Question: Based on the ethics case on page 481, answer the following questions concerning Ace Chemical Company in writing: a. Is this transaction fair to the

Based on the ethics case on page 481, answer the following questions concerning Ace Chemical Company in writing:

a. Is this transaction fair to the creditors?

b. Why wouldn't the officers merely declare a $\$ 4$ million cash dividend? Is the proposed treasury stock transaction fair to the other stockholders?

c. If you were one of the officers, would you feel comfortable in going ahead with this proposed treasury stock transaction?

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