Vyaderm+Assignment - managers bonus is based 100% on the...

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FIN 4414 – F INANCIAL M ANAGEMENT – S PRING 2012 “Vyaderm Pharmaceuticals” Case Assignment Due: February 7, 2012 Case: “Vyaderm Pharmaceuticals,” Robert L. Simons and Indra A. Reinbergs, HBS, Case # 9-101-019, Revised January 18, 2001. Main Question: What recommendation should Sanders and Myers make to Maurice Vedrine? Additional Questions: 1. Using data from case Exhibit 8, calculate items a – c: a. 2000 EVA for the North American Dermatology division. b. 2000 EVA bonus payout for a manager earning $200,000, assuming that the
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Unformatted text preview: managers bonus is based 100% on the divisions EVA. c. 2001 EVA and estimated bonus payout for the same manager, assuming that Vyaderms profits fall back to historical levels and the EVA improvement goal remains constant. 2. What are the costs and benefits of using a large number of EVA centers? What do you believe is the appropriate number of centers in this case?...
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This note was uploaded on 02/10/2012 for the course FIN 4414 taught by Professor Staff during the Spring '08 term at University of Florida.

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