Assume that Congress announces its intention to limit the prices and profits of pharmaceutical companies as part of an effort to control health care costs. What effect would you expect this announcement to have on the p/e ratios and stock prices of pharmaceutical companies such as Merck and Bristol-Myers Squibb ? Explain.
Answer to relevant QuestionsWofford Company had net sales of $150,000 in its first year and $187,500 in its second year. Calculate the amount of change in terms of both dollars and percentage.Multi-Star, Inc., had sales of $890,000, cost of sales and operating expenses of $450,000 and $200,000, respectively, and 10,000 shares of common stock outstanding. Calculate the amount of earnings per share. Some companies that use process costing simply assign the entire cost of production to those units completed and transferred during the month, even if some units remain in process at the end of the period. Is this practice ...Team members involved in the target costing process should consider the current and future effects of their proposed solutions to arrive at the proposed target cost. Assume in the Boards and More example illustrated in ...Wolvo Company has defective products in inventory. It has the opportunity to either sell, scrap, or rebuild the defective products. Identify several factors Wolvo Company should consider before making a decision.
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