Merck continues with a financial goal of deleveraging its balance sheet. Why? How would you determine a target? Do you think the amount of debt varies by country? Merck also has increased its hedging activity against currency volatility. Do you think there is a connection between target leverage and hedging activities in so far as aversion to risk?
If you were CFO of Huntsman, your overseas cash just became cheaper and thus more accessible. What would you do with it? How would you decide?
So, Walgreens and others collectively will add a few trillion in liabilities to their balance sheets for operating leases, beginning in 2019. What do you anticipate as market reactions to the changes, if any?
If the tape could be rewound and redone, and if it were your call, how would you have presented the Facebook results and forecast? Do you think it would have made any difference in the stock price?
How would you decide, if you were CFO, how to allocate the tax savings among competing interests, such as shareholders, workers (and their pension plans), and others?
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?