When using the free-cash flow model, cash flows are discounted at the weighted average cost of capital (WACC) and when using the dividend discount model, dividends are discounted at….
Please submit your case analysis in MS Word format, addressing the following questions.
Please note, this should not be a question by question paper, but rather should be an integrated case analysis that addresses the questions below and makes a clear recommendation. The approach that we discussed in class would also be an acceptable framework. The case can be found at
You are expected to consult additional references to support your analysis, citing your sources in APA style. Recommended length of your paper should be 3-5 pages, not including works cited page.
1. How did pressures for financial performance contribute to Sunbeam’s culture where quarterly sales were manipulated to influence investors?
2. What were Dunlap’s contributions to the financial and public relations embarrassments at Sunbeam that caused investors and the public to question Sunbeam’s integrity?
3. Identify ethical issues that Dunlap’s management team may have created by adopting a short-run focus on financial performance. What lessons could be learned from the outcome?