Flambeau Corporation has paid 60 consecutive quarterly cash dividends (15 years worth). The last 6 months have been a real cash drain on the company, however, as profit margins have been greatly narrowed by increasing competition. With a cash balance that is only enough to meet day-to-day operating needs, the president, Jesse Flynn, has decided that a stock dividend instead of a cash dividend should be declared. Jesse Flynn tells Flambeau's financial vice-president, Lindsay Thomson, to issue a press release stating that the company is extending its consecutive dividend record with the declaration of a 5% stock dividend. "Write the press release convincing the shareholders that the stock dividend is just as good as a cash dividend," he orders. "Just watch our share price rise when we announce the stock dividend; it must be a good thing if that happens." Instructions: Answer & support your answers to the following questions in the space provided below. a. Who are the stakeholders in this situation and what do they have at stake? b. Will the share price rise if a stock dividend is declared as the president expects it will? c. Is there anything unethical about President Flynn's intentions or actions? d. What effect will the stock dividend have on the company's shareholders' equity accounts? e. As a shareholder, would you prefer a cash or stock dividend? Why