Family Presence During Resuscitation (FPDR) Sample Paper

Introduction

Resuscitation involves the emergency procedure to restart a person’s heartbeat or breathing. The outcome of resuscitation efforts can be positive or negative. The issue of family presence during resuscitation (FPDR) has attracted much attention in nursing practice in recent years. Resuscitation is classified as a high-stakes and stressful situation in patient care. Allowing families in such a lifesaving situation has both benefits and limitations (Tennyson, 2019). The issue of allowing families to be present during resuscitation is not just a question of patient and family preference or an absolute clinical decision to be made by nursing practitioners. It is a complex ethical issue in nursing practice with different perspectives and various competing interests.

The primary question is whether the autonomous rights of family members wishing to be allowed during resuscitation outweigh the potential risks to the patient undergoing resuscitation and the potential psychological damage to the family members. The presence family members during resuscitation continue to spark heated debates among healthcare professionals, policymakers, and ethicists (Lederman, 2019). This paper aims to evaluate the ethical and moral aspects of family presence during resuscitation in nursing. The paper will examine the arguments for and against this practice, considering various perspectives and ethical principles. By examining the ethical implications of this issue, the paper aims to stimulate thoughtful reflection and discussion on this important topic in nursing ethics.

Background

Cardiopulmonary resuscitation (CPR) was first described in 1874. However, its widespread adoption only occurred after the first life-support guidelines were published in 1966. Before then, resuscitation was only performed by qualified health care professionals. The development of Advanced Cardiac Life Support courses in 1976, led to the development of bystander-administered CPR outside of the clinical setting. Bystander CPR was soon followed by the first reports of family presence during resuscitation, published in 1987 (Dainty et al., 2021). Family members reported interests in being allowed during the resuscitation of their patient. At the same time, health care professionals raised concerns that family members could interfere with resuscitation procedures. Since then, the issue of family presence during resuscitation in healthcare settings has evolved and has become a topic of significant interest and concern for nursing and healthcare professionals. The cultural shift of healthcare towards patient and family-centered care and advancements in medical technology has raised questions among healthcare professionals, bioethicists, and policymakers about the ethics of allowing family members during resuscitation efforts.

Today, the question of FPDR continues to spark debates in healthcare among the stakeholders involved. The perspectives and practices vary across healthcare institutions, regions, and countries. Some healthcare facilities have implemented policies that explicitly allow or encourage family presence during resuscitation. Others have policies that restrict or prohibit FPDR (Alzawaidah et al., 2022). There is no universally accepted approach regarding this issue, and the practice continues to evolve.

In the recent past, there has been an increase in recognition of the potential benefits of FPDR. Proponents have cited increased family satisfaction, improved communication and trust between healthcare providers and families, and potential psychological benefits for family members who are present during a critical event involving their loved one (Toronto & LaRocco, 2019). However, Opposers continue to raise concerns about potential interference with medical procedures, emotional distress for family members, and ethical considerations related to patient privacy and dignity.

Concern about nursing practice

The issue of FPDR plays a pivotal role in providing patient care. Nurses are always on the front line in providing care during resuscitation efforts. Nurses are, therefore, responsible for balancing the physical and emotional needs of the patient with the needs and preferences of the family members. Understanding the implications of family presence during resuscitation helps facilitate communication between patients, families, and the nursing team in charge of the resuscitation efforts.

The nursing code of practice dictates careful consideration of the ethical implications of family presence during resuscitation. Nurses must navigate complex ethical dilemmas related to patient-centered care and the duty to provide safe and effective care. Additionally, nursing professionals are crucial in advocating for patients and families, respecting their rights and preferences, and promoting open communication and shared decision-making.

Key Stakeholders

Patients

Patients are the central stakeholders in the issue of FPDR. They are undergoing a critical medical event, and their well-being and Autonomy should be the top priority. The major ethical principles at stake for patients are Autonomy and Beneficence. According to the principle of Autonomy, patients have the right to decide about their healthcare. This includes whether or not they want their family members present during resuscitation (Tennyson, 2019). This principle recognizes the importance of respecting patients’ wishes, values, and beliefs and upholding their right to self-determination.

According to the principle of Beneficence, nurses must promote their patients’ well-being and best interests. They should consider the possible advantages of family presence during resuscitation, such as providing emotional support and reducing patients’ stress. They should also consider how allowing family members may hinder the provision of maximum patient care.

Conflicting Ethical Principles

The ethical principle of Autonomy for patients may conflict with the ethical principle of Beneficence. Patients may desire to be alone during resuscitation or may not want their family members present, which may conflict with the potential benefits of family presence. Also, the patient may wish their family to be around during resuscitation. Still, the health professionals may feel it may be uncomfortable for the family or hinder care delivery, depending on the seriousness of the patient’s condition.

Family Members

Family members are central to any debate about FPDR. They are emotionally connected to the patient and may have their desires and concerns about being present during resuscitation. The major ethical principles at stake for family members are Autonomy and compassion. According to the principle of Autonomy, Family members have their autonomy rights. They may want to be allowed during resuscitation to support their loved one or to be informed about the care provided (Toronto & LaRocco, 2019). They may also want to participate in decision-making and have their preferences considered. According to the principle of compassion, Family members may experience emotional distress and need compassion, empathy, and support during a critical event involving their loved one. This principle recognizes the importance of showing kindness, understanding, and sensitivity toward the emotional needs of family members.

Conflicting Ethical Principles

The ethical principle of Autonomy for family members may conflict with the ethical principle of Beneficence. Family members’ desires to be allowed during resuscitation may conflict with the risks of interference with medical procedures or emotional torture they may experience.

Healthcare Providers

Nurses, physicians, and the interdisciplinary medical team are key players in determining whether family members can be present during resuscitation. They are responsible for providing safe and effective care to the patient and ensuring that the resuscitation efforts are conducted professionally and efficiently (Powers et al., 2023). The major ethical principles at stake for healthcare providers are Beneficence, non-maleficence, and Professional Integrity.

According to the principle of Beneficence, Healthcare providers have to promote the well-being and best interests of the patient. This includes timely and effective resuscitation efforts to save the patient’s life potentially. According to the principle of non-maleficence, Healthcare providers have not to harm the patient. This includes considering the potential risks and benefits of allowing FPDR and ensuring that their presence does not hinder with provision of appropriate medical care. Professional Integrity demands nursing practitioners have a responsibility to maintain their professional Integrity and adhere to the standards of nursing practice. This includes making ethical decisions based on sound professional judgment, considering the patient’s best interests, and upholding the principles of their professional code of ethics.

Conflicting Ethical Principles

The ethical principles of Beneficence and non-maleficence for healthcare providers may conflict with the ethical principles of Autonomy for patients and family members. Healthcare providers may have to make decisions that balance the potential benefits of family presence with the need to provide safe and effective resuscitation efforts (Considine et al., 2022). While the patient may have wished to be alone, the care providers may feel that the presence of family members may offer support and strength.

Both Sides of the Ethical Issue

Pros of Family Presence During Resuscitation

Emotional support. Family members being present during resuscitation provide emotional support to the patient. It offers comfort, reassurance, and a sense of presence to the patient in a critical and uncomfortable situation, which help reduce anxiety and fear.

Patient-centered care. Allowing family presence during resuscitation aligns with the goals of patient-centered care, which emphasizes the importance of involving patients and their families in decision-making and care planning (Dainty et al., 2021). It recognizes the Autonomy and preferences of patients and respects their right to have their family members present during critical medical events.

Communication and collaboration. Family members being present during resuscitation may facilitate communication and collaboration between healthcare providers and family members. It allows for real-time updates on the patient’s condition, clarifying any questions or concerns and involving family members in decision-making regarding the patient’s care. For instance, if the patient has been critically ill for quite some time, a family member will help provide essential sickness history or any other information that may facilitate or hinder care administration.

Cultural and religious considerations. Family presence during resuscitation may be important for families with cultural or religious beliefs that prioritize family involvement in healthcare decision-making or require certain rituals or customs to be performed during critical events (Harris et al., 2023). Respecting patients’ and families’ cultural and religious beliefs is an important aspect of providing culturally competent care.

Cons of Family Presence During Resuscitation

Interference with medical procedures. Family members present during resuscitation may interfere with medical procedures and the healthcare provider’s ability to provide effective care. Family members may be emotionally upset, and their presence may distract or disrupt the healthcare team, potentially compromising the quality of care provided to the patient.

Psychological impact on family members. Witnessing a loved one undergoing resuscitation can be traumatic for family members and may have a long-lasting psychological impact. It may result in emotional pain, post-traumatic stress disorder (PTSD), or other mental health issues, further complicating their ability to cope. Moreover, resuscitation does not always result in a positive outcome. Research has shown that in most cases, resuscitation results in poor outcomes. Watching a beloved one fail to respond to resuscitation efforts during the end of life can be traumatizing and painful (Considine et al., 2022). The patients may have clouded judgments at such moments and may do something that could interfere with the nurse’s procedure.

Legal and liability concerns. Presence of family members during resuscitation raises legal and liability concerns. Family members may witness medical errors or adverse outcomes, resulting in potential legal actions against the healthcare provider or facility. Some countries and states allow FPDR, while others prohibit it. It is important to consider the provisions of the State laws and organizational policies before considering FPDR.

Lack of standardized policies and protocols. There may be a need for standardized policies and protocols regarding allowing family to be present during resuscitation. This may lead to inconsistency in practice and decision-making. Healthcare providers may have different opinions, preferences, or comfort levels in allowing family presence, resulting in variability in the implementation of this practice (Alzawaidah et al., 2022). The lack of standardized policies regarding FPDR means there is no reference framework that nurses can use in making decisions. This wastes a lot of time in arguments and disagreements in the middle of the dilemma.

Philosophical Perspectives

Deontological ethics. Deontological or duty-based ethics focuses on individuals’ ethical duties and responsibilities. From a deontological perspective, allowing family presence during resuscitation is a moral duty as it respects the Autonomy and wishes of patients and their families (Porter, 2019). It upholds the principle of patient-centered care and promotes transparency and collaboration in decision-making.

Utilitarian ethics. Utilitarian ethics emphasizes the greater good for the greater number of people. From a utilitarian perspective, allowing family presence during resuscitation may be beneficial as it can provide emotional support to the patient and family, enhance communication and collaboration, and align with cultural and religious beliefs. However, potential risks and challenges, such as interference with medical procedures, psychological impact on family members, and legal concerns, should also be considered in the overall assessment of the greatest good.

ANA Code of Ethics Perspective

ANA Code of Ethics provides guidelines for ethical decision-making in nursing practice. Provision 2 of the ANA Code of Ethics, emphasizes the nurse’s primary commitment to the patient. This provision emphasizes the importance of respecting the Autonomy and dignity of the patient and involving patients and their families in decision-making (Rhonda Cornell & Powers, 2022). Nurses may consider patients’ preferences and wishes regarding family presence during resuscitation and strive to uphold patient-centered care.

Provision 3 highlights the nurse’s responsibility. The provision state that the nurse has responsibility to promote, advocate for, and protect the patient’s rights, health, and safety. Nurses may advocate for the patient’s and family’s desires for family presence during resuscitation while considering potential risks and challenges.

Provision 4 states that the nurse has authority, accountability, and responsibility for nursing practice. This provision emphasizes the nurse’s accountability and responsibility in making ethical decisions and providing safe and competent care (Walker & Gavin, 2019). Nurses may need to consider legal and liability concerns related to allowing family during resuscitation and follow established policies and protocols.

According to provision 5, the nurse owes the same duties to self as to others. This includes the responsibility to promote health and safety, preserve wholeness of individuals and Integrity, maintain competence, and continue personal and professional growth. This provision highlights the nurse’s responsibility to maintain their well-being and competence. Nurses may need to consider their emotional well-being and coping capacity when witnessing family presence during resuscitation and seek support as needed.

In some cases, the ethical principles of patient autonomy, patient-centered care, and family involvement in decision-making may conflict with the ethical principles of providing safe and competent care, protecting the rights and well-being of the patient, and adhering to legal and liability concerns (Rhonda Cornell & Powers, 2022). Nurses need to navigate these ethical dilemmas by engaging in thoughtful deliberation, seeking guidance from colleagues and ethical resources, and considering the patient’s and family’s unique circumstances and preferences.

Personal Stance and Reflection

After thorough research and careful consideration, I find it morally justifiable to support family presence during resuscitation. While valid concerns and challenges are associated with this practice, the benefits of allowing family members during resuscitation efforts outweigh the likely risks.

The primary reason why I support family presence during resuscitation is that it promotes patient-centered care and upholds the ethical principles of Autonomy and dignity. Allowing family members` presence during this critical moment can provide emotional support to the patient and the family, ease their anxiety, and foster a sense of trust and collaboration between healthcare providers and families (Lederman, 2019). Research has shown that family presence during resuscitation can positively impact the psychological well-being of both patients and families, improve communication, and facilitate shared decision-making.

Moreover, family presence during resuscitation aligns with the cultural and social changes occurring in healthcare. In modern care systems, patients and families are increasingly being recognized as active participants in their care. It acknowledges each family’s unique dynamics and respects their diverse beliefs and preferences. It also promotes transparency and open communication, which can help build a therapeutic relationship between healthcare providers, patients and families.

At first thought of being present during resuscitation, I wasn’t sure which side I would support. This is because both sides have equally compelling and logical arguments (Walker & Gavin, 2019). Legally, I think it is only fair and justice to allow family members to offer support during the resuscitation of their beloved. The question of morals and ethics, however, brings a different dilemma. This is because as much as nurses are responsible for patient safety, they are also responsible for ensuring the psychological well-being of the family members. Many people hate death. Death may break the emotionally weak family members if resuscitation doesn’t yield a positive outcome.

On a closer look at the issue and a review of more literature on the same topic, I gained a broader perspective. I realized the significance of patient-centered care and the importance of considering patients’ and families’ emotional and psychological well-being in critical care situations (Tennyson et al., 2023). Evidence-based practice suggests that when implemented with appropriate guidelines and support, family presence during resuscitation can positively affect patient and family satisfaction, communication, and coping with grief and loss.

Going through the end of life is frightening. When lying on the hospital bed, everybody would wish for someone to hold their hand and reassure them that everything would be okay. The feeling that your family is right by your side gives the patient strength to fight (Powers et al., 2023). In the worst-case scenario where the patient does not recover, the presence of their family helps give the patient a happy and less frightening end of life.

Conclusion

This paper has explored the ethical issue of family presence during resuscitation in healthcare settings. Through a systematic review of historical and current perspectives, key stakeholders, and ethical principles at play, a balanced discussion of both pro and con sides, and an examination of the ANA Code of Ethics perspective, it is clear that family presence during resuscitation is a complex issue with various considerations.

The pro side argues that family presence during resuscitation promotes patient-centered care, respects Autonomy and dignity, and fosters trust and collaboration between healthcare providers and families. It recognizes patients’ and families’ emotional and psychological needs during critical care situations and can positively impact patient and family outcomes.

On the con side, concerns about interference with medical procedures, potential emotional distress, and legal and liability issues have been raised. There are also cultural, social, and professional factors may influence the acceptability of family presence during resuscitation.

Further, the philosophical perspectives of different ethical theories and the ANA Code of Ethics provide additional insights into the complexities of this issue (Harris et al., 2023). After careful consideration, it is clear that family presence during resuscitation is morally complex, with valid arguments on both sides. However, based on the evidence and principles of patient-centered care, Autonomy, and dignity, as well as the importance of fostering trust and collaboration with patients and families, family presence during resuscitation is morally justifiable with appropriate guidelines, education, and support.

The paper has provided a comprehensive evaluation of the ethical issue of family presence during resuscitation, examining various perspectives. It is important for healthcare providers to carefully consider the ethical implications and engage in shared decision-making with patients, families, and interdisciplinary teams to determine the best approach in individual cases.

References

Alzawaidah, M. J., Al-Amer, R., Amro, A. J., Alkafri, S. F., Al-Hussami, M., & Alhurani, A. (2022). Emergency Room Nurses’ Attitudes toward Family Presence during Resuscitation: A Cross-Sectional Study. Hospital Topics, 1-8.

Considine, J., Eastwood, K., Webster, H., Smyth, M., Nation, K., Greif, R., … & Janet, B. R. A. Y. (2022). Family presence during adult resuscitation from cardiac arrest: A systematic review. Resuscitation.

Dainty, K. N., Atkins, D. L., Breckwoldt, J., Maconochie, I., Schexnayder, S. M., Skrifvars, M. B., … & Yeung, J. (2021). Family presence during resuscitation in paediatric and neonatal cardiac arrest: A systematic review. Resuscitation162, 20-34.

Harris, A., Hale, P., & Jeziorski, A. (2023). The Benefits of Family Presence During Resuscitation.

Lederman, Z. (2019). Family presence during cardiopulmonary resuscitation. The Journal of Clinical Ethics30(4), 347-355.

Porter, J. E. (2019). Family presence during resuscitation (FPDR): A qualitative descriptive study exploring the experiences of emergency personnel post resuscitation. Heart & Lung48(4), 268-272.

Powers, K., Duncan, J. M., & Renee Twibell, K. (2023). Family support person role during resuscitation: A qualitative exploration. Journal of Clinical Nursing32(3-4), 409-421.

Rhonda Cornell, D. N. P., & Powers, K. (2022). Advancing the Practice of Family Presence During Resuscitation. Dimensions of Critical Care Nursing41(6), 286-294.

Tennyson, C. D. (2019). Family presence during resuscitation: Updated review and clinical pearls. Geriatric Nursing40(6), 645-647.

Tennyson, C. D., Oliver, J. P., & Jooste, K. R. (2023). Developing a Decision Pathway for Family Presence During Resuscitation. Dimensions of Critical Care Nursing42(3), 163-170.

Toronto, C. E., & LaRocco, S. A. (2019). Family perception of and experience with family presence during cardiopulmonary resuscitation: An integrative review. Journal of clinical nursing28(1-2), 32-46.

Walker, W., & Gavin, C. (2019). Family presence during resuscitation: A narrative review of the practices and views of critical care nurses. Intensive and Critical Care Nursing53, 15-22.

Financial Management Of Verizon Communication Company Writing Sample

Introduction

Verizon Communications Inc., more commonly known as Verizon, is an American telecommunications and media giant. It is one of the largest wireless and landline services providers in the United States and one of the world’s largest providers of Internet services. The company is headquartered in New York City and is a part of the Dow Jones Industrial Average. The company’s formation and growth were influenced by the merger of two long-time telecommunications giants, GTE and Bell Atlantic. Verizon offers telecommunication services to residential and business customers, including wireless, landline, high-speed Internet, fiber optics, and television (Bryja, 2022). The company also offers a variety of products, such as mobile phones and tablets, home phone services, and home security systems.

Verizon is a crucial company to analyze because it is a bellwether for the telecommunications industry. As one of the largest providers of telecommunications services in the United States, Verizon’s performance and strategies are closely watched and often serve as a model for other providers. The company’s performance and strategies also influence the direction of the telecommunications industry as a whole. For example, in 2019, Verizon launched 5G services in some U.S. cities. Other significant providers closely watched this move, followed suit, and launched their 5G services.

Similarly, Verizon’s move to increase data speeds and expand its fiber-optic services shaped the telecommunication industry in the U.S.A. and globally as other firms followed suit. In this regard, Verizon Communication Inc’s market base, large customer share, and wide range of services make it an attractive target for investors. Against the backdrop of this information, this paper employs different financial analysis tools to delve into and understand the financial performance of Verizon Communications and its industry position.

Financial management and Valuation tools.

Financial management and valuation tools are essential to assess a company’s value and guide decision-making processes. With them, it is easier to identify the potential value of a company, its financial health, and the potential return on investment. To this end, this paper has employed the following financial management tools to measure and understand the financial performance of Verizon Communication company.

  • Capital asset pricing model (CAPM): This model determines the required rate of return of a potential investment. The CAPM considers the risk of the potential investment and the market’s rate of return as a whole. The model determines the expected return on a potential investment and assesses the potential return on investment. This model will be critical in calculating Verizon Communication Inc’s equity cost.
  • Weighted Average Cost of Capital (WACC): Weighted Average Cost of Capital (WACC) is a financial metric used to measure the cost of capital employed by a company to finance its operations. It is the average cost of equity and debt, weighted by their respective proportions. It is an essential tool in company valuation and helps investors and analysts make decisions regarding the optimal capital structure of a company. The cost of equity is the rate of return expected by the equity investors of a company. It is usually estimated using the Capital Asset Pricing Model (CAPM), which considers the risk-free rate, beta (a measure of the company’s volatility relative to the market), and the expected return of the market. The cost of debt is the cost of borrowed capital, the interest rate paid on debt. It is usually estimated by looking at the company’s debt rating and the interest rate of similar companies. The results of WACC computation will be significant in carrying out the discounted cash flow analysis of the Verizon Communication company, which will be the hallmark of evaluating the company’s enterprise value.

  • Price Earning Ratio: This ratio compares the market price of a company’s stock to its earnings per share. The higher the P/E ratio, the more expensive the stock is relative to its earnings. The P/E ratio can assess the market’s perception of a company’s financial health and the potential return on investment.

  • Discounted Cash flow: This model estimates the value of a company’s stock by discounting the future dividends that the company is expected to pay its shareholders. (Cornell and Gerger,2022). The model considers the expected growth rate of the company’s dividends and a potential investor’s required rate of return.
  • Enterprise Value: This metric is used to assess the value of a company as a whole. The E.V. considers a company’s assets and liabilities, including debt and equity. The E.V.E. can be used to assess the potential return on investment and compare the value of Verizon Communication company to the industry benchmarks.

Verizon Communication Inc. risk profile analysis.

Risk profile analysis is a process of evaluating the financial risk of the company in order to make informed decisions about investing or other financial activities. This process involves collecting and analyzing data about the company’s financial history and current financial standing to identify potential risk areas. The analysis results are then used to identify strategies for mitigating these risks and assess the potential return on investment.

Understanding the risk profile of Verizon Communications is an integral part of evaluating the company’s performance. This section of the analysis focuses on the company’s current industry position and ability to manage risk.

Verizon’s risk profile is complex due to its large size and the many services offered. It is exposed to various risks related to its operations, financials, and competitive environment. The company’s risk profile is shaped by its capital structure, composed of debt, equity, and other financing instruments. The company’s current capital structure shows it has more debt capital than equity, with its total long-term debt of $ 237.046 billion. The company’s long-term debt consists of bonds and capital leases. Verizon Communications Company issues bonds rated by rating agencies such as Moody’s, Standard & Poor’s, and Fitch. Bond ratings are used to give investors an indication of the issuer’s creditworthiness and to compare the relative risk of different bonds. The ratings range from A.A.A. (the highest quality) to D (in default). Verizon Communications Company has recently been assigned an investment grade rating of Baa2 from Moody’s, BBB+ from Standard & Poor’s, and B.B.B. from Fitch. Bonds Bonds rated Baa2, BBB+, and B.B.B. are considered investment grade quality, providing a moderate risk to investors (Matta, 2022); for instance, to calculate the WACC of the company, I have chosen the yield to maturity of Verizon’s bond which will mature in 2052. This bond and many other bonds of the company have been rated B.B.B. by the rating agencies.

Debt financing and other liabilities become risky to the company when it cannot meet that obligation with either free cash flow or it becomes expensive to raise additional capital. The 2022 balance sheet of Verizon Communication shows that the company had short-term liabilities of $ 50.17 billion and long-term debt of $ 237.046 billion. Offsetting this, the company had 2.605 billion in cash and $ 24.506 billion in receivables. As such, the cash and cash equivalents of the company fall short of the total liabilities with $ 260.105 billion against them. With the current market capitalization of $ 164.77 billion, the total debt position of the company raises a significant concern and increases its risky profile in the industry. However, to understand the company’s cost of finance, its important to determine its weighted average cost of capital. As a result, the WACC of Verizon Communication based on the calculation provided in the accompanying Excel file is 4%. This ratio was obtained by calculating the relative weight of debt and equity in the company’s capital structure. Based on the current market capitalization of $ 164.72 billion and the long-term debt of $ 237.046 billion, Verizon’s debt- equity mix is 0.59: 0.41. This shows that Verizon has more debt than equity. Besides, to complete the WACC computation, I determined the company’s beta. Beta measures a stock’s volatility about the overall market. It is a measure of systematic risk and is used to calculate a company’s equity cost. Beta is a critical component of the Capital Asset Pricing Model (CAPM), which determines the expected return of security given its level of systematic risk. This metric is essential in determining the cost of equity because it helps investors understand how much risk they are taking on by investing in a particular stock (Fernandez,2019).

To determine Verizon’s beta, I ran the regression of the monthly return on the company’s stock for the period January 2022 to April 2023. This return was compared against the S&P500 over the same period. The resultant regression output provided 0.29 as Verizon’s beta. Using these values together with the firm’s cost of debt, the WACC of the company is 4.%. The results of Verizon’s WACC and beta show that despite its debt position, the company is less volatile and can access capital at a lower cost. Accessing capital at a lower cost gives Verizon Communications a competitive advantage in the telecommunication industry, which is more capital-intensive. The dynamics in the industry require a huge investment in research and innovation. As such, the company’s sustainability in the industry is influenced by, among other factors, the ability to access funds for technological requirements.

Discounted Cashflow Analysis

Discounted Cash Flow Analysis (D.C.F.) is a financial tool used to make decisions about long-term investments. It works by discounting the future cash flows of a project or investment back to the present value, taking into account the time value of money and the level of risk associated with the investment. D.C.F. analysis is an important tool for financial management because it allows decision-makers to make more informed decisions about where to allocate resources and how to maximize the return on their investments (Cornell & Gerger, 2022). The basic premise of D.C.F. analysis is that the future cash flows of an investment should be discounted back to the present value, taking into account the time value of money and the risk associated with the investment. The discount rate used in the analysis is typically based on the expected rate of return on the investment and reflects the risk associated with the investment. The higher the discount rate, the lower the present value of the future cash flows and the more conservative the investment decision. D.C.F. analysis aims to identify investments that provide the best value for the money invested. By taking into account both the future cash flows of the investment and the risk associated with the investment, the decision maker can make an informed decision about which investments are most likely to provide the highest return on investment.

The D.C.F. analysis of Verizon Communication Inc started with forecasting a company’s future cash flows using assumptions based on historical financial data. This is done by estimating the company’s revenue growth rate, cost of goods sold, operating expenses, and capital expenditure. The assumptions used in this analysis were based on the financial data for the fiscal years 2020, 2021, and 2022. The company’s revenue is important in the discounted cash flow analysis as it provides the foundation upon which other components in the analysis are derived.

EBITDA, EBIT, and N.O.P.A.T.

The determination of EBITDA, EBIT, and N.O.P.A.T. is derived from the revenue after making the necessary adjustment. The revenue of Verizon increa128.29billion in 2020 to $ 136.83 billion in 2023. Therefore, the projected revenue in our discounted cash flow analysis is based on the assumption that the company’s revenue will grow in the future. Our model has estimated revenue growth from 2023 to 2026. Based on the analysis, the company’s revenue is projected to be $ 154.22 billion in 2026. Besides, the EBITDA and EBIT of the company changed slightly in the analysis increasing and decreasing depending on the expenses of the respective year. For instance, in 2022, the EBITDA and EBIT of the company were $ 34.21 billion and $ 15.43 billion, respectively (Yahoo Finance, 2022). This was against the higher values of $ 45.52bilion and $ 28.79bilion reported in 2020. The analysis further revealed that the N.O.P.A.T. of the company, which represents earnings after tax, changed from $ 18.71 billion in 2020 to $ 19.8bilion in 2022.

Another important component in Verizon’s discounted cash flow analysis is capital expenditure. This represents the changes in the company’s property plant and equipment value. The model shows that the CapEx. The company changed from $ 19.63 billion in 2020 to $ 24.83 billion in 2023. This had a net effect of reducing the company’s free cash flow as it spent more cash on the purchase of fixed assets. The discounted cash flow analysis also determines the net change in working capital. The company’s working capital is critical as it determines the amount of net cash and cash equivalent used to finance recurrent or daily operations (Boisjoly et al.,2020). The high the working capital available, the more liquid the company. Therefore, the net change in working capital in our model focused on the company’s current assets and current liabilities. The net- working capital change of Verizon Communication was $ 14.93 billion in 2020 and increased in 2022 because the company’s current liabilities were more than its current assets. To determine the free cash of the company’s Capex and the net change in working capital is subtracted from the sum of N.O.P.A.T. plus the depreciation and amortization. Depreciation and amortization are added back to the N.O.P.A.T. because it’s not a cash expense and therefore does not represents a cash outflow.

Discounting the free cash flows

To complete the discounted cash flow analysis, it is imperative to determine the appropriate discounting rate. However, the free cash flows are discounted we determined the terminal value.

Terminal value is the estimated value of a business beyond the explicit forecast period in a discounted cash flow analysis. It is important because it allows investors to estimate the value of a project past the explicit forecast period, which can be more than ten years in the future. Terminal value is calculated by taking the present value of the expected cash flows beyond the explicit forecast period and discounting it back to the present value (Brigham & Houston, 2021). The terminal value is often the single largest component of the value of a business and is significant in determining the total value. In this case, the discounting rate used in this analysis is the computed weighted average cost of capital of Verizon Communication. According to the WACC computation, the company’s weighted average cost of capital is 4%; therefore, the company’s free cash flow has been discounted using the present value interest factors at 4%. The computed result provided the discounted cash flow in our model’s three years of actual data and the three years of projected free cash flows.

Enterprise Value and Price earnings ratio.

The hallmark of our discounted cash flow analysis is to determine the enterprise value of Verizon Communication Company. Enterprise value (E.V.E.V.) measures a company’s total value, often used as a more comprehensive alternative to equity market capitalization. E.V.E.V. calculates a company’s market capitalization, debt, preferred shares, and other non-equity liabilities. It measures a company’s value to all its stakeholders, including equity and debt holders. In this regard, the enterprise value of Verizon Communication provided in the Excel file represents the sum of the discounted cashflow of the company (Palepu et al.,2020). The Enterprise Value of Verizon Company shows that the company is a high value and a key player in the industry with a higher cash flow and revenues than the competitors.

Additionally, the price-earning ratio is another important metric for understanding the competitiveness of Verizon Communication company and its industry position. The (P/E ratio) measures a company’s current share price relative to its per-share earnings. It is calculated by dividing the current closing price of the stock by the most recent reported earnings per share (EPS). The price-earnings ratio assesses whether a stock is overvalued or undervalued. A high P/E ratio indicates that investors are expecting higher earnings growth. A lower P/E ratio indicates that the stock is undervalued and could be a good investment. The PE of Verizon for 2021 and 2022 was 8.97 and 7.54, respectively, against the competitor’s T-Mobile ratio of 48.12 and 67.96 (Yahoo Finance, 2022). This result shows that T-Mobile’s stock is overvalued, and Verizon’s is undervalued. In this regard, more investors may be attracted to Verizon than to T-Mobile. However, it is important to understand that attractiveness may depend on other factors, such as an investor’s risk preference.

Conclusion

This analysis has provided an in-depth evaluation of Verizon Communication Company. The analysis has shown that despite the company’s more debt financing, it has a strong foot print in the telecommunication industry. The company can access financing at a lower cost of capital of 4%, as depicted by its WACC, representing its debt and equity mix. Besides, the company has a good risk profile according to its bond rating done by rating agencies such as Moody. More importantly, the discounted cash flow analysis has provided a more pertinent financial outlook by establishing the company’s current enterprise value.

Bibliography

Boisjoly, R.P., Conine Jr, T.E. and McDonald IV, M.B., 2020. Working capital management: Financial and valuation impacts. Journal of Business Research108, pp.1-8.

https://www.sciencedirect.com/science/article/pii/S0148296319305508

Brigham, E.F. and Houston, J.F., 2021. Fundamentals of financial management: Concise. Cengage Learning.

https://books.google.com/books?hl=en&lr=&id=9OUXEAAAQBAJ&oi=fnd&pg=PP1&dq=financial+management+and+valuation+tools&ots=ClsywQzfH7&sig=BOH_8N4Bd11QF1boJSfU4NoBNTk

Bryja, D. 2022. Verizon Communications Inc Investment Report.

https://ecommons.luc.edu/ures/2022/2022/10/

Cornell, B. and Gerger, R., 2022. Long-run Growth Rates in Discounted Cash Flow Models. Business Valuation Review41(3), pp.91-94.

https://meridian.allenpress.com/bvr/article-abstract/41/3/91/488896

Fernandez, P., 2019. WACC and CAPM according to utility regulators: Confusions, errors, and inconsistencies. Errors and Inconsistencies (February 19, 2019).

Matta, I., (2022). Green Bonds: A Case Study of Apple, Verizon, Pepsi and Walmart’s Green Corporate Bonds (Doctoral dissertation, Ohio University).

https://rave.ohiolink.edu/etdc/view?acc_num=ouhonors1651250927969944

Palepu, K.G., Healy, P.M., Wright, S., Bradbury, M. and Coulton, J., 2020. Business analysis and valuation: Using financial statements. Cengage A.UA.U.

https://books.google.com/books?hl=en&lr=&id=IDT6DwAAQBAJ&oi=fnd&pg=PR13&dq=financial+management+and+valuation+tools&ots=uJijb_pdb0&sig=HVw-oDvnf03musOUpA3ExGobldk

Yahoo Finance, 2022 https://finance.yahoo.com/quote/VZ/balance-sheet?p=VZ

Essay On Flight Accidents Sample Essay

Accident 1: Beechcraft BE-58, N959CM

In October 2019, a Beechcraft BE-58, N959CM, was involved in an accident near Ocala, Florida, that led to its destruction. The plane was registered as a private flight, and the pilot and two others suffered fatal injuries. An individual who was on the ground also sustained fatal injuries. Before the fateful day, the pilot had flown to the Ocala international airport with his friend, who confirmed that the flight was normal (NTSB, n.d.). However, it was reported that the right engine’s fuel flow meter had constant fluctuations that would hit the zero mark. The pilot later engaged a mechanic to determine the possibility of instrument indication issues. After the maintenance, they performed several tests to ascertain its effective operation.

Analysis of the Beechcraft BE-58, N959CM accident

The Federal Aviation Administration’s study of air traffic control communications determined a taxi clearance at 1124 and requested information about a block of airspace to conduct maintenance tests. It was explained to the pilot that there were no off-limits locations and that he could go wherever he pleased. The pilot replied that the test would be performed west of the airport. The pilot was permitted to make a right turn to the west after the test and take off, but he refused to do so. The pilot turned left into an easterly heading after the controller gave the clearance again a few seconds later, which, this time, the pilot did not acknowledge (NTSB, n.d.). The pilot ignored the controller’s repeated instructions to continue on a path toward the west. After observing that the aircraft kept heading east, the controller enquired about the pilot’s intentions. About two minutes after departure, the accident happened a few seconds later.

After it took off, the jet was seen by numerous witnesses. Some witnesses revealed it was moving north at a minimal altitude before diving into an inverted slope. The left propeller was not turning, according to one witness, and the airplane was on fire, according to another. According to GPS data recovered from the wreckage, the jet made a left turn and failed to climb above 418 feet in altitude. TA The jet appeared to have rotated counterclockwise before hitting the roadway. The wings struck a moving automobile, according to a video found in a vehicle parked close to the crash site. Later, the jet skidded before coming to rest in an empty lot. According to estimates, the rudder deflected 20°±4º to the left, or the rotational direction, immediately before hitting the ground. No engine or airframe smoke or fire could be seen in the footage. According to the pilot’s biographical information, he had flown for roughly 7800 hours, and in October 2019, he finished a flight review (NTSB, n.d.). However, the Federal Aviation Administration issued him a third-class medical certification with a restriction on corrective lenses.

Impact Information

According to the on-site investigation, the airplane went around 150 feet from the first point of impact. A post-impact fire destroyed the fuselage, and all significant airplane parts were found there. The flaps and landing gear were retracted, revealing the continuity of the ailerons, elevators, and rudder from each control surface to the cockpit. The plane’s nose, fuselage, engines, propellers, and wings left an imprint on the ground not far from the initial place of contact (NTSB, n.d.). Three clear slash marks were seen on the asphalt close to where the right engine hit the road, consistent with propeller contact. Another slash mark was seen near the area where the left engine hit the road. In addition to having their respective fuel tanks punctured, both wings were damaged by collision. Each wing’s fuel tank’s valves and fuel selector lever were in working order. The left engine, which was still attached to the airframe, was severely thermally and had impact damage. The camshaft gear had suffered impact damage, which prevented the crankshaft from rotating all the way. Subsequent borescope engine examination, pistons, and cylinders established a lack of any anomalies. Thermal and impact stresses led to damage to the throttle metering assembly. According to an inspection, the throttle and metering assembly spring was intact, maintained tension, and worked normally despite the throttle control arm being inserted backward from the correct position. On the engine, no more anomalies or parts that would prevent typical engine functioning were found (NTSB, n.d.). The three-bladed propeller assembly was severely impacted, and part of the hub’s connection to the crankshaft was still intact. Only one blade was still fastened to the hub; the others had broken off and were discovered amid the debris. The attached blade had curling at the tip and chordwise scratches (NTSB, n.d.). The fuel flow transducer still had heat damage and was linked to its installation site. The gasoline flow inlet nut was hand-movable and finger-tight, but the fuel line and nut had heat damage. The air was blown into the inlet and freely flowed through the transducer while the transducer was removed and examined. Disassembling the transducer revealed no blockages or other irregularities.

Probable Cause and Findings

The NTSB established the potential cause of the accident as a failure of the pilot to maintain control of the plane due to an acute medical condition or impairing medication. A toxicology examination of the pilot’s body and blood samples by the FAA’s Forensic Sciences Laboratory revealed the presence of diazepam and its psychotropic metabolites, nordiazepam and oxazepam, in the pilot’s liver and muscle tissue. Valsartan, a non-sedating treatment for high blood pressure, was also found in the muscle and liver. The pilot’s chest blood was toxicology tested for the medical examiner’s office, and diazepam, nordiazepam, and delta-9- tetrahydrocannabinol (THC) were found at 96, 94, and 0.69 nanograms per milliliter (ng/mL), respectively (NTSB, n.d.). Diazepam is a sedating benzodiazepine that can only be obtained with a prescription and is a regulated medication used to treat anxiety, seizures, muscle spasms, and alcohol withdrawal.

Persona Opinion on Preventing Its Occurrence

The accident could have been prevented if the pilot had undergone effective training and education to help recognize the signs and symptoms of acute medical events and understand the risks associated with impaired medications. The aviation industry should take proactive approaches to provide pilots with the knowledge and skills to recognize and manage medical conditions and medications that can impair their ability to fly safely. The Beechcraft BE-58, N959CM accident could have been prevented if a risk assessment had been conducted to evaluate the pilot’s medical history and current medication use to determine the risk associated with their flying (NTSB, n.d.). It is important to consider the type of medication, the dosage, and the potential side effects that can impair a pilot’s flying abilities. The effective airline could have ensured that the pilot was not flying when the risk an acute medical event that could impair cognition function. Although the pilot had covered approximately 7800 hours of flight experience and had completed a flight review, he had received a third-class medical certification with a corrective lens limitation from the Federal Aviation Administration (NTSB, n.d.). It is essential for airlines to be aware of the potential for medical emergencies and have plans in place to respond quickly and effectively in case of an emergency. The airline management should ensure Pilots suffering from acute medical events or who have been prescribed impairing medications are subjected to follow-up evaluations to ascertain their fitness to fly. Qualified medical professionals with specialized aviation medicine training should conduct the evaluation. Follow-up should be thorough and consider the pilots, medical history, current medication use, and the potential for future medical events. Upon deeming the pilot unfit to fly, the airline should take appropriate actions to ensure that the safety of passengers and the crew is not compromised. Therefore, Beechcraft BE-58, N959CM accident could have been prevented if proactive measures to manage the risk related to acute medical events and the use of impairing medication were taken to account. This would have ensured safety and maintained the passenger’s confidence in their travel.

Accident 2: Piper PA-31, N400JM

In March 2019, a 62 years old pilot died in the lazing wreckage where a Piper PA-31-350, N400JM, was destroyed when it hit a terrain in Madeira, Ohio. The plane was operated under the provisions of Title 14 Code of Federal Regulations Part 91 as a commercial aerial observation flight. Radar data from the (FAA) showed that after taking off from LUK, the aircraft flew a number of survey tracks before heading northwards to fly survey tracks close to Ohio (English, 2021). The voice exchanges revealed that the pilot contacted air traffic control (ATC) requesting a route to LUK because of a fuel issue. The controller questioned the pilot whether he needed help with the fuel problem, but he replied that it would be fine. He then reminded the pilot that many airports were close to LUK, and the pilot replied that he would let the controller know if the fuel problem reappeared. The pilot informed the tower operator through a radio call that the plane had fuel issues but hoped to make it to the port (National Transpiration Safety Board, n.d.). The plane was 8 miles north of LUK then, flying at the height of 1,850 feet. The pilot soon informed the controller of the uncertainty of the plane making it to the airport but made no more transmissions after that.

Analysis of Piper PA-31, N400JM Accident

Radar data showed that the jet’s estimated ground speed decreased between 1513 and 1516 from around 140 to 98 knots, and its estimated ground track was about 200 degrees. According to radar data, the plane was 180 feet from the fairway at 1516:27, 1,050 feet above sea level, and traveling at an estimated ground speed of 82 knots (National Transpiration Safety Board, n.d.). The aircraft’s last position on radar was around 550 feet from the scene. Witnesses said the plane’s engine sputtered twice before generating a loud pop noise. After sputtering, an eyewitness claimed that the jet was on its left end, flying crooked. The observers also revealed that the jet was low as it swerved to the left and nosedived into the area. The aircraft then struck a tree and a home’s property. After the collision, a neighboring resident’s witness heard the impact, went to the scene, and saw smoke originating from the left engine. A video taken at 15:22 on the witness’ cell phone showed the left engine’s vicinity covered in flames t (National Transpiration Safety Board, n.d.). The witness revealed that after close to three minutes, the airplane was completely engulfed in flames.

Analysis of the pilot’s resume revealed he had several cases of misconduct. It was revealed that in 2001 he was expelled from school after a fight with a fellow instructor. In 2003, the pilot lost control of a Cessna 172 while training a new pilot. The pilot continued the power-off fall to 20 feet after failing to stop at 500 feet AGL. They were just slightly hurt, but the plane was destroyed because they could not recover and hit the ground. The flight’s president reported that the pilot was overconfident and positioned himself where he lacked options.

The fuel issue was evidently seen onboard since the left engine had coughed to a standstill. The family members also reported that the pilot knew of the fuel problem with N400JM. Forensic analysis indicated there was a leakage or pump failure. At the accident site, there lacked any fuel evident in the left wing in or outbound. An interview with company pilots showed that there lacked a direct approach to monitoring fuel quality in the nacelle tank. An organizational pilot revealed that the plane contained fuel leakages in the left wing (National Transpiration Safety Board, n.d.). He submitted a photo of the fuel in the hangar captured a few days before the fate occurred. There were no means to immediately monitor the amount of fuel in the nacelle cylinder while the aircraft was in flight, and there was no obvious sign that the fuel pumps were working, according to company pilots interviewed after the disaster (English, 2021). Company pilots reported utilizing various fuel management techniques in aircraft fitted with a nacelle fuel cylinder. Some pilots filled their primary fuel tanks up, while others only utilized them for one to two hours before switching to the auxiliary tanks.

Probable Causes

The TSB found that the left engine’s lack of gasoline was the most likely cause of the accident. The pilot failed to maintain the lowest controllable speed, which led to a loss of engine power and airplane control.

How the Accident Could Be Prevented

Fuel starvation results when the fuel cannot reach the engine due to some prevailing conditions. The accident could have been prevented if the fuel had been well-managed. The pilot could have ensured the airplane’s fuel tanks were filled before taking the flight and that there was an appropriate balance to avoid uneven weight distribution. This could have been achieved by using fuel quantity gauges and carefully monitoring fuel levels during the flight. The use of a checklist is also key in helping prevent fuel starvation accidents. According to company pilots interviewed after the disaster, there were no means to immediately track the amount of fuel in the nacelle cylinder while the aircraft was in flight. There was also no obvious sign that the fuel pumps were working (National Transpiration Safety Board, n.d.). Pilots must use checklists to ensure they have completed all necessary fuel-related checks before takeoff and during flight. The checklists should include fuel quality, quantity, transfer, and flow. By using checklists, pilots can reduce the risks that could lead to fuel starvation accidents. Although the pilot had extensive experience in the field, he failed to follow instructions to prevent the accident. Therefore training is a critical component of preventing fuel starvation. Based on the NTSB research, the pilot failed to feather the right pop. Feathering significantly reduces drag and acts as the standard process after shutting down the engine. In this scenario, the problem enhanced drag on the left side, affecting efficiency and control. The right engine kept going since it had fuel left. Pilots could have prevented the accident by employing appropriate procedures if they had received adequate training on fuel management techniques.

The NTSB discovered that the corporation provided no training and lacked any defined fuel management methods. The training should include identifying the signs of fuel starvation, calculating fuel consumption, and transferring in case of imbalances. By providing pilots with the necessary training and knowledge, airlines can help reduce the risks of fuel starvation accidents. The pilot turned down the offer of vectors to a nearby safe airfield and proceeded on the one remaining operable engine toward his intended target. (National Transpiration Safety Board, n.d.) The accident could have been prevented if the pilot had monitored fuel levels and consumption throughout the flight. If the pilot had realized any fueling issue, he could have taken immediate action, such as diverting to the nearby airport or declaring an emergency. Improving fuel indicators and warning systems can also help prevent fuel starvation accidents. In this case, the system could have alerted the pilot to potential fuel issues such as contamination or imbalances. This would have given him enough time to take appropriate action and ensure a safe landing. Therefore, the Piper PA-31 N400JM accident could have been prevented if proactive measures to manage the fuel starvation risk had been considered. This would have ensured the pilot’s safety and prevented the airplane’s destruction. Relevant bodies such as the be vigilant and keen in ensuring companies and the pilots follow the right procedures in maintaining and operating the aircraft to ensure preventable accidents do not occur.

In conclusion, flight accidents are preventable through proper safety procedures and adherence to regulations. The pilot of the Beechcraft BE-58, N959CM, could not maintain control of the airplane due to an urgent medical condition or interfering drugs. Piper PA-31, N400JM accident resulted from fuel starvation to the left engine. Airlines should implement policies to monitor and regulate the use of medications by pilots to ensure they are not impaired while on the flight. Additionally, proper fuel management procedures, including careful pre-flight planning and monitoring of fuel levels during flights, can help prevent starvation accidents. While accidents can still occur despite best efforts, proper safety procedures and adherence to regulations can help prevent these accidents.

References

English, D. (2021). After the accident: Piper Navajo Crashes after fuel starvation. https://www.planeandpilotmag.com/news/pilot-talk/after-the-accident-piper-navajo-crashes-after-fuel-starvation/

National Transpiration Safety Board. (n.d.). Aviation Investigation Final report. file:///C:/Users/user/Downloads/Report_ERA19FA124_99098_4_13_202311_21_37AM.pdf

NTSB. (n.d.). Aviation Investigation Final report. file:///C:/Users/user/Downloads/Report_ERA20FA022_100509_4_13_202311_38_34PM.pdf