Clearly indicate which moral standard, framework, or case you are utilizing. 3. Don’t invent facts to make the issues raised in the case easier. 4. Please also utilize only materials from the course in writing your answers.
The expected present value of potential cash flow is $10.76 if the drug is licensed. However, in this case Merck would discontinue the phase 3 study if the drug passed phase 2 for weight loss only. This is because under this scenario Merck would lose more money to continue phase 3 than not to continue phase 3. Question 5: According to the tree in Exhibit 1, the expected payoff without the information of whether it will pass phase 1 is 13.98. If Merck knows the drug will fail phase 1, it will never incur the 30M cost in phase 1.
Why do you feel that is an important question? Cost of Capital. Corporations often use different costs of capital for different operating divisions. Using an example, calculate the weighted cost of capital (WACC). What are some potential issues in using varying techniques for cost of capital for different divisions?
Question B How does the treatment of costs differ in ABC systems as opposed to traditional cost systems? Week 4 Discussion Questions Question A What approach should be used to calculate the breakeven point of a company that has many products? Question B How is the contribution margin per unit of limited resources computed? Week 5 Discussion Questions Question A What factors must management consider when deciding whether to continue using an asset, repair, or replace it? Question
Since the contact was not drafted within the 90-day timeframe, new management could not make obligation to distribute the product, and had the right to decline Chou of his prior agreement through oral agreement. Does the fact that the parties were communicating via-email have an impact on your analysis in Question 1 and 2 (above)? Via-email communication is a legitimate communication source which can be held as an agreeable for making agreements to decision-making sources. The fact that both parties decided to communicate via-email does not have an impact on how I have chosen to analysis the situation. With this process being put into action the email could have been acceptable if the parties would
This reduction is expected to be completed by January 31, 2012 and will approximately cost $3 million dollars. The cost of terminating employees shall not be recorded in the year ended December 31, 2011. ASC 420-10-25-4 says, “An arrangement for one-time employee termination benefits exists at the date the plan meets all of the following criteria and has been communicated to employees.” Following these guidelines we do not meet requirements, because we have not communicated to the employees the benefits they will receive upon termination and Pharma Co. hasn’t specified the job classification of the 120 employees. Otherwise, this cost will be recognized when incurred at fair
Question: (TCO 9) Which of the following will never be a relevant cost? 4. Question: (TCO 9) A company is deciding whether or not to replace some old equipment with new equipment. Which of the following is not considered in the incremental analysis? 5.
Brief Statement The constant hurdle rate has been taking some heat from investors and has been addressed by Victor Yossarian. As part of the company’s responsibility, we are moving forward and evaluating the firm in its current state. The analysis taking place will provide arguments for using a constant hurdle rate versus segment risk-adjusted hurdle rates. The goal of the evaluation is to use the method that will benefit the term in the long-run and provide a better project assessment for future forecasts. The Firm’s Current State Teletech has been using a single corporate-wide hurdle rate to assess projects, allocate funds, and as the discount rate.
Factors for consideration a. law’s non-logical implications in interpretation what parties would’ve agreed to (ex. Haines: duration and scope of contract) - policy: at-will doctrine in employment: policy - would’ve agreed to terms had they anticipated situation - had in mind, but didn’t express it b. context - what is the objective of the contract? Is it ambiguous? Ex. Spaulding v. Morse (369): stop yearly payment to trust during time in armed services - enforce according to terms if unambiguous, consider context if terms are ambiguous - not only context at time of contract formation, but also what happened AFTER ⇨ changed circumstances - why look at context?
Nonetheless, liability disclosure on the balance sheet is not required. What’s more, is that OPEBs are deemed similar to defined benefit plans; however, they have three differing characteristics: OPEBs are dependent upon the amount of future services; whereas, defined benefits are calculated by formula, employees do not accrue OPEBs with each additional year of service, as they do with defined benefits, and “OPEBs do not vest (Schroeder, Clark, & Cathey., p.458).” As a result, the following components of OPEBs are treated differently than those found under defined benefits: service cost, interest, amortization of prior services, amortization of the transition obligation, and disclosure. Disclosure of OPEBs along with the funding policy and amounts as well as types of funded assets, its components and reconciliations must be reported in the financial statements of an organization. Additionally, “assumed health care cost trend rates [and] the effects of a one-percentage-point increase in the assumed health care cost trend rates” must be disclosed (Schroeder, Clark, & Cathey.,