Question

if a large medical firm is decided to invest its business in vertically integrating. what options...

if a large medical firm is decided to invest its business in vertically integrating. what options will be available for them for ( backwards and forward integration)

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

vertical integrating means coordinating the different stages of an industry when bilateral trading is not beneficial, its a risky strategy and complex to understand, expensive, and hard to reverse yet some compinies jump into them without adquate risk analysis.

if a large medical firm has decided to invest its business in vertical integrating, he should forward integrate. As, manufacturers can reduce steps in the distribution of product and sell higher up in the distribution process with the entry barrier in the market. Successful implementation may provide a company with a competitive advantage over its competitorsand a company could benefit from price discrimination.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
a) A firm has three different production facilities, all of which produce the same product. While...
a) A firm has three different production facilities, all of which produce the same product. While reviewing the firm’s cost data, Jasmin, a manager, discovers that one of the plants has a higher average cost than the other plants and suggests closing that plant. Another manager, Joshua, notes that the high-cost plant has high fixed costs but that the marginal cost in that plant is lower than in the other plants. He says that the high-cost plant should not be...
Condax Electronics relied on a large chain of consumer electronics stores to sell its tablet computers,...
Condax Electronics relied on a large chain of consumer electronics stores to sell its tablet computers, cell phones, and televisions and also to provide customer service and technical support. However, that retailer outsourced its service departments, and customers began to complain that they could not get reliable tech support for Condax products. In response, Condax Electronics decided to set up its own tech support department, and it also began to investigate opening its own brand-based retail stores. What does this...
A brokerage firm has just been instructed by one of its clients to invest $600,000 of...
A brokerage firm has just been instructed by one of its clients to invest $600,000 of her money. The analysts at the brokerage firm are considering the following options for investment:                                                                                           Projected Rate Investment Option            of Return (%) Municipal bonds                          2.4 Company A stocks                      8.0 Company B stocks                      10.2      Company C stocks                       9.5 The client has specified the following guidelines: - Municipal bonds should constitute at least 30% of the money invested. - At least 50% of...
Physicians who have borrowed extensively to finance their medical educations often enter practice with large debts...
Physicians who have borrowed extensively to finance their medical educations often enter practice with large debts that they must begin repaying. How does this impact the fees a doctor would charge? Consider all of the following in your answer: a. What difference would you expect to observe in the fees set by three young physicians just setting up private practice if one financed his education by borrowing and must now make payments of $9,600 per year for 15 years, another...
You are a consultant to a firm evaluating an expansion of its current business. The annual...
You are a consultant to a firm evaluating an expansion of its current business. The annual cash flow forecasts (in millions of dollars) for the project are:             Years Annual Cash Flow 0 -83 1 - 10 14         Based on the behaviour of the firm's stock, you believe that the beta of the firm is 1.5. Assuming that the rate of return available on risk-free investments is 5% and that the expected rate of return on the market portfolio...
You are a consultant to a firm evaluating an expansion of its current business. The cash-flow...
You are a consultant to a firm evaluating an expansion of its current business. The cash-flow forecasts (in millions of dollars) for the project are as follows: Years Cash Flow 0 – 100 1-10 + 16 On the basis of the behavior of the firm’s stock, you believe that the beta of the firm is 1.33. Assuming that the rate of return available on risk-free investments is 6% and that the expected rate of return on the market portfolio is...
(Business law) Jennifer decided to sell her large recreational vehicle (RV). Considerable portions of the RV...
(Business law) Jennifer decided to sell her large recreational vehicle (RV). Considerable portions of the RV floor had suffered termite damage and this, in turn, had led to some rotting. Before dealing with any potential buyers, Jennifer decided to purchase several small area rugs and place them throughout the RV, including over all the areas that had termite damage. “I’m entitled to do any kind interior redecorating that I see fit. If a buyer is too stupid to look under...
You are a consultant to a firm evaluating an expansion of its current business. The cash-flow...
You are a consultant to a firm evaluating an expansion of its current business. The cash-flow forecasts (in millions of dollars) for the project are as follows: Years    Cash Flow    0 – 100 1–10 + 18 On the basis of the behavior of the firm’s stock, you believe that the beta of the firm is 1.45. Assuming that the rate of return available on risk-free investments is 6% and that the expected rate of return on the market...
Your firm is planning to invest in an automated packaging plant. Harburtin Industries is an​ all-equity...
Your firm is planning to invest in an automated packaging plant. Harburtin Industries is an​ all-equity firm that specializes in this business. Suppose​ Harburtin's equity beta is 0.83​, the​ risk-free rate is 3%, and the market risk premium is 5% a. If your​ firm's project is​ all-equity financed, estimate its cost of capital. After computing the​ project's cost of capital you decided to look for other comparables to reduce estimation error in your cost of capital estimate. You find a...
You are a consultant to a firm evaluating an expansion of its current business. The cash-flow...
You are a consultant to a firm evaluating an expansion of its current business. The cash-flow forecasts (in millions of dollars) for the project are as follows: Years Cash Flow 0 – 100 1 - 10 + 15 On the basis of the behavior of the firm’s stock, you believe that the beta of the firm is 1.49. Assume that the rate of return available on risk-free investments is 4% and that the expected rate of return on the market...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT