In 2015 the president of high tech corporation expects that


In 2015, the president of High Tech Corporation expects that the company will generate a severe loss this year due to the failing economy. He has told the members of the board of directors and other key shareholders that the corporation will buy their shares of common stock before the stock takes a dramatic drop. He says that he believes the earnings will improve in 2016 and that he will offer these shares back to these key stockholders before the stock price goes up again. He says he views this as compensation for their loyal service to the corporation. What is your opinion of this offer?

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Financial Accounting: In 2015 the president of high tech corporation expects that
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