$1)$ "Information asymmetry lies at the heart of the ethical dilemma that$$ managers, stockholders, and bondholders confront when companies initiate management buyouts or swap debt for$$ equity." Comment on this statement. What steps might a board of directors take to ensure that the$$ company's actions are ethical with regard to all$$ parties?

$2)$ 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?