Was it ethical to initially start the company showing

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Reference no: EM13272203

Scenario: A dot.com company structures its initial private placement so that it will have a very minor profit and enough shares to show only 1 cent in profit. Then, it continues to build the company but each 1-cent in earnings growth per share appears to be a 100% improvement in the horizontal analysis. Was it ethical to initially start the company showing a very minor profit so future profits would appear to be phenomenal growth?

Reference no: EM13272203

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