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….
For this module you will complete a written assignment based on research you will perform on Global Ethics and Business Practices. This is the scenario you will base your assignment on:
You work for a pulp and paper manufacturing company.
Using the Corruption Perceptions Index on Transparency International’s website: Transparency International 2012 Corruptions Perception Index (Links to an external site.), discuss how you would advise your senior management reviewing the possible setup of operations in either Latin America or Africa. Remember, that in considering these two possible locations there may be some individual countries that are better suited than others, relative to the corruption index. You may want to consider selecting the best and worst in each region.
Which countries would suggest further research and which countries would pose ethical challenges?
How important do you think the Corruption Perceptions Index is to your business objectives?
Should it be a factor in determining where you set up operations?