Question 1
A measure of success for a company in the eyes of the financial world is to have a high EPS. Please select two companies of your choice in order to assess their individual EPS in a complex capital structure. Compare and contrast the factors that contributed to the EPS and present your views as to which company would be the better investment. Support your response with examples.
Question 2
Financial accounting utilizing U.S. standards has primarily been based on historical cost. In business combinations, book value and carrying value on bonds can become relevant. In addition, fair market value of other assets may also become a factor.
Discuss the pros and cons of each method of valuation. Which method do you feel is the best for valuation of assets? Explain.
Question 3
Many companies provide their employees with an email account. These accounts have become a hot topic for litigation. Typically, these accounts are considered the property of the company and management has the right to obtain information from the accounts. Do you feel that companies should permit personal use of these accounts? Do you feel that the employee has some expectation of privacy with the company account? What are some steps that a company may take to control the use of employee email accounts? Explain.