Morningview Nursing Home, a not-for-profit corporation, is estimating its CCC. Its tax-exempt debt currently requires an interest
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Morningview Nursing Home, a not-for-profit corporation, is estimating its CCC. Its tax-exempt debt currently requires an interest rate of 6.2 percent, and its target capital structure calls for 60 percent debt financing and 40 percent equity (fund capital) financing. The estimated costs of equity for selected investor-owned healthcare companies are as follows:
a. What is the best estimate for Morningview’s cost of equity?
b. What is the firm’s CCC?
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Related Book For 
Gapenski's Healthcare Finance An Introduction To Accounting And Financial Management
ISBN: 9781640551862
7th Edition
Authors: Kristin L. Reiter, Paula H. Song
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