Assignment:
Readings the following chapter are given below is:
Capital Formation
Refer to Navigate Scenario- "Firm Financial Position or not?" to complete this assignment.
In this scenario, the student must help to determine whether the hospital should consider a bond to finance a major hospital renovation. The student needs to prepare a position on this critical financial determination for an upcoming Board meeting where all sides will be discussed.
Answer the following questions in essay format, typed, double spaced, 12 font, at least two pages in length, with a heading, introduction, body, conclusion and reference.
1. What is it they are trying to determine?
2. What are the hospital's biggest expense?
3. What are the two metrics Cheryl recommends to use? What is the difference between them?
4. What is the hospital's long term goal? Please define / explain it.
5. What are the steps taken to meet their goal? What model did they use?
6. What did their macro drivers include?
7. What was the recommendation to the board? Why was this recommended? Did the Board agree?
8. Do you agree with the boards decision, why or why not?