2-3 Case name‚ citation‚ and court: Ashley County‚ Arkansas v. Pfizer‚ Inc‚ 552 F.3d 659 (8th Cir. 2009) Summary of Key Facts: An ingredient widely used in Pfizer’s products is a necessary ingredient in the manufacturing of methamphetamine in small toxic labs which are responsible for dangerous explosions‚ burns‚ and toxic fumes. Arkansas has one of the largest numbers of small toxic labs in the US and is burdened with high costs of fighting the meth epidemic and is seeking to recoup some of the
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Estimating the Cost of Capital: Survey and Synthesis Case 13 Teaching Notes Introduction “Each year in the US‚ corporations undertake more than $500 billion in capital spending” (Bruner 184). This case presents a reasonably analyzed set of teaching notes describing how these financially sophisticated corporations estimate their capital costs. Understanding the estimation of capital costs helps identify the uncertainty of the cost-of-capital theory‚ sets a benchmark for cost-of-capital‚ helps
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An Economy and Industry Analysis Focus Industry: Pharmaceutical Industry Focus Company: Pfizer‚ Inc. (PFE - NYSE) Pharmaceutical Industry Classification The pharmaceutical industry seems to be an intermingling of growth and expansion stage. This is mainly due to the fact that there are so much research and development (R&D) work being conducted in the industry‚ creating growth in the industry. At the same time‚ various players in this industry have started to acquire or merge with their respective
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Where am I!?’ 4 2 17/09/2013 International business … Refers to those business activities that involve the crossing of national boundaries. These include: Import and export of commodities and manufactured goods; Investment of capital in manufacturing‚ extractive‚ agricultural‚ transportation and communications assets; Supervision of employees in different countries; Investment in international services‚ e.g. banking‚ education‚ advertising‚ tourism‚ retailing and construction;
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Audit Quality and Cost of Debt Capital for Private Firms: Evidence from Finland Jukka Karjalainen Department of Business University of Eastern Finland April 10‚ 2010 Abstract The purpose of this paper is to examine the value relevance of the perceived audit quality in terms of who audits‚ as well as the audit outcomes in terms of the auditor’s opinion and accruals quality‚ in the pricing of debt capital for privately-held firms by examining a large sample of privately-held Finnish firms. The
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along with the further clarification on the cost of capital using DCF approach. The cost of capital is a term used in the field of financial investment to refer to the cost of a company’s funds‚ both debt and equity‚ or from an investors’ point of view‚ the shareholders required return on a portfolio of a company’s existing securities. It is used to evaluate new projects of a company as it is the minimum return that investors expect for providing capital to the company‚ thus setting a benchmark that
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PFIZER CASE The pharmaceutical industry has to continuously develop new products (patents). The different phases requested ahead a new product launch involves long gestation periods‚ and the development of a new product takes around 10 to 15 years. In general‚ most large pharmaceutical firms have a centralized R&D unit. R&D trends in Pharmaceutical industry: In the past‚ increase of R&D costs for a new drug (for one: 1975: € 150m / 1987: € 344m / 2000: € 870m 1/3 of all medicines
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wealthy individuals when they started company‚ and they committed a great deal of their own funds to the venture. Their personal funds‚ however‚ were soon exhausted by the extreme and rapid growth of the company. This caused them to have to raise capital from outside resources. The borrowed heavily for a few years until all funds were used. They then turned their sights to issuing both preferred and common equity. SIVMED is organized into 2 divisions: the Clinical Research Division and the Genetic
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CHAPTER 6 PRODUCTION EXERCISES 4. A political campaign manager must decide whether to emphasize television advertisements or letters to potential voters in a reelection campaign. Describe the production function for campaign votes. How might information about this function (such as the shape of the isoquants) help the campaign manager to plan strategy? The output of concern to the campaign manager is the number of votes. The production function has two inputs‚ television advertising and
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the Weighted Average Cost of Capital (WACC) based on using retained earnings in the capital structure. In order to find the WACC‚ we need to find the cost of the components of the capital structure and their proportion in the total capital. Cost of Debt – To find the cost of debt‚ we use the details of the bonds issued by Rollins Instruments. The bonds have 20 years to maturity‚ pay interest at 9.3%‚ have a par value of $1‚000 and are currently selling for $890. The cost of debt is the yield
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