Compensation for their loyal service to the corporation

Assignment Help Financial Accounting

Reference no: EM131294382

In 2015, the president of High Tech Corporation expects that the company will generate a severe loss this year due to the failing economy. He has told the members of the board of directors and other key shareholders that the corporation will buy their shares of common stock before the stock takes a dramatic drop. He says that he believes the earnings will improve in 2016 and that he will offer these shares back to these key stockholders before the stock price goes up again. He says he views this as compensation for their loyal service to the corporation. What is your opinion of this offer?

Reference no: EM131294382

Questions Cloud

Concepts and definitions of charismatic : Carefully review the concepts and definitions of charismatic, transformational, and transactional leadership. Then write a three-page paper addressing the following issues, using specific examples from your personal experiences. Make sure to cite a..

Define market share and market growth : List and describe the 3 main types of organizational structures. What is the BCG Matrix. Define market share and market growth. List and describe the 4 four categories of the BCG Martix.

What is the total amount of excess amortization : On January 3, 2011, Austin Corp. purchased 25% of the voting common stock of Gainsville Co., paying $2,500,000. Austin decided to use the equity method to account for this investment. At the time of this investment, Gainsville's total stockholder's e..

Memorandum of understanding : Elect two convergence topics from the 2006 Memorandum of Understanding (and the 2008 progress report) and write a 2- to 4-page paper analyzing how the convergence of FASB and IASB rules or standards have developed to create to a common framework as o..

Compensation for their loyal service to the corporation : In 2015, the president of High Tech Corporation expects that the company will generate a severe loss this year due to the failing economy. He has told the members of the board of directors and other key shareholders that the corporation will buy thei..

Sleep is characterized by alternating stages : Sleep is characterized by alternating stages. One stage involves rapid eye movements (REM) and changes in heart rate, blood pressure, and muscle tone. This stage may serve as a rest period for the inhibitory nerve cells of the brain. It usually..

Distinction between stock splits and stock dividends : What is the distinction between stock splits and stock dividends? Please find the financial statement for a company of your choice and report if they had a stock split or stock dividend on their most current financial statement. Don't forget to inclu..

Discuss a leader that you know personally : Discuss a leader that you know personally or have encountered and that you admire.- How did/does this leader interact with others?

Compute the number of rounds sold during fiscal : Gendason Golf Course has three short nine-hole golf courses that attract a good flow of customers. The current price is $8 and variable cost is $1.50 per (nine hole) round. Fixed cost for the year was $1,950,000. Compute the number of rounds sold dur..

User Account

All Pages