If you were CEO/CFO and repatriated cash, what would you do with the money? How would you decide? What pressures would you face from the different constituencies?
Why do you think firms may be inclined to stay private for longer, and, for funding needs, tap private equity capital through the Goldmans, et al.?
Dropbox is planning to IPO. Do you agree with the statement that public firms are perceived to be “more stable” than private firms? Why or why not? What do you think is meant by “stable”?
If you were the founder of a company, what are the factors you would consider in deciding whether to IPO or direct list? Do you think more firms, like Spotify, will choose to direct list? Why or why not?
How would you determine the optimal amount of debt and the appropriate amount of advisory service fee? What are factors other than the debt load that could lead a firm to file Chapter 11?
If you were CFO of Intel, what would you do? What are all your options and how would you try to make a decision about your $10 billion in overseas cash?
Toys R US filed for Chapter 11. Could you have predicted this? What inputs to your predictive model would you have included?
Nokia has its plate full on many fronts. The CFO now must also contend with potentially negative interest rates for its $4 billion in cash, making it an even worse non-performing asset. What would you advise?
What is your opinion with respect to whether interest on debt should be deductible? Whom would eliminating the deductibility of interest hurt? Whom would it help?
J. Crew needs to modify its debt agreements. What are the two types of modifications, from an accounting perspective? Given the retail sector’s condition in general, do you think they will be successful in achieving a modification? What are the alternatives?
So a hedge funder wants GM to split its shares into 2 types of equity to increase firm value. What do you think: will capital structure changes increase overall value? Why or why not?
If you were part of management, what criteria would be included in your decision about share repurchases?
In your opinion, should all shares of publicly traded companies have equal voting rights? Should all directors be voted on annually? Why do you think Google and other tech firms have dual class shares?
SAP’s free cash flow increased, giving the company additional financial flexibility. Why do you think the European investor base would rather SAP reduce debt than increase share buybacks? Is being “debt-free” an “optimal” position for any company? Does is matter if it is European or not?
Why is there a trend toward “de-equitizing” the capital markets? Do you believe (over) regulation of public companies plays a part? If you needed cash, what options are available and how would you choose?
Are share repurchases “investments” in a firm’s own stock? Are they a form of “financial engineering”? What do you think is the real reason for the surge?
Do you believe it is unusual for governments to relinquish ownership of commercial enterprises in favor of private control? What do the Norwegian and Swedish governments believe that private capital structures could do better than social/public ownership? How would you measure whether private ownership in fact is better?
If you were CEO or CFO of a firm, what are the various factors you would consider in whether to buy back stock, pay a dividend, and/or invest in capex? Do you agree that the current trend in the market is unsustainable? What do you foresee happening? When?
Why do you think the IPO market is weak and new startups are opting to sell themselves rather than go public? If you were an entrepreneur of a startup, what would you consider in making the decision?
