What are contingent liabilities and could you give two examples of contingent liabilities? What are the requirements for determining the financial reporting of a contingent liability? Please explain managers' discretion in determining the amount and timing of accruals. How does this discretion affect financial statements, eg. balance sheet and income statement? What is the difference between a coupon rate and a market rate of bonds? Explain how does the relation between the coupon rate and the market rate affect bond pricing? What are credit ratings? What factors determine credit ratings (e.g. AAA to CCC)? Explain how does a credit rating change the cost of debt? What are the basic differences between preferred stock and common stock? What are the typical features of preferred stock? What are the reasons that a company repurchase its common stock? Which account is used to record repurchased common stock? Explain the accounting treatment difference between a large and a small stock dividend Explain the three forms of equity carve-outs. Identify the three different cost estimation methods discussed in this course and provide a description of the strengths and weaknesses of each. Describe variable, fixed, mixed and step costs and explain how the total cost function of each changes as activity increases within a time period. What is cost-volume-profit analysis and what are the important assumptions of this analysis