3. Novo Industri. Novo Industri A/S merged with Nordisk Gentofte in 1989. Nordisk Gentofte was Novo's main European competitor. The combined company, now called Novo Nordisk, has become the leading producer of insulin worldwide. Its main com- petitor is still Eli Lilly of the United States. Using standard investor information, and the Web site for Novo Nordisk and Eli Lilly, determine whether dur- ing the most recent five years Novo Nordisk has maintained a cost of capital competitive with Eli Lilly. In particular, examine the P/E ratios, share prices, debt ratios, and betas. Try to calculate each firm's actual cost of capital.

Novo Nordisk www.novonordisk.com Eli Lilly and Company www.lilly.com BigCharts.com bigcharts.com