Refer to "An Ethical Perspective" on page 561. Write out the answers to the following questions:

a. What motivates the brothers to pursue this new strategy?

b. Are the brothers the only ones assuming the risks?

c. How will workers, the city, the holders of the original bond issue, and the other present stockholders be affected if the junk bonds are issued and are then defaulted?

d. How might these parties (stakeholders) be affected if a new buyer outbids the management?

e. What ethical considerations are involved?