Transaction effects to beta of company

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Reference no: EM1325730

You are a financial analyst in the corporate office of a food processing company, and you own stock in that company. Recently, you worked on an assignment during which you found out the company was going to take on additional debt and start an airline. You are thinking about selling your stock prior to the announcement.

a. What do you think will happen to the beta for this company after the announcement?

b. What do you think will happen to the price of the stock given your answer to part a?

c. Ethically, what are the consequences if you decide to sell before the announcement and if you do not sell?

d. What would you do?

Reference no: EM1325730

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