Determine how a pharmaceutical should address its free cash flow, either through distributions to shareholders or through repurchasing of stock. Explain rationale.© BrainMass Inc. brainmass.com October 2, 2020, 4:16 am ad1c9bdddf
For a pharmaceutical company, we would much rather see a distribution to shareholders. Pharmaceutical companies have extensive capital requirements due to the nature of the industry. The costs of research and development alone for pharmaceutical companies is astounding. On account of the cash requirements that are to continue the funding ...
The solution addresses free cash flow through distributions to shareholders or repurchasing of stock.