Corporate Finance Essay - 1150 Words

Corporate Finance Essay Most corporate financing decisions in practice reduce to a choice between debt and equity. The finance manager wishing to fund a new project, but reluctant to cut dividends or to make a rights issue, which leads to the decision of borrowing options. The issue with regards to shareholder objectives being met by the management in making financing decisions has come to become a major issue of recent times. This relates to understanding the concept of the agency problem. It deals with the separation of ownership and control of an organisation within a financial context. The financial manager can raise long-term funds internally, from the company’s cash flow, or externally, via the capital market, the market for funds†¦show more content†¦Any profits remaining after deducting operating costs, interest payments, taxation, and dividend are reinvested in the business and regarded as part of the equity capital. The finance manager will monitor the long-term financial structure by examining the relationship between loan capital, where interest and loan repayments are contractually obligatory, and ordinary share capital, where dividend payment is at the discretion of directors. This is known as gearing. There are two basic types of gearing, they are capital gearing which indicates the proportion of debt capital in the firm’s overall capital structure; and income gearing indicates the extent to which the company’s income is pre-empted by prior interest charges. Both are indicators of financial gearing. Now, the advantages of debt capital centre on its relative cost. Debt capital is usually cheaper than equity because, the pre-tax rate of interest is invariably lower than the return required by shareholders. This is due to the legal position of lenders who have a prior claim on the distribution of the company’s income and who in liquidation precede ordinary shareholders in the queue for the settlement of claims. Debt is usually secured on the firm’s assets, which can be sold to pay off lenders in the event of default, i.e. failure to pay interest and capital according to the pre-agreed schedule;Show MoreRelatedCorporate Finance Essays7800 Words   |  32 PagesABC’s capital expenditures and its financing 9 2.3. Comparison of ABC’s capital structure with similar companies 10 2.4. Characteristics of the company influencing the leverage policy 11 2.4.1. Tax advantage 11 2.4.2. Corporate tax rate 11 2.4.3. Earnings before tax and interest 11 2.4.4. Interest rate 11 2.4.5. Credit rating 12 2.5. Pecking order theory 13 2.6. Optimal capital structure 13 3.Dividend 14 3.1. Dividend policyRead MoreEssay Corporate Finance1613 Words   |  7 Pages Why is corporate finance important to all managers? Corporate finance is a specific area of finance dealing with the financial decisions corporations make and the tools as well as analyses used to make these decisions. The primary goal of corporate finance is to enhance corporate value, without taking excessive financial risks. A corporations managements primary responsibility is to maximize the shareholders wealth which translates to stock price maximization. Corporate finance providesRead MoreEssay on The Bible And Corporate Finance2064 Words   |  9 Pagesï » ¿ The Bible and Corporate Finance People rarely associate religion with the business world or the finance industry, nor do they think religion can guide the practice.   From a logical standpoint religion and a firms operations do not correlate. From a societal view people see good religious peoples businesses fail while godless industries thrive.   The question usually asked is how does the Bible apply to business world?   The real question should be how could the Bible and God guide me in my professionRead MoreAdvanced Corporate Finance Essay examples927 Words   |  4 PagesAdvanced Corporate Finance I SS 2012 Problem Set 1 Valuing Cash Flows Problem Set 1 Valuing Cash Flows Exercise 1 (Ex. 11.2 - 11.6 GT): Assume that Marriott’s restaurant division has the following joint distribution with the market return: Market Scenario Bad Good Great .25 .50 .25 Probability Market Return (%) -15 5 25 YR 1. Cash Flow Forecast $40 million $50 million $60 million Assume also that the CAPM holds. 11.2 Compute the expected year 1 restaurant cash ï ¬â€šow for Marriott. 11.3 FindRead MoreApplied Corporate Finance - Final Questions Essay1586 Words   |  7 PagesSolutions to Practice Problems by Kyung Hwan Shim University of New South Wales Australian School of Business School of Banking Finance for FINS 3625 S1 2010 May 23, 2010 âˆâ€" These notes are preliminary and under development. They are made available for FINS 3625 S1 2010 students only and may not be distributed or used without the author’s written consent. âˆâ€" 1 Solution for Question 1 Summary Table of Cash Flows t=0 I II CF from Machinery ignoring depreciation Working Capital LevelRead MoreEssay On Corporate Finance806 Words   |  4 PagesCorporate Finance in the age of Thinking Computers. Just like humans, computers can now learn and adapt, thanks to machine learning, a subfield in AI. With artificial neural networks to mimic those of the human brain, intelligent computers can learn from examples, meaning that no task specific programming is required. While machine learning technology is still at infant stages in most industries, it is making ground breaking milestones in the financial sector. Among the areas experiencing majorRead MoreCorporate Finance Essay1908 Words   |  8 PagesSample Test_MT2_FINA 3101_summer_2013 ____ 1. Travis Corp.s bonds currently sell for $1,050. They have an 8% annual coupon rate and a 20-year maturity, but they can be called in 5 years at $1,120. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. Under these conditions, what rate of return should an investor expect to earn ifRead MoreCorporate Finance Essay959 Words   |  4 PagesTo start any business activities in an organization or a group of it calls for the managers to decide on how to finance the whole project execution; managers are compelled to seek consultative meetings from which a lot of thoughts and strategic plans are laid down systematically. To start the business, owners or shareholders are required to make a choice and put attention to the existing multiple and differing financing options, terms, and conditions that require contractual ar rangements. It is,Read MoreCorporate Finance Essay examples4203 Words   |  17 Pages7*:(*$11-885A13*.--+-*$3-).$).$2-*@3B%-)5*$%-23%4-)52-)23?+$*$)*+*2@-+93)-4+*-=7-$ 4226 | Monmouth, Inc. 10 Exhibit 7 Information on United States Capital Markets I.! Interest Rates in May 2003 30-Year U.S. U.S. Corporate Bonds Rated Treasury Bonds AA A BBB BB 4.10% 4.52% 5.07% 6.07% 7.96% II.! Estimated Market Risk Premium = 6% over 30-Year U.S. Treasury Bonds III.! Median Values of Key Ratios by Standard Poors’ Rating Category AAA AA A BBB BB B Times InterestRead MoreEMI Corporate Finance Essay7263 Words   |  30 Pages â€Å"IFPI: 07 Digital Music Report,† January 2007. This case was written by Elizabeth W. Shumadine (MBA ’01), under the supervision of Professor Michael J. Schill, based on public information. Funding was provided by the L. White Matthews Fund for Finance case writing. Copyright  © 2008 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved. To order copies, send an e-mail to sales@dardenbusinesspublishing.com. No part of this publication may be reproduced,

Marketing Plan - 5375 Words

TABLE OF CONTENT LETTER OF AUTHORIZATION I LETTER OF TRANSMITTAL II LETTER OF RECOMMENDATION III LETTER OF ACKNOWLEDGEMENT IV EXECUTIVE SUMMARY 1 1. INTRODUCTION TO THE COMPANY 2 2. CURRENT MARKET SITUATION 3 2.1. MARKET SUMMARY 3 2.2. MARKET NEEDS 3 2.3. MARKETING TREND 3 2.4. MARKET GROWTH 3 2.5. COMPETITIVE ANALYSIS 4 3. SWOC ANALYSIS 6 3.1. STRENGTHS 6 3.2. WEAKNESSES 6 3.3. OPPORTUNITIES 6 3.4. CHALLENGES 6 4. OBJECTVES AND ISSUES 7 4.1. SALES REVENUES 7 4.2. MARKET SHARE 8 4.3. ADVERTISING AWARENESS 8 4.4. PRODUCT PLACEMENT 8 5. MARKETING STRATEGY 9 5.1. MISSION 9 5.2. MARKETING OBJECTIVES 9 5.3. TARGET MARKET 9 5.4. STRATEGIC PYRAMIDS 11 5.5. MARKETING MIX 11 5.6. RETAIL CAMPAIGN 11 5.7. T.V†¦show more content†¦This product can be used mostly in traveling and by people who are busy in their outdoor jobs like students, person related to showbiz etc. 2.1. MARKET SUMMARY CleanWell Company focuses on the better hygiene of their consumers therefore taken into consideration the health factor of our consumers. Our target consumers are household women who are mostly concerned with the health factor of their school going children. Most of the household women search for tacky items and then go to the market looking for new solutions that will be usable and cheaper in price. Young college/ university students keep would be able to keep this product easily in their bags and can dispose it off after use. 2.2. MARKET NEEDS In the life of today there is a need for such an effective instant product, which can satisfy health need at all the levels. CleanWell Sanitizer can be ideal for that as it is easy to carry and can be put easily in bags, wallets in pockets as well. It gives a unique opportunity to be sticky free and it will also provide a protection against germs. Its fresh fragrance will give people an energetic feeling, so people will be lively and enthusiastic towards their work. 2.3. MARKETING TREND The current market situations demonstrate that people have become more health conscious. They desire something contemporary and effective, for this reason CleanWell Hand Sanitizer would be their ideal product. The soap industry has been establishedShow MoreRelatedA Marketing Plan For A New Marketing Strategy966 Words   |  4 Pagesthe governmental legal requirements and, on the other hand, defines the organization’s policy administration. For a triumphant marketing plan, understanding the government legal approaches allows for efficient operation and inter-relationship with other organization. Similarly, internal legal policies allow the company to uphold its operation in a set manner. 4.0: Marketing Audit A market audit process is a tool that can never be neglected despite the situation. However, very few companies carryRead MoreMarketing Plan For A Small Business2998 Words   |  12 Pagesin detail. †¢ The benefits of TQM when implementing the strategic plan to meet goals or increasing profit within a small business. †¢ The economy’s motivation of small businesses stability as compared to large businesses that are well established, also the financial assistance of other organization including the government. †¢ Different categories of a company and the importance of CRM to any size business. †¢ To compare the marketing plan of a small business and a large business where it reflects theRead MoreMarketing Plan827 Words   |  4 Pagesï » ¿Marketing Business Environment Marketing Planning: An Overview of Marketing 6 main questions to ask in order to create your marketing plan: 1. Where are we now? (Business Mission, Marketing audit, SWOT analysis) 2. How did we get here? (Business Mission, Marketing audit, SWOT analysis) 3. Where are we heading? (Marketing audit, SWOT Analysis) 4. Where would we like to be? (Marketing objectives) 5. How do we get there? (Core Strategy, Marketing mix decisions, Organization, ImplementationRead MoreMarketing Plan3248 Words   |  13 PagesSAMPLE MARKETING PLAN The following pages contain an annotated sample marketing plan for Blue Sky Clothing. At some point in your career, you will likely be involved in writing—or at least contributing to –a marketing plan. And you’ll certainly read many marketing plans throughout your business career. Keep in mind that the plan for Blue Sky is a single example; no one format is used by all companies. Also, the Blue Sky plan has been somewhat condensed to make it easier to annotate and illustrateRead MoreMarketing Plan4753 Words   |  20 Pagesresponsible firm by highlighting its products based on ecotourism, community tourism and sustainable tourism. 2. Situation Analysis Blaze Mountain travels and Tours has been operating for several years now. The trips have been well received, and marketing is now critical to its continued success and future profitability. Blaze Mountain travels and tours offer concepts like ecotourism and sustainable tourism to older tourists and hard adventure trips to the student tourists. This target market appreciatesRead MoreMarketing Plan3688 Words   |  15 PagesSITUATION ANALYSIS The marketing environment for LIMCOMA represents overwhelming opportunities. It also contains some challenges that the firm believes it can meet successfully. An illustration below shows a SWOT analysis of the company to highlight LIMCOMA’s strengths, weaknesses, opportunities, and threats. Strengths LIMCOMA’S dedicated founders understand the target market and products. LIMCOMA has achieved distribution in several markets with quick acceptance The firm has a very littleRead MoreMarketing Plan3847 Words   |  16 PagesA marketing plan is a comprehensive blueprint which outlines an organization s overall marketing efforts. A marketing process can be realized by the marketing mix, which is outlined in step 4. The last step in the process is the marketing controlling. The marketing plan can function from two points: strategy and tactics (P. Kotler, K.L. Keller). In most organizations, strategic planning is an annual process, typically covering just the year ahead. Occasionally, a few organizations may look atRead MoreMarketing Planning : The Marketing Plan Essay1545 Words   |  7 PagesTo attract mixed segment ther is need to marketing planning is indeed the key to the whole marketing process. The marketing objectives state just where the company intends to be; at some specific time in the future. James Quinn succinctly defined objectives in general as: Goals state what is to be achieved and when results are to be accomplished, but they do not state how the results are to be achieved. They typically relate to what products will be where in what market. They are essentiallyRead MoreMarketing Plan For Subway Marketing1516 Words   |  7 PagesExecutive summary The marketing plan has close ties with the overall financial and business plan. This plan contents a strategy for success, and breaks it down into coherent, actionable components that will aid The Sub Shop to implement marketing activities to provide a firm return on investment. The following areas will help explain how the company plans to differentiate the business and product offering from the competition, and define the strategy that will drive its business forward. The aimRead MoreMarketing Plan1891 Words   |  8 Pagesa breakeven point in the second year after opening the store and become profitable in the third year of being in this business. In the first year, our profits will be low, due to low sales and high distribution, inventory, marketing and advertising and sales expenses. Marketing expenses will be very high in the first year. We have to inform the customers about this new product and get the consumers to try out this new concept. It will take â€Å"Just passin’ Thru† some time to build up the customer base

Meet Carl Robinson, he is a 13

Meet Carl Robinson, he is a 13-year-old student at St. Marks School in North London Essay Meet Carl Robinson, he is a 13-year-old student at St. Marks School in North London. He is an only child who lives with his mother and father in a small house near to the school. Carl is a clever student and is seen with a great deal of potential. He is also a popular boy and liked by teachers and many other students. Carl is a very handsome young man as well. He is a tall young man with dark tanned skin and short black hair. Carl also has a 100% attendance record as he enjoys school and likes seeing his friends every day. It is a Wednesday afternoon and Carl is at home doing his homework in the living room when his father Alan walks in, in rather a good mood, it appears he has news. Carl is very anxious to hear what his father has to say so he rushes towards him and says, Why are you in such a good mood dad? His dad replied by saying, Is your mother in as I have some news which will affect the three of us Yes father, she is in the kitchen, Ill go and get her replied Carl. Carl then raced to the kitchen and called his mother Carol into the living room where his father was. Carl was now starting to worry and feel nervous. Then he looked at his father, who at that point was grinning like a Cheshire cat and said, Dad please hurry up and tell us as I am starting to feel tense. OK he replied with a look of glee, I have just been speaking to my manager who as told me that there is a promotion available. Instead of being just a normal insurance consultant there is a managerial position available for me. Carl and his mother look at each other in excitement, The only drawback is that the job is in Leicester. In an instant Carl ran straight upstairs to his room. Shall I go after him? said Alan. No, replied Carol with a sigh, give him a chance to get used to the idea. Whats the matter with you Carol, I thought its what you always wanted, a fresh start. I mean just the other day you were moaning about this dump, and nowà ¢Ã¢â€š ¬Ã‚ ¦ HOW DARE YOU, shouted Carol at the top of her voice, how dare you say that I called this place a dump. I mean I work every day to keep this house clean and tidyà ¢Ã¢â€š ¬Ã‚ ¦ Hold on Carol, why are we arguing? I mean it is not exactly for definite although it would be a great opportunity for us as a family. Ive already taken the liberty to look at schools in the area and there is one perfect for Carl, its called Leicester Grammar and it  does all the subjects Carl does at the moment and its really high in the league tables. I have even been on the phone to them and told them about Carl, so if we did move they would accept him. Is it a nice area though and could we afford a house there? It is a beautiful area with low cost of accommodation, its a lot cheaper than where we are living now. Well it sounds alright to me, so Ill have a word with Carl but it looks as though were moving. YES, thank you so much, you wont regret this. I hope not, replied Carol moving towards the stairs. Meanwhile Carl is on his bed sobbing his eyes out when he hears his mothers footsteps, so he quickly wipes away his tears with his index finger. .u0dabdfbfb00e4ec98c1ae6b9c782662e , .u0dabdfbfb00e4ec98c1ae6b9c782662e .postImageUrl , .u0dabdfbfb00e4ec98c1ae6b9c782662e .centered-text-area { min-height: 80px; position: relative; } .u0dabdfbfb00e4ec98c1ae6b9c782662e , .u0dabdfbfb00e4ec98c1ae6b9c782662e:hover , .u0dabdfbfb00e4ec98c1ae6b9c782662e:visited , .u0dabdfbfb00e4ec98c1ae6b9c782662e:active { border:0!important; } .u0dabdfbfb00e4ec98c1ae6b9c782662e .clearfix:after { content: ""; display: table; clear: both; } .u0dabdfbfb00e4ec98c1ae6b9c782662e { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u0dabdfbfb00e4ec98c1ae6b9c782662e:active , .u0dabdfbfb00e4ec98c1ae6b9c782662e:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u0dabdfbfb00e4ec98c1ae6b9c782662e .centered-text-area { width: 100%; position: relative ; } .u0dabdfbfb00e4ec98c1ae6b9c782662e .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u0dabdfbfb00e4ec98c1ae6b9c782662e .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u0dabdfbfb00e4ec98c1ae6b9c782662e .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u0dabdfbfb00e4ec98c1ae6b9c782662e:hover .ctaButton { background-color: #34495E!important; } .u0dabdfbfb00e4ec98c1ae6b9c782662e .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u0dabdfbfb00e4ec98c1ae6b9c782662e .u0dabdfbfb00e4ec98c1ae6b9c782662e-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u0dabdfbfb00e4ec98c1ae6b9c782662e:after { content: ""; display: block; clear: both; } READ: Antigone Jenny Peterson Essay Carl, I want to speak to you about the idea of us moving, and we will move no matter how much you protest, said Carls mother. But mum, how could you do this to me, I mean I love it here in London. And besides all my friends are here. Youll make new friends and besides well be in a nicer area so what do you say are we moving. Yes mum, but how soon is the move. I dont know, lets go downstairs and discuss the details with your father over a nice pot of tea. Carl now knew that there is nothing he can do so he might as well just get on with it. So Carl went downstairs and had that cup of tea and found out that the move would be in two weeks time. Two weeks is just enough time for Carl to say goodbye to his friends but he still wasnt happy. The two weeks soon passed by and it was now time to leave. It was a long journey but when the Robinsons reached their destination they were too tired to look around. So they just unloaded everything into the house and they all went to sleep. It was a long morning putting everything just where they wanted it but the decoration could take weeks. Three days later it was Carls first day at school, and he wasnt looking forward to it. He knew it wasnt going to be easy but he was going to try really hard to make the right impression. All Carl wanted to do was make a few friends and not to be known as the lonely new kid. A week passed and today is Wednesday. Carl still hasnt made any friends. So Carl walked home alone as he usually does but this time he decided to take a different route, he decided to walk through the park. On his way through the park he recognised three kids from his school playing football.  He then heard one of them shout to him, Excuse me, youre the new kid arent you, Carl isnt it? Yes I am, replied Carl rather nervously. Well Im Tim, that boy over there with the brown hair is Michael and the boy next to him is John. We were wondering whether you would like to come and play with us. At this moment Carl was somewhat dazed, it was his first chance to make friends and even though he had dinner in an hour, he wasnt going to waste it. OK then whose team am I on, You can be on my team, replied Michael. So Carl played football and he loved it, he knew that this could be the beginning of a wonderful friendship. When they finished playing football Carls new friends invited him to go to Burgertown, which is the local burger bar round the corner. When Carl got home he ran straight to his mother and told her all about his new friends. Carls mother was delighted with the news and whispered to herself, Thank God for that. It is now Thursday afternoon and Carl and his new friends are having a good time in the burger bar. They are now talking about CDs, So Carl, what CDs have you bought recently? asked John. Well I havent really had any money for CDs after the move. Then out of nowhere Michael said the strangest thing. Carl, you dont need money to buy CDs when youve got these. At this point Michael was pointing at his pockets. Everyone on the table began to laugh but Michael couldnt understand what was so funny. .uc30bb2f2c261fe3e67439197dc72ac1a , .uc30bb2f2c261fe3e67439197dc72ac1a .postImageUrl , .uc30bb2f2c261fe3e67439197dc72ac1a .centered-text-area { min-height: 80px; position: relative; } .uc30bb2f2c261fe3e67439197dc72ac1a , .uc30bb2f2c261fe3e67439197dc72ac1a:hover , .uc30bb2f2c261fe3e67439197dc72ac1a:visited , .uc30bb2f2c261fe3e67439197dc72ac1a:active { border:0!important; } .uc30bb2f2c261fe3e67439197dc72ac1a .clearfix:after { content: ""; display: table; clear: both; } .uc30bb2f2c261fe3e67439197dc72ac1a { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .uc30bb2f2c261fe3e67439197dc72ac1a:active , .uc30bb2f2c261fe3e67439197dc72ac1a:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .uc30bb2f2c261fe3e67439197dc72ac1a .centered-text-area { width: 100%; position: relative ; } .uc30bb2f2c261fe3e67439197dc72ac1a .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .uc30bb2f2c261fe3e67439197dc72ac1a .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .uc30bb2f2c261fe3e67439197dc72ac1a .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .uc30bb2f2c261fe3e67439197dc72ac1a:hover .ctaButton { background-color: #34495E!important; } .uc30bb2f2c261fe3e67439197dc72ac1a .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .uc30bb2f2c261fe3e67439197dc72ac1a .uc30bb2f2c261fe3e67439197dc72ac1a-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .uc30bb2f2c261fe3e67439197dc72ac1a:after { content: ""; display: block; clear: both; } READ: One Flew Over the Cuckoo's Nest Essay What is so funny? asked Michael, Its dead easy. I know why dont we go next door to CDs R Us and well see how easy it is. Everyone on the table was convinced so they got up and walked out of the burger bar. Whilst outside they decided to split into twos so they wouldnt draw attention to themselves. Michael and John were paired up and so were Carl and Tim. Carl knew what he was doing was wrong but he wanted to keep his friends so he took a deep breath and followed the others into the CD shop. When they were in the shop one pair was on one side and the other pair was on the otherside. Michael and John didnt waste anytime they picked out a couple of CDs and were straight out of the door not looking backwards. Carl and Tim spotted this so they decided to hurry their theft so they could quickly make it outside. Carl and Tim quickly slipped a CD each under their jackets and walked towards the exit. As they were walking though, they werent looking where they were going and on their way  out Tim crashed into a security guard and Carl crashed into Tim. Suddenly the CDs dropped straight from their jackets to the floor. Michael and John spotted what had happened so they decided to run home whilst Carl and Tim stood there frightened of what would happen to them. Within an hour Carl and Tim were sitting down the local police station with their parents who happened to be furious. Carl and Tim happened to be lucky with the outcome though; they were let of with a caution. Although their names would be on police records for five years they knew they would never steal anything again. That was a first experience theyd rather forget. Carl and Tim were in a lot of trouble with their parents but they were still able to hang around together and they became the best of friends. And as for the two that ran away, Carl and Tim never spoke to them again.