When was the scandal discovered and who was at fault?
January 2002
CEO - Dennis Kozlowski
CFO - Mark Swartz
100
What was the stock price before 2002
$95
100
What were the two GAAP principles which were affected?
Entity Assumption, Full Disclosure Principle
200
Where are the headquarters located?
USA
200
What was the scandal?
-stole $150 million
-Increased companies income by $500 million
200
What was the stock price in the mid of 2002
$14
200
How were the two GAAP affected?
Entity Assumption: CEO and CFO stole $600 million without the company’s approval
Full Disclosure Principle: CEO and CFO tried to hide that they were stealing and they did not open up about it.
300
What year did Tyco become a public company?
1964
300
How was the scandal discovered?
-inaccurate accounting
-bookkeeping
300
What year did the Stock price go back up to $95
The stock price never went back up after the drop
300
In order for the scandal to not happen again what was increased?
Insurance
400
Who did Tyco merge with and when?
Merged with ADT in 1997
400
How did the scandal occur?
-CEO and CFO gave themselves low interest or even interest free loans
-Sold stocks without informing Tyco
400
How many employees were working before the scandal
240 000
400
Who were the ones interested in the company?
Stock Price, Stockholders, creditors, and customers
500
In 1974 where were the Tyco stocks listed
New York Stock Exchange
500
What consequences did the CEO and CFO have to face after the scandal? (3 points)
-sentenced 8-25 years prison
-They both had to pay $134 million to Tyco
-CEO resigned
500
What was the share price before the scandal?
$59.76
500
Would you buy stock even after the Scandal explain with a valid reason