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.