INSTRUCTIONS:
Vyaderm case: (Team assignment) Prepare an answer to the following four questions. In your own words (do not copy and paste from the case): 1) What is the rationale for capitalizing R&D as an asset instead of expensing it immediately? 2) What are the pros and cons of “caps” and “floors” (see Exhibit 3 of the case)? 3) What are the intended benefits of a “bonus bank”? 4) If you were in Vedrine’s shoes, what would you do about the bonus for the Dermatology Division?