquisition in the sense that it can acquire a company that is considered to have top quality management team and therefore to get the services of these management, the company is forced to acquire the while company.

Strategic alliances in form of mergers also portend another benefit to the company. If company wants to pursue a certain strategy that it cannot accomplish on its own, then it can contemplate an acquisition or a merger in order to achieve that strategy.

      Problems in achieving synergy

Different companies usually have different company culture and norms. This means that in an acquisition or a merger, the combination of the combination of the two companies may create a clash of the cultures and therefore this can lessen the achievement of synergy.

The merging and integration different departments and operations of the two companies can be slow and hence take a longer duration of time. The longer it takes to integrate, the greater loses realized due to lack of cohesion and lost economies of scale.

The company should be able to integrate faster and thereby achieving economies of scale.

The intention of the merger is also another factor that may lead to non-achievement of synergy. If the merger was as a result of defensive strategy i.e. to thwart off a potential takeover, then it may not create necessary synergy that may achieve efficiency in its operations

The management intention of conquests may drive them to acquire companies that may not add value to the company. It is important that the acquisition or merger is driven by sound business strategy and decisions so as to avoid costly mergers and acquisitions.

 

 

Reasons for mergers and acquisitions

Mergers and acquisitions are not only done to achieve corporate diversification but also to realize a whole lot other benefits to the company as discussed below.

A company can merge or acquire another company solely for the purpose of increasing their shareholders wealth if the company is in a fast rising or a lucrative industry.

If a company wants to expand to new markets or territories it can acquire or merge with a company in that market and hence be present in that market without all the obstacles of establishing a new business.

Many small and fast growing companies face the threat of hostile take over by large companies more often and therefore to avoid being taken over, the company can adopt a defensive strategy by acquiring another small company so that it can appear to be big in value and hence thwart off takeovers.

An economy of scale is normally achieved after a merger or acquisition. Economies of scale also lead to reduced costs and improved efficiency.

Acquisition of new technology and new product line is another reason for merger and acquisition (Kontelnikov 2001)

Marriage is the institution where human beings attain a secure environment that enhance proper perpetuation. Human beings marry for various purposes which include procreation, comfort and companionship and for sexual satisfaction which is at times viewed as a basic need. Although there are different types of marriages practiced all over the world for instance polygamy, polyandry polygyny, exogamy and monogamy, the monogamous marriage is most advocated for as it entails the commitment of a man to a woman. Cohabitation entails the living together of mostly a man and a woman without meeting any formal requirements while marriage entails witnesses and is officiated by religious leaders or officers in court. (Smock J and Gupta S, 69).

In marriage as opposed to cohabitation there is the recognition of the intimate relationship between spouses by the government or religious institutions. Civil marriage entails the signing of a contract between spouses. Marriages provide economic, legal and social stability. In most societies married people are respected as they are seen to form a family which is an agency of social control that is crucial in society. Again, through the family the socialization process which is a vital aspect in human beings is attained. Marriages are mostly formalized through wedding ceremonies which can be in religious institutions like churches or by government officials. Marriage ensures that obligations to the participants and their families are created. Most people opt for cohabitation with the thought that the marriage may not work out and the process of nullifying it through divorce is expensive, takes time through the paper work involved and is complicated. (http://www.vifamily.ca/library/cft/cohabitation.htm).

However, the costs faced when cohabitation relationships do not work are more than those faced when married couples divorce. Marriage has more benefits than cohabitation.

It enriches the relationship between a spouse and the in-laws and in case of the death of a partner they can help in rising of children bore. Inheritance of property that spouses have acquired overtime is easier when spouses are legally married than when they are just cohabiting. There are cases where people could be cohabiting for years, bear children and generate wealth collectively but due to lack of documentation or legal evidence that such had worked together a partner may bear the burden of raising the children alone without the wealth they accumulate collectively if one dies. (Whitehead D. and Popenoe D, 13)

At times marriages identify the legal parent of the child and this creates some form of responsibility for the children by each spouse. It is easier to walk away and fail to support the children when relationships do not work out if people are cohabiting than when they are married. Civil marriages can only be nullified trough divorce which is done in courts. The legal process entails the consent of both spouses and interests of children are catered for. Unlike in cohabitation where such children may suffer when their parent’s relationship turns sour, marriages also ensure that division of property earned together is well divided. Marriages therefore provide greater human capital for children the cohabitation relationships. Marriages call for more commitment as compared to cohabitation which can be terminated by a simple and informal agreement between the spouses. Without the legal consent in the division of property conflicts may arise in the cohabitation relationships.

In marriages a higher earning spouse may have the obligation of supporting a lower earning spouse even after they have separated or divorced. This ensures that the lifestyle a partner is used to is not much affected. Fall from ‘grace to disgrace’ if such were not the case could lead to additional emotional problems for the negatively affected spouse. This is a plus if children are involved. Without a legal contract for the provision of such support in cohabitation relationships such does not occur. Emotional problems may be aggravated by financial crisis that would arise after a break up. Married people tend to perform better in terms of their well being than those who are cohabiting. (Thompson E et al, 228)

Cohabitation relationships do not offer spouses the right to make important decisions upon the illness of their partners. On the contrary married spouses have the right to make decisions on behalf of their partners especially if they are incapacitated to do so. Such decisions could involve health or financial matters where there could be urgency in addressing them. In cohabitation, a partner may be forced to seek the consent of family members or such decisions. Health matters could entail signing of a partner’s operation which could be urgent and before the family members are sought more damage could have occurred. (Wu Z.and Hart R, 429)

Paternity of children bore out of cohabitation may through blood tests and legal action while in the case of a marriage. Such are seen as the offspring’s of the spouses. This creates a secure environment for both the children and their families. In cohabitation children may be emotionally affected when their paternity has to be sought through legal action and their fathers forced to assist them financially since in most cases they only offer such assistance voluntarily. (Thompson E et al, 239)

In most cases spouses first cohabit before they marry. This can be seen as a ‘trial marriage’ and has been increasing over the years. It is however not a guarantee that a successful cohabitation relationships leads to a stable or more fulfilling marriage. There is less commitment in cohabitation relationships and some support it for convenience purposes like reduced costs due to cost sharing and attainment of sexual obligations without “strings attached”. Installing the conditions that one can walk out of relationships if they are not working increases the chances of divorce even in future. Cohabitants want to have the ‘bigger piece of cake’ with few responsibilities. They fear the permanent vows that marriages call for. Such partners may feel that there could be greener pastures out there and their chances of commitment are negatively inclined.

Trust may be highly attained in marriages than in cohabitation relationship. Cohabitants tend to value their independence and cannot be questioned over how they operate in terms of sexual life, expenditure or property ownership. This may work to further distance the spouses creating more chances for break ups and negligent behavior. For marriages, the unity and responsibility of a spouse ‘moves’ or ‘whereabouts’ blends the two into an intimate and responsible relationship. Married spouses take control over their partners activities be they sexual, labor or property ownership. (Manning D and Lichter T, 1006)

With lesser commitment for marriage cohabitants may opt for divorce as the only viable solution to their problems furthermore there is little to lose and since it is a trial marriage it can fail. To some cohabitation acts as a testing ground for marriage. For the married, they are committed to making the marriage work and with the costs attached to divorce they may opt to seek consultations from professionals or would try to understand each other better through dialogue to solve their problems.

(http://www.americancatholic.org/Newsletters/CU/ac0603.asp)

Marriages pose a higher chance for marital satisfaction as they are more committed to their spouses, while cohabitants are not fully contented and have conditional relationships.  With lesser commitment and marital satisfaction they may be more prone to unfaithfulness than the married spouses, unfaithfulness would lead to the spread of sexually transmitted diseases especially the dreaded HIV AIDS. Cohabitation especially with multiple partners is very dangerous. Again it creates more insecurity which does not benefit the related parties in whichever way. (Popenoe D and Whitehead B, 60)

Children of cohabitants may experience poorer emotional development than of married parents as the parent’s insecurity may be transferred to the children. Married couples could offer better and safer environment for their children free from abuse which is likely to occur when parents are cohabiting with boyfriends who are not their biological parents. The biological father is less likely to physically, emotionally or sexually abuse his own children compared to a boyfriend. The children could also have their education or academic excellence negatively affected. (Whelan R, 50)

Married partners are financially better off compared to cohabitants. This is more so due to the fact that they can monitor each others moves. Married partners are more likely to spend their money as per the budget they have set together and they can easily caution or curb impulse buying. Again they can discuss their investment plans and given that ‘two heads are better than one’ they are more likely to thrive. (Le Bourdais C. and Juby H, 115)

Married men are more likely to advance in their career and can be more innovative to attain or fulfill their added responsibilities unlike single men. Married women are also more likely to access a higher share of their partners’ earnings that cohabitant women would. Team work between spouses would work to help the spouses meet their career as well as financial goals.

Security offered in marriage poses additional mental as well as physical gains as with the thought that someone will always s be  there for  you ‘for better or for worse’ they are able to face life’s uncertainties with much confidence. Married coupes are also better connected with the wider society from which they can attain support if need be for instance from in laws or religious leaders. The support could be emotional, social or material. Cohabitation on the other hand could be considered as immoral by the society or family members and seeking their assistance may not be sought. This not only affects the relationship with the parents but also creates more emotional problems for cohabitants who may lack ‘a shoulder to lean on when need arises. Marriages also provide visible social linkages. (Waite L and Gallagher M, 30)

Marriage benefits to children and the spouses involved by far outweighs the benefits that cohabitation has. Cohabitation is inadequate in provision of financial and emotional support that partners would be looking for in their spouses. (Manning D and Lichter T, 999). Commitment improves on trust and faithfulness which are very important in the raising of children. Marriage is better than cohabitation as one can better enjoy the purposes of their union with a spouse. Working together would see couples advance and they can easily meet their obligations without constraints. A married person will be more secure and therefore better in terms of health than a cohabitant. Cohabitation is also seen as an arrangement that drains away the religious aspects of family life. Family life should not be an experiment or a disposable institution but should be permanent.

 

Works cited:

 Thompson E, Hanson T, & McLanahan S. Family structure and child well-being: Economic resources versus parental behaviors. Social Forces, 73, 1994.p 221-242.

 

Manning D and Lichter T. Parental cohabitation and children’s economic well-being. Journal of Marriage and the Family, 58, 1996. P 998-1010.

 

Le Bourdais C. and Juby H. The impact of cohabitation on the family life course in contemporaryNorth America: Insights from across the border In Booth A and Crouter C. Just living together: Implications of cohabitation on families, children and social policy .Mahwah, NJ: Erlbaum.2001. P 107-118.

 

Smock J and Gupta S. Cohabitation in contemporaryNorth America. In A. Booth and A.C. Crouter Eds. Just living together.Mahwah,NJ: Erlbaum .2002 p. 53-84

 

Wu Z.and Hart R. The effects of marital and nonmarital union transition on health. Journal of Marriage and Family, 64, 2001. P 420-432.

 

Linda Waite and Maggie Gallagher. The case for marriage: Why married people are happier, healthier, and better off financially .NewYork: Dou-bleday. 2000. P 46.

 

David Popenoe and Barbara Whitehead. Should we live together? What young adults need to know about cohabitation before marriageNew Brunswick,NJ: The National Marriage Project.1999.p 60.

 

Whelan R .Broken homes and battered children: A study of the relationship between child abuse and family type.London: Family Education Trust. 1993. p 50.

 

Anne-Marie Ambert. Cohabitation and marriage. How are they related.2004.Retrieved on 11^th January 2008 from http://www.vifamily.ca/library/cft/cohabitation.html.

 

Waite, L. and Gallagher, M., The Case for Marriage: Why Married People are Happier, Healthier, and Better Off Financially,New York: Doubleday, 2000, p. 46.

 

Whitehead D. and Popenoe D. Sex without strings, relationships without rings. The State of Our Unions, The Social Health of Marriage in America, The National Marriage Project, Rutgers, The State University of New Jersey, 2000, p. 13.

 

Joseph M. Champlin. Cohabitation before Marriage retrieved on 11th January 2008 from

http://www.americancatholic.org/Newsletters/CU/ac0603.asp

 

Theses:

1. (A) What are the reasons that made colonialists to exploit slave labor?

(b) Why slavery was considered inhuman and why was it abolished?

2. (a) What are the factors that contributed to the emergence of civil rights in the                         United States of America?

(b) In what ways did the African Americans fight for their civil rights?

3.  (c) What was the role of the federal government in the fight for civil rights?

(b) What were the constitutional changes that were made to guarantee the civil                                    rights for the Blacks?

The history of civil rights can be attributed to the slavery business that took place sometimes back in the 17^th century. To be precise, this business started in North America atJamestown,Virginia in may 1607. It was the severity of the harshness that was directed to the slaves by their colonial masters that precipitated to the demand for civil rights.  This chapter of civil rights was closed with the enactment of civil rights act of 1964 which was spearheaded by Martin Luther King junior.

Civil rights trace their origin to slavery when slaves were mistreated by their masters. Slavery as I mentioned earlier, started inJamestown,Virginiain a place where there were a lot of hills and climate was totally unfriendly. Here human slaves could not survive. It is because of the harshness of this environment that there appeared one of the great sectional differences in American history. This happened because the north stopped relying on slaves and started harnessing the Yeoman laborers who mostly worked for money freely without being forced to work in these plantations but on the other hand, the southerners who totally relied on slaves were against the moves being advanced by the North.

The Africans who were got from Central and Southern Africa (Feelings T., 1995) were taken in chains to what later came to be referred to as the southernUnited States. They provided cheap and reliable labor as well ad agricultural products to the southernAmerica. They were the main contributors to the economic growth of the South. During the independence declaration period in 1776, there were about half a million blacks in American colonies. The agitation for human rights started when Thomas Jefferson who dealt with slaves inVirginiacondemned the human slave trade. His sentiments were downplayed so as to win support of the Southern colonies in the fight againstGreat Britain.

The issue of slavery was confronted well inUSA20 years after the constitution was drafted. This happened inPennsylvaniain the summer of 1787 when the federal constitution was being drawn. It was agreed that slavery would continue on condition that each slave would be counted as 3/5 of a person for the sake of knowing the number of representatives each stat e could have in the lower house, the national congress and in  the house of representatives.

The gap between the South and the North continued to widen all through the 1800s due to the issue of slavery. As new colonies were expanded to the West across theNorth America, severe political battles were fought. Finally in 1860 after Abraham Lincoln was chosen to be the president ofAmerica, the southern states pulled themselves away from the union than risk witnessing slavery institution being abolished by the U.S congress inWashington.Lincolnrefused to let the South to continue to enjoy slavery. He refused them to go in their own direction in peace and this resulted to the eruption of the civil war between the South and the North. Those in the south colonies were much afraid of the eventual emancipation of slaves (Brion D.D., 2003)

After the civil war, another wave came into place which was called the Reconstruction period that started from 1865 up to 1877.  This period was geared towards solving political, social and economic problems that were brought about by the American civil war. After Lincoln Abraham was assassinated in April 1865, Andrew Johnson further alienated the congress by furthering Lincoln’s policies which were seen as moderate. He led to the passage of the 14^th congress amendment so as the blacks should be seen asUSA citizens. This move was ratified in 1966 though the majority of southern colonies rejected it. Despite all the resistance from the Southern colonies, the North managed to win in the 1866 congress election.

It is this victory that ushered in the era of reconstruction period which is sometimes called the radical reconstruction period that lasted for ten years. Under this 1866 registration, the ten remaining southern colonies were divided in to 5 military districts that were to be supervised by the USAarmy. Later they were all readmitted. Before admission in to the union each state had to accept the 14^th amendment or if any state was re-admitted after the passage of the 14^th constitutional amendment, then they were forced to accept the 15^th constitutional amendment that guaranteed the freedom of all freedmen. The ruling government which was basically republican in character it was made up of African Americans or the blacks, the northerners or what was called the carpet baggers and the southerners and the southerners who collaborated with the republicans or what was referred who collaborated with the republicans. The southerners that were white refused to recognize their counterparts from the north and continued showing them open hostility and totally opposed their moves.

The reconstruction period can be divided in to 3 phases namely: Presidential Reconstruction (1863 to 1866) that was spearheaded by Abraham Lincoln; the second one was Congressional Reconstruction 1866-73. This was all about civil rights and voting rights for the freedmen. The 3^rd phase was called the Redemption Period (1873-1877) that was steered by the southern democrats who referred to themselves as Redeemers. They defeated the republicans and assumed control of the southern states marking the end of the reconstruction period.

After this reconstruction period, what resulted was the Jim Crow era. These laws were laws that imposed racial segregation. They were mainly applied in the South and they were got from the black codes that were used from 1865 to 1866 and from prewar-segregation on railroads cars. The blacks enjoyed the rights that had been passed during the reconstruction period in the 13^th 14^th and 15^th amendments and the civil rights act of 1875.

Jim Crow laws (Brion D.D., 2003) were enacted in the USA and were in use as from 1876 and what they meant is that African Americans were to be separated from whites though they were to be seen as equal to them in terms of their status. What this meant is that they received treatment that was different from that of the whites. They were seen as inferior to the whites. These laws and rules demanded that there should be separate buildings, restaurants and toilets in schools, recreational places and in public transportation; one for the blacks and the other one for the whites. The Jim Crow rules were different from black codes in that the later were against the civil rights and liberties of blacks inAmerica. A good example of where Jim Crow laws were applied is inAlabamawhere all passengers’ stations were to have two separate waiting rooms and tickets windows, one for the whites and the other one for the colored races. Another example is ofArkansaswhere from 1884-1947 marriage between the whites or any other relationship between whites and mulattoes or the blacks was totally prohibited. Also from 1891-1959, washroom in mines rail travel, buses or simply in all public transport, they were separated between the whites and the blacks. This also applied in schools, hospitals and in colleges.

The same case applied inFloridawhere marriage between the whites and the blacks was not condoned and children for the whites were to be treated separately from the blacks. InGeorgiano person was supposed to serve the whites and blacks in one room or even serve the two races under one license. InLouisiana, nobody was allowed to rent a building or a room to a white when the other rooms were being occupied by the other race or vice versa. If you were convicted of committing this crime, you were to be punished by paying a fine of not less than twenty five US dollars and not beyond hundred US dollars. These laws were also applied inMississippi,Maryland,Missouri,New Mexico,North Carolina, Oklahoma South Carolina,Texas, and inVirginia.

These laws that were passed by the Redeemer government after the end of reconstruction period were reinforced and formalized during the progressive era by the then president of USA Woodrow Wilson in 1913. After 1945, the civil rights movement which was geared towards elimination of Jim Crow rules gained a new impetus.

They started using various federal courts in the continent to confront those laws that were applied and reinforced by a group of secret organization or a group that referred itself as the Klu Klux Klan. These men lynched, tortured and punished those blacks who contravened the rule of law.

These laws started being attacked properly in 1954 when the supreme court ofAmericadeclared segregation in all public schools as unconstitutional or illegally mandated. This move begun in 1950 when the NAACP their attorneys worked on a case of desegregation in school in Charleston S.C. this was heard together with other similar cases from Delaware, Virginia, Kansas as well as from the district of Columbia under one blanket cover-brown vs. board of education of Topeka. Here the NAACP lawyers and Thurgood marshal argued and condemned segregation in schools up to the end. Finally they won this case.

In1954 Brown school and the board of officials in little rock school board decided to have Central High School desegregated in 1957 and the governor of Arkansas, Orval Faubus ordered his national guards to support the board in keeping the African American students away from school. However, President Eisenhower sent his federal guards and paratroopers to reinforce the desegregation orders of the federal courts in 1957.

In 1955, the civil rights movement was staged and dubbed as the Montgomerybus boycott. This was both a political and social protest against the city’s policy of bus segregation. This sparked off on 1^st December 1955 when Rosa Parks refused to give her seat to a white man on a city bus for this reason, Parks was arrested for defying this social etiquette and this led to the eruption of the modern civil rights movement. This bus boycott case helped in confronting the segregation laws by opening a wave of protest across the South (Hossel K.P., 2005)

During thisMontgomerybus boycott, all those people who were affected by these segregation laws refused too ride in those segregated buses which were the only means of transport. These people had to sacrifice themselves to walk for long miles in harsh weather rather that go on buses.

Also in 1960 four freshmen students fromNorth Carolinaagricultural and technical college went to the F.W Woolworth store. They sat quietly waiting to be served but they were not served. In the following day they came with 25 more students. Weeks later, similar demonstration erupted elsewhere. AtShawUniversityinNorth Carolina, students formed SNCC or student’s non-violent coordinating committee.

In 1960s there were freedom riders who were organized by CORE: Congress of Racial Equality. The move sought to promote integration of bus, rail as well as airport terminals. On August 28, 1963 (Haskins J., 2004) all the blacks marched toWashingtonin an effort to draw the nation’s attention. It is here that the most revered preacher Dr. Martin Luther king junior that he delivered his ‘I have a dream’ speech. In 1965 voting rights act was created which elevated the status of black American after the 1964 civil rights act.

From this paper, we can conclude by saying that were it not for the constant pressure from the blacks in the fight for their civil rights, then blacks inAmericawould be slaves and oppressed just like in the past. The more they aired their grievances to the federal government, the more their lives positively changed, it all stated with the abolition of slavery then separate but equal and finally as free and equal citizens in 1964 while in 1965 they got their right to vote. It is this right that politically changed their lives.

Reference:

Hossel K.P., 2005. I have a dream – voices of freedom. Heinemann.

Haskins J., 2004. The march on Washington. JustUS books.

Brion D.D., 2003. Challenging the Boundaries of Slavery. Mass:HarvardUniversity         Press.

Feelings T., 1995. The Middle Passage: White Ships and Black Cargo.New York. Dial     Books.

Question One

Radical transformations were witnessed in the United States following a mass influx of the Jewish community evidenced in the 20^th century.

The first wave of Jewish community immigration dates back to the 19^th century between 1880 and 1920, when Jews from Eastern Europe were migrating to America alongside their Russian counterparts. Despite the big role that Jews had played in shaping the cultural norms in Eastern Europe, the danger posed to them by eminent annihilation necessitated their migration. This was the key reason behind their exodus. Despite this region being multi ethnic, the dynasty of the Russian czars had been to the detriment of this community who became the soft target by the repressive regimes. They had been secluded and alienated due to the broad differences they had with other communities largely emanating from religion and language. They had not been accepted socially and politically as Russians. The regimes were very repressive and the laws punitive to the Jews not allowing them to make a living (Takaki, Ronald, 1993).

They were also targets of hostility from the non-Jewish communities. The assassination of Czar in 1881 was the last straw that broke the camels back and could see the intensification of violence and hostility towards the Jewish community that was being falsely accused of conspiring to the assassination. Russian soldiers and other non-Jewish peasants renewed an onslaught on the Jews. This is the reason behind the movement of Jews out of Eastern Europe towards the United States in droves to escape the eminent annihilation. Thousands of Jews would escape Russia and other parts of Eastern Europe in clear defiance of the anti immigration law conveniently put in place to curb their influx out of Europe.

A look at the immigration pattern and reasons by Jews in to America reveals a great variance from those of their counterparts the Japanese, Chinese and the Irish. The Irish, for example were moving out of Ireland to escape hunger and famine that was threatening to wipe out a large portion of the community. The Irish, Japanese and the Chinese were moving out of their homes the United States in search of greener pastures and not being motivated by hostility at home.

One major difference that exists between these three groups from the Jews was that their rate of return to Eastern Europe was non-existent. The Jews had vowed to move out but not return to their homeland. They were in search of peace and tranquility in the United States and had no plans of going back. The other groups like the Chinese and the Japanese had come to the United States to make a living, hoping to repatriate back and build their motherland through repatriation. The Eastern Europe Jews also chose to remain in one area where they could carry on with their own way of life and religion. This community became close knit.

Unlike the other immigrants, they also arrived in droves, in great numbers not witnessed before. Between 1900 and 1915 over one and a half million Jews had migrated to the united state with many more landing afterwards

 

Question Two.

The United States of America has a history of discriminating against immigrants, these ranging from the Chinese Japanese and the Irish. Although the hostility faced by the Jews was not as pronounced as that of some others like the Chinese, they to were not left behind. The United States was particularly categorical about the immigration of the Chinese, even having passed an act outlawing their immigration There was a growing sense of anti Semitism spreading across the areas they chose to settle in. At the early times of the civil war, one general Ulysses S. Grant had ordered the removal of Jews from the states where the early immigrants had camped in, ranging from Mississippi and Tennessee. This was as a result of the divisions that existed between the Jewish community that settled in the north and those that settled in the south and their perceived support for against slave ownership. This however was to be retracted later by the United States president Abraham Lincoln.

The twentieth century, witnessed increased discrimination against the Jews. This discrimination was extending to areas such as employment and schools. They were not allowed to join the exclusive member clubs. They were facing quotas in the institutions of learning as well as not being allowed to possess some properties

Contrary to other minority groups that immigrated to the United States, Jews rarely had any hostility or violence turned against them. The Ku Klux Klan and hate speeches in the radio stations had heightened tension against the Jewish community during the interwar period. Of late, the African- American community poses the greatest source of discrimination, accusing the Jews of exploitation (Takaki, Ronald, 1993).

The immigration and assimilation of the Jewish community has not been a smooth fete. The interwar period was marked by a period of momentary anti-Semitism. The United States was undergoing social and economic upheavals consequenced by the Great Depression. Henry Ford is in record as having publicly and blatantly issued remarks against the Jews aimed at questioning their patriotic sense. Individuals also holding high public offices could also be heard to be issuing anti-Semitic sentiments. This would lead to the Jewish community coalescing around welfare organizations and associations for their own defense. These are some of the factors that would impede on the assimilation process of the Jewish community.

At the moment, however, intermarriages in the United States have led to intense assimilation and attitude changes from the rest of the communities. They continue to prosper, politically and economically and have become dispersed geographically, moving out of their stronghold in New York to other areas such as California.

Reference

Takaki, Ronald (1993). A Different Mirror: A History of Multicultural America. New York: Back Bay Books.

 

The cold war period between the late 1940s and early 1990s was characterized by intense rivalry and tension between the United States and the Soviet Union. This rivalry emanated from the competition that existed between the two powers as mirrored in the military fields, technological advertisements, arms race and ideological differences. Although in this period there was no confrontation between the powers, this rivalry was exhibited in the proxy wars that existed during that time.

The importance of cold war in history cannot be underscored. It resulted to a rumbling effects whose ripples are still being felt to date. It shaped the lives of people and countries, economically, socially and politically.

The cold war period is characterized by the effort of the super powers to improve their weaponry. The two nations were involved in a race to build up and strengthen their armed forces and their arsenals. Both the United States and the Soviet Union were locked in a tight race, with each country seeking to stockpile its arsenal in an effort to outdo its competitors. Although the United States had created its first nuclear weapon by the end of the Second World War, these efforts were to be doubled after the war. This had been happening behind the soviets knowledge and when they got light of the weapons they furiously initiated their own program (Kevin Reilly, 2003).

This kicked off a race to create the state of the art weaponry with needlepoint precision. They both developed “second strike capability” such that each had the ability to destroy the other even after it had been attacked. The development of nuclear weapons by both the United States and the Soviet Union led to a flurry of arms race from the rest of the European powers and china. India and Pakistan were to acquire later these weapons by the early 1990s. Military expansion and arsenal build up took the largest chunk of spending in the budget. United States had more resources than Russia whose economy had been crumbling under the military expenditures pressure (Jentleson, B W and Thomas G. P).

By the end of the cold war Russia had to reduce it’s spending. Militarily the cold war, despite leading to proxy wars also resulted in a military build up especially in the third world. Cuba for example was receiving military aid from Russia while other countries from Africa were being assisted by the United States. The relations between countries during the cold war era were defined along a country’s affiliation. The two super powers had exerted much influence on the system of governance to a point that the specific countries were either aligned to the west or to the east.

This had an impact on the political and economic ideologies and orientations of many countries. The United States was seeking to further capitalism while Soviet Union was for communism. The CIA and the KGB spy agents were working day and night to undermine each other’s efforts to expand the sphere of influence.  Leaders in the third world countries were dethroned or installed in accordance one’s ideological leaning. Some countries however stood their grounds and refused to take sides. Donor aid by then was being pegged ones ideology.

The United States would even go to an extent of removing from power democratically elected governments like it did in the case of the Iran in 1953. It is hence prudent to say that as a result of the cold war, democracy took a back seat.

Social interactions by then globally, were being shaped by the influence exerted by the two nations. It is not unusual for people to recount stories of how wary they were of the people they interacted with in public. Government agents and spies were all over and one had to be cautious not to interact with an “enemy” depending on your country’s orientation. The cold war had a great impact on the social, political, and economic organizations of the various people in the world. The military build up and tension only slackened towards the end of communism but not without bloodsheds in the proxy wars.

 

References

Jentleson, Bruce W and Thomas G. Paterson, 1997. Foreign Relations, New York: Oxford University Press.

Kevin Reilly, May 2003. The west and the world. A history of civilization from 1500 to modern times, Vol.2. Marks Wiener Pub

The cold war period between the late 1940s and early 1990s was characterized by intense rivalry and tension between the United States and the Soviet Union. This rivalry emanated from the competition that existed between the two powers as mirrored in the military fields, technological advertisements, arms race and ideological differences. Although in this period there was no confrontation between the powers, this rivalry was exhibited in the proxy wars that existed during that time.

The importance of cold war in history cannot be underscored. It resulted to a rumbling effects whose ripples are still being felt to date. It shaped the lives of people and countries, economically, socially and politically.

The cold war period is characterized by the effort of the super powers to improve their weaponry. The two nations were involved in a race to build up and strengthen their armed forces and their arsenals. Both the United States and the Soviet Union were locked in a tight race, with each country seeking to stockpile its arsenal in an effort to outdo its competitors. Although the United States had created its first nuclear weapon by the end of the Second World War, these efforts were to be doubled after the war. This had been happening behind the soviets knowledge and when they got light of the weapons they furiously initiated their own program (Kevin Reilly, 2003).

This kicked off a race to create the state of the art weaponry with needlepoint precision. They both developed “second strike capability” such that each had the ability to destroy the other even after it had been attacked. The development of nuclear weapons by both the United States and the Soviet Union led to a flurry of arms race from the rest of the European powers and china. India and Pakistan were to acquire later these weapons by the early 1990s. Military expansion and arsenal build up took the largest chunk of spending in the budget. United States had more resources than Russia whose economy had been crumbling under the military expenditures pressure (Jentleson, B W and Thomas G. P).

By the end of the cold war Russia had to reduce it’s spending. Militarily the cold war, despite leading to proxy wars also resulted in a military build up especially in the third world. Cuba for example was receiving military aid from Russia while other countries from Africa were being assisted by the United States. The relations between countries during the cold war era were defined along a country’s affiliation. The two super powers had exerted much influence on the system of governance to a point that the specific countries were either aligned to the west or to the east.

This had an impact on the political and economic ideologies and orientations of many countries. The United States was seeking to further capitalism while Soviet Union was for communism. The CIA and the KGB spy agents were working day and night to undermine each other’s efforts to expand the sphere of influence.  Leaders in the third world countries were dethroned or installed in accordance one’s ideological leaning. Some countries however stood their grounds and refused to take sides. Donor aid by then was being pegged ones ideology.

The United States would even go to an extent of removing from power democratically elected governments like it did in the case of the Iran in 1953. It is hence prudent to say that as a result of the cold war, democracy took a back seat.

Social interactions by then globally, were being shaped by the influence exerted by the two nations. It is not unusual for people to recount stories of how wary they were of the people they interacted with in public. Government agents and spies were all over and one had to be cautious not to interact with an “enemy” depending on your country’s orientation. The cold war had a great impact on the social, political, and economic organizations of the various people in the world. The military build up and tension only slackened towards the end of communism but not without bloodsheds in the proxy wars.

 

References

Jentleson, Bruce W and Thomas G. Paterson, 1997. Foreign Relations, New York: Oxford University Press.

Kevin Reilly, May 2003. The west and the world. A history of civilization from 1500 to modern times, Vol.2. Marks Wiener Pub