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1.A pharmaceutical company acquires a company with two drugs. Drug A is a cholesterol lowering drug. By itself, Drug A is moderately effective. Drug B

1.A pharmaceutical company acquires a company with two drugs. Drug A is a cholesterol lowering drug. By itself, Drug A is moderately effective. Drug B is another moderately effective cholesterol lowering drug. When taken together, Drug A and Drug B are highly effective at lowering cholesterol levels. On a standalone basis, Drug A has a fair value of $300 million and Drug B has a fair value of $200 million. When the drugs are valued together, Drug A and Drug B have a combined fair value of $525 million.

Complete the table below.Explain your answer below the table.

What is the Highest and Best Use of these two pharmaceutical drugs?

What is the Fair Value?

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