What is your opinion about Costco’s borrowing the cash to pay shareholders the dividend before taxes on dividends increase? What are some of the ratios that will be affected by this change in capitalization?
If interest rates are negative, then future values of deposits or investments are lower than present values. If this is a result, why not just hold cash?
Why are firms hoarding cash? If you were CFO, would you be doing the same? What would be factors in your decision?
Can you map out a plan using accruals that will fool the markets? If you think you can, are the markets “efficient”? And, if you implement the plan, would you have committed fraud?
Should the FASB have pushed for more qualitative disclosures about going concern? What would be the downside?
