Sherwin Williams is in litigation regarding lead paint. The case cites ads the firm ran in the early 1900s. If you were the firm’s CFO, what would you do with respect to disclosure requirements? Would you need to book a contingency? If you were the firm’s corporate counsel, what would you tell the CFO with respect to formally recognizing the contingency?
Dunkin’ Donuts plans to spend $100 million on “brand refresh.” DD does not own any of the stores, rather DD uses the franchise model. How will DD account for the amounts of the brand refresh that is spent on 1) equipment 2) technology infrastructure 3) training? Capitalize? Expense?
In your opinion, how important is an understanding of strategic finance as part of the skill set for CFOs? Do you believe that the new CFO at LOW will be successful? How would you measure his success? What are the implications for you as you consider a career choice?
How would you determine whether corporate balance sheets are “too” levered? What benchmarks would you use? What are the risks of too much debt, both for the firm and for the economy?
What is your opinion of the FCPA? Why was it passed? Is it a “good” law? Why or why not? If you were in the C-suite at Microsoft, what would you do now? Are there any accounting implications? Contingent liabilities?
What are your thoughts about the “pecking order” of capital and how it may have played a role in the bankruptcy?
Uber has a new CFO, who has had IPO experience, plus experience as a CEO. Do you agree with the assessment that “boards love to see CFOs who have done more than finance”? What in Mr. Chai’s background did Uber’s board want.
Tesla seems to be renegotiating with vendors after sales have been booked. What are the accounting implications from Tesla’s perspective? From the vendor’s perspective? What ratios are affected by longer payment terms and by rebates? What other sources of capital are available for Tesla at this point?
If you were/are a CPA, would you agree/disagree with the AICPA’s decision to grant ABVs to non-CPAs? Does the ABV appeal to you (now) as a possible career choice?
Even if the SEC moves to semi-annual reporting (instead of quarterly), do you believe much will change in the overall information environment? Why or why not?
If you were an adviser to Saudi Arabia’s Crown Prince, what would your advice be about investment in technology in general, and about Tesla in particular? What kind of ROI do you believe he has in mind?
What is the role of “activist investors”? If you were CEO of Nielsen, what would you do in response to the 8% ownership of Mr. Singer? Do you agree with Mr. Singer’s proposal for Nielsen? Why or why not?
Merck continues with a financial goal of deleveraging its balance sheet. Why? How would you determine a target? Do you think the amount of debt varies by country? Merck also has increased its hedging activity against currency volatility. Do you think there is a connection between target leverage and hedging activities in so far as aversion to risk?
If you were CFO of Huntsman, your overseas cash just became cheaper and thus more accessible. What would you do with it? How would you decide?
So, Walgreens and others collectively will add a few trillion in liabilities to their balance sheets for operating leases, beginning in 2019. What do you anticipate as market reactions to the changes, if any?
If the tape could be rewound and redone, and if it were your call, how would you have presented the Facebook results and forecast? Do you think it would have made any difference in the stock price?
How would you decide, if you were CFO, how to allocate the tax savings among competing interests, such as shareholders, workers (and their pension plans), and others?
If you were a supplier to one of the companies that is taking longer to pay, what course of action would you (could you) take?
JC Penney’s inventory levels are “too high.” If you were in charge, what would be the appropriate level of inventory? How would you determine it? Where do you think JCP will be in 2 years, 5 years as a company? Can you see that far into the future?
