Jetblue Ipo Pricing Essay Example

Jetblue Ipo Pricing Paper 1. Introduction An initial public offering (IPO) is defined as the first offering of shares by a private company to the public. A share is one of a finite number of equal portions of the capital of a company that entitles the shareholder to a proportion of distributed, non-reinvested profits known as dividends, and to a portion of the value of the company in case of liquidation. Shares can be either voting or non-voting, meaning that the shareholder may have the right to vote on the board of directors and thus the corporate policy (Draho, 2004). The money the private company raises through the issuance of shares is either transferred to the original investors of the company, used to pay-off existing debt, used to finance operating expenses, or, is used to fund future company projects. The ability to conduct an IPO efficiently and effectively encourages entrepreneurship and economic growth through increasing the availability of equity and lowering the cost of equity finance (Kleeburg, 2005). The following report introduces a generic process of an IPO without detailing specifics for an individual country or region. The advantages and disadvantages of choosing an IPO to raise capital is then discussed followed by an examination of the various pricing and allocation techniques that are commonly adopted in the IPO. The final section uses the 2002 IPO of JetBlue as a case study to demonstrate the accuracy and effectiveness of the discussed pricing techniques. 2. The IPO Process Jenkinson and Ljungqvist (2001) define 5 generic steps that are required to be undertaken in the process of raising equity through an IPO: We will write a custom essay sample on Jetblue Ipo Pricing specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Jetblue Ipo Pricing specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Jetblue Ipo Pricing specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Figure 2. 1 – Five generic steps undertaken in the process of an IPO Each of the 5 steps are briefly discussed in the following section paying particular attention to the role of the investment bank and the pricing and allocation decision. 2. 1. The Choice of Market It is important to note that the act of ‘going public’ has two distinct requirements: †¢Investors who are willing to purchase the shares †¢Exchange regulatory conditions that companies must meet Historically, the first aspect of finding investors has not been of great concern, however, given the increasing levels of integration of global financial markets companies are able to select the market that best suits their requirements. The choice of market is therefore essentially focussed on ensuring that there is enough depth within the market so that the company can raise the amount of equity required and that the company is able to comply with the regulations imposed by the stock exchanges and their regulatory bodies (Jenkinson and Ljungqvist, 2001). . 2. Producing a Prospectus The second stage of an IPO is the preparation and lodgement of a prospectus with the market regulatory authorities. A prospectus sets out the terms of the equity issue and provides information on the financial and management performance of the issuing company. It is used to ensure adequate information is provided so that investors can make an informed investment decision (ASX, 2008). Investment banks ar e usually engaged to assist in the preparation of the prospectus to ensure due diligence has been performed. Due diligence refers to the process of providing reasonable grounds that there is nothing in the prospectus that is misleading, and typically involves reviewing company contracts and tax returns, visiting company offices and facilities and interviewing company and industry personnel (Draho, 2004). This prospectus usually includes either a fixed price for the offer (where a predetermined price has been established) or an initial price range (a first ‘best guess’ on the price) that have been determined by the investment bank. With the latter technique the initial price range is usually modified throughout the remaining stages of the IPO (Brau and Fawcett, 2006). 2. 3. Marketing Having produced a prospectus, the next stage is marketing the issue to investors. This marketing can take place in a variety of forms and usually involves a road show, where the issuing firm and the investment bank conduct presentations to a high concentration of institutional investors. Where the offer price has already been established (i. e. fixed price offering) the main purpose of the marketing stage is to elicit bids from investors. Where an indicative price range has been given, the key purpose is to produce expressions of interest and thus begin the process of book building. Book building encompasses the collating of non-legally binding offers of price and quantity that is used to develop a demand curve and thus a more accurate price range for the subscription (Geddes, 2003). An important aspect that influences the marketin g technique is the role of the investment bank as the underwriter. Underwriting can be in the form of a firm commitment, where the investment bank accepts the risk of the issue by agreeing to purchase any securities that had not been subscribed, or on a best efforts basis, where the investment bank agrees to only use its expertise to sell the securities to the best of their abilities (Jenkinson and Ljungqvist, 2001). 2. 4. Pricing and Allocation Where a fixed priced is initially established, it is typical for either heavy over or under subscription to occur. In these cases, allocation methods such as pro rata allocation, retail investor bias allocation or random allocation are utilised depending on the policies imposed by the market regulators (Jenkinson and Ljungqvist, 2001). Where book building has occurred, if the issue is oversubscribed the allocation is typically based on either a common strike price (where a single price is quoted and allocation is based on the amount of information contained in the bid and/or the investor reputation), or, allocation and pricing starting from the highest bid downward until the issue demand is fully met (Draho, 2004). . 5. After the IPO Once the final pricing and allocation decisions have been made, trading in the shares usually commences within a few days. In some countries it is typical for the investment bank to be involved in a price stabilisation process where the principal purpose is to protect the downward price pressure once trading begins. This process of price stabilisation is usually linked with the granting of an over-allotment option (typically 15% of the total number of shares issued) which have usually been sold during the marketing process (Geddes, 2003). 3. Advantages / Disadvantages of the IPO Decision There are considerable advantages with obtaining equity through the IPO process. There are, however, some drawbacks that also need to be taken into consideration. Table 3. 1 outlines the key advantages and disadvantages as outlined by Fishman (1993). AdvantagesDisadvantages The partners can obtain a true value of the shares they possess in the companyThe market is extremely unpredictable and an unsuccessful IPO can result in a great loss of time as well as money for the company Partners can remove their signatures from the lines of credit and thus, are no longer personally liable to the creditorsThe ownership of the partners is dissolved and they become mere employees who are responsible to the shareholders and Board of Directors The overall financial condition of a company is improved as it brings in non-refundable moneyContinuous dealing with shareholders and the press is a time-consuming process A broader capital base gives the company more access to credit which gives the company an option to venture into new business opportunitiesShareholders judge the performance of the company on the basis of the profits and stock price and may cause managers to overlook the long-term strategic objectives Capital raised in an IPO can be used to pay off debt and t hus reduce the interest costs and enhance the company’s debt to equity ratioThe company needs to make nation-wide presentations about its performance to the interested shareholders, brokers and the investment bankers The value of the stock may see an upward trend thus increasing the initial investors financial wealthThe company’s continued success may bring a lot of close scrutiny by the public When a company goes public, it attracts the attention of the media and financial community thus providing free publicity and helps in creating a better corporate imageLarge amounts of fees and expenses are associated with a public company on a continual basis commissions, advertising costs, securities exchange fees etc. By going public and listing on a stock exchange it can directly foster public reputation in general Table 3. – Advantages and disadvantages of going public through the IPO process 4. IPO Valuation Techniques Deriving a value for an IPO is the critical par t of the process. In both fixed price and book building offers some form of initial price must be determined by the investment bank. The key methods that are used to determine the value of a company and thus the initial IPO price include (Geddes, 2003): †¢Discounting Methods – based on a firms intrinsic value (future cash flows) †¢Comparable Multiples Method: value based on similar publicly traded companies 4. 1. Discounting Methods Theoretically, the price of a share is derived by discounting all future cash flows that accrue to shareholders. These techniques are used throughout industry, however, they do suffer in practical application due to the risk associated with forecasting both revenue and expenses (Draho, 2004). The two most frequently used discounting methods include the discounted free cash flows (DCF) and a residual income model (RIM). 4. 1. 1. Discounted Free Cash Flows Free cash flows are defined as the cash flows from operations after investment in working capital and any capital expenditures. These cash flows are considered more appropriate than accounting earnings which include non cash items such as depreciation that cannot be used to pay shareholders. Cash flows are used to pay dividends and thus capture true value for the investor. These cash flows are then discounted using a risk adjusted rate. The rate is estimated either by using the capital asset pricing model (CAPM) for a 100% equity company or by calculating the weighted average cost of capital of the firm’s debt and equity (Geddes, 2003). 4. 1. 2. Residual Income Model The DCF model requires accounting earnings to be converted to cash flows. This is considered inappropriate as accounting values do not take into consideration the time value of money and may be subject to manipulation by way of accounting methods. The RIM is similar to the DCF method in that both methods use a risk adjusted discount rate. The RIM model, however, utilises the difference between the realised earnings and the expected earnings, where the expected earnings is the cost of equity multiplied by the start of period equity book value (Draho, 2004). 4. 2. Comparable Multiples This is the most common method used by investment banks to value IPO’s. Its fundamental approach is the comparison of ratios of companies that operate in similar businesses that possess the same characteristics of risk, current and future profitability and growth prospects (Geddes, 2003). There are number of ratios that can be used under this method, the most common being: †¢Price/Earnings multiples †¢Price/EBIT †¢Market value/Book value †¢Price/sales The successful application of this method lies in choosing an appropriate comparison company. One method used by practitioners is to select up to 10 company’s operating within the same industry and to use the group’s median multiple to value the issuer. The second and most common method is to select 3-4 companies that are direct competitors within the particular industry to the issuer. The third method is to use multiples of firms that have recently gone public assuming all issuers share common valuation multiples (Jenkinson and Ljungqvist, 2001). Comparable multiples is a popular method to value an IPO due to its simplicity and accuracy (Richardson and Tinaikar 2004). With the use of multiples there is no need to estimate the cost of capital, neither is there a need to depend on forecasted earnings and assumptions of valuation models. The use of multiples is supported by the idea that relevant ratios capture the markets estimate of risk and growth (Zarowin, 1990). 5. JetBlue Pricing Table 5. shows the results of utilising the techniques discussed in the previous section for determining the share price for the 2002 JetBlue IPO (for complete calculations see Appendix 1 and 2). The initial subscription price of the IPO was given by th e investment bank (in this case Morgan Stanley) at $22-$24 and this was revised to $25-$26 during the book building process. MethodShare Price ($) Discounted Cash Flow Free Cash Flows$94. 00 Industry Averages Price / Earnings Multiples$40. 38 Market Value / Book Value$115. 22 Price / EBIT$33. 13 EBIT Multiple Leading$38. 92 Competitor Averages Price / Earnings Multiples$97. 06 Market Value / Book Value$274. 54 Price / EBIT$88. 33 EBIT Multiple Leading$65. 10 Recent IPOs EBIT Multiple Leading$40. 37 Table 5. 1 – Share prices for the JetBlue IPO using the different techniques It should be noted that the JetBlue opening share price, this being the price of the stock at the end of the first day of trading, was $50. 30 demonstrating that the IPO was heavily underpriced. The price peaked in September 2003 at just above $90. 00. JetBlue’s current trading price is approximately $17. 21 (after adjusting its actual price of $5. 10 for the three 3:2 share splits and dividends distributed). This shows that there has been a significant loss since the shares began trading in April 2002 (for historical monthly stock price data see Appendix 3). This could reflect either changing market conditions since the IPO or inadequate pricing techniques used at the time of the IPO. Table 5. 1 demonstrates the wide range of share prices that can be achieved depending on the technique that is adopted. The free cash flows technique utilised Southwest Airlines data, assumptions for the airline industry and cash flows given from JetBlue management (see Appendix 1). This value was quite high but reflects high investor demand which took the share price above $90. 00. Of the comparable multiple techniques, the industry average and recent IPO methods reflect the first day closing price, whereas, the competitor average technique reflects similar results to the discounted cash flow technique. Recognising that the discounted cash flow method utilises data for Southwest Airlines that may not accurately represent JetBlue’s conditions, a sensitivity analysis was conducted (see table 5. 2). The four variables that were examined were the horizontal growth rate, the beta (a measure of company returns relative to market returns), the credit rating and the debt to equity ratio. VariableShare Price ($) Growth Rate Forecasted4%$94. 00 Optimistic5%$133. 44 Conservative3%$64. 18 Beta Forecasted1. 3$94. 00 Optimistic1. 1$149. 74 Conservative1. 5$52. 78 Credit Rating (spread) ForecastedBa (3. 00%)$94. 00 OptimisticBaa (1. 50%)$96. 37 ConservativeB (5. 0%)$90. 90 Debt / Equity Ratio Forecasted5. 0%$94. 00 Optimistic10. 0%$108. 03 Conservative2. 5%$86. 96 Table 5. 2 – Sensitivity analysis of share price for fluctuations in the growth rate, beta and credit spread Changes in the value of beta, the perpetual growth rate and the debt to equity ratio provide considerable variatio n in the calculated share price. Credit rating had little influence over the final value. As the premise of the discounting cash flow method is the forecasting of data, this sensitivity analysis demonstrates that caution should be used when relying on this technique given the uncertainty of forecasting information. 6. Conclusion In conclusion, the initial public offering (IPO) process involves a decision on which market is used to raise the funds, the preparation of a prospectus to meet regulatory conditions, marketing of the issuance to institutional investors and a pricing and allocation decision based on the type of subscription that is being offered (fixed price or book building). The key challenge for both the issuing firm and potential investors is the pricing of the shares. The two key techniques of discounted cash flows and comparable multiples, demonstrate that considerable variation in value can occur depending on the technique used. The reliability and accuracy of forecasted and historical data is also of considerable importance in ensuring accurate pricing. In order to overcome many of the disadvantages of an IPO, accurate pricing is paramount to ensure ongoing investor involvement. To draw any conclusion on the accuracy of techniques from this case study would be inappropriate, however, the complexities of the pricing decision has been quite clearly demonstrated. 7. Reference List Australian Securities Exchange. (2008, February 29). Listing on ASX. Retrieved April 23, 2008, from http://www. asx. com. au/professionals/listing/index. htm Brau, J. Fawcett, S. (2006). Initial public offerings: An analysis of theory and practice. The Journal of Finance, 61(1), 399-436. Draho, J. (2004). The IPO Decision: Why and How Companies Go Public. Cheltenham, UK: Edward Elgar Publishing. Fabozzi, F. Modigliani, F. (2003). Capital Markets: Institutions and Instruments (2nd ed. ). New Jersey, Prentice Hall. Fishman, L. (1993). Going public: The pro’s and cons. The Secured Lender. 49(4), 58-60. Geddes, R. (2003). IPO’s and Equity Offerings. Oxford, UK. Butterworth-Heinemann. Jenkinson, T. Ljungqvist, A. (2001). Going Public: The Theory and Evidence on How Companies Raise Equity Finance (2nd ed. ). United States: Oxford University Press Inc. Kleeburg, R. (2005). Initial Public Offering. Ohio, Thomson. Richardson, Gordon D, and Surjit Tinaikar. (2004). Accounting based valuation models: what have we learned? Accounting and Finance, 44(2), 223-255. Zarowin, Paul. 1990. What determines earnings-price ratios: Revisited. Journal of Accounting, Auditing Finance, 5(3), 455-457.

US Army essays

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Teenage pregnancy in Lagos Island

Teenage pregnancy in Lagos Island Although, teenage pregnancy could be unplanned as well as accidental. It usually occurs within the context of early marriage and also as a result of societal change of which the value system and virginity at marriage are no longer upheld. Certain problems are associated with teenage pregnancy such as economic, psychological, socio-cultural and others. It is no longer a diplomatic statement that young people in the last decade, especially within the age group of 10-18 years, are living beyond the yard sticks of adventures compared to the youths of the 90s. A blend of unpredictable, news breaking activities and issues of topmost concern has risen in the last few years. One of the most striking facts is the rising number of teenage pregnancy. Teenage pregnancy is a result of sexual intercourse between young girls and boys who are in their growing years, exploring the changes happening in their bodies by having unsafe sex with each other. Health organizations across the world are still in the frontlines of reducing maternal deaths due to complications and diseases. But even now, however, they have more to do with the increasing number of teenage pregnancy. (Femi A. A. Sofia Krauss, 2009) Bearing a child while still in childhood themselves, these young mothers under the age of 20 are prone to birth injuries and maternal death. It also affects their emotional well being: Teenage mothers are 3 times more likely to suffer from post-natal depression and experience poor mental health for up to 3 years after the birth. Children born to teenage mothers have 60% higher rates of infant mortality and are at increased risk of low birth-weight which impacts on the childs long-term health. Further more, they are at increased risk to be brought up in poverty. (Femi A. A. Sofia Krauss, 2009) Teenage pregnancy is defined as a teenaged or underaged girl (usually within the ages of 13-19) becoming pregnant. The term in everyday speech usually refers to women who have not reached legal adulthood, which varies across the world, who become pregnant. Pregnant teenagers face many of the same obstetrics issues as women in their 20s and 30s. However, there are additional medical concerns for younger mothers, particularly those under 15 and those living in developing countries.( Mayor S 2004) For mothers between 15 and 19, age in itself is not a risk factor, but additional risks may be associated with socioeconomic factors.( Makinson C. 1985) Data supporting teenage pregnancy as a social issue in developed countries include lower educational levels, higher rates of poverty, and other poorer life outcomes in children of teenage mothers. Teenage pregnancy in developed countries is usually outside of marriage, and carries a social stigma in many communities and cultures. For these reasons, there have been many studies and campaigns which attempt to uncover the causes and limit the numbers of teenage pregnancies.(The National Campaign to Prevent Teen Pregnancy 2002). In other countries and cultures, particularly in the developing world, teenage pregnancy is usually within marriage and does not involve a social stigma. (Population Council 2006) 1.1 STATEMENT OF THE PROBLEM It is very rampant in our society where there is an increase in the reported cases of teenager pregnancy. This ugly incident has created huge concern for the society especially to determine if the concern would have good future as well as their children. Again, the health implications of these children is another issue of worry. Causes of Teenage Pregnancy In the developed world, the causes of teenage pregnancy is different in the sense that it is mostly outside marriage and carries lots of social stigma. Thus, adolescent sexual behaviour is one of the causes of teenage pregnancy. In our world today, having sex before 20yrs is the in thing, it is even the normal all over the world and this brought about high levels of adolescent pregnancy which creates sexual relationship among teenagers without the provision of comprehensive information about sex. (Chinwe Chibuzo, P. 2007) The in-take of drugs, alcohol etc contributes a lot to teenage pregnancy meanwhile as a teenager you may not be ready for sexual intercourse at that moment but being intoxicated with drugs and alcohol makes you to be involved in unintended sexual activity just because sex at that time is less emotionally painful and embarrassing. To avoid this, eradicate anything alcohol or drugs. Furthermore, sexual abuse is also one of the causes of teenage pregnancy. Rape as a sexual abuse has more effect in the life of our teenage girls causing unwanted sex and teenage pregnancy. Age discrepancies also causes teenage pregnancy in the sense that a teenage girl with a partner much older than herself is more likely to get pregnant more often than a girl that have a partner of a close age, as she prefers having the children than abortion since she is not educated enough to use contraceptives. (Chinwe Chibuzo, P. 2007) Childhood environment Women exposed to abuse, domestic violence, and family strife in childhood are more likely to become pregnant as teenagers, and the risk of becoming pregnant as a teenager increases with the number of adverse childhood experiences. According to a 2004 study, one-third of teenage pregnancies could be prevented by eliminating exposure to abuse, violence, and family strife. The researchers note that family dysfunction has enduring and unfavorable health consequences for women during the adolescent years, the childbearing years, and beyond. When the family environment does not include adverse childhood experiences, becoming pregnant as an adolescent does not appear to raise the likelihood of long-term, negative psychosocial consequences.( Tamkins, T. 2004) Effect of Teenage Pregnancy on Educational Teenage pregnancies have become a public health issue because of their observed negative effects on perinatal outcomes and long-term morbidity. The association of young maternal age and long-term morbidity is usually confounded, however, by the high prevalence of poverty, low level of education, and single marital status among teenage mothers. Assessing the independent effect of teenage pregnancy on educational disabilities and educational problems in a total population of children who entered kindergarten in Florida in 1992-1994 and investigate how controlling for potentially confounding factors affects the relation between teenage pregnancies and poor outcome. When no other factors are taken into account, children of teenage mothers have significantly higher odds of placement in certain special education classes and significantly higher occurrence of milder education problems, but when maternal education, marital status, poverty level, and race are controlled, the detrimental effec ts disappear and even some protective effects are observed. Hence, the increased risk for educational problems and disabilities among children of teenage mothers is attributed not to the effect of young age but to the confounding influences of associated socio-demographic factors. In contrast to teen age, older maternal age has an adverse effect on a childs educational outcome regardless of whether other factors are controlled for or not. (Ralitza V. Gueorguieva 2001) Preventing Teen Pregnancy It has been found that teens who have a good relationship with their parents are less likely to experience a pregnancy. Good communication between parents and their children is the key to ensuring children make the right decisions when it comes to their sexual activity. (Pregnancy info 2009) Evidence from areas with the largest reductions has identified a range of factors that need to be in place to successfully reduce teenage pregnancy rates. These factors include a well-publicised contraceptive and sexual health advice service which is centred on young people. The service needs to have a strong remit to undertake health promotion work, as well as delivering reactive services. It is key to prioritize sexual and reproductive health education at schools, supported from the local authority to develop comprehensive programmes of sex and relationships education (SRE) in all schools. (Femi A. A. Sofia Krauss, 2009) Education is also vitally important in helping youth know about their options when it comes to sex. Teaching teens about using contraception each and every time they have sex is imperative to healthy sexual relationships. Abstinence should also be taught along with contraception so that youth understand they have the right to choose. Teaching teens that it is okay to say no to sex until they are ready will help to curb the numbers of teen pregnancies. (Pregnancy info 2009) The Challenges of Early Motherhood Facing an unplanned teen pregnancy can be hard. The effects of teenage pregnancy are not limited to having to decide whether or not to keep the baby, how to cope with motherhood or whether to make an adoption plan. One of the most immediate effects of teen pregnancy is how the growing baby changes a teenagers body as well as their lifestyle. Because a teens body immediately begins the process of carrying a child and preparing for childbirth, a teenager needs to consider the effect that her physical activities may have on her developing baby. A variety of activities common to teens may have a negative effect on a developing baby: Drinking alcoholic beverages, Smoking cigarettes or marijuana, Lack of sleep and Unhealthy eating patterns. (Pregnancy center.orgOther physical changes that take place as her uterus expands may impact things as simple as clothing choices or her ability to safely participate in sports. This means that an average teenage girl will need to speak with her doctor about what activities need to be limited during her pregnancy as well as what changes she might need to make to her diet. Emotional Effects of Teen Pregnancy (Pregnancy center.org) Dealing with an unplanned pregnancy can be scary and confusing. Some of the emotions that teen may encounter when facing an unplanned pregnancy are: Initial excitement, Confusion, Fear, Resentment and Frustration. Its a natural response for you to think about and want to protect the baby that is growing inside you. It is also natural for you to be scared and confused about how to deal with this unplanned pregnancy. (Pregnancy center.org) Teenage mothers in industrialized countries mostly lack a proper social network consisting of family, friends and elder women which is usually present in developing countries. Besides, there are many social pressures on them. The main pressure on young pregnant women is, of course, to come to a decision about the unborn child, considering the options of keeping the child, adoption and abortion. Other pressures are education and money. For one, young teenage women in industrialized countries are generally expected to get educated and find work. This becomes almost impossible when having a baby without a strong social network. Then, there often are financial pressures, since the lack of education often leads to unemployment or the dependency on low paid jobs or welfare. (Martin Bohn 2009); Risks for Teenage Mothers and their Child As a result, teenage pregnancy may lead to various problems for both the mother and the child. According to a student fact sheet of the Australian organization Womens Health Queensland Wide, teenage mothers and their children may face some of the following risks: There are significantly higher complication rates both during pregnancy and delivery for teenage mothers and their babies, such as an increased risk of miscarriage, premature birth, having a baby of low birth weight, birth defects and other complications. Children born to teenage mothers are statistically more vulnerable to neglect and abuse. This is due to a range of factors including poverty, parenting inexperience and being in an unhealthy relationship (for example when there is a situation of domestic violence). Teenage Pregnancies and the Disintegration of Families (Martin Bohn (2009); Teenage pregnancies contribute to the disintegration of the family as a social institution. Most teen mothers are single mums. This is either because the child was conceived outside of a relationship or because the pregnancy places a great deal of strain on young relationships which are usually not as stable and enduring as adult relationships. Consequently, 60% of young Australian mothers do not have a male partner when their baby is born, as mentioned in a student fact sheet on teenage pregnancy by the Australian based Womens Health Queensland Wide Inc. A crucial question relates to whether the adverse outcomes experienced by (some) mothers and children of teenage pregnancies are causally related to the age of the mother, or whether there are other factors which lead to the adverse outcomes experienced by teenage mothers and their children. Several studies have found that teenage pregnancy is associated with adverse outcomes for both mother and baby. These include low birthweight, prematurity, increased perinatal and infant mortality and poorer long-term cognitive development and educational achievement for both mother and child. (Fraser AM, Brockert JE and Fergusson DM, 1995) However, studies which have aimed to address the underlying causes of these adverse outcomes-by controlling for additional factors-have produced conflicting results. Some suggest that adverse outcomes remain even after controlling for maternal socioeconomic position and other confounding factors, (Fraser AM, Brockert JE 1995) some find that age has no effect, (Gueorguieva RV, Lee MC 2001) whereas other studies report that once maternal socioeconomic position and smoking are taken into account young age is actually associated with better outcomes. (Reichman NE and Geronimus AT 1997) These contradictory findings probably reflect the small size of some studies, residual confounding, and the difficulty of separating effects that may be related to maternal age from effects that are appropriately regarded as confounding. For example, poor parenting skills may reflect the ignorance of young age but may also occur at any age among women who have restricted access to information and education. Larger studies and those employing methods specifically designed to adequately control for confounding factors (for example using sibling comparisons) (Geronimus AT 1992) suggest that young age is not an important determinant of pregnancy outcome or of the future health of the mother. (Gueorguieva RV, Scholl TO 2001) A recent systematic review of the medical consequences of teenage pregnancy concluded that Critical appraisal suggested that increased risks of these outcomes (anaemia, pregnancy-induced hypertension, low birthweight, prematurity, intra-uterine growth retardation and neonatal mortality) were predominantly caused by the social, economic, and behavioural factors that predispose some young women to pregnancy.'(Cunnington A. 2001) Moreover, Cunnington asserts from this review that most teenage pregnancies are low risk-a point which is omitted from much research and from policy documents and statements Teenage Mothers and Education Teenage mothers are often unwilling or unable to complete their education. This lack of education can result in long term unemployment or low paid, insecure jobs. Being dependent on welfare or on a poorly paid job can place teenage mothers under greater financial pressure, even more so when they are single mums and have no supporting network of family and friends. Finally, teenage mothers are often alienated from their peers and family because their new life is either disapproved of or cannot be related to by family and friends. In developing country like Nigeria teenage mothers are sometimes married and have a broad support system. However, malnutrition, poor health care and complications of childbirth significantly increase the mortality rate of these young women. Lagos State Government Intervention The Lagos State has also set up youth friendly centers to provide adolescents accurate and confidential counseling on sex related matters. These include youth development programmes to educate youths both male and female on the danger involve in premarital sexual and early sexual intercourse (VOA News). In addition, efforts is from the youth counselor of the Lagos State Ministry of Health, Christiana Ladapo, who leads candid after-school discussions about sex, peer pressure, abstinence and contraceptives. She says teenage pregnancy has been on the rise because society has ignored the problem. However, Pinkdove in collaboration with the Lagos State Ministry of Education recently organized an enlightenment campaign with the theme The Effects of Early Sex, Teen Pregnancy for Senior Secondary School Female Students in Lagos state HISTORY OF LAGOS Lagos State is an administrative region of Nigeria, located in the southwestern part of the country. The smallest of Nigerias states, Lagos State is the second most populous state after Kano State, (wikipedia) and arguably the most economically important state of the country,(Answer dictionary) containing Lagos, the nations largest urban area. Lagos State was created on May 27, 1967 by virtue of State (Creation and Transitional Provisions) Decree No. 14 of 1967, which restructured Nigerias Federation into 12 states. Prior to this, Lagos Municipality had been administered by the Federal Government through the Federal Ministry of Lagos Affairs as the regional authority, while the Lagos City Council (LCC) governed the City of Lagos. Equally, the metropolitan areas (Colony Province) of Ikeja, Agege, Mushin, Ikorodu, Epe and Badagry were administered by the Western Region. The State took off as an administrative entity on April 11, 1968 with Lagos Island serving the dual role of being the State and Federal Capital. However, with the creation of the Federal Capital Territory of Abuja in 1976, Lagos ceased to be the capital of the State which was moved to Ikeja. Equally, with the formal relocation of the seat of the Federal Government to Abuja on 12 December 1991, Lagos Island ceased to be Nigerias political capital. Nevertheless , Lagos remains the center of commerce for the country. HISTORY OF LAGOS ISLAND LOCAL GOVERNMENT Lagos Island is the principal and central local government area of the Metropolitan Lagos in Nigeria. It is part of the Lagos Division. As of the preliminary 2006 Nigerian census, the LGA had a population of 209,437 in an area of 8.7 km ². The LGA only covers the western half of Lagos Island; the eastern half is under the jurisdiction of the LGA of Eti-Osa. Lying in Lagos Lagoon, a large protected harbour on the coast of Africa, the island was home to the Yoruba fishing village of Eko, which grew into the modern city of Lagos. The city has now spread out to cover the neighbouring islands as well as the adjoining mainland. Lagos Island is connected to the mainland by three large bridges which cross Lagos Lagoon to the district of Ebute Metta. It is also linked to the neighbouring island of Ikoyi and to Victoria Island. The Lagos harbour district of Apapa faces the western side of the island. Forming the main commercial district of Lagos, Lagos Island plays host to the main government buildings, shops and offices. The Catholic and Anglican Cathedrals as well as the Central Mosque are located here. Historically, Lagos Island (Isaleko) was home to the Brazilian Quarter of Lagos where the majority of the slave trade returnees from Brazil settled. Many families lived on Broad Street in the Marina. It also revealed that majority (83.8%) and (70%) of the respondents were staying with their parents and there parents were staying together. This is in contradiction (Ellis, Bruce J. et al) Studies that girls whose fathers left the family early in their lives had the highest rates of early sexual activity and adolescent pregnancy From the study it was also revealed that many of the respondents parents who were working are in the low class status about (25%) were unemployed. This is in accordance with a study by (Besharov, Douglas J. Gardiner) Poverty is associated with increased rates of teenage pregnancy. It was obvious from the study that majority were not aware of any form of contraceptives, but this was in disagreement with the study made in the United States in 2002 by National Surveys of Family Growth, sexually active adolescent women wishing to avoid pregnancy were less likely than those of other ages to use contraceptives. Revelation from this research shows that (35.7%) were impregnated by boy friends while (13.3%) were raped. This flows with some studies that between 11 and 20 percent of pregnancies in teenagers are a direct result of rape, while about 60 percent of teenage mothers had unwanted sexual experiences preceding their pregnancy. One in five teenage fathers admitted to forcing girls to have sex with them Majority of the respondents had their sex experience before the age of 15. This supports Guttmacher Institute findings that 60 percent of girls who had sex before age 15 were coerced by males who on average were six years their senior. CONCLUSION It is quite glaring that teenage pregnancy have many consequences on the society. Teenage pregnancies have become a public health issue because of their observed negative effects on perinatal outcomes and long-term morbidity. The association of young maternal age and long-term morbidity is usually confounded, however, by the high prevalence of poverty, low level of education, and single marital status among teenage mothers the impact on youth development in our society is negative

Emersons Transcedentalist Beliefs Essay -- essays research papers fc

Every so often throughout history, great doers and thinkers come along that break the mold and set new standards. People like Caesar, Shakespeare, Napoleon and Jesus have been studied and immortalized in volumes of texts. Then there are others who are not as well known. People like Ralph Waldo Emerson. From his life, writings, associates, beliefs and philosophy, this Concord, Massachusetts man has set his place as a hero in American literature and philosophy (Bloom 13).   Ã‚  Ã‚  Ã‚  Ã‚  The first, most important thing to mention about Ralph Waldo Emerson is that he was not a Transcendentalist philosopher (Bloom 1). Ralph Emerson was a poet, critic, essayist, and a believer of morals (Bloom 2). Many people look at what he wrote in his books and essays, and they took his ideas from his speeches and turned them into a way of life. His ideas and beliefs earned him the role as the chief spokesman for American Transcendentalism (Siepmann 300).   Ã‚  Ã‚  Ã‚  Ã‚  Emerson was a graduate from Harvard University. After his graduation, he became a minister. It was while he was a preacher that he began to think new ideas about life. The breakthrough for his new way of thinking came when he resigned from pasturing at the Second Church of Boston because e could not administer the Lord’s Supper (Hart 256).   Ã‚  Ã‚  Ã‚  Ã‚  The sources of Emerson’s writings were from the early colonists, and he acknowledged them in his writings (Bloom 34). His writings were secular, and the readers of the era were sometimes scared by the lack of religious references and biblical texts in his writings. His writings were considered daring for his time, but they were moral (Unger 2).   Ã‚  Ã‚  Ã‚  Ã‚  The tone of his work was focused on self-reliance and the problem of how to live. His writings provoked people to ask how instead of what and not we but I (Unger 1). Emerson’s essays spoke to people of the 19th century that were ready for individuality and a new optimism that liked God, nature, and man (Masterpieces 258).   Ã‚  Ã‚  Ã‚  Ã‚  His essays tell the importance of a man that goes on through life like he represents not only himself, but also every other person he sees and meets (Masterpieces 258). He used his writings to challenge traditional thought (Siepmann 300).   Ã‚  Ã‚  Ã‚  Ã‚  Most consider his writings to... ...atest thinkers in American history (Masterpieces 258).   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚   Bibliography Bloom, Harold. Ralph Waldo Emerson. New York: Chelsea House Publishers, 1985. Hart, James D. The Oxford Companion to American Literature. New York: Oxford University Press, 1965, pp 255-257.   Ã‚  Ã‚  Ã‚  Ã‚  Masterpieces of World Literature. New York: Harper Collins Publishers, 1989, p 250. Meyerson, Joel. A Historical Guide To Ralph Waldo Emerson. New York: Oxford University Press, 2000 Siepmann, Katherine Baker. Benet’s Reader’s Encyclopedia. New York: Harper Collins Publishers, 1987, pp 300-301. Snodgrass, Mary Ellen. Encyclopedia of Utopian Literature. Denver, CO: ABC-CLIO, 1995, p 515. Spiller, Robert E., et. al. Literary History of the United States. New York: The MacMillan Company, 1962, pp 351-387.   Ã‚  Ã‚  Ã‚  Ã‚  Unger, Leonard. American Writers: A Collection of Literary Biographies. New York: Charles Scribner’s Sons, 1974, pp 1-24.   Ã‚  Ã‚  Ã‚  Ã‚  Wood, James Playsted. Trust Thyself: A Life of Ralph Waldo Emerson for the Young Reader. New York: Pantheon Books, 1964.   Ã‚  Ã‚  Ã‚  Ã‚