(adsbygoogle = window.adsbygoogle || []).push({}); Jake Segal, the president and CEO of Earth System inc a waste management firm, was recently hospitalized, suffering from exhaustion and a heart ailment. Immediately prior to having his hospitalization, Earth Systems had expeirnced a sharp decline in its share price, and trading activity became almost nonexistent. The primary reason for this was the concern expressed in the media over a new untested waste management system implemented by the company. Mr.Segal had been unwilling to submit the procedure to testing before implementation but he reluctantly agreed to limited tests after the system was operational. No problems have been identified by the tests to date.

The other members of management called a meeting to determine what they should do. Roger Calfrey, the marketing manager suggested that the company repurchase a large number of its shares. In that way, investors might notice that activity had picked up and might decide to buy some more shares. This plan would use up most of the companys available cash, so that there will be no money available for a cash dividend. Earth systems has paid cash dividends every quarter for over 10 years

1. Is Mr.Calfreys suggestion ethical? Explain.
2. Is it ethical to dicontunue the cash dividend? Explain.


Please Quote me If you have an answer

1. That would be dumb. Almost like having a bud bid up your Ebay auction.
2. No, the hell if I'm explaining. What is this, History?