Learn About the Causes and Effects of Smog

Learn About the Causes and Effects of Smog Smog is a mixture of air pollutants- nitrogen oxides  and volatile organic compounds- that combine with sunlight to form  ozone. Ozone can be beneficial or harmful, good or bad, depending on its location. Ozone in the stratosphere, high above the Earth, acts as a barrier that protects human health and the environment from excessive amounts of solar ultraviolet radiation. This is the good kind of ozone. On the other hand, ground-level ozone, trapped near the ground by heat inversions or other weather conditions, is what causes the respiratory distress and burning eyes associated with smog. How Did Smog Get Its Name? The term smog was first used in London during the early 1900s to describe the combination of smoke and fog that often blanketed the city. According to several sources, the term was first coined by Dr. Henry Antoine des Voeux in his paper, â€Å"Fog and Smoke,† which he presented at a meeting of the Public Health Congress in July 1905. The type of smog described by Dr. des Voeux was a combination of smoke and sulfur dioxide, which resulted from the heavy use of  coal to heat homes  and businesses and to run factories in Victorian England. When we talk about smog today, we’re referring to a more complex mixture of various air pollutants- nitrogen oxides and other chemical compounds- that interact with sunlight to form ground-level  ozone  that hangs like a heavy haze over many cities in industrialized countries. What Causes Smog? Smog is produced by a set of complex photochemical reactions involving  volatile organic compounds  (VOCs),  nitrogen oxides  and sunlight, which form ground-level  ozone. Smog-forming pollutants come from many sources such as automobile exhaust, power plants, factories, and many consumer products, including paint, hairspray, charcoal starter fluid, chemical solvents, and even plastic popcorn packaging. In typical urban areas, at least half of the smog precursors come from cars, buses, trucks, and boats. Major smog occurrences often are linked to heavy motor vehicle traffic, high temperatures, sunshine, and calm winds. Weather and geography affect the location and severity of smog. Because temperature regulates the length of time it takes for smog to form, smog can occur more quickly and be more severe on a hot, sunny day. When  temperature inversions  occur (that is, when warm air stays near the ground instead of rising) and the wind is calm, smog may remain trapped  over a city for days. As traffic and other sources add more pollutants to the air, the  smog  gets worse. This situation occurs frequently in Salt Lake City, Utah. Ironically, smog is often more severe farther away from the sources of pollution, because the  chemical reactions  that cause smog take place in the atmosphere while pollutants are drifting on the wind. Where Does Smog Occur? Severe smog and ground-level  ozone  problems exist in many major cities around the world, from Mexico City to Beijing, and a recent, well-publicized event in Delhi, India. In the United States, smog affects much of California, from San Francisco to San Diego, the mid-Atlantic seaboard from Washington, DC, to southern Maine, and major cities in the South and Midwest. To varying degrees, the majority of U.S. cities with populations of 250,000 or more have experienced problems with smog and ground-level ozone. According to some studies, more than half of all U.S. residents live in areas where the smog is so bad that pollution levels routinely exceed safety standards set by the U.S. Environmental Protection Agency (EPA). What Are the Effects of Smog? Smog is made up of a  combination of air pollutants  that can compromise human health, harm the environment, and even cause property damage. Smog can cause or aggravate health problems such as asthma, emphysema, chronic bronchitis and other respiratory problems as well as eye irritation and reduced resistance to colds and lung infections. The  ozone  in smog also inhibits plant growth and can cause widespread damage to crops and forests. Who Is Most at Risk From Smog? Anyone who engages in strenuous outdoor activity- from jogging to manual labor- may suffer smog-related health effects. Physical activity causes people to breathe faster and more deeply, exposing their lungs to more  ozone  and other pollutants. Four groups of people are particularly sensitive to ozone and other air pollutants in smog: Children- Active children run the highest risks from exposure to smog, as children spend a lot of time playing outside. As a group, children are also more prone to asthma- the most common chronic disease for children- and other respiratory ailments than adults.Adults who are active outdoors- Healthy adults of any age who exercise or work outdoors are considered at higher risk from smog.People with respiratory diseases- People with asthma or other chronic respiratory diseases are more sensitive and vulnerable to the effects of ozone. Typically, they will experience adverse effects sooner and at lower levels of exposure than those who are less sensitive.People with unusual susceptibility to ozone- Some otherwise healthy people are simply more sensitive to the pollutants in smog than other people and may experience more adverse health effects from exposure. Elderly people are often warned to stay indoors on heavy smog days. Elderly people are probably not at increased risk of adverse health effects from smog because of their age. Like any other adults, however, elderly people will be at higher risk from exposure to smog if they already suffer from respiratory diseases, are active outdoors, or are unusually susceptible to ozone. How Can You Recognize or Detect Smog Where You Live?   Generally speaking, you will know smog when you see it. Smog is a visible form of air pollution that often appears as a thick haze. Look toward the horizon during daylight hours, and you can see how much smog is in the air. High concentrations of nitrogen oxides will often give the air a brownish tint. In addition, most cities now measure the concentration of pollutants in the air and provide public reports- often published in newspapers and broadcast on local radio and television stations- when smog reaches potentially unsafe levels. The EPA has developed the  Air Quality Index  (AQI) (formerly known as the Pollutant Standards Index) for reporting concentrations of ground-level ozone and other common air pollutants. Air quality is measured by a nationwide monitoring system that records concentrations of ground-level  ozone  and several other air pollutants at more than a thousand locations across the United States. The EPA then interprets that data according to the standard AQI index, which ranges from zero to 500. The higher the AQI value for a specific pollutant, the greater the danger to public health and the environment.

The food crisis of 2008 had been threatening for a few years, mostly Essay

The food crisis of 2008 had been threatening for a few years, mostly affecting the poor. A variety of causes but mostly mad-made - Essay Example 5-19, 2008). This crisis was one of the threatening incidents that not only affected a big faction of the human race who died of hunger and malnourishment but also grabbed the attention of the developed nations to the fact that with their increase in wealth, they are not performing adequately to surmount the world’s dilemmas and concerns. It has been an observation that the prosperous, successful, and developed countries have the least priority to nourish the starving population, though they have sufficient amount of food that they can provide to the entire inhabitants of the globe. One cannot ignore the reality that governments and United Nations need to put a lot of endeavor in such crises to embark on the problem of hunger. As there is a connection between different problems, resolving of one will lead to solve others as well. The food crises resulted in the sky-high prices of food. As an outcome of it, the fuel prices augmented due to the growing demand from the emergent n ations. With the increase in cost of commodities like food, fuel etc, and the unchanging income pattern of the individuals, it became difficult for them to pay for the basic and fundamental needs like food. The people that fall in the category of most effected sufferers are the poor natives like farmers and laborers and other low-income people (Shiva & Sagbo, pp. 5-19, 2008). It is a foremost right of all the natives of a country that government provides them with food security. This phenomenon refers to a condition where sufficient food is available for all the citizens, whether they are poor or rich. According to the research, it came under indication that due to the financial crisis and change in climate/weather the world has experienced, the supply of food to the natives has seen a drastic turn down subjecting food security to jeopardy. The result of the crisis may have a grave effect on the political steadiness and may result in wars to obtain food for one self. According to th e reports of United Nations World Food Program, "For the world's most vulnerable, the perfect storm [caused by climate, poverty, environmental degradation and political instability] is hitting with a vengeance† (Cribb, pp.1-14, 2010). This statement reflects the idea about the crisis that the world is undergoing unprecedented food shortage leaving an indelible imprint on the lives of many. Due to its effects, nobody is in a condition to provide an aid to each other. The short-term factors that caused the food crises in the years 2008 and 2011 were innumerable. However, only few came under investigations, which are as follows: some countries, known for only wheat agriculture, which is one of the staple foods for the majority of the population, observed famine in past years resulting in disappearance of wheat crops (Karrer, pp. 45-69, 2008). Another reason for the crisis was the increase in the consumption of meat in developing countries resulting in shortage of meat products. F urthermore, according to studies, the fact has revealed that the proportion of the population who are obese is increasing resulting in over consumption of food worldwide. Due to the increase in oil prices, the transportation cost for carrying foods from farm to market has also risen, adding to the food prices (Karrer, pp. 45-69, 2008). Where global recession has terribly crushed the powerful economies,

Hunger Term Paper Example | Topics and Well Written Essays - 750 words

Hunger - Term Paper Example Animals that have lesions in ventromedial hypothalamus become obese. Further studies revealed that even though these hypothalamic centers are crucial in managing hunger and satiety, they are not absolutely responsible for the hunger behavior. Environmental factors considerably affect hunger or food intake. Pregastric Factors are also crucial here. Visual appearance of food and taste or odor of food influence hunger and food intake. Learned aversions and preferences also affect food intake. Psychological factors like  sadness, fear, anxiety, depression, happiness and social interactions can also influence food intake. Gastrointestinal and Postabsorptive factors also control hunger and eating behavior. The amount of gastrointestinal fill is a key factor that describes the behavior of digestive tract. A full intestine or a full stomach brings satiety. This is through the vagus nerve that sends the information back to the hypothalamus. Apart from that, the enteric hormone cholecystokin in is set to stimulate satiety. When nutrients like amino acids and glucose are properly absorbed, their levels rise in blood. This also makes the hormone levels increase in concentration in blood. Concentrations of hormones like insulin, glucagons and cholecystokinin increase. These changes influence the feeling of hunger and satiety. Obesity is considered genetic to a certain extent. Not every obesity case is caused by genetics. Overeating and lack of exercise can cause obesity. There are several other factors that cause obesity. However, the chief culprit of obesity is genetics. Relation between genetics and obesity has been proved by a research performed on twins who were brought up in different places. The research analyzed the influence of environmental factors and genetic factors that influence obesity. Studies brought the results that genetic factors account for more than forty percent of obesity reasons in children and adults. Even though genetic factors are not

Global Trends Essay Example | Topics and Well Written Essays - 250 words

Global Trends - Essay Example Education is also another key thing. People from different cultures go to the same class, spend time in hostels together and learn in class the importance of appreciating and leaving with each other (Tracey, 1999). Entertainment industry has made people from different cultures to come together and produce music hence pulling their cultures together. Forces’ trying to prevent erosion of cultures include the development of archive centers. These will keep the tradition materials and information that remind people of their past cultures (Gary, 2005). The development of traditional clothing has stopped people from embracing foreign attire; maintaining and embracing eating culture has stopped international modified food from taking over the cultural mode of eating especially in Asian countries. Technology changes the culture of countries; it has provided tools that enable our capability to network through the internet communities like Facebook and MySpace. This communication promotes freedom of expression that is not guaranteed in some countries. For example, Facebook provide space for communication during Arabs spring. Technology has made people to migrate from rural homes to the towns especially in developed countries in search of better services and good infrastructure. It has also increased awareness on the value of goods to the consumer hence eliminating middle men who used to make huge profits (Henry, 2006). Global culture is developing since the image of borderless flow has been evoked. Right know people, money and goods are moving undistracted around the world hence forming a global society full of universal culture and universal business language. Global influences have enable me learn through online and be able to communicate with friends through social media at ant time. I have benefitted through knowing the prices of products in the market without going through the

Accidents at Home Essay Example for Free

Accidents at Home Essay We’d all like to believe that our home is a secure, comfortable environment, but we tend not to notice that this very place holds the potential to become very dangerous. In fact, most accidents occur in and around our homes, with the consequences involving anything from minor abrasions to a fatality. Believe it or not, water one of our most valued necessities in life, can not only provide life but also take it. Young children are often the victims of this hazardous feature. All it requires is for the parents to look in the other direction and the next moment, a curious child can wander in the direction of the family swimming pool. An unsurprised toddler can easily fall into the pool and drown. Due to the alarming increase in infant deaths due to drowning, a change in council legislation now demands the presence of childproof fencing around all pools. However there is always the slightly older and more mischievous lot of children who have managed to overcome the barriers of the fencing around pools. As a result, child drowning cases have continued to occur. These numbers have led to a council initiative of childproof safety gates to be manufactured. This requires an adult to open these gates, ensuring parental supervision. See more: Old Age Problem essay In response to the broken bones and concussions that have occurred around pool areas due to older children and teenagers running and playing carelessly around the pool, there has been the further implementation of non-slip pool pavers and surrounds. Nevertheless water inside the home can also be the cause of various accidents, especially in the bathroom which often have wet floors. Wet tiles that may cause a soothing sensation under the feet on a hot day, can instantly become the source of harmful falls, for people of all ages. A slip on a wet floor can lead to bruises, a broken bone or even concussion. In order to prevent these incidents from occurring, households are being urged to make use of the vast array of non-slip mats and non-slip stick-on designs that can even add colour to assist the visually impaired elderly residents. As we age, the activity of our nervous systems tends to function at a lower rate, causing our bodies to react more slowly, so in the event of an accidental fall, the time taken for the brain to send out signals to alert the effectors is lessened as we age. When an elderly person falls, there is the potential for severe injuries because their fragile bones can easily be roken. To ensure their utmost safety, hand rails around the bath are becoming common. Furthermore as water is heated, the hot liquid and steam that results can cause severe scalding accidents that can inflict a single burn or a serious injury. This is especially true for the elderly, with their delayed sensory reaction times, because they can be under a hot shower for several minutes before realising that they’re burnt. As a result, water temperature regulators have been installed in hospitals and the homes of the elderly, in an attempt to minimise the burns caused by hot water. Children can also be subject to similar types of burns when left unsupervised for a moment in bathrooms. Being fascinated by the motion of a rotating tap, these young minds may find themselves running hot water long enough to accidently burn themselves. For this reason, there are childproof tap covers that prevent the tap from turning on, to prevent curious children from scalding injuries when handling hot water. In the kitchen, a slip of the hand is all it takes to cause severe third degree burns. Therefore community service advertisements appear from time to time on television and on the radio to inform people about the hazards present in the kitchen. Even the steam that arises from the kettle poses certain threats. Top-opening kettles posed a potential risk for steam burns on the hand, arm and face and as a result kettles have been redesigned to open and fill at the front, thereby directing steam away from the user. Microwavable food has also proved to be a problem, because when opening the packaging, steam rushes out quickly, causing steam burns. This is why, instructions on the packaging is now mandatory alerting people to delay the time before opening. By doing this, the steam is allowed to dissipate, greatly decreasing the risk of steam burns. Nevertheless, burns are not only the result of hot liquids, because household heating poses a major threat to those who reside in the home. Open fires were once a common source of heating in many households, however the alarming number of house fires caused by curtains or furniture igniting has increased public awareness and also initiated government actions. Thus pressure has been placed on manufacturers to produce burn resistant carpets and curtain material in an attempt to reduce the risk of a stray spark causing a house fire. In order to further minimise the risk of burn injuries from open fires, a ban on installing fully open fires has been passed through government, and slow combustion fires which are a safer alternative, are readily available in many retail stores. However, during cold nights, there is an urge to leave the heater on for the entire night. This action, and the increased use of nylon sleepwear, posed a major threat of house fires while the family was asleep. Consequently, several steps have been taken by the government to ensure the safety of all individuals while they sleep. For instance, sleepwear sold to customers must have the required level of flammability labelled, in order for them to make an informed decision and about avoiding unnecessary burns. The advancement of technology has also allowed for artificial intelligence to be implemented in heating appliances in the form of temperature regulators, causing the heater to either turn on or off in order to maintain the temperature of the room without the risk of overheating and causing a fire. There has also been the danger of accidentally knocking over a heater, especially by children or pets, and this has been responsible for severe burns or even a fatal house fire if the heater came in contact with the carpet and began to burn. However the use of cut-off switches in these portable heaters has greatly minimised the risk of burn injuries and house fires, as the heater simply stops working the moment its sensors realise that it has fallen over. Yet accidents involving electricity can involve more than just electrical heating because there are many appliances used on a daily basis in the average home. Even the simple toaster or hair dryer can cause severe injuries when not correctly handled. For instance when a wet hand decides to grab the nearby hair dryer, water can seep into the electric circuit causing various degrees of electric shock. In order to minimise the risk of this occurring, safety instructions have been attached to such appliances that highlight the dangers that can arise. The toaster is another classic example, where burns have occurred simply by sticking metal cutlery into the toaster in an attempt to remove a piece of toast. Safety instructions have therefore been stuck onto these appliances in order to make people think twice before performing harmful actions. Furthermore, community service advertisements have also been appearing, informing viewers on the dangers that household electrical appliances can pose. Because curious young children can unwillingly stick a finger or a fork into the holes of a power point, safety plugs for power points have been introduced onto the market. When inserted, they prevent easy access, reducing the risk of electrocution especially amongst the younger children. Most importantly, with vast areas of the modern home powered by electricity, the possibility can always arise for a circuit overload or shortage. However being completely engrossed in our busy lives, we tend to not notice, so circuit breakers have been introduced that instantly shut down all power to the house when a threat arises, saving people from serious injuries or even a fatal house fire. Even when electricity is not present, tools and implements also increase the chance of obtaining cuts and lacerations. The preparation of any dish requires the use of knives, peelers and sometimes graters, yet these are some of the many implements that can cause accidents. For instance, the knives when kept in a drawer can see unsuspecting fingers close over their sharp teeth, whilst searching for a particular item. The cuts that result from this incident can be severe and as a result knife boards and jackets have been designed to allow knives to be safely stored. As with knives, peelers and graters only require a slight slip or fumble to cause deep lacerations. Due to these alarming occurrences, manufacturers have improved the design of these implements to include firmer bases and safety blades, in an attempt to minimise any injuries they may inflict. Children are once again victims of the many implements in the kitchen, involving cutlery and scissors. Although they might consider such items to be enjoyable to play with, the number of cuts that have been inflicted has increased rapidly. This is why plastic cutlery and scissors have been produced to allow children to continue playing in a safer environment. Outside the house, there are a variety of tools that can inflict even worse damage. Garden tools can cause severe lacerations if carelessly touched or used, due to their sharp edges. For example, the saw with its sharp teeth can inflict severe cuts so to minimise the likelihoods of such injuries, safety packaging now accompanies these potentially dangerous products, allowing them to be stored safely. In the garden shed, specially padded gardening gloves are also found which help prevent unexpected cuts from thorns or sharp branches that are incurred while performing regular garden jobs. Besides the tools on the shed or garage shelf, there are a wide range of substances, some more dangerous than others. Apart from the cuts, bruises and burns that are inflicted from appliances and various activities around the home, the improper storage of such dangerous substances have accounted or the numerous incidents involving rushing young children to hospital. This may occur after children are attracted to the brightly, coloured tablets and consume them, thinking they are lollies. Similarly with liquids, unsupervised children can easily open and drink a colourful dishwashing liquid or shampoo, thinking it is cordial, but this can lead to serious vomiting and diarrhoea requiring medical attention. For this reason, childproof caps have been introduced on many dangerous liquids which require bo th motions of pressing down and twisting. To ensure the child’s safety when parents are busy, childproof cupboard locks have appeared in many homes, restricting children from accessing dangerous chemicals or medications. To further protect people from the dangers of overdosing or mixing pharmaceutical drugs in an unsafe manner, such as when a headache is so severe that a victim takes three different kinds of painkillers, it is now mandatory to label all substances with both safety instructions and medical advice if for example, a dangerous substance like weedkiller is absorbed, breathed or comes in contact with the skin. Bruises, broken bones, scalding and lacerations are just some of the injuries that can be inflicted on residents, in and around the home. Surely it is clear, that with the numerous cases of severe injuries, which occur in and around our homes every day, it is in fact a very dangerous place to be in.

Stuttering Will Not Crush My Dreams Essay -- Personal Narrative, essay

Today is the day of the oral report. Everyone in class has already made their presentation, so I no longer have an excuse for not sharing my material. I slowly raise my hand after the teacher asks if anyone else needs to do the oral. As I scoot the chair back to stand up, my ears begin to turn red hot. My uneasiness only gets worse when I sluggishly walk down the aisle towards the awaiting podium and start sweating on my hands and forehead. As I look up from the podium, I am startled by the forty pairs of unwavering eyes glaring at me, awaiting to be engrossed by my brilliance. I find myself having difficulty breathing, almost as if I have forgotten how to. I wipe the sweat off my brow, grab my index cards tightly, and open my mouth to speak. But the words just will not come out as I hit a stuttering block. Those same forty pairs of eyes are gazing at me in wonderment. I avoid their scowls by looking down at my index cards, held by my excessively sweaty hands. The class is remarkably silent, waiting for me to continue. I hastily glance upwards to discover forty increasingly impatient people. Nervously, I attempt to speak again, but again I block. I make a stronger effort to try to spit the words out, only to stutter. While many are able to relate to the distress involved in public speaking, issues faced by a person who stutters are unique. Anxiety of a stuttering block extends beyond the typical public speaking into the everyday world of phone conversations and ordering fast food. The anxiety I get during either of the two situations is tremendous. For example, if I am preparing to place a phone call or am waiting in line to order fast food, anxiety builds as I wonder whether I will stutter. This affects my decision-ma... ...e my fear of speaking, and, in addition, I became more social and outgoing. Ever since I took journalism, I have realized I do not have to hide the fact that I have a speech impediment. Contrarily, I have learned that I feel more comfortable with my audience, especially in a classroom situation, if I let the cat out of the bag before I spoke. By advertising my stuttering, I no longer feel as if I am running away or trying to hide my problems, and I find that my listeners tend to be more sympathetic to my disability. I have learned that self-acceptance has pushed me a long way in my struggle to discover who I am. No one is perfect, and everyone must realize their short-comings. But these must not get in the way of your goals in life. You must confront these obstacles head-on, learn to accept them, and to build from your broadened understanding of yourself.

Eskimo Pie

Eskimo Pie Case Part 1 â€Å"As an advisor to Reynolds, would you recommend the sale to Nestle or the proposed IPO? † Subpoints: 1. The managers of Eskimo Pie wanted to find an alternative to Nestle’s acquisition offer for one main reason: Eskimo pie would lose its independence. If Nestle went through with the acquisition, Eskimo would not continue its tradition of being a stand-alone company in Richmond with this meaning that its headquarters and management staff would probably be replaced too.Fundamentally, Eskimo was reluctant to being acquired by Nestle because it felt it would be an aggressive takeover of the company. It would ruin a 70-year long business to take advantage of its tax conditions and it would probably transform the business similar to a traditional integrated manufacturing and marketing approach. 2. David Clark knew that Goldman Sachs had a long-standing relationship with both Reynolds and Nestle. This meant that GS had a conflict of interest in this acquisition.The solution that would best satisfy GS’s interests would be to sell Eskimo to Nestle but this might not be the best solution for Eskimo. So David Clark is dealing with Wheat First Securities instead of Goldman Sachs because he wanted to find an alternative to Nestle’s offer. Since Wheat First Securities had no long-standing relationship with neither Reynolds nor Nestle, it had no conflict of interest in this acquisition. It could see with more objectiveness which acquisition is the best for Eskimo.Furthermore David had personal interest in dealing with WFS because his own position could be put at risk by a Nestle acquisition. 3. IPO alternative: Bulls| Bears| * Good IPO market conditions, in terms of number of deals and value| * No exploitation of possible synergies with competitors, confirmed by Nestle as the major bidder| * Updated forecasts containing results (Sales, Net Income, Capex) better than expected| * Timing – an IPO offer would take a l onger time than a private sale| * Proceeds from the sale at least equal to Nestle’s offer in the worst hypothesis ($14 share rice)| * Uncertainty – related to price and future market conditions| * Less complications- no terms, provisions, negotiations, or compromises| * Lack of expertise of Wheat First Securities| * Social Benefits – saving a local company and jobs| | * Reynold would be able to get liquidity| | Part 2 1. Considering the DFCF model with the projections of Wheat First and growth of FCF of 5%, the equity value of the firm is $47. 286 million. Thus the offer from Nestle of $61 million is appealing for Reynolds, aiming to sell the company.Also the proceeds from the IPO proposed by the management and Wheat First Securities are able to adequately compensate Reynolds. Assuming a price range within $14 – $16, the net proceeds for Reynolds would be $51. 652 and $57. 230 respectively, still higher than the considered equity value. As a matter of fac t the private sale to Nestle is still the most convenient to Reynolds. 2. To value Eskimo Pie using multiples method we should decide whether to use the transaction multiple, available from the Drumstick deal, or business and market based multiples. The implied value on sales from Drumstick transaction can be used to assess the value of the company only if the two companies and deals are significantly comparable. In this case accurate information are not available and the peculiar business model of Eskimo Pie, based on licensing, makes this method not highly reliable. * Multiples based on business and market data imply the use of realized or projected values. The management of Eskimo Pie forecasts higher sales in the future years, thus using realized data to calculate the value of the company could lead to mispricing.Therefore the information of 1991 is used to implement the method. * Looking at comparable companies, two firms are operating in the same business, Empire of Carolina, Inc. and Steve's Homemade Ice Cream. Since multiples based on operating measures such as EBIT or EBITDA depend less on firm leverage and cash than those based on Earnings and we have relevant information available from those two companies, multiples like EV/EBITDA or Firm Value/EBIT seems to be most accurate. Considering the calculations in Exhibit 7 based on the Firm Value/EBIT multiple, Reynolds should sell Eskimo Pie for an amount not less than $56. 68 million. The offer from Nestle is consistent with this valuation of the company, whilst the proceeds from the IPO are sufficient to adequately compensate Reynolds only if the share price is higher than $15. 66. Notwithstanding, if we take into account the implied price using the P/E multiple or transaction multiple, the threshold to sell the company is even higher ($82. 891 and $73. 200 respectively). Thus, neither the IPO option nor the Nestle offer are appealing to Reynolds. 3. The theory says that multiples only work if the comp arison group is sufficiently comparable in all other respects.In order to know if we could use other companies’ multiples or the average of them we must see if they are sufficiently comparable to Eskimo, in other words we must see if the value drivers of the firms are approximately the same. The eligible companies in terms of business model and structure are Empire of Carolina, Inc. and Steve’s Homemade because they both market ice cream and license their formula. All the other companies having a different business model and structure will not be taken into consideration as comparable companies.As a first comparable driver we will use the operating profit margin. Eskimo has a 6,83% operating profit margin calculated on data of 1990 (exhibit 1). Carolina and Steve instead have respectively 15,38% and 11,11% operating profit margins. This tells us that†¦ The tax rate is the same for all companies therefore it is not a relevant driver in making a choice on which comp arable company to use. Since we don’t have the cost of capital and the cost of debt, we will compare the risk class and leverage among the considered companies.We can see that Carolina and Steve have very different risk classes, one is a C and the other is a BBB, Eskimo on the other hand is a BBB because to calculate the WACC we used a cost of debt correspondent to long-term bond in the BBB risk class. So this means that†¦ The leverage of the three companies are 0,07 (Eskimo), 0,08 (Steve) and 1,747 (Carolina). Carolina has a very high leverage because its debt is more than 1,5 times its equity, instead the other two have a debt which is inferior to their equity.So even if the two companies have similar business models, through a deeper analysis we found that Eskimo is effectively similar to Steve but very different respect to Carolina. Steve has a closer operating margin to Eskimo’s than Carolina. It also is in the same risk class, and its leverage is alligned wi th Eskimo’s. Carolina on the other hand has more than double of Eskimo’s operating margin. Its in a riskier class and its leverage is much higher than Eskimo’s. Therefore it was correct to use Steve’s Homemade Ice Cream as a comparable company.The only case in which we would use an average, instead, would be if the two companies were both very similar to Eskimo. 4. The fact that DFCF approach gives a lower value for the company than multiples-based approaches depends on market drivers. In particular, the case can be that the DFCF model implies a WACC that does not reflect the cost of capital and implied risk perceived by the market. As a matter of fact the market overvalues future growth opportunities, leading to high multiples on EBIT and Earnings.