b. Two pharmaceuticals companies are developing a cure for cancer. Company A has been successful in drug

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b. Two pharmaceuticals companies are developing a cure for cancer. Company A has been successful in drug development in the past and earned a 25% rate of return on its past investments. Company B has been less successful and only yielded 15%.

Should Company A require a higher, lower, or the same return on the cancer cure than Company B?

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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