Why did Novo believe that its cost of capital was too high compared to its competitors? Why did Novo’s relatively high cost of capital create a competitive disadvantage? Novo price/earnings ratio was only 5 compared to 10 and more for its competitors. Novo could not borrow more money, and the Danish equity market was saturated. High cost, segmented capital market and …
Jan 13, 2015 · Why did Novo’s relatively high cost of capital create a competitive disadvantage? Novo observed that its price/earnings ratio was only 5 compared to 15 and higher for its competitors. Novo was also told by its bankers that they could not borrow much more, and the domestic equity market was saturated with respect to Novo’s stock.
Apr 15, 2014 · Novo observed that its price/earnings ratio was only 5 compared to 15 and higher for its competitors. Novo was also told by its bankers that they could not borrow much more and the domestic equity market was saturated with respect to Novo’s stock. Novo’s high cost and low availability of capital in Denmark would prevent it from fully exploiting its competitive …
Aug 03, 2012 · Why did Novo’s relatively high cost of capital create a competitive disadvantage? Novo observed that its price/earnings ratio was only 5 compared to 15 and higher for its competitors. Novo was also told by its bankers that they could not borrow much more and the domestic equity market was saturated with respect to Novo’s stock.
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