Can you tell a good story? Especially when it is about numbers, charts, graphs, spreadsheets? Storytelling can be learned. Practice, practice.
The market-to-book ratio proxies for a firm’s investment opportunity set. The market is forward-looking; book values are largely backwards looking. What is this saying about Intel?
There are lots of “I told you so’s” out there about racing ahead with EVs. Maybe they were right. Too early for the times? Range anxiety (especially in the cold weather), charging stations, time-to-charge, cost, externalities (again that word) from mining operations for the materials for the batteries, and then the impact of manufacturing (heavy) batteries, etc. For accounting, Ford will have to write-off some stranded assets. Journal entry, anyone?
We talked some about unintended consequences (aka “externalities”). The PCAOB (the “auditor’s auditor”) has enacted new rules to increase audit quality and increase as a result the trust in financial statements. Buried in the article are a couple of these externalities, both of which point to potentially lower audit quality. Hmmm . . . what are your thoughts?
Are quality control engineers direct labor, or overhead, or does it matter? Should bonuses be paid for good quality?
What’s your opinion on the insider stock sales? Should it be changed at this company (e.g., with blackout periods)? Why or why not? Are there legal issues?
What’s the calculation? What level of margin would you need to make up for reduced volume? Is it sustainable? What are some externalities?
Do you agree that (post M&A) integration risk is higher in the COVID era? Are there effective ways to mitigate it?
What is the downside of zero-based budgeting? Would you implement it at your firm when you become CFO? Why or why not?
“Professional skepticism” always, if you become an auditor, right? How is it operationalized on the job?
Do you think pressure to disclose more ESG-related data will force companies to adopt formal accounting standards that measure such data?
Microsoft pledges $1 billion on climate-related efforts, namely to become carbon “negative” by 2050. What do you think is the main catalyst for this, and do you think other firms will be able to follow their lead? Why or why not? What is meant by the phrase “regulators will react and capital will react”?
