Questions -
1) Lease Vs. Buy
- What are the deciding
considerations for leasing vs. buying?
- What are the greatest
differences between the two methods of financing?
- What are the benefits
of each?
- What are the costs
of each?
2) Finance Structure
- If you were to invest
in a domestic subsidiary, how would you finance the investment?
- If you were to invest
in an international subsidiary, how would you finance the investment?
- What are the advantages
and disadvantages of debt?
- What are the advantages
and disadvantages of an equity infusion?
- What are the advantages
and disadvantages of preferred stock or other hybrid securities?
- What should be considered
when formulating a dividend policy?
- What are the non-quantitative
considerations?
3) F/X and Commodity
Hedging
- What are the current
trends of the Yen, Dollar, and Euro?
- How do these changes
effect investment decisions (specifically, building a plant in developing
country - considerations), profitability, and cash flow of a company based
in the US?
- How can you hedge
against F/X and commodity risk?
- What is a Natural
Hedge?
- What are the short-term
and long-term implementation considerations and costs of hedging?
4) Project Evaluation
(general)
- How do you decide
where to focus the firm's limited capital expenditures?
- How do you evaluate
a project or investment?
- Explain the following
in-depth:
- Top half of the
equation -
- cash flows,
Tax shelter of debt, Risk Assessment
- Bottom half of
the equation -
- How do you identify
potential cost reductions and opportunities within the firm?
- What criteria do you
use to determine the appropriate method for evaluating a project?
- How do you evaluate
strategic implications of accepting or rejecting a project?
- Explain the difference
between NPV and IRR?
- Explain EVA.
5) Accounting
- How are the three
main financial statements interconnected?
- If you could only
have one financial statement, which would you choose? Why?
- Explain absorption
costing?
- Explain incremental
analysis and its relevance in decision-making?
- Walk through the cost
of goods sold and inventory calculation?
- What statement and
section shows XXX (prepaid expenses, accrued taxes, etc.)?
- How does XXX (depreciation,
goodwill, etc.) item flow through the three main financial statements?
6) Misc.
- What is you short-term
and long-term interpretation of our financial condition?
- What role does the
financial organization play regarding stewardship, ethics, and integrity?
- How do you value
a company (both debt and equity)?
- How do you value a
bond?
- If you were the CFO
of our company, what would you do?
- What are our three
largest financial opportunities?
- What are our three
largest financial threats?
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