The Accounting Oasis: Accounting Resources for Students
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Do you believe the benefits outweigh the costs for ZBB? Always? Only under certain circumstances?
What is your opinion with respect to whether interest on debt should be deductible? Whom would eliminating the deductibility of interest hurt? Whom would it help?
If you were part of management, what criteria would be included in your decision about share repurchases?
If you were CEO or CFO of a firm, what are the various factors you would consider in whether to buy back stock, pay a dividend, and/or invest in capex? Do you agree that the current trend in the market is unsustainable? What do you foresee happening? When?
Do you find this plausible, namely that CPA credentialed CFOs are more risk averse with regard to investment decisions, compared to non-credentialed CFOs? What does this suggest for you in your career path?
In your opinion, are capex budgets leading indicators of firm (and economy-wide) performance? Are they required disclosures for public firms, and if so, do you know where they are disclosed in the SEC filings?
Many firms have the cash but CFOs are reluctant to spend it on maintaining or upgrading infrastructure. Why? If they don’t spend it, what pressures will they get from competing interests? If you were CFO of one of these companies, what would you do?
Shell has lowered its planned capex by $2 billion to $33 billion. Is this a material amount? Do you think the stock market reacts to such disclosures when they are made?
“Should” companies be investing more in capex and R&D, rather than buying back stock? Is it really a problem? How would you determine whether it is a problem, and for whom is it one?
How would you interpret the data re: revenues and capex? What other data or ratios would help you decide what’s happening? If you were the CEO of a firm, how would you set your capex budget?
Capex is trending down for major corporations. Do firms have to provide investors with their planned capex for the next year(s)? If so, where? Is this sort of information useful? If so, why?
Expected capex appears to be a market driver. It is disclosed in an SEC filing, but do you know where?
You’re the CEO. Why might you not want to cut payroll or capex at Best Buy?