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I need help to answer the attached question for Mod 5. I have included in the attachment the question, and then below it, a sample
I need help to answer the attached question for Mod 5. I have included in the attachment the question, and then below it, a sample of a good answer from a previous question.
Mod 5 Assignment 2: DiscussionValuation In this discussion, we consider the discounted cash flow method for valuing a company in order to understand the important drivers of valuation. Address the following: o Explain the discounted cash flow approach for valuing a business. o Discuss at least four important drivers to the final valuation in the model. o Explain how each of these drivers impacts the final value in the model. Create a response in 2-3 paragraphs to the discussion question. Cite sources and include references in your response. Submit your response to the Discussion Area by Monday, July 13, 2015. SEE BELOW FOR AN EXAMPLE OF AN ANSWER FROM A PREVIOUS QUESTION: Q: The traditional business decision and evaluation methods have a narrow focus on maximizing earnings and valuation. The recent focus on sustainability and social responsibility has caused many organizations to look for ways to match sustainability with profits i.e. increase profits while decreasing waste. Using the AUO library and the Internet, review the corporate sustainability efforts of several Fortune 500 companies and identify the metrics these companies are using to measure or evaluate their sustainability efforts. Identify what you believe are the five most important measures companies should be using and provide a rationale for the selection of these five measures. Remember that you would want measures that capture the impact on profits, people, and the planet. Write your responses in three to four paragraphs A: \"A lot of organizations are actively integrating sustainability principles into their businesses by pursuing goals such as saving energy, developing green products, and retaining and motivating employees, all of which help companies capture value through growth and return on capital\" (Bonini & Grner, 2011). I believe it is critical for a company to communicate sustainability goals throughout the organization, embed sustainability in Corporate Culture, create conditions that support sustainability-related innovations, create smart, integrated public policy, engage value chain members, including industry and NGO partners, and motivate employees (Rowe & Bansal, 2013). The world's most sustainable company in 2015 is Biogen Idec (2015 Global 100 results, 2015). Biogen Idec is the American biotechnology company that makes treatments for Multiple Sclerosis and other autoimmune and neurodegenerative diseases. Corporate Knights looks at a company's energy use, emissions, water use, and waste generated. To evaluate a company's financial sustainability, factors including revenue, EBITDA, and the ratio of CEO compensation to the average employee's compensation are taken into consideration. And to determine the sustainability of a company's employee management practices, Corporate Knights considers reports of fatalities or lost time, turnover, diversity in leadership, and female representation on the board and in management. (Dill, 2015) On its website, Biogen, states that \"As a global company, our commitment to corporate citizenship and environmental sustainability reflects the best interests of our patients, our stakeholders and the communities we serve\" (Responsibility). It is honestly wonderful to see how organizations are striving to be sustainable and ethical in its conduct. This is a road to a much healthier and brighter future. References: 2015 Global 100 results. (2015, January 21). Retrieved from Corporate Knights: http://www.corporateknights.com/reports/global-100/2015global-100-results/ Bonini, S., & Grner, S. (2011, October). The business of sustainability:. Retrieved from McKinsey & Company: http://www.mckinsey.com/insights/energy_resources_materials/the_business_of_sustainability_mckinsey_global_survey_results Dill, K. (2015, January). The World's Most Sustainable Companies 2015. Retrieved from Forbes: http://www.forbes.com/sites/kathryndill/2015/01/21/the-worlds-most-sustainable-companies-2015/ Responsibility. (n.d.). Retrieved from Biogen: https://www.biogen.com/en_us/responsibility.html Rowe, A., & Bansal, T. (2013, January). Ten Steps to Sustainable Business in 2013. Retrieved from IVEY Business Journal: http://iveybusinessjournal.com/publication/ten-ways-to-help-companies-become-sustainable-in-2013/Step by Step Solution
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