Question
Assume that recently your firm has undertaken a new initiative to increase its efforts to be a good corporate citizen. The firm is especially interested
Assume that recently your firm has undertaken a new initiative to increase its efforts to be a good corporate citizen. The firm is especially interested in attempting to develop a sustainable business model that has no environmental impact on the communities in which it operates (keep in mind the discussions related to society as a stakeholder, and the impact societal concerns have on the firm). The CFO is concerned the increased costs associated with this will decrease future cash flows and decrease the value of the firm. From a broad perspective do you agree or disagree with the CFO? You must use the firm valuation model in your answer explain how the new policy might impact the value of the firm in our model (your points depend upon your ability to defend either answer based on the valuation model and the links you make to the other modules).
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