Hi

Please help me with this discussion :

1. You own 19% of a company that you do business with and are considering buying another 5% of the company.the company provides a great product and great service.The company's share price has been rising because of its potential.However, it is currently not profitable from an accounting perspective because the company is doing a great deal of research and development.You have asked your CFO to advise you about the consequences of the increase in your ownership position. What would you expect the CFO to say?

2-Your company has sales of $100 million and profits of $10 million. A similar, smaller company with sales of $25 million and profits of $5 million appears o be an attractive merger candidate. You currently buy 50% of the smaller company's production.The CEO has indicated that this would be a great acquisition because it would increase sales by 25% and profits by 50%.As CFO, what issues do you raise concerning this proposed purchase and the CEO's analysis.