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In: AccountingEthical Behaviour Question Books R is a software developmentcompany operating in New York City. The...Ethical Behaviour Question Books R is a software developmentcompany operating in New York City. The company specialize indeveloping applications for the healthcare industry relating tocontrolling the distribution of drugs to patients. Several yearsago, the company went public and has been trading on the NY StockExchange, but the stock has languished. Recently, senior managementhas been in discussions with a private equity firm about thepossibility of taking the company private and investing heavily innew applications to enhance its market position. Ken McGrath is thechief technology officer of the company and has been in meetingswith the private equity people and the executive committee wherediscussions of the proposed transaction are taking place. Theprivate equity people are considering offering a price for all ofthe outstanding shares that is 40 percent higher than the currenttrading price. At his Monday morning technology update meeting withhis development team, someone asks Ken McGrath how the discussionsare going. Ken McGrath responds that the deal has moved from thepossible stage to the probable stage and the price will likely be aminimum of a 40 percent premium. He encourages all of hisdevelopers to quietly acquire as many of the shares as they canbefore the announcement of the deal takes place..Required: Comment on Ken McGrath’s actions in telling his staffthe details of the transaction. Should the developers takeadvantage of this knowledge and buy shares immediately?