VXI International is a multinational corporation that provides consulting, technology, professional, and outsourced services related to blockchain. The company has grown rapidly during its first $10$ years of operations. As this segment of the industry begins to mature, the company anticipates the fast growth experienced in previous years will begin to slow. It is anticipated that this fiscal year$$s revenues and profits are roughly the same as last year. Ben Ortega, CEO and Brie Dawson, CFO were discussing a course of action to maintain shareholder value. Dawson suggested the company should consider a share buyback program to begin this year. Ortega remined Dawson, $$The Director of Operations was lobbying for funding for European expansion. Is a share buyback program the best use of our funds?$$ Dawson$$s replied, $$We can always issue more notes next year to fund the expansion. We need a quick fix for our EPS number now to maintain shareholder value.$$

Required:

You are to prepare a memo addressed to Ben Ortega, CEO in which you are to address the following questions raised by this situation from financial reporting and ethical perspectives.

How will a share buyback of shares provide a $$quick fix$$ for EPS? Will the timing of the share buyback change the impact to EPS?

From an ethical perspective is a share buyback program the most productive use of the company$$s funds?

Which stakeholders would be affected if the share buyback proposal is implemented? Indicated whether the effect would be positive or negative. This should be supported by a sound rationale.

What do you believe would be the best course of action?