If you were the CFO of a privately held company, under what circumstances would you want to release financial information? To whom would you release it? How often? If never, why not?
How can a firm’s capital structure become a “political liability”? Do you think the lawsuit against the U.S. Department of Transportation has merit? What ratios would you check to see if the firm’s debt structure really was “troubling”?
Why does GM need more cash, given that it currently holds $33 billion in cash already? What is GM’s pension “story”?
If you were CFO of a firm that did not need extra cash, why would you sell bonds to raise cash in the current environment? What are some of the potential consequences, both positive and negative, of increasing the liquidity on your firm’s balance sheet?
Best Buy has become, according to some, a showroom for cybershoppers. How would taking the company private help the company implement the necessary changes?
In your opinion, who will ultimately be proved right in the current debate: French President Hollande or the CEO of Peugeot? How would you decide among a dividend, share repurchase, or keeping workers on the line? What are the multiple factors to consider?
Why are firms hoarding cash? If you were CFO, would you be doing the same? What would be factors in your decision?
What factors did Morgan Stanley consider to set the Facebook IPO price of $38? Why were they concerned about the opening day’s price closing “too HIGH” (an opening day pop of not more that 20 percent)?
You’re the CFO. Where do you put your cash in light of near zero rates? What matters more: return on investment or return of investment?
If you are a voting Google shareholder, how are you better off after the stock split? Page, Brin, and Schmidt have “protected Google from outside pressures,” buy why, and what are these pressures?
What is the theoretical link between firm value and leverage? What is the behavioral effect of leverage that may affect this link?
What would you do with $100 billion in “cash” (liquidity)? Is too much liquidity a “bad thing?” If so, why?
Do you think that the cost of capital for start ups is affected by the age of the CEO? If so, is it higher or lower for, say, 20 year old CEOs? Why?
Can you find this quote from Clearwire (CLWR) in its most recent 10-K filing? “(W)e believe we may need to raise substantial additional capital to fund our business and meet our financial obligations beyond the next 12 months.”
How did the name-change from “Loan” to “Investment” satisfy the Shariah committee? For accounting purposes, does changing the name (and the classification) change the nature of the earnings on the underlying asset?
