Ethical dilemma:

Ed Davidson is evaluating whether Freeman Plumbing Supplies should begin a dividend

reinvestment plan (DRIP). According to the plan, stockholders' dividends would be

automatically reinvested in the company's stock. Such a plan probably would save money for

stockholders who normally reinvest their dividends in Freeman's stock because little or no

commissions/fees are associated with DRIPs. Although Ed likes the fact that DRIPs might

benefit stockholders, he is concerned that the CEO's primary motive for introducing this new

plan is to benefit Freeman's executives.

What would you do if you were Ed and why?