Suppose that Morningside Nursing Home, a not-for-profit corporation, is estimating its corporate cost of capital. Its tax-exempt

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Suppose that Morningside Nursing Home, a not-for-profit corporation, is estimating its corporate cost of capital. 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 financing. Its estimated cost of equity is 15.4 percent. What is Morningside’s corporate cost of capital?

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Fundamentals Of Healthcare Finance

ISBN: 9781640553224

4th Edition

Authors: Paula H. Song, Kristin L. Reiter

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