St. Luke's Convalent Center has $200,ooo in surplus fund that it wishes to invest in marketable securities. If transaction costs to buy and sell the securities are $2,200 and the securities will be held for three months, what required annual yield must be earned before the investment makes economic sense?
2. Your hospital has billed charges of $4,000,ooo in February. If your collection experience indicates that 20 percent is paid in the month billed, 40 percent in the second month, 20 percent in the third month, and 5 percent in the fourth month, determine the following values:
a. Net patient revenue for February
b. Collections of February charges in February
c. Net account receivable at the end of March for February billings