Lupe is a lawyer who specializes in antifraud cases. She has been contacted by an employee at a securities firm about an ongoing fraud the employee detected. The employee wants to become a whistleblower and file suit against the company. What should Lupe tell this employee?
What will be an ideal response?
Lupe should first listen to everything the employee has to say about the case. She
should evaluate whether serious harm is being caused by the described behavior and advise the employee to continue only if the answer is yes. She should assess the degree to which the employee has exhausted internal mechanisms for reporting fraud and advise a case only if the employee has already been ignored by their direct supervisor and any ethics reporting systems the company has in place. Finally, the lawyer should determine whether the employee has convincing, solid evidence of the misconduct. If Lupe is a good lawyer, she will also explain how difficult, lengthy, and expensive the whistleblowing process can be.
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What will be an ideal response?
In an online environment, ______________________________ ensures that only authorized users gain access to a system through a process of identification (e.g., a unique account number for each user) and authentication.
Fill in the blank(s) with the appropriate word(s).
Baxter Inc has a target capital structure of 30% debt, 15% preferred stock, and 55% common equity
The company's after-tax cost of debt is 7%, its cost of preferred stock is 11%, its cost of retained earnings is 15%, and its cost of new common stock is 16%. The company stock has a beta of 1.5 and the company's marginal tax rate is 35%. What is the company's weighted average cost of capital if retained earnings are used to fund the common equity portion? A) 13.80% B) 11.20% C) 12.00% D) 14.45%
Wellpoint Homes has a closing pending with Fran Davis for the purchase of a new condominium. Closing is scheduled for December 1. Wellpoint has delivered all the documents for closing with the exception of the lien waivers the title company requires for closing and issuing the title insurance policy. Fran has complied with all of her requirements for closing. On November 22, Wellpoint had still
not furnished the lien waivers and the escrow agent for the closing embezzled all of the funds from her pending closings, including Fran's. The escrow agent is believed to be out of the country and the money squirreled away in bank accounts around the world. Who absorbs the loss? A)?Fran because the closing has not yet occurred and title has not passed B)?Wellpoint because Fran has complied with all of her conditions C)?Fran because she met all the requirements for the closing so her actions were complete D)?Wellpoint because it was late in getting the lien waivers