• Flambeau Corporation has paid 40 consecutive quarterly cash dividends (10 years' worth). Increasing competition over the last 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 Vice-President of Finance, 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." a. Who are the stakeholders in this situation? b. Is there anything unethical about Ramsey's intentions or actions? c. As a shareholder, would you rather receive a cash dividend or a stock dividend? Why?