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Expand Your Critical Thinking 2-10 (Essay) At one time, Boeing dosed a giant deal of McDonnell Douglas. to acquire another manufacturer, McDonnell Douglas. Boeing paid for the acquisition by issuing shares of its own stock to the stockho In order for the deal not to be revoked, the value of Boeings stock could not dedine below a certain level for a number of months after the deal. During the first half of the year, Boeing suffered significant cost overruns because of inefficiencies in it e first and second quarters of the year, the companys stock most likely would have plummeted, and the deal would have been revoked, Company either Princess Dianas or Mother Teresas funeral, in the hope that it would be lost among those big stories that day, Instead, the company waited until October 22 of that year to announce a $2.6 billion write-off due to cost overruns. Within one week, the reversed companys stock pricehad fallen 20%, but by this time the McDonnell Douglas deal could not be Answer the following questions Who are the stakeholders in this situation? What are the ethical su 5 6 7
What are the ethical issues? LINK TO TEXT What assumptions or principles of accounting are relevant to this case? LINK TO TEXT to search タD 4 5 6 7 8
Do you think it is ethical to try to time the release of a story so as to diminish its effect? LINK TO TEXT What would you have done if you were the chief executive officer of Boeing? Rneinns ton mananement main re to sear to 8 4 5 6 8
LINK TO TEXT Bosings top management mainains that it did not hawe an obligation to reveal ts problems during the first half of the year. What implications does this have for investors and analysts who follow Boeings stock LINK TO TEX re to search 5 6 7 8
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