Flambeau Corporation has paid 40 consecutive quarterly cash dividends (10 years' worth). Increasing competition over the last

Question:

Flambeau has paid 40 consecutive quarterly cash dividends (10 years' worth). Increasing competition over the last six months has greatly squeezed profit margins. With only enough cash to meet day-today operating needs, the president, Vince Ramsey, has decided that a stock instead of a cash should be declared. He tells Flambeau's financial vice-president, Janice Rahn, to issue a press release stating that the company is extending its consecutive record with the issue of a 5% stock "Write the press release to convince the shareholders that the stock is just as good as a cash Ramsey orders. "Just watch our share price rise when we announce the stock It must be a good thing if that happens."
Instructions
(a) Who are the in this situation?
(b) Is there anything unethical about Ramsey's intentions or actions?
(c) As a shareholder, would you rather receive a cash or a stock Why?
Stakeholders
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