CHAPTER 6 NET PRESENT VALUE AND OTHER INVESTMENT CRITERIA Answers to Concepts Review and Critical Thinking Questions 1. Assuming conventional cash flows‚ a payback period less than the project’s life means that the NPV is positive for a zero discount rate‚ but nothing more definitive can be said. For discount rates greater than zero‚ the payback period will still be less than the project’s life‚ but the NPV may be positive‚ zero‚ or negative‚ depending on whether the discount rate is less than
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company without much communication between the auditing client and the CEO or other top officers of the company. The responsibilities of a CFO and an audit partner are similar and different. The CFO is a highly ranked officer of a company who oversees the spending habits of a company and all of its financial reports‚ activities‚ and situations. The CFO makes sure that the assets spent are spent wisely and should be spent for the right reasons. They want to be sure it used for the growth and benefit
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States. After operating as a private company for six years‚ Eco went public in 2009 and is listed on the Nasdaq stock exchange. As the chief financial officer of a young company with lots of investment opportunities‚ Eco’s CFO closely monitors the firm’s cost of capital. The CFO keeps tabs on each of the individual costs of Eco’s three main financing sources: long-term debt‚ preferred stock‚ and common stock. The target capital structure for ECO is given by the weights in the following table: Source
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Determine how the organizational ethical issue was detected and how management failed to create an ethical environment. 4.Analyze the accounts impacted and / or accounting guidelines violated and the resulting impact to the business operation. 5.As a CFO‚ recommend which measures could have been taken to prevent this ethical breach and how each measure should be implemented in the future. Assignment 1: Review of Accounting Ethics Write a four to five (4-5) page paper in which you: 1.Given the
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to improve the transparency of the financial reporting. Financial reports are to be certified by the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) creating increased responsibility and independence with auditing by independent audit firms. In discussing the SOX Act‚ we will focus on how this act affects the CEOs; CFOs; outside independent audit firms; the advantages and a disadvantage of this act; and changes that still need to be incorporated. The CEO’s and CFO’s of public
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Sarbanes-Oxley Act (Sox) 2002: CEOs & CFOs The Sox Act in 2002 enhanced the responsibilities of the CEOs and CFOs by requiring them to certify the accuracy of the financial statements and making sure that there is no intention of fraudulence. Furthermore‚ they could significant penalties such as that they could face up to 10 years for “knowing” violations and up to 20 years if “willing” as well as criminal charges for certifying false information. In addition‚ they will be prohibited from holding
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Nabors Industries’ cash from operating activities started declining in 2014. NBR generated -$26.5M in CFO in the 3Q17. In comparison‚ in 3Q16‚ NBR’s CFO was $68M. A higher working capital requirement as a direct result of higher drilling activity led to deteriorating CFO in 3Q17 versus a year ago. Nabors Industries capital expenditure rose from -867.1 in 2015 to -395.5 in 2016. A negative CFO‚ coupled with higher capex‚ led to negative and deteriorating free cash flow 2016. In 2016‚ Nabors Industries
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I would like to take below actions: 1) Hire Barry Fielding as the new CEO for Western States Optical Corporation (WSO); 2) Hire Barry’s wife‚ Betty Fielding‚ as the director of Marketing and Merchandising for WSO; 3) Leverage Meredith McDougall as CFO to keep an eye on the Fielding couple; 4) Remind Ron Weiner not to interfere new CEO’s business decisions too much in the future; 5) Kick Byron Buntz out of board and invite another third-party industry expert to sit on board to balance different perspectives
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[1] What business was WorldCom in? WorldCom was in the business of telecommunications. Where was WorldCom located? WorldCom was located in Clinton‚ Mississippi. Who was the CEO? The CEO was Bernie Ebbers. Who was the CFO? The CFO was Scott Sullivan. What are the names of the two members of the internal audit staff who worked with Cynthia on their secret investigation? Gene Morse and Glyn Smith What made the internal auditors think that possibly there was a need to investigate WorldCom’s
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statement "Only once one has known real sadness can one feel true happiness" is a true one according to my belief and life experience of many others. Human Life is a reality ‚ the sadness and happiness are integral part of life. Life is lived to its acme only when we taste the real sadness and that makes each one to taste the real happiness also.True happiness can be felt only when one experience the true sadness and once overcome it. Then he/she is going to drop down happy tears out of real happiness
Free Personal life Abraham Lincoln United States