Investments in new assets

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1. Suppose we assume that Amgen can only achieve the forecasted revenue growth rates by acquiring other companies. Which of the following asset accounts is the most likely to change from "non-operating" to "operating?"

a. "Cash and Equivalents."

b. "Plant, Property, and Equipment (Net)."

c. "Intangibles."

2. (Reference spreadsheet: Quiz #3 - AMGN file) During class discussion of Amgen, I called it an "asset-light" company. Which one metric shown in the "ratios_hist" tab provides the best evidence that Amgen is not overly reliant on significant investments in new assets (relative to its income).

a. Total asset turnover (TAT).

b. Net investment.

c. Net debt issued.

Reference no: EM131877477

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