I need the following:

M5D2: Ethics and Cost of Capital

To avoid damaging its market value, each company must use the correct discount rate to evaluate its projects. This discussion describes a real example of a company that failed to recognize certain risks associated with its business operations. Read the section Ethics and the Cost of Capital from your textbook (p. 475). Respond to the following:

Compare and contrast the internal rate of return approach to the net present value approach to capital rationing. Which is better? Support your answer with well-reasoned arguments and examples. Is the ultimate goal of most companiesmaximizing the wealth of the owners for whom the firm is being operatedethical? Why or why not? Why might ethical companies benefit from a lower cost of capital than less ethical companies?

Post your primary response. Read any postings already provided by your instructor or fellow students. See the SBT Discussion Rubric for how you will be evaluated for this activity.Remember to read the feedback to your own major postings and reply to it throughout the module. See the Course Calendar for due dates for posts and responses. Compose your work using a word processor and save it, as a Plain Text or an .rtf, to your computer. When youre ready to make your initial posting, please click on the Create Thread button and copy/paste the text from your document into the message field. Be sure to check your work and correct any spelling or grammatical errors before you post it. Evaluation Criteria Review the SBT Discussion Rubric located in the "Start Here" section of the course for more information on grading criteria.

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