Conflicts Of Interest Between Managers Owners And Creditors Finance Essay

Conflicts Of Interest Between Managers Owners And Creditors Finance Essay Managers, owners and creditors usually have the same fundamental objective that is to see the business prosper in the companies. But when companies are in financial distress, conflicts of interest between managers, owners and creditors arise. The reason to answer this problem is just because managers have different goals from owners and creditors. As we know, managers are usually hired to run a business of companies on behalf of owners. Thus, some problems can arise between managers and owners because interest of ownership is separated from interest of control especially when companies fall into financial distress. Managers may pursue some goals that bring benefits to them but may not be beneficial to the owners. Owners have their own shares and they think that their shares value will be increased. They have right to indirectly control of the operating decisions that influence the companies cash flows and others. Besides, creditors are the party who provide capital to companies at rates based on the riskiness of companies assets and on companies capital structure of debt and equity financing. Conflict of interest between owners and creditors is that owners want to borrow money at the lowest rate whereas creditors decide the rate based on the risks of companies investment projects and companies themselves. The more risks compan ies have, the more required rate on the firms debt will be paid. When a company faces financial distress and may be going to bankruptcy, there are usually two solutions to settle. The first solution is reorganization and continuation as a going concern. Managers usually like this solution as they can exercise control over what goes on during the company. The second solution is liquidation and selling off of the assets of the company. Managers usually do not like this solution and may resist whereas creditors like this solution as they stand to get their money from the liquidation value first. However, managers may not want this to happen and they may seek to bribe the creditors with a promise of getting more money than they should if the latter agree to the first solution. This is not in the interest of the owners. Conflicts of interest between managers, owners and creditors always exist even when the company is profitable. Therefore, the company has a cash surplus. Managers would want this money as a financial bonus and the shareholders would want this money as a stock dividend whereas creditors get paid a fixed amount and they get paid before the owners get paid. II: In a personal financial situation, give an example of opportunity cost. In a personal financial situation, opportunity cost of any investment is the return one could earn on the next best alternative. A simple way, we can understand that opportunity is the benefit you could have received by taking an alternative action. All investments of a company involve opportunity cost. A dollar today is worth more than a dollar in one year because the dollar today can be invested and will increase more than a dollar in one year. The dollar you can get after one year carries an opportunities cost equal to the return on the forgone investment. Thus, opportunity cost is the forgoing cost and when there are a number of business alternatives. The decision makers always select the alternative which has the highest opportunity cost because if the decision maker selects any other alternative he or she has lost the opportunity. Companies usually use opportunity cost to evaluate a capital Investment project. The company can compare between the projected return and the return it would earn on the highest yielding alternative investment involving similar risk. For example, a company has a free amount of money in the bank that earning interest 10% after 1 year. If this company uses this amount of money to invest a project, it will get 15% profit after 1 year. In this example, opportunity costs of this company are 5% (15%-10%). Decision makers of a company always have to consider choosing the way which can give them the maximum benefit that can cover all costs. They use opportunity cost to analyze a project and the simplest way to estimate the opportunity cost is to compare the present choice with the next best alternative that could be made. However, it is not easy to make comparison because many alternatives do not have a market price or very difficult to calculate into money. Question III: In America, Vietnam or any other country, what is appropriate question to ask when evaluating an investment opportunity? Explain why. When evaluating an investment opportunity in America, Vienam or any other country, the appropriate question that company usually concern is what is the discount rate? The discount rate is rate of return that recognizes the time value of money. It is calculated based on cash flow expected in future from the investment. Management of a company always compares the discount rate of many projects to choose which projects with maximum return or wealth for the companys stockholders. The discount rate is also related to a risk factor that recognizes the uncertainty associated with achieving future profit forecasts. The risky projects can bring high discount rate to investors. However, it is not easy to determine the appropriate discount rate because it is calculated by using discounted cash flow techniques. Besides, the appropriate discount rate is influenced by some main factors. The first factor is related to macroeconomic conditions such as inflation, interest rates and country risksà ¢Ã¢â€š ¬Ã‚ ¦Vietnam has higher country risks than America because Vietnamese policies can be changed very fast. The second factor is matter of the industry such as avera ge of profit ratio in the industry The third factor is the company policy which related to capital structure. Otherwise, there are some factors related to projects themselves. Evaluating the factors helps investors define discount rate and therefore they have an overview of the investment opportunity. Besides, management have to foresee the estimated future benefits are large enough to justify the current expenditure as well as the proposed investment based on capital budgeting. It is the most cost-effective way to achieve their goals. The discount rate to be applied can be based on the facts and circumstances of a particular case as well as the analysis of the likelihood of achieving forecasted lost profits. Companies have to assess the relevant factors in determining an appropriate discount rate that help them build a stronger case in support of their damage position. Question IV: Discuss the true economic cost to Daimler-Benz (Mercedes) when it purchased Chrysler in 1998. How did that workout? In May, 1998, Daimler-Benz and Chrysler Corporation, two of the worlds leading car manufacturers, agreed to combine their businesses. Daimler-Benz purchased the Chrysler Corporation at $37.3 billion. The former Chrysler Corporation was given autonomy to manufacture mass-market cars and trucks while the Germans firm continued to build luxury cars. Thus, purposes of this business for Daimler-Benz is to access to the North American market for automobiles without diluting the image of its Mercedes-Benz brand. Otherwise, with acquiring Chrysler they can get production capacity outside Germany and opportunity to learn from Chryslers envied process of making decisions quickly and bringing new vehicles to market promptly. However, the true cost to purchase the Chrysler is not $37.3 billion because the Chrysler has $15.5 billion in interest-bearing debt that makes the total price to purchase is $52.8 billion ($37.2 million + $15.5 million). Thus, Chryslers assets need to make future cash flow worth at least $52.8 billion. Therefore, the true economic cost to Daimler-Benz when it purchased Chrysler is over $52.8 billion. After purchasing Chrysler, Daimler-Benz firm had to bear many extra expenses related to changes in many factors such as leaderships, business strategy, culture clash and management styles. The Daimler is different from the Chrysler different in businesses. The Daimlers core competency is high-valued, technically advanced cars and focuses on development of luxury cars whereas Chrysler focused on mass market and considered as a very cost effective company. Moreover, European culture is far different from American style and there may appear conflict of management style in a short time. Thus, it is difficult to the business and cash flow for DaimlerChrysler in the future. Therefore, DaimlerChrysler faced failures in operating. Despite significant short and medium term expected synergies, DaimlerChrysler has been negative profits after the deal. In 2001, DaimlerChrysler got loss of $5.8 bi llion which was the biggest loss in German business history. In 2007, The Chrysler was bought of 80.1% (about $7.4 billion) by Cerberus Capital Management LP. This price is much cheaper than the price ($37.3 billon) when Daimler purchased Chrysler in 1998. After 9 years, this deal marked the divorce of Daimler and Chrysler. Question V: A sporting good manufacturer has decided to expand into a related business. Management estimates that to build and staff a facility of the desired size and to attain capacity operations would cost $275 million in present value terms. Alternatively, the company could acquire an existing firm or division with the desired capacity. One such opportunity is the division of another company. The book value of the divisions asset is $140 million and its earnings before interest and tax are presently $30 million. Publicly traded comparable companies are selling a narrow range around 12 times current earnings. The companies have debt-to-asset ratios averaging 40 percent with an average interest rate of 10 percent. Using a tax rate of 34 percent, estimate the minimum price the owner of the division should consider for its sale. Multiple = Market Value / EBIT (1-tax) Therefore, Market value = Multiple x EBIT (1-tax) Market value = 30 (1-0.34) x 12 = $237.6 million Market value = D + E D = 40% x $140 million = $ 56 million. E = Market value D = $237.6 million $ 56 million = $181.6 million. With calculation above, the minimum price the owner of the division should consider for its sale is the value of its equity (E). The minimum price is $181.6 million. b. What is the maximum price the acquirer should be willing to pay? The maximum price the acquirer should be willing to pay is the market value. In this case, it is $237.6 million c. Does it appear that that an acquisition is feasible? Why or why not? Because the companies have debt-to-asst ratios averaging 40 percent with an average interest rate of 10 percent, the price will be: $237.6 million + ($237.6 million x 40%) x 10% = $247.104 million The price above is less than $275 million. If the managements build and staff a facility, they have to pay $275 million. Thus, this acquisition is feasible. Otherwise, the company can utilize staff and facility. d. Would a 25 percent increase in stock prices to an industry average price-to-earnings ratio of 15 change your answer to (C)? Why or why not? In this situation, Market Value = $237.6 million x 1.25 = $297 million. The price in this situation is more than $275 million. If the managements build and staff a facility, they have to pay $275 million. Thus, with 25% increase in stock prices to an industry average price-to-earnings ratio of 15%, my answer to (c) will be changed. e. Referring to the $275 million price tag on the replacement value of the division, what would you predict would happen to acquisition activity when market values of companies and divisions rise above their replacement values? When market values of companies and divisions rise above their replacement value and related to the $275 million price tag on the replacement value of the division, I predict that the company will acquire existing firm or division with the desired capacity instead of building and staffing new facility. Question VI: What does it mean when a companys free cash flow is negative in one or more years? Free cash flow always measures how much money a company generates after deducting maintenance capital expenditure, but before capital expenditure on expansion. Free cash flow is important for any company because it a company can pursue opportunities that increase shareholder value with free cash flow. It is difficult for a company to launch new products, make any acquisition, pay dividends and reduce debt without enough cash. In theory, Free Cash Flow = Net Income + Amortization/Depreciation- Changes in Working Capital Capital Expenditures. Thus, if the free cash flow is negative in one or more years, company may have large investments. If these investments get a high return, profits that a company attains are more than costs to be paid. Otherwise, a profitable business or in some particular industries may have negative cash flow especially in the beginning of investments. In these cases, negative free cash flow of a company can be accepted in a short time but not in a long time. b. Do negative values of free cash flow in way alter or invalidate the notion that a companys fair market value equals the present value of its free cash flows discounted at the companys weighted average cost of capital? Free cash flow is the amount of cash a company has after expenses, debt service, capital expenditures, and dividends. The higher the free cash flow of a company, the stronger the companys Balance Sheet. Free cash flow can affect the value of a firm. Negative free cash flow can not define the value and it has no sense. However, negative values of free cash flow invalidate the notion that a companys fair market value equals the present value of its free cash flows discounted at the companys weighted average cost of capital. Some divisions of a company may accept loss in order to increase free cash flow of a company in the future. c. Suppose a companys free cash flows were expected to be negative in all future periods. Can you conceive of any reasons for buying the companys stock? Free cash flow is the most important number to be needed to know about a company before buying its stock. Big companies usually throw off large sums of free cash flow whereas young or growing companies may have a negative free cash flow. We can buy the companys stock if the companys free cash flow in the short time. However, if a companys cash flow were expected to be negative in all future periods, we should not buy their stock because the companys finance situation is not good. The company may get troubles in sales, heavy debt, ineffective investments or other causes in operation that result to a cash flow with higher expenditures than income. With negative cash flow in all periods, the company may have to bankruptcy. Therefore, there is no reason for buying its stock. However, if we know that the company has some big projects and will get high return in the long time, we can consider buying the companys stock because large investments can make the company having negative cash.

Discrimination of black people and white people Essay

This story, Black Boy is a great book that describes how the author, Richard Wright, suffered in the South of the United States during the time when there was still a lot of discrimination throughout the country. Since the author explained many of his horrible experiences in the past, this book cannot be written in a thin book. This thick book is full of his great experiences that wanted to be read by many people in the world in order to let everybody know the disasters of racism. This racism affected Richard Write a lot and he had to adapt to the environment that he was in, although he didn’t know how he should act in front of white people in the beginning of the story. There are not many examples in the beginning of the story since Richard was a little boy, and he still didn’t know about racism. He did know that something was different between black and whites, but he wasn’t able to understand it since he was too young. He even talks to himself in Pg. 49 that â€Å"I had heard that colored people were killed and beaten, but so far it all had seemed remote. There was, of course, a vague uneasiness about it all, but I would be able to handle that when I came to it. It would be simple. If anybody tried to kill me, then I would kill them first. † After this, he realized the harshness of racism around his society when Uncle Hoskins got shot by a white man when he was at the saloon. And the reason is just because a black man was earning a lot of money and the white man became jealous. Also after this scene, there is an another example in Pg. 172 where he met his classmate, Ned Greenley who had lost his brother since the whites shot him for a specific reason. Ned said, â€Å"Th-they said he was fooling with a white prostitute there in the hotel. † Richard was shocked since he could be in those kinds of situations at any time. Richards starts to think of really going to North soon as possible now. In Chapter nine, there is a scene that is really harsh where Richard sees it, but could do nothing. This scene is at the clothing store for black people where Richard worked. The black employees were treated like slaves in the store; the white owners would push, kick, or slap the blacks. Although Richard saw this scene many times, he never got used to it. Another big thing is the time when Richard sees a black woman getting raped by two white men. This is a part from the book that describes how evil this time of period was. On Pg. 179, it says, â€Å"White people passed and looked on without expression. A white policeman watched from the corner, twirling his night stick; but he made no move. I watched out of the corner of my eyes, but I never slackened the strokes of my chamois upon the brass. After a moment or two I heard shrill screams coming from the rear room of the store; later the woman stumbled out, bleeding, crying, holding her stomach, her clothing torn. When she reached the sidewalk, the policeman met her, grabbed her, accused her of being drunk, called a patrol wagon and carted her away. † When I read this scene, it really hurt my heart. I couldn’t believe that the police didn’t do anything at all and although the policeman knew that the black woman was raped, he accused her of being drunken. Richard could have thought of saving the woman, but if he did something to the whites, he could be killed. Therefore, Richard wasn’t able to do anything. All he could do was to feel sorry for the lady. This doesn’t mean that Richard didn’t worry about the woman, it was the way how he had to act in the South. After Richard realizes the social cycle between the whites and the blacks at his work place, he sacrifices his morals to save more money. He begins to bootleg liquor to sell to white prostitutes in the hotel that he worked at. After that, he involves in a ring for scamming tickets. Then, he quickly amasses enough money to move out to the North. Although Richard was working earnest, he quits it because it was very hard to collect money if he had worked earnestly. Since Richard Write had an experience that he does not want to experience anymore, he was able to write this book, which would tell all the readers that discrimination or racism is not a good thing to do. He explained how he had to act as a black man; if he didn’t act like a black man, he might have not gotten the chance of writing this book. Richard Write had explained how blacks should act as a black, and although many horrible things were occurring around him, he wasn’t able to change it since he was just a black man. I feel that Richard really wanted to resist against the white men but if he did, he knew that he was going to be dead. Although in the beginning of the story, he said that, â€Å"If anybody tried to kill me, then I would kill them first†, as a result he wasn’t able to disobey the whites because he was scared of death. Since he was able to adapt to the society that he was in, he was able to earn money and was able to go to the North to have a better life.

Politics and the English Language Answers Essay

In Orwell’s essay Politics and the English Language, Orwell expresses his raw opinion on the deterioration of the English language and how politics is a cause for the â€Å"vagueness and incompetence† that writing has succumbed too. Though the title of the essay introduces politics first and the English language last, Orwell’s thesis seems to consist of neither; it consists of the silliness of modern human writing. He states in the second paragraph, â€Å"It becomes ugly and inaccurate because our thoughts are foolish, but the slovenliness of our language makes it easier for us to have foolish thoughts.† His thesis is a broad statement that engulfs the horrible habits of politicians who use pre-made phrases that ultimately lead to a passage that makes no sense at all. Orwell discusses his view on the English Language after he scrutinizes several passages that he uses as examples throughout the essay. With these examples, he explains the quality of writing that is used commonly throughout writers using modern English. From start to finish of his essay, Orwell analyzes the mistakes, bad habits, inability to express meaning in writing pieces. On page two, Orwell says, â€Å"The writer either has a meaning and cannot express it, or he inadvertently says something else, or he is almost indifferent as to whether his words mean anything or not. This mixture of vagueness and sheer incompetence is the most marked characteristic of modern English†¦Ã¢â‚¬  Despite Orwell’s expression of the negatives in writing today, he isn’t completely hopeless; for he gives solutions and tips on how to overcome poor writing habits. Throughout his explanation and argument, Orwell stresses the incompetence, vagueness, and carelessness in writing that is commonly used in literary expositions. Orwell goes on to list general problems with writing techniques and the appearance of meaning clarity. First, he talks about the use of dying metaphors. In this paragraph, Orwell explains that people use these dying metaphors â€Å"because they save people from inventing phrases for themselves.† He analyzes the use of these metapho rs and how some are sucked out of their original meanings without the writer noticing themselves; completely altering the meaning of the metaphor or text. Next, Orwell describes the use of â€Å"verbal false limbs,† or the use of more syllables in a sentence to show symmetry. He notes that people use fancy, pre-made phrases  to replace simple conjunctions and prepositions to cushion their sentences. These pre-made phrases are used almost instantly and can ruin the meaning and clarity a text almost indefinitely. Third, Orwell goes on about the use of pretentious diction used mainly by political, scientific, and sociological writers. Pretentious diction is explained to be the use of trendy, foreign phrases and sophisticated words to show culture and elegancy. But Orwell argues that these fancy phrases are â€Å"an increase in slovenliness and vagueness† in writing. Lastly, Orwell talks about the abuse of meaningless words. He explains that writers may use a word has one meaning, but they use it in a text dishonestly with their own personal definition. These poor habits of writing are seen continuously and exemplify the demise of the English Language. Orwell’s issues are valid because the vagueness and meaningless texts are examples of the ha bits and mind of the writer. its because of the poor writing habits that Orwell says, â€Å"it consists in gumming together long strips of words which have already been set in order by someone else, making the results presentable by sheer humbug.† Overall, Orwell explains the negative aspects of writing and writing habits in the modern English Language. However, Orwell remains hopeful about the improvement and changes of writing. Throughout his essay, Orwell continuously stresses the deterioration of the English Language and the vagueness and meaninglessness modern literacy. He presents six questions that every writer should ask themselves while writing: â€Å"What am I trying to say? What words will express it? What image or idiom will make it clearer? Is this image fresh enough to have an effect?†¦Could I put it more shortly? Have I said anything that is avoidably ugly?† Not only does he present these questions writing, he gives six quick tips to break bad habits in writing. He explains that writers should never use any type of figurative speech that is seen regularly in print, should use short words instead of long words, for writers to throw out useless words, to use the active if you can replace the passive an d to use everyday English instead of foreign phrases or scientific words. As Orwell’s last tip, he says â€Å"break any of these rules sooner than say anything outright barbarous.† Orwell feels that breaking poor writing habits and following these tricks will allow anyone to achieve meaningful and clear writing. â€Å"The great enemy of clear language is insincerity.† (59) Orwell displays several different passages in his text  that are unclear and vague to even the writer. By being unclear, one can falsify the meaning of their writing, making it insincere. This quote from Orwell’s essay is a prime example of why clarity is so important in writing, especially for politicians who often use pre-made phrases, assuring vagueness and loss of meaning. Orwell writes in his essay, â€Å"†¦ready-made phrases†¦will perform the important service of partially concealing your meaning even from yourself.† This quote explains how important it is to be clear in writing the English Language so that words written are truthful and clear to the read and to the writer themselves. â€Å"But if thought corrupts language, language can also corrupt thought.† (59) Orwell’s quote about thoughts and language corrupting each other brings us back to the thesis of his essay: â€Å"it becomes ugly and inaccurate because our thoughts are foolish, but the slovenliness of our language makes it easier for us to have foolish thoughts.† Through these two quotes, Orwell expresses that the deterioration of the English language and of the writing skills makes it easier for us have corrupt our minds with ugly thoughts. These ugly thoughts allow us to have corrupt language; making it both language and our human thoughts to blame. The longer we use poor language, the easier and faster it will get stuck in our minds and thoughts. The longer these ill habits of writing are imprinted in our minds, the easier it is to have foolish thoughts to cause more corrupt writing.

Homosexuality in Twelfth Night - Free Essay Example

Sample details Pages: 3 Words: 1008 Downloads: 5 Date added: 2019/07/29 Category Literature Essay Level High school Tags: Twelfth Night Essay William Shakespeare Essay Did you like this example? In modern society, homosexuality is a highly controversial topic. While nations are making progress towards equal rights, seventy-three countries still view same-sex relations as illegal. However, todays society is far more progressive than Medieval England where homosexuality was strictly frowned upon by law, and perpetrators received a wide variety of severe punishments, ranging from exile to the death sentence. Don’t waste time! Our writers will create an original "Homosexuality in Twelfth Night" essay for you Create order Even though society was against the idea of homosexuality, Shakespeare explores the concept that homosexuality is not morally incorrect and it is an innate characteristic that one does not choose; instead, it is a characteristic that you are born with and discover about yourself as time goes on. Critics of Shakespeares Twelfth Night, such as Jami Ake in her article Glimpsing a Lesbian Poetics in Twelfth Night, often focus on the prevalence of homosexual relations between characters in this post-Renaissance time period. Her argument that homoerotic relations are prevalent in Twelfth Night is corroborated by the relationships of Duke Orsino and Cesario as well as Viola and Olivia. Shakespeares Twelfth Night uses dramatic irony, imagery, and characterization to suggest that homosexuality is not morally incorrect. In this play, Duke Orsino falls in love with Olivia but she swears off men while she is mourning the loss of her brother. Viola, who disguises herself as a man, Cesario, starts to work at Orsinos house. While serving the Duke, Viola falls in love with him but cant pursue the love because Orsino believes that she is a man. Orsino and Viola become closer and Orsino confides in Viola to take love messages to Olivia. However, Olivia, who has sworn off men, falls for Viola, who she thinks is Cesario. In the end, Olivia ends up marrying Sebastian, Violas twin brother and Orsino marries Viola, after finding out that she was disguised as Cesario the whole time. Duke Orsino and Cesarios relationship clearly depicts homoeroticity in the play. By rejecting Olivia, Viola shows her desire for the Duke, stating State is only desperate for her masters love. This quotation depicts that Viola is interested in Orsino. In the other side, Orsino also develops feelings for Viola, who is disguised as Cesario. The Duke gives Cesario the important job of wooing Olivia on his behalf. He trusts Cesario with persuading Olivia to love the Duke which shows how close they had gotten. In this letter, Duke Orsino states: Dear lad, believe it; For they shall yet belie thy happy years That say thou art a man. Dianas lip Is not more smooth and rubious, thy small pipe Is as the maidens organ, shrill and sound, And all is semblative a womans part. (1.5.32-37) In this letter, Orsino shows how he truly views Cesario and how he is attracted to him. While it is true that straight people can find characteristics of people with the same gender attractive, they usually dont gush about it. Orsino illustrates how he finds Cesarios lips more rubious and smooth than Dianas and how his features are semblative [of] a womans part. The descriptions he uses to describe Cesario shows the romantic and sexual tension he feels for Cesario. Orsino is attracted to aspects of Cesario. While it is evident that Orsino has feelings for Cesario throughout the play, his love only becomes open when he discovers Cesario is of the opposite gender. His attraction for Cesario becomes clear in Act V when he finds out that Cesario is, in fact, Viola. After Violas identity is displayed, it is still evident that Orsino has an erotic interest in Cesario because he continues to refer to her as Cesario. Cesario, come; For so you shall be, while you are a man; But when in other habits you are seen, Orsinos mistress and his fancys queen (5.1.30). Even after Cesario comes out as Viola, Orsino still refers to her as Cesario. This proves that he is more comfortable with Cesario than Viola and makes it unclear who he is truly attracted to. Before Violas identity was revealed, Orsino didnt openly convey his feelings because he was scared of society. When he found out that Cesario was a female, it gave him permission to be attracted to Cesario without societys criticism. This proves that Orsino loves the boy in Cesario more than the woman in Viola. In addition to Duke Orsino and Cesario, Olivia and Viola also depict homosexuality and homoeroticism. Even though Olivia had plans to reject off men for several years while she was mourning the death of her brother, she is still attracted to Cesario. Thy tongue, thy face, thy limbs, actions and spirit, Do give thee five-fold blazon: not too fast: soft, soft! Unless the master were the man. How now! Even so quickly may one catch the plague (1.5.48)? Olivia is attracted to Cesarios feminine features, especially thy tongue, thy face, thy limbs. In Act II, Malvolio delivers a ring to Cesario on behalf of Olivia, showing that Olivia had fallen in love with Cesario. In the end, Olivia marries Sebastian, thinking that he is Cesario, when he is in fact Violas twin brother. Both couples demonstrate homosexuality and homoeroticism in Twelfth Night. Orsino is attracted to Cesario but refrains from expressing his feelings openly until he finds out that Cesario is actually a female, Viola. AfterViolas true identity is revealed, Orsino is more comfortable with expressing his true feelings but still refers to her as Cesario, showing that he fell in love with Cesario not Viola. Furthermore, Olivia shows this pull towards someone of the same sex. From the way Olivia describes Cesarios features, it is evident that Olivia is attracted to the physical and emotional qualities of Viola rather than Orsinos masculine qualities. While medical society was against the idea of homosexuality, Shakespeare effectively portraits that having relations with someone of the same sex is not a crime. His risk in writing this play in contrast to societys beliefs shows that he was a more open thinker and ahead of his time. Its possible that other plays of Shakespeares show this progr essive idea as well as others.