Reference no: EM132292447
Select any three of the essay topics below:
Essay #1 - Keeping CPA firms honest
Recently, KPMG was accused of inappropriate behavior for using insider information. In a well thought out essay, explain the accusations against KPMG and what penalties you believe should be assessed. Be sure to address the role of peer review in insuring quality auditing, the whistle blower protection under the Sarbanes-Oxley.
Essay #2 - Bayer vs. Monsanto
Recently, German based Bayer AG (Bayer Aktiengesellschaft, Leverkusen) purchased St. Louis based Monsanto. Compare and contrast the financial statements of the two companies for 2016 and/or 2017. (Note the references to the pending purchase.) Bayer AG is listed on the Frankfurt Stock Exchange - you may want to comment on the difference in reporting standards. In the interest of time, focus your attention on one or two specific areas of the financial statements.
Essay #3 - Compensation in a Non-Profit Organization
In Week 3, we examined compensation plans for two for profit companies. Think about the checklist you developed for the companies. When profit is NOT the goal of the organization, the measures of success are very different.
- Select a non-profit organization such as the American Red Cross, Maryville University, the National Rifle Association or other organization.
- Find their Form 990 and determine the compensation of the highest paid individuals. (501c3 organizations must make available their form 990)
- Develop a compensation plan for the Chief Operating Officer, President or other chief executive that utilizes the balanced score card consistent with the mission of the organization.
Essay #4 - Movie Pass
Movie Pass is a theater subscription service that struggles to find a profitable approach to its ticket subscription sales plan. Movie Pass is owned by Helios and Matheson (NASDAQ: HMNY). The losses of Movie Pass significantly affected the profits of the parent company. Helios and Matheson responded to the losses with a reverse stock split of 1-to-250.
Explain why it was necessary for Helios and Matheson to implement the reverse stock split. Explain the requirements of the NASDAQ verses the NYSE for listing.
Explain the impact on shareholders equity and the par value of the stock.
What has happened to the share price and company since the split on July 25, 2018?
Essay #5 - Tariffs and Free Trade Agreements
Treaties and trade agreements between the United States and many other countries have come under review in recent months. The potential for "trade wars" is strong. Select a United States based multinational company - one engaging in purchasing materials from abroad or selling products abroad (or both).
Explain how such trade issues might influence the company.
Explain which financial statement items and which ratios may be impacted.
Essay #6 - Internal Control
Explain the Fraud at Cargill, Inc. perpetrated by Diane Backis. Outline the types of internal controls that might have prevented the fraud.
Essay #7 - IPOs and International Exchanges
Aston Martin has expressed its intention to go forward with an IPO for listing on the London Exchange. Review the financial statements that accompany the IPO. Assume a portfolio manager has asked you to evaluate the IPO. Prepare a memo that evaluates the IPO. In your memo, be sure to address the difference in being listed on the London Stock exchange verses the New York Stock exchange
Essay #8 - Litigation
Lawsuits against public companies are common. Such suits can include the potential for significant damages, expose the company to boycotts and reduced sales. Address one (or all) of the following. Or come up with your own example
- A recent lawsuit against BAYER resulted in a multimillion-dollar verdict against the company by an individual exposed to ROUNDUP weed killer. ROUNDUP is produced by Monsanto. Recently, Bayer acquired Monsanto. How should BAYER account for the verdict? Justify your answer.
- St. Louis juries have awarded several plaintiffs sizable verdicts against Johnson and Johnson. How should Johnson and Johnson account for $4.6 billion verdict related to talc powder? Justify your answer.
- How should Canada Dry and its parent company Kerrigan Dr Pepper (NYSE: KDP) account for the lawsuit filed against it because its ginger ale allegedly does not contain ginger root? Justify your answer.
Essay #9 - Abu Dhabi National Hotels
Read the Abu Dhabi Hotels Case purchased from the bookstore
a) For the years 2007 through 2012, complete a trend
b) Based upon the data in your trend analysis, complete a ratio analysis. Use the data provided in the case.
Essay #10 - Abu Dhabi National Hotels - update the data
Read the Abu Dhabi Hotels Case purchased from the bookstore
a) For the years 2007 through 2016, complete a trend using the restated 2012 data and update the data for 2012-2016 actual financial statements
b) Based upon the data in your trend analysis, complete a ratio analysis.
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Suggested Ratios
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Return on assets
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Long-term liabilities to shareholders' equity
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Return on equity
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Revenues to total assets
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Return on revenues
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Current ratio
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Cash dividends to paid-in capital
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Working capital (AED)
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Return on paid-in capital
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Earnings per share (AED)
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Equity ratio
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Price earnings ratio
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Fixed assets to shareholders' equity
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Price book value ratio
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Current liabilities to total assets
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Dividend yield
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Current liabilities to shareholders' equity
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Cash dividends to earnings
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Total liabilities to total assets
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Price dividend ratio
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Total liabilities to shareholders' equity
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Earning yield
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c) Based upon the trend analysis and ratio analysis, evaluate ADNH
Essay #11 - Abu Dhabi National Hotels - A global perspective
Evaluating a foreign organization requires a global perspective.
Develop an understanding of the UAE and the macro economic factors facing the company. Go to the World Bank's Data Base for information on the UAE and consider other global information. (You will need to create a log in to access the data.)
a) Analyze the following UAE Data for the period 2007-2016 as available
UAE Data (not all data may be available for all years)
Actual Data
GNI, Atlas method (current US$)
GNI per capita, Atlas method (current US$)
GNI, PPP (current international $)
GDP at market prices (current US$)
GDP growth (annual %)
Inflation, GDP deflator (annual %)
Compute Ratios
Trends: 2007=100 formula Current Period/Base Period) *100
GNI, Atlas method (current US$)
GNI per capita, Atlas method (current US$)
GNI, PPP (current international $)
GDP at market prices (current US$)
Other Macro-economic information you believe is relevant
b) How does the UAE data impact the ABNH results?