What are some of the disadvantages of debt? What is meant by being too “dependent on increasingly fickle capital markets to alleviate liquidity pressures”? If you were the CFO of one the energy companies, what would you do? How would you try to determine an “optimal capital structure” in this new economic environment?
Passing the CPA exam is obviously doable, but . . . If you are planning on taking it (a good idea!), will you be able to relate to these stories?
Do you think your decisions would be affected and behavior change if you were a CEO that was paid “a lot” in stock options, relative to restricted stock? How? Why? Would it affect your “moral compass”?
If you were a member of the C-suite and you had news (either good or bad) that the market does not expect you to announce on an upcoming 8-K filing, how would you determine if it is “ok” for you to buy or sell your firm’s stock?
What are some of the collateral effects on companies with write-downs? Were these write-downs surprising? Why or why not? What are some of the valuation issues with respect to measuring the impairments?f
If you were targeting a firm in an M&A, how would you assess aggressive accounting practices of the target firm? How could you tell if non-GAAP accounting measures better reflect economic reality, or obfuscate it?
Do you agree that the LCM test under US GAAP is unduly complicated? If so, do you think that the proposed ASU simplifies the accounting? What would be lost, if anything, in the change?
Executives are switching away from options to restricted stock. Why? Is this change in executive compensation a “good” thing for corporate governance? Why or why not?
Does this article make you want to consider an accounting career outside of the Big 4? Why or why not? What skill will you need for the changing roles?
If you were the CFO of Monsanto, what options do you have to try to counter market volatility and its effects on the pension funded status? Which would you choose? Why?
Are accountants introverts? Would they make great entrepreneurs? Why or why not? What are some possible implications for your career choice?
The SEC uses “in-house” administrative judges to handle proceedings that is brings against corporations. Is this a good idea? Why or why not? Is it “fair”?
What are the reasons Newell Rubbermaid wants to buyout pensioners (from their defined benefit plans)? Does this move by Rubbermaid provide information about Rubbermaid’s future? How do you think the stock market reacted to this story?
Why is Lowe’s able to extend payment terms? How does this help free cash flow? What are the downsides to pushing out payments to suppliers?
If you were CEO of a U.S. firm, would you still try to do a tax inversion? What obstacles would you have to overcome? Or, would you spend more on lobbying to try to get the tax laws changed?
How would you develop a decision rule about whether to do a sale-leaseback? Would you use a time-value component? If so, how would you choose the discount rate?
If you are wanting to IPO your firm, what lessons can you take, if any, from this article about conducting your “road-show?”
Should the statute of limitations for prosecuting fraud be extended from 5 years to 10? Why or why not? What are the downsides to the proposed legislation?
If you are wanting to IPO your firm, how would you choose the state in which to incorporate? Why would Delaware not be as attractive as before? Where would you go, if not there?
Oracle cut the expiration date of its stock option grants from 10 years to 5. Why? What does this do to the value of the options? Why is the value affected in this way?
