Threat of new entrants and threat of new entrants

Assignment Help Financial Management

Reference no: EM131954757

A bank offers a monthly interest rate of 1.74% compounded monthly. What is the effective annual interest rate? Enter your answer as a percentage between 0 and 100.Pharmaceutical industry firms have been trying to counter the changes below through M&A and strategic alliance activity. Please categorize them according to Porter’s Five Forces.

Porter’s Five Forces:

-Threat of substitutes (SUBST)

-Threat of new entrants (NEWE)

-Threats of supplier leverage (SUPPL)

-Threat of buyer leverage (BUYER)

-Threat of rivalry (RIVAL)

Adapted from Schon, H. 2015. Pharmaceuticals M&A versus alliances and its underlying value drivers.

1. ________ Government austerity measures like the 2010 Affordable Care Act have lowered prices.

2. ________ Generics constituted 22% of pharmaceutical sales in 2006, 40% in 2016.

3. ________ Biologics (biotechnology) accounted for 16% of pharmaceutical sales in 2006, 22% in 2016.

4. ________ R&D productivity in terms of new FDA-approved small and large molecules has remained essentially unchanged since 1998, perhaps contributing to slowing industry sales at large firms.

Reference no: EM131954757

Questions Cloud

Decided to pay off loan by repaying the outstanding balance : You have just made a payment and have now decided to pay off the loan by repaying the outstanding balance. What is the payoff amount for the following scenarios

Short-term debt only to fund cyclical working capital needs : Beltway uses short-term debt only to fund cyclical working capital needs.

What is effective annual interest rate : A bank offers a monthly interest rate of 1.74% compounded monthly. What is the effective annual interest rate?

What is the project cost of capital-target capital structure : What is a weighted average cost of capital (WACC), and what is a target capital structure? What is the project cost of capital and how does it differ from WACC

Threat of new entrants and threat of new entrants : What is the effective annual interest rate? Porter’s Five Forces -Threat of substitutes (SUBST) -Threat of new entrants (NEWE) -Threats of supplier leverage

What monthly deposit is required-annual interest rate : What monthly deposit is required to accumulate $10,000 in five years if the deposits earn a 12% annual interest rate?

Average price-earnings ratio : Assume ABC’s average price-earnings ratio will remain the same in 2018.

What is the nominal interest rate for this savings account : Assuming you only have made that single deposit and you made no withdrawals, what is the nominal interest rate for this savings account?

Identify different forms of financial forecasting methods : Identify the different forms of financial forecasting methods. What do you think are the weaknesses and strengths of each?

User Account

All Pages