Week: 3


Part: 1

What are the differences between cash flows used in capital budgeting calculations and past accounting earnings?

Note – Please note that the requirement is to post your Initial Response (300 words). Make sure you write these answers by conducting some research and cite both textbook and external credible sources.
 

Part: 2

1. Discuss whether it would be unethical to buy a stock based on some information you found in the trash that had been thrown away by mistake.

2. Suppose you are the printer who has been given the job of preparing the official announcement of the FDA report. Can you use that information for personal gain? Why or why not?

3. Some argue that insider trading brings information to the market more quickly and thus is morally acceptable on the grounds of efficiency. Do you agree with that argument? Why or why not?

Note:
 

– Note that each question should be answered in a minimum of 250 words.
 

– Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides and heading; citations and references must follow APA format. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date.