Highest and best use of these two pharmaceutical drugs

Reference no: EM132984901

Question: A pharmaceutical company acquires a company with two drugs.

Drug A is a cholesterol lowering drug. By itself, Drug A is moderately effective. Drug B is another moderately effective cholesterol lowering drug. When taken together, Drug A and Drug B are highly effective at lowering cholesterol levels. On a standalone basis, Drug A has a fair value of $300 million and Drug B has a fair value of $200 million. When the drugs are valued together, Drug A and Drug B have a combined fair value of $525 million.

Complete the table below. Explain your answer below the table.

What is the Highest and Best Use of these two pharmaceutical drugs?

What is the Fair Value?

Reference no: EM132984901

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