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Flambeau Corporation has paid 40 consecutive quarterly cash dividends (10 years' worth). Increasing competition over the past six months has greatly squeezed profit margins. With

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Flambeau Corporation has paid 40 consecutive quarterly cash dividends (10 years' worth). Increasing competition over the past six months has greatly squeezed profit margins. With only enough cash to meet day- to-day operating needs, the president, Vince Ramsey, has decided that a stock dividend instead of a cash dividend should be declared. He tells Flambeau's financial vice-president, Janice Rahn, to issue a press release stating that the company is extending its consecutive dividend record with the issue of a 5% stock dividend. "Write the press release to convince the shareholders that the stock dividend is just as good as a cash dividend." Ramsey orders. "Just watch our share price rise when we announce the stock dividend. It must be a good thing if that happens." Is there anything unethical about Ramsey's intentions or actions? Explain

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