Consider and discuss the following in Southeastern Home Care Case: the founders of Southeastern are concerned about the threat posed by home healthcare businesses started by not-for-profit hospitals. Using the data in Table 18.3, (page 122), estimate the cost of capital for the homecare division of an average not-for-profit hospital. How much confidence do you have in the cost of capital estimate? Why? In your opinion, what are three key learning points from this case?
