Case 8 HCA LBO Exit.doc materials as many as you want. Study Guide: Try to answer the following questions in your case report. Why was HCA financing dividend payments with debt? Are such dividend recaps sustainable for HCA as a public company? 2 Why did HCA go public in 2011 instead of continuing dividend recaps? 3. Why was Bank of America looking to sell its stake in HCA? 4. The closing stock price on September 14, 2011 was $18.61. Do you think HCA management should negotiate to pay less than $18.61 per share? What factors should be considered in this decision? s. Compute the return on equity that Bank of America will realize if it sells the rest of its stake at $18.61 per share? Case 8 HCA LBO Exit.doc materials as many as you want. Study Guide: Try to answer the following questions in your case report. Why was HCA financing dividend payments with debt? Are such dividend recaps sustainable for HCA as a public company? 2 Why did HCA go public in 2011 instead of continuing dividend recaps? 3. Why was Bank of America looking to sell its stake in HCA? 4. The closing stock price on September 14, 2011 was $18.61. Do you think HCA management should negotiate to pay less than $18.61 per share? What factors should be considered in this decision? s. Compute the return on equity that Bank of America will realize if it sells the rest of its stake at $18.61 per share