Discussion Post
Assume that you are the CFO of a company contemplating a stock repurchase next quarter. You know that there are several methods of reducing the current quarterly earnings, which may cause the stock price to fall prior to the announcement of the proposed stock repurchase. What course of action would you recommend to your CEO? If your CEO came to you first and recommended reducing the current quarter's earnings, what would be your response?
If the financial manager or key managers in the Company do not make the correct, ethical decision given a set of circumstances, what type of detrimental effect this could have on the Company's shareholders, employees, customers, and suppliers. Keep in mind: if the stock price goes down, it will cost the Company less money to buy back its shares, which is actually in the best interest of the Company.
The response must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.