ABC Health has a target capital structure of 25% debt and 75% equity. Its cost of equity estimate is 15% and its cost of tax-exempt debt estimate is 8%. What is the CCC? (5 points)

Question 5

Prepare a cash flow analysis similar to exhibit 14.3 on page 556 of your textbook. Assume revenue and related expenses increase each year by 1.2% (15 points)

		2024	2025	2026
System Cost ($3,000,000.00)
Related Expenses ($1,000,000.00)
Net Revenue	$14,500,000.00
Labor cost	$1,500,000.00
Maintenance Cost	$ 500,000.00
Supplies	$ 600,000.00
Overhead	$ 100,000.00
Depreciation	$ 200,000.00
Net Cash Flow
($4,000,000.00)