Question
13.6. Morningview Nursing Home, a not-for-profit corporation, is estimating its CCC (Corporate Cost of Capital). Its tax-exempt debt currently requires an interest rate of 6.2%,
13.6. Morningview Nursing Home, a not-for-profit corporation, is estimating its CCC (Corporate Cost of Capital). Its tax-exempt debt currently requires an interest rate of 6.2%, and its target capital structure calls for 60% debt financing and 40% equity (fund capital) financing. The estimated costs of equity for selected investor-owned healthcare companies are as follows:
GlaxoSmith Kline: 15%
Long Term Care Group Inc: 16.4%
Encompass Health: 17.4%
Humana: 18.8%
- What is the best estimate for Morning views cost of equity?
- What is the firms CCC?
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The Principals Guide To School Budgeting
Authors: Richard D. Sorenson, Lloyd M. Goldsmith
3rd Edition
1506389457, 978-1506389455
