Gapenski's Healthcare Finance: An Introduction to Accounting and Financial Management

Chapter $13-$Capital Structure and the Cost of Capital

$9/15/21$

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Mini$-$Case

Formula or cell reference

Valeria Flores works in the strategic planning division of Diaz Healthcare Inc $($DHI$),$ a large operator of skilled nursing facilities. In the most recent strategic plan, she identified several opportunities for substantial growth of the company and recommended a major expansion program. Her recommendation was accepted by the Board and senior management, so Valeria must now estimate the corporate cost of capital for DHI as the first step in evaluation of potential capital expansion projects.

Valeria has assembled the following information: