COST OF CAPITAL & CAPITAL STRUCTURE

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?

 

 

Sample Solution

ACED ESSAYS