Assume that Congress announces its intention to limit theprices and profits of pharmaceutical companies as part of aneffort to control health care costs. What effect would youexpect this announcement to have on the p/e ratios and stockprices of pharmaceutical companies such as Merck andBristol-Myers Squibb ? Explain.
Assume that Congress announces its intention to limit theprices and profits of pharmaceutical companies as part of aneffort to control health care costs. What effect would youexpect this announcement to have on the p/e ratios and stockprices of pharmaceutical companies such as Merck andBristol-Myers Squibb ? Explain.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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