Richard Petri is chief financial officer at ComputerElectronics, Inc. In this capacity, he attends all monthly board ofdirectors meetings. A special meeting of the board of directors wascalled to discuss substantially increasing the amount of cashdividends paid to stockholders this year. The board votedunanimously to increase the dividend. Later that night, Richardcalled his uncle and hinted around that Computer Electronics, Inc.,was going to make its stockholders very happy. His uncle didn't ownany stock in Computer Electronics but went out and purchased 500shares the next day.
1. Did Richard do anything unethical?
2. What should Richard's boss do if he finds out what Richardsaid to his uncle?
3. What are the possible reasons a corporation might want to paya very low or high dividend in any given year?
Richard Petri is chief financial officer at ComputerElectronics, Inc. In this capacity, he attends all monthly board ofdirectors meetings. A special meeting of the board of directors wascalled to discuss substantially increasing the amount of cashdividends paid to stockholders this year. The board votedunanimously to increase the dividend. Later that night, Richardcalled his uncle and hinted around that Computer Electronics, Inc.,was going to make its stockholders very happy. His uncle didn't ownany stock in Computer Electronics but went out and purchased 500shares the next day.
1. Did Richard do anything unethical?
2. What should Richard's boss do if he finds out what Richardsaid to his uncle?
3. What are the possible reasons a corporation might want to paya very low or high dividend in any given year?
