Too High Tech (“Smoke and Mirrors” or Real Sales)?

Staci Sutter is responsible for assigning a value to the stock of ProTech Incorporated that will soon be sold as
an IPO. The financial information that Staci has been given suggests that the company is financially strong.
Although she has not been able to validate information a friend provided to her via e-mail, Staci is concerned
that the financial information she has been provided by ProTech might paint a better financial picture than
actually exists. Staci’s concern has been inflated as the result of pressure from her boss to set a good price for
the IPO. In addition, it has been reported (rumored) that Staci’s boss is a friend (perhaps close) with the CEO
of ProTech. Staci has completed her analysis based on the information she was provided by ProTech, and she
is ready to assign a price to the company’s stock. But, if the additional, unconfirmed information she has is
correct, the price she sets might differ from what her analysis suggests. What should Staci do?
Discussion questions:
What is the ethical dilemma?
Should IIBS delay the Protech’s IPO until more information can be gathered about “information” Staci received
recently?
What action do you think Staci, IIBS, or both should take?