User Account

All Pages

What is the present value of the new drug

Assignment Help Financial Accounting
Reference no: EM132934265

Question - You work for a pharmaceutical company that has developed a new drug. The patent on the drug will last 17 years. You expect that the? drug's profits will be $4 million in its first year and that this amount will grow at a rate of 3% per year for the next 17 years. Once the patent? expires, other pharmaceutical companies will be able to produce the same drug and competition will likely drive profits to zero. What is the present value of the new drug if the interest rate is 7% per? year?

Reference no: EM132934265

Questions Cloud

What issue do see regarding roic in the presentation : What issue do you see regarding ROIC in the presentation? Bill Ackman challenges the valuation based on high multiple and non-GAAP basis (2:05:00).
Prepare the Statement of Comprehensive Income : During the FY, a further $100,000 ordinary shares were issued and fully paid on application $100,000. Prepare the Statement of Comprehensive Income
Calculate the quality spread differential : Calculate the quality spread differential (QSD). Alpha and Beta Companies can borrow for a five-year term at the rates, Fixed-rate borrowing cost.
What is the country current account balance : What is the country's current account balance? A country has exports of 25,000 million dollars, imports of 20,000 million dollars, net transfers from abroad.
What is the present value of the new drug : You expect that the? drug's profits will be $4 million in its first year. What is the present value of the new drug if the interest rate is 7% per? year
What is the market risk premium : What is the market risk premium? The market has an expected rate of return of 9.8 percent. The long-term government bond is expected to yield 4.5 percent.
What are costs for a company : A company is contemplating issuing a bond and is debating whether or not to include a call provision. What are costs? How do answers change for a put provision?
Why purchasing for technology is different from other types : Why purchasing for technology is different from other types of purchasing and why it is important to have defined policies around the purchase of technology.
Calculate the economic value added : Home Depot entered fiscal 2017 with a total capitalization of $21,940 million. Calculate the economic value added

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd