Recent Tutoring Session Reviews
"Today the student and I went over her recent class notes about periodic vs. perpetual systems. We also discussed the difference between LIFO and FIFO. We reviewed problems from her in-class notes to reinforce the topics. We will meet later this week to review her new class materials."
"The student made excellent progress on a very difficult homework assignment. We used Beta of a stock, to deleverage the cost of capital if the company were to use no debt financing. I think well less that 5% of all MBA would know how to do this problem, now the student can do it. Then we had to play a large "what if game" by setting up the formulas and the inputs of spreadsheet that calculated different ways to evaluate stock price, buy use of the P/E, the Enterprise Value ratio to earnings, and the EV ratio to sales. By using the problem's inputs, we varied stock price from low of $24 up to $42 to see ho each ration changed. The last problem was to calculate a PV of an uneven and increasing future flow of dividends to calculate stock price. It is an Excel function of NVP but uses several of the ranges to input periods of different rates of change (true answer is total flow discounted out to over 100 years), only Excel is powerful enough to make such calculations. The student made excellent progress."
"Today we covered allowance for doubtful accounts and uncollectible accounts. The student was a little confused as to how to approach the problem, however, we went over some equations that will probably help him apply the concepts. He completed some multiple choice questions, as well as his homework quiz."