Question 1
There has been much debate inside the company you work for as to the valuation of dilutive securities. The CEO of your company has indicated that any reduction in regular EPS sends a negative message to the financial markets that the company is not a great value for investors. Discuss why dilutive securities have a benefit to the issuer and the purchaser of convertible debt in response to the statement made by the CEO. Explain your reasoning.
Question 2
In recent years, we have seen many European nations join together and create the European Central Bank. It was created to utilize one form of currency for many nations, thus creating stability for this currency.
As the globalization of all economic activity continues at a rapid pace, is the world ready for a unified global currency common unit? Or do you feel that the world should continue to use multiple currencies? Explain.
Question 3
Protecting the security and integrity of accounting data is part of the controller's responsibility. Because of the integration with the computer system, the IT department must be involved in this process. In your opinion, who should be making the final decision in the decision-making process regarding the security of accounting data, the controller or chief information officer? Explain.