Why ethical companies benefit from a lower cost of capital

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CAPITAL BUDGETING (PRINCIPLES & TECHNIQUES)

To avoid damaging its market value, each company must use the correct discount rate to evaluate its projects. Review and discuss the following:

Question 1: Compare and contrast the internal rate of return approach to the net present value approach. Which is better? Support your answer with well-reasoned arguments and examples.

Question 2: Is the ultimate goal of most companies--maximizing the wealth of the owners for whom the firm is being operated--ethical? Why or why not?

Question 3: Why might ethical companies benefit from a lower cost of capital than less ethical companies?

Reference no: EM132491908

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