If you were a supplier to one of the companies that is taking longer to pay, what course of action would you (could you) take?
JC Penney’s inventory levels are “too high.” If you were in charge, what would be the appropriate level of inventory? How would you determine it? Where do you think JCP will be in 2 years, 5 years as a company? Can you see that far into the future?
Tesla is “burning cash,” yet CEO Musk does not want to address questions about capital needs. What do you think you would propose to him as sources of capital, should it be required? How would you decide on the mix of debt/equity?
So some firms need cash to invest in growth so they are selling “underperforming” assets. Do you think that maybe years of using cash flow to buy back stock has put some companies in this position? Why do firms buy back stock?
How do you think the use of “bots” for finance and accounting positions in firms like Levis will affect your career projection? What exactly do you foresee as being part of the “upskill” skill set?
Traditional audit firms, in particular the Big 4, have become more of a consulting firm. Do you believe this could compromise their audits of clients? How?
Lowe’s CEO has announced retirement. If you were on the search committee for a replacement, what would you look for in a candidate? How directly does the person in the top spot affect the overall firm’s performance?
Dropbox prices its IPO at $21, and offers shares to the public with 1 vote per share, yet retains 10 votes per share for the founders and select investors. Do you think the price per share incorporates different voting rights? Should the SEC prohibit, or perhaps sunset, dual class structures? Why or why not?
Operating leases are coming on-balance-sheet next year, so rating agencies will not have to estimate the liabilities for credit rating purposes. What are possible consequences if their estimates are or have been right or even close? Far off?
Merck’s goal is to deleverage, yet M&A is crucial to pharma growth. So, if you were CEO/CFO, how would you find a balance?
Do you think Elon Musk’s compensation package is “optimal”? For whom? How would you structure his compensation package?
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.?
How might GE’s culture of so-called “success theater” have contributed to potentially aggressive accounting (revenue recognition) practices? What systems may help control such tendencies, if they are indeed problematic?
What is the deferred tax consequence, if any, if firms are required under the new tax law to capitalize R&D, but still expense R&D on the income statement? What are the potential valuation effects (stock price effects), if any?
How would you make the adjustment to earnings (and maybe cash flows) to compare “apples to apples”, for the effect of the new tax law, which transitions to a territorial system, but not before imposing a one-time tax on overseas accumulated profits? What, if any, are value implications for these firms?
How will the higher costs (expenses) be reflected in the financial statements? What ratios will be affected? How do you think stock prices will react?
The disclosure of CEO pay to the median employee pay was part of Dodd-Frank, and consequently appears to have been imposed “top-down” from Congress/regulatory agencies, rather than “bottom-up”, that is demanded by investors. Why do you think this is the case?
Do you agree with the broader view of capital? What are some of the implications for financial accounting and reporting?
Do you think BlackRock is “right” to require firms to discuss these societal issues, in addition to financial metrics? Why or why not? What is BlackRock hoping to achieve? Is this the best way for BlackRock to achieve its goals?