Financial Management Essay Example for Free

Financial Management Essay The required rate of return is rs = 10. 1%, and the constant growth rate is g = 4. 0%. What is the current stock price? a. $23. 11b. $23. 70c. $24. 31d. $24. 93e. $25. 57e 8- Ratio analysis involves analyzing financial statements in order to appraise a firms financial position and strength. | | | a. | True| b. | FalseA| 9- Profitability ratios show the combined effects of liquidity, asset management, and debt management on operating results. | | | a. | True| b. | False| A 10 One problem with ratio analysis is that relationships can be manipulated. For example, if our current ratio is greater than 1. , then borrowing on a short-term basis and using the funds to build up our cash account would cause the current ratio to increase. | | | a. | True| b. | False| B| | 11 Arshadi Corp. s sales last year were $52,000, and its total assets were $22,000. What was its total assets turnover ratio? | | | a. | 2. 03| b. | 2. 13| c. | 2. 25| d. | 2. 36| e. | 2. 48| D 12 Rappaport Corp. s sales last year were $320,000, and its net income after taxes was $23,000. What was its profit margin on sales? c| | | a. | 6. 49%| b. | 6. 83%| c. | 7. 19%| d. | 7. 55%| e. | 7. 92%| 3 The first, and most critical, step in constructing a set of forecasted financial statements is the sales forecast. a. Trueb. Falsea| 14- According to the Capital Asset Pricing Model, investors are primarily concerned with portfolio risk, not the risks of individual stocks held in isolation. Thus, the relevant risk of a stock is the stocks contribution to the riskiness of a well-diversified portfolio. a. True b. False a 18 Diversification will normally reduce the riskiness of a portfolio of stocks. a. True b. False 19- If the returns of two firms are negatively correlated, then one of them must have a negative beta. . True b. False a 20 Which of the following statements best describes what you should expect if you randomly select stocks and add them to your portfolio? a. Adding more such stocks will reduce the portfolios unsystematic, or diversifiable, risk. b. Adding more such stocks will increase the portfolios expected rate of return. c. Adding more such stocks will reduce the portfolios beta coefficient and thus its systematic risk. d. Adding more such stocks will have no effect on the portfoli os risk. e. Adding more such stocks will reduce the portfolios market risk but not its unsystematic risk. A

Overview of US Criminal Justice System

Overview of US Criminal Justice System The Ins and Outs of Corrections As far as I can remember as a child, when I thought of the corrections system, I thought it was doing something bad and going to jail. I never gave thought to how things really work. Little did I know that the process of corrections is comprised of different areas that make up a system known as the Criminal Justice System. The United States criminal justice system is made up of a network at the federal, state and local levels. Federal court jurisdiction is limited to certain types of cases listed in the U.S. Constitution (Comparing). For the most part, federal court jurisdictions only hear cases in which the United States is a party, cases involving violations of the Constitution or federal law, crimes on federal land, and bankruptcy cases. Federal courts also hear cases of disputes between two or more states. While federal courts handle fewer cases than most state courts, the cases heard tend to be of great importance and of great interest to the press and the public. State courts are also known as general jurisdiction (Comparing). They hear cases that are not selected for federal courts. 90% of all cases heard in the American court system happens at the state level. State court systems vary from state to state. Each state gets to make and interpret its own laws as long as they do not violate the constitution and they are all a little different. Some examples of cases heard at the state level are: state tax and law violations, real estate cases, custody and inheritance cases. Local courts are similar to state courts. They handle cases such as divorce, family courts, personal injury, minor drug violations and contract disputes. As with any mechanism, the criminal justice system involves the coordinated functioning of its distinct parts. It is made of three parts that process a case from inception, through trial to punishment. Throughout each stage of the process, constitutional protections exist to ensure that the rights of the accused and convicted re respected. Law Enforcement is the first component of the criminal justice system. It involves police officers, sheriffs, park rangers, federal agents, detectives and other agents that usually make first contact with criminals. These individuals are responsible for upholding the law, investigating crime and apprehending the individuals responsible for committing the crime. In this area is where criminals are read their Miranda rights. Cases are investigated, evidence is collected, witnesses are questioned and the cases are moved on to the courts. Courts make up the second component of the criminal justice system. The courts are a key piece of the puzzle known as the justice system. The courts are made up of judges, prosecutors, defense lawyers, bailiffs, jurors and court reporters. The individuals in the courts works to ensure an individuals rights are not violated and a fair trial takes place. Juries and judges play a part in sentencing individuals for crimes committed, but they must each follow guidelines established by state and federal statutes. The third component of criminal justice system is corrections. This component includes probation officers, parole officers and corrections officers. These individuals in the court component work together to ensure that a convicted offender serves his or her sentence as advised by the courts and supervises the convicts as they serve their sentence. Each of these three aspects of the criminal justice system is essential to the effective functioning of the larger system as a whole. Another key component of the criminal justice system that is constantly in the news are the prisons themselves. Prison transformation has been a big news topic in Alabama lately. One thing that has been left out is the system that runs these prisons. Prisons are made up of staff members with specific roles with the same goals. These goals are to provide for the security of the community by incarcerating those who break the law; promoting the smooth and effective functioning of the institution; ensuring that incarceration is secure but humane; and giving inmates the opportunity to develop a positive lifestyle while incarcerated and to gain the personal and employment skills they need for a positive lifestyle after release (Schmalleger 2015). The prisons staff is very extensive. It doesnt consist of warden and officers. The staff are arranged into a hierarchy which consists of: Warden: The chief executive, in charge of the prison, must adhere to programs created by the state and have enormous discretion within their institution. Each institution will also have several associate wardens that preside over specific programs within an institution (Staff). Executive Assistant: The Executive Assistant serves as the Wardens chief sycophant, and is also the only person other than the Warden who has authorization to speak with the media (Staff). Department Heads: A Department Head will oversee the day-to-day operations. Individuals who hold the role of a Department Head will have much more in the way of direct interaction with inmates (Staff). Unit Managers: In many ways, prisons are like communities. In the Bureau of Prisons, institutions hold anywhere from 100 to several thousand people. Administrators make use of a system they call Unit Management to keep a handle on operations. With the Unit Management system, administrators can more effectively keep track of all the people (Staff). These units are broken down into even smaller levels to include: Program staff (psychologists, psychiatrists, medical doctors, nurses, medical aides, teachers, counselors, caseworkers and ministers); Custodial staff (majors, captains, lieutenants, sergeants, and correctional officers); Service and maintenance staff (kitchen workers, physical plant personnel and outside contractors); Volunteers (prison ministry, speakers, and other volunteers) (Schmalleger 2015). The American Criminal Justice system is very complex. It has a hierarchy of Court systems that trickles down to smaller systems that have their own hierarchy of systems also. Just like the justice system is made of components of federal, state and local courts, the prison system itself also has components. Every are of the justice system all work together with the same common goals: to enforce the laws, maintain peace and order in the communities and provide their constituencies safety and security. References Comparing Federal State Courts. (n.d.). Retrieved February 09, 2017, from www.us.courts.gov Schmalleger, F., PhD, Smykla, J. O., PhD. (2015). Corrections in the 21st Century (7th ed.). New York, NY: McGraw Hill. Staff Hierarchy and Administrative Remedy. (n.d.). Retrieved January 15, 2017, from https://www.prisonprofessor.com State Court vs Federal Courts. (n.d.). Retrieved February 09, 2017, from www.judiciallearningcenter.org The Difference Between Federal Courts and State/Local Courts. (n.d.). Retrieved February 15, 2017, from www.civilrights.org United States District Court. (n.d.). Retrieved February 09, 2017, from www.us.courts.gov

Why Early Twentieth Century Women Made their Splash in Arizona Politics :: Essays Papers

Why Early Twentieth Century Women Made their Splash in Arizona Politics Since the beginning of Arizona history, women were confined to the traditional roles of housekeeping and child rearing due to the conditions of life on the frontier. At this time, Arizona was a land of chaos and therefore lacked a civilized community. In effect, women’s most important responsibility remained within her home to create a comforting and refined atmosphere which would ultimately raise the standard of living in Arizona (Fischer 47). These ideas continued to emerge in the twentieth century and left women with few choices and opportunities. However, two women, Josephine Hughes and Isabella Greenway, were able to free themselves from the constraints of society and undertake influential roles in the political realm because of the extraordinary but favorable circumstances in their lives. Both women were wealthy, courageous, persistent, or associated with powerful and influential men. Josephine Hughes amazingly rose above societal norms and played an active role in political movements because of her privileged financial status. Because she was a woman of means, her home had all of the modern conveniences of the time. For instance, her home was the first in the Tucson area to be illuminated with candlesticks while her neighbors used a burning rag in a saucer of grease as a means for lighting. Most importantly, the Hughes’ were the first to obtain a cistern which was considered a luxury because they no longer had to buy their drinking water from peddlers who sold it a very high price (Boehringer 99). These conveniences eliminated the monotonous, time-consuming activities necessary for a woman to sustain a household. Therefore, she had more time and energy to dedicate herself to various causes such as the suffrage and temperance movements. However, Josephine Hughes was able to surpass the restraints imposed by tradition because she possessed a quality that simply could not be bought: courage. She manifested such inner strength especially in situations when the odds were against her. In 1892, she made the treacherous journey from Pennsylvania to the West with her infant daughter. At this time, the Apaches conducted a series of violent raids that left many white settlers in the area dead. Because of the obvious danger, Josephine carried her baby in one arm and a loaded rifle in the other (98).

Megans Law Essay -- essays research papers

MEGAN’S LAW PROTECT THE CHILDREN OR THE PEDOPHILES Megan Kanka was an innocent little girl, someone’s daughter, sister, and best friend. The defendant, Jesse Timmendequas, changed all of that. He changed it brutally, savagely, and permanently. In a few moments of unspeakable horror, the defendant destroyed all of Megan’s dreams, all of that joy, all that hope, all that promise. In those few moments, he destroyed Megan Kanka’s life. She would never live to see her wedding day, never have children, and never embrace her family again. Jesse Timmendequas took Megan’s life on July 24, 1994. Her funeral was held on Wednesday, August 3, 1994. Jesse Timmendequas was a twice convicted sex offender. He moved in across the street from Megan’s home without the family’s knowledge of his history as a pedophile. Joseph Cifelli was another convicted sex offender who had spent nine years at the Adult Diagnostic and Treatment Center. He had been convicted after admitting to repeated sexual abuse of a relative that had begun when the child was nine. A third man, Brian R. Jenin had been convicted twice of crimes involving young boys. Jenin, along with Timmendequas, was under investigation in connection with the unsolved murders of two boys in San Diego. All three were Megan's neighbors. Jesse Timmendequas’ convictions stemmed from a 1981 attack on a 5 year old girl, for which he served 9 months. That same year he was convicted for an attempted rape of a 7 year old girl, for which he was sentenced to ten years. After serving only six years, he was free to lure 7 year old Megan into his home where he brutally raped and strangling her with a belt as she bit and fought for life. He knocked her to the floor, hitting her several times in the head. He wrapped her head in plastic shopping bags to prevent her blood from staining the rugs. He then took a toy box and stuffed her inside. Megan’s body was found in a weeded area of a nearby park near a portable toilet. On May 30, 1997, a jury returned a guilty verdict on all counts of murder including capital murder, kidnapping, and aggravated sexual assault and sentenced Jesse Timmendequas to death. It was this little girl’s brutal death that prompted her parents, Richard and Maureen Kanka, to fight for broad based community notification. Megan’s parents believe that if they had known that a pedophile lived nearby, this heinous crime... ...s due process. Due process is best defined in one word--fairness. When a person is treated unfairly by the government, including the courts, he is said to have been deprived of or denied due process. The most common and successful due process challenge is procedural due process. This challenge has occurred mainly in states that classify offenders according to the level of risk they pose to communities. This argument centers on whether an offender is allowed a hearing to challenge a risk classification. The Massachusetts Supreme Court recently found that provisions of the state’s community notification law violated constitutional due process Doe v. Sex Offender Registry Board, Mass. SJC-07608 (July 24,1998). The United States Supreme Court has yet to weigh in it’s opinion as to whether or not offender’s due process or Ex Post Facto rights are being violated by Megan’s Law. Are we bothered by the fact that in the current social climate, the rights of convicted pedophiles are routinely violated and nobody cares. Rules of evidence are stretched, and terms of punishment are increased. The danger of this precedent is impossible to ignore. As parents, though... are we okay with it.

My Journey From Religion Essay -- Religion, Spirituality

The best way to understand why atheism is so important to me is to start with a little background. I grew up in Texas, most of my life has been in the region other Texans often refer to as the religious part of Texas. I don't want to focus too much on emphasizing how religious the culture is, but I do want to give an indication. For example, few people I know accept the theory of evolution or the Big Bang; non-creationist scientific theories are largely perceived as bullshit and dismissed with the infamous â€Å"just a theory† argument. Perhaps an anecdote can help illuminate further: I volunteer at a small local non-profit which helps low-income people without prescription insurance coverage obtain medicine. The director is an extremely intelligent, ethical and hardworking person who chose to use her talents in a way that benefits others. One of the benefits of volunteering there is having good conversation during the rare times we're slow. In the midst of one conversation the director casually mentioned that there's no such thing as an atheist (with the implication being that no one can be totally free of religion in their â€Å"heart of hearts†). This was simply a casual comment by an otherwise intelligent person that apparently everyone accepted without batting an eye. This is also the sort of culture that I exist in. Which means that I've had to learn how to walk softly around many people if I want to maintain relationships with them. There are exceptions, for example my closest friend who is training to become a Lutheran minister, but as a general rule I need to tread lightly or else the relationship ends very quickly. My closest friends and family accept me for who I am, some casual friends accept me for who I am with their own... ...ur ancestors in the eternal ritual of death. When we come to accept that it's an inevitable aspect of life, when the truth of the brevity of existence is genuinely felt, it provides us with a most outstanding sense of urgency, meaning and desire to make the most of every moment. It's a tragic irony that religious dogma attempts to quiet this need by assuring us that life after death is more important. Once I accepted that god doesn't exist (or its corollary of allowing our beliefs about the world to be exclusively based evidence and reason rather than faith) I was free to use my mind to the best of my ability. I'm free to find all the answers I can about everything imaginable. It was a scary feeling at first - I'm so vastly ignorant of so much - but embracing that ignorance is unexpectedly empowering! This is the only life we've got, so let's make the most of it.

Environmental Factors the Affect the Marketing Procedures of Coca Cola International Essay

Coca Cola is an international business company that needs international advertising as well. Businesses spend billions of advertising dollars every year because they know that viewers are influenced by what they see and hear. They don’t spend that money because they think advertising might work; they know it works. It sells their products. In 2004, The Coca-Cola Company spent 2. 2 billion dollars advertising its products worldwide in print, on the radio, and on television. Was the investment worthwhile? The company made nearly 22 billion dollars in profits for that year. Advertisers realize that one ad may not affect behavior. Instead, they rely on the cumulative impact of years of indoctrination. The truth is, with just a minute’s airing of an advertisement, some thousands of consumers are rather attracted to buy the products shown on TV. With this fact in mind, it could be noted that advertising is rather considered as one of the major procedures of marketing that any type of company could invest upon. However, the question is how sure are the advertisers that their products would sell up through the presentation that they make through advertising? What are the factors that contribute to the said effects of advertising marketing to the consumers? This is what is considered within the discussion of how the environmental factors actually affect the impact of advertising towards the target consumers. The Marketing Strategy’s Effective Placement As noted earlier, Coca Cola is an international beverage company that actually handles the production of drinks that are likely to soothe the drinking needs of the consumers. However, selling beverages may not appear to be as easy as it looks. Most people would consider the beverages presented by Coca Cola to the society are likely for hot times only. How then is the company coping up with its sales during cold season? It is undeniable that Coca Cola, upon observation, tries to make the best out of the time that they are given. It could be noted that even during the cold seasons, the said company is able to attract consumers that are likely fond of the beverages that they offer no matter what weather there may be. December is likely the winter time which usually caters hot beverages and their promotions to the buying public. However, Coca Cola managed to use the said environmental change in terms of weather for their own advantage. Coca Cola’s advertisement of Santa Claus holding Coke Beverages is indeed an attractive approach, whereas the company paved the way to a more appreciated matter of the season than that of the cold weather itself. It was a rather creative approach that has given this advertisement a major difference from that of the other marketing strategies used by the same company. Obviously, their approach to the situation has placed them in a better edge against their competitors in the industry thus giving the company better gains than the others for annual productivity for the entire business organization. Conclusion Weather is just one particular factor in the advertising and marketing word that actually affects the approach of product promotion in the field of consumer-producer relationship. It is undeniable through that weather, single as it is, has a great effect on the presentation of advertisements during specific seasons as suggested by the environment itself. Coca Cola on the other hand has been able to take responsible consideration of these unavoidable changes in the environment for the their own good that actually outlines the possibility that they are then given the rightful share of their own creativity in presenting their marketing approach in the field of advertising. As a result, the said company was able to get the best out of the possible changes of the environment. Their gains and the edge against their competitors that they were able to accomplish through the said approached saved their values for service and profit well. True, environment itself may present challenges to different companies with regards the launching of the different products that they present to the society, however, effective utilization of the said situations for the benefit of the organization could make the strategy of marketing more apprehended and efficient for international advertising approaches.

Cyprus Financial Crisis Essay

I. Introduction With a population of only 1 million and no more than half a percent of Euro zone economy, it is surprising to find out that the financial crisis in a tiny country called â€Å"Cyprus† has enormous global implications (Long 2013). It cannot be also denied that the â€Å"Subprime Mortgage Crisis† of the US in 2008 has its downbeat domino effect to the world including European Union and Cyprus. In this report, not only the most critical reasons but also the aftermath of Cyprus financial crisis and possible alternatives which could have been done to ease such economic downturn will be carefully examined. II. Body 1. Main Reasons The root of the crisis lies when Cyprus experienced a terrible recession in 2009 when the country’s economy was diminished by 1.67% including significant reduction in tourism and shipping which obviously caused high unemployment rate (CIA 2013). Since then, the country’s economy worsen and with the 30% decline of the real estate market has put enormous pressure on a rise in non-performing loans of banking system (The World Bank 2013). Therefore, the banks ended up with Greek Private Sector debt of Euro 22 billion and accumulated $120 billion inclusive of $60 billion from Russia according to Jolly and Castle (2012). Furthermore, it is the direct result of the crisis in Greece known as Greek Debt Crisis where the second biggest retail bank in Cyprus over-invested in Greek Bonds and as a result of this, Cyprus failed on its recapitalisation where the Government is left with limited time and option as mentioned in Aljazeera news podcast (2012). Besides, Hans Humes pointed out during an interview conducted on 21 February 2012 that one of the significant reasons that led to a threat in collapse of the Cyprus Banks is 50% haircut in 2011 during Greek Crisis. Next, Cypriot Banking system is in shortage of at least 10 billion Euros in new capital plus 8 billion to satisfy public debts (Long 2013) and to make matter worse, the government has not got enough money to help out as it is impossible to raise money in bond market due to high level of borrowing rates. The country’s credit rating was rated CCC by Standard & Poor’s in September (Bases 2013) and this left the country with no benefits but high rise in percentage of yields on long term bond. This can be added as a reason to confirm that the country is not in the position to calm down its banking sector. They also made a wrong step in refusing UN’s plan for uniting their island which clearly annoyed their E.U partners and caused weak strategic position (Dixon 2013).The country’s economy could be a lot healthier if it had restructured the banks. 2. Consequences The consequences of the Cyprus financial crisis has had a surprising impact on the eurozone and raised concerns about the euro currency in the market. The two main financial institutions in Cyprus were both effected by the Greek financial crisis due to their operation heavily in the Greek Government Bond & the Greek Debt. The two largest banks in Cyprus, the Bank of Cyprus and Laiki Bank were both heavily impacted by the Greek financial crisis through exposures to their own operations in Greece and to Greek sovereign debt. According to the latest confirmation of GDP data, Cyprus is gliding deeper into recession and no sign of financial stress in economy is abating (Ernst & Young 2013). The Cyprus financial crisis have had helped driving the value of the euro currency to fall down from $1.36 at Feb to $1.28 at the end of March and lead to rising unemployment caused industrial unrest. Many workers struggle against wage cuts. However, the unemployment rate will likely continue to rise and wages fall, contributing to reduced consumption in the next few years (Ernst & Young 2013). To resolve the nation debt a solution was introduced by the government to force depositors and savers to scarify 10% of their life savings. As part of the Government’s austerity program, the VAT rate was raised from 17% to 18% in January 2013. The Inflation rate under impact of higher VAT was also increased from 1.5% in December to 2% in January (Ernst & Young 2013). That decision let Cypriots themselves furious and they have responded by trying to clear out their accounts and that will negatively impact on the deposit security or stability. Apart from any possible instability in deposit base, Eurozone banks may see their ability to rise unsecured funding deteriorate. Cyprus became the first ever Eurozone country to apply capital controls with limits on credit card transactions, daily cash withdrawals, foreign money transfers and cashing cheques. This is a clear indication of the severity of the situation and, effectively, at least temporarily devalues Euros located in Cyprus as they are now less easy to transfer. More than a thousand bank employees marched in the capital Nicosia on Saturday, angry that their jobs could be lost in the forced restructure of the island’s economy — and that the government had proposed to nationalise pensions in order to fund the bailout. That option was later rejected. Some protests to express Cypriots’ indignation happened on the street, while parliament voted overwhelmingly to reject the tax on bank accounts. Furthermore, Banks have been closed for more than a week, to prevent depositors moving their money off the island, which would have caused the banks to collapse and made the entire situation worse. However, ATMs were still opened, and they were quickly ran out of money as everyone tried to withdraw as much as possible (Ghostagenda 2013). Many businesses are refusing to take credit cards. Retailers have faced cash-on-delivery demands from suppliers, the Cyprus Mail reported, and shelves are emptying. Some are running out of coffee, cigarettes, alcohol and soft drinks. European governments rejected taking money from depositors in order to pay for necessary bailout packages. The fact created a panic, led to emergency negotiations. For example, the discussion happened between the Cypriot government and the troika in an attempt to reach a deal which was successfully achieved that managed to save the country from bankruptcy at the 11th hour (Ghostagenda 2013). Nobody doubts that, after such this financial crisis Cyprus will be pushed into a harsh recession. According to forecast in the troika’s source, GDP will shrink by about 10% before any hope of recovery. 3. Strategies In order to overcome the current financial crisis, focusing on the economic itself is not enough. Policymakers should include the full range of factors which interact the country’s financial situation- such as economic security policies, investment, interest rate, inflation, employment, etc. (The Star, 2009). In general, developed countries need to save their incomes more and consume less; developing countries, in contrast, have to boost their domestic demand as well as export. However, Mohsen, Abdulla & Jalal (2011) states that it is much easier said than done in the real circumstance. Iqbal (2010) suggests some strategies to overcome such difficult situation and avoid this particular issue in the future: †¢ The existing financial structure of related countries is required to modify. †¢ Creating and monitoring an effective exchange rate policy. †¢ The accounting standards need to be customised to fix the global economic situation, for instance: the convergence of United State and international accounting standards in terms of changing from fair value measurement back to historical value measurement. †¢ Globally coordinated and huge fiscal stimulus †¢ More transparency in the operation of financial institutions. Application in real situation of Cyprus: The Cyprus’s banking system has done a huge number of works in order to reduce the impact of financial crisis on its economy. Encouraging international investors to invest in Cyprus is one of its most effective policies which were proved to boost its economy. By providing â€Å"attractive† policies and tax, more and more Chinese investors are interested in putting their money into this market in many different sectors, for example: shipping, construction and energy industry. They also offer the opportunity to become a permanent resident to foreigners who purchase  £300,000+ in value of property. According to the Cypriot embassy in Beijing, more than 500 properties had sold to Chinese investors so far (Shengnan, 2013). Cypriot government is also seeking the financial assistance to solve their current debt crisis, primarily happened as a result of over-invested in Greek banks. European Union (EU) is a main target which Cyprus considers as its assistance for such an issue. On 25/3/2013, Greek-Cyprus government and EU singed a commitment which stated that EU would provide â‚ ¬ 10 billion bailout fund associated with some conditions: reducing money laundering, increasing the corporate tax and the one-off tax on bank deposits (Burgin, 2013). This was planned to catch â‚ ¬5.8 billion contribution for the bailout packages from internal resources. The Cypriot government has also declaredspecial fiscal measures with the aim of improvement the investment into their main industries such as tourism and construction. However, there is no empirical evidence on how it worked for their own circumstance (The Economist Intelligence Unit Limited, 2009). In addition, government also boost the guarantee on deposit to â‚ ¬100,000. This action encourages foreign investors to deposit in Cyprus banks as the EU guarantee was only â‚ ¬50,000 (7/10/2008). Furthermore, the It is estimated that Gas revenues will be an important factor in solving Cyprus’s the economic malaise forecast for the next few years. The Government agreed to set up a resource fund to cope with the expenditure from gas exploitation. They hope that Cyprus can start exporting the natural gas in 2019. This should contribute to stronger growth in the medium term (Ernst & Young 2013). III. Conclusion To conclude, this is a difficult stage for Cyprus. There is still some argument on how will affect government debt sustainability when this country borrow under the economic adjustment programme and how the government debt burden can be reduce from the income of natural gas exploration and exploitation. However, the agreement was reached with the troika is a significant step in restoring the country’s economy. Everyone has shown understanding, consensus, readiness and elasticity to adopt a programme of financial reform, fiscal and structural amendment in accordance with the needs of the country. In the future, it is estimate that the Cyprus economy as well as its financial sector will overcome the current crisis and become stronger than before. The economic reform program is seen as an effective way to strengthen and stabilize the macro economy and the domestic financial. It also contributes to the revival of private economic activity, promotes economic growth and creates more jobs for labors. Moreover, in longer term, Cyprus may have good prospects for growth in the shape of its offshore gas reserves, which could help lower the debt burden of future generations (Central bank 2013).