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Triss [41]
1 year ago
12

In analyzing the pharmaceutical industry for a prospective business​ launch, nicole​ turco, a ph. D. In​ pharmacology, concluded

that the industry was attractive because the threat of substitutes is​ ___________.
Business
1 answer:
kotykmax [81]1 year ago
3 0

In analyzing the pharmaceutical industry for a prospective business​ launch, Nicole​ Turco, a ph. D. In​ pharmacology, concluded that the industry was attractive because the threat of substitutes is​ Low

This is further explained below.

<h3>What is the pharmaceutical industry?</h3>

Generally, The pharmaceutical industry is responsible for the research, development, production, and marketing of drugs or pharmaceutical drugs that are intended for use as medications to be administered to patients in the hope of curing patients, vaccinating patients, or reducing the severity of their symptoms.

In conclusion, Nicole Turco, who holds a doctorate in pharmacology, came to the conclusion that the pharmaceutical industry was appealing after conducting research on the sector in preparation for the launch of a potential business.

She came to this conclusion after finding that the industry faces a low level of competition from substitute products.

Read more about the pharmaceutical industry

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Answer:

Present Value 5,715,331.32

We are going to accept the project only if the initial investment is at 5,715,331 or below in order to achieve the return to support the cost of capital structure of the company

Accepting a project with a higher cost will not generate enought cashflow to sustain the patyment of debt and the return expected from the stockholders therefore, will generate a economic result and investor will leave the company for other which can sustain their desired return.

Explanation:

We are going to discount the yearly cash-flow at the given rate of 12.50%

then, the terminal value which is the present value of the future period will also be discounted at this rate.

The sum of all this will be the present value of the firm.

\left[\begin{array}{ccc}$Year&$Cash Flow&$Discounted\\1&575000&511111.11\\2&625000&493827.16\\3&650000&456515.77\\4&725000&452613.93\\5&850000&471689.61\\$terminal&6000000&3329573.74\\Present&Value&5715331.32\\\end{array}\right]

The formula we use the present value of a lump sum:

\frac{Maturity}{(1 + rate)^{time} } = PV

We are going to accept the project only if the initial investment is at 5,715,331 or below in order to achieve the return to support the cost of capital estructure of the company

3 0
3 years ago
As the sonic brand grew, troy smith formed a business relationship with charlie pappe. This form of business ownership was a
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The terms and conditions of this agreement and the quantum of profit for each partner is clearly stated in a document called the partnership agreement.

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When John first starts his job, he rides the bus wherever he goes. However, after one year, John receives a promotion and a pay
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<em>An inferior good</em>

<em></em>

Explanation:

<em>An inferior good is a good whose demand decreases with consumer's increase in income</em>. John's increase in pay, that came with his promotion, triggered John to switch to driving everywhere he goes instead of riding the bus. This is because John feels that riding the bus is no longer fit for him, now that he could readily afford driving around in the stead of taking the cheaper bus ride.

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3 years ago
Splish Inc. had pretax financial income of $139,400 in 2020. Included in the computation of that amount is insurance expense of
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Answer:

The Journal entry and their narrations is shown below:

Explanation:

The Journal entry is shown below:-

Income tax expenses Dr,         $43,140

        To income tax payable                    $40,140

         To Deferred tax liability                  $3,000

(Being Income tax expenses for the year is recorded)

Working Note 1:-

Income as per tax purpose

Pretax financial income                   $139,400

Add: permanent difference

Disallowed insurance expenses     $4,400

Less: Timing difference

Excess depreciation allowed            $10,000

Income as per tax purpose                 $133,800

Working Note 2

Income tax payable

= Income tax rate × Income as per tax purposes

= 30% × $133,800

= $40,140

Working Note 3

Deferred tax liability = Timing difference × Tax rate

= $10,000 × 30%

= $3,000

6 0
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