There are two statements/questions up for discussion this week, both drawn from Chapter 11 in the e-text:
1. Read the Financial Challenge - Pharmaceutical Risk: Novo Nordisk on pages 395-6 in the e-Text. What actions do you think this company and the other similar firms should take in order to reduce the likelihood that shareholders value would increase rather than decrease? Remember to define financial terminologies as you use them
2. In Chapter 11 of our e-text mention is made of simulation which in a nutshell is, a financial planning tool employed in capital budgeting. A vital parameter of this process involves a good estimation and probability distribution of each cash flow elements, would you agree/disagree?
Describe and explain fully the above statement and question.