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please do it correctly will upvote please do it in 30 minutes will upvote necessary to perform a DCF analysis? Why or why not? 3.

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please do it correctly will upvote

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please do it in 30 minutes will upvote

necessary to perform a DCF analysis? Why or why not? 3. Emily Tang is suggesting a discount rate (MARR) of 7%. Is that appropriate? Why or why not? Determine what rate should be used for the analysis. 4. Using the information in the case study and the excel template provided on Blackboard, conduct a DCF analysis. Title Page Exhibit 2 Exhibit 3 DCF Model A B D E F G . 1 1 Exhit 2 2 Caiavash Community Hospital 3 Financial Data on Comparable Companies (financial statement data from 2018) 4 5 Tenet Healthcare 6 Description: Operates 475 outpatient centers, 255 ambulatory surgery centers, 68 hospitals, 23 surgical hospita 7 8 Revenue $18.3 billion 9 Enterprise value $21.4 billion 10 Market equity value $6.8 billion 11 Total debt $14.6 billion 12 Operating margin 11.0% 13 Return on assets 5.5% 14 Beta 0.75 15 Bond rating Ba 16 17 Surgery Partners 18 Description: Operates 108 ambulatory surgical centers and 15 surgical hospitals in 31 states. 19 20 Revenue $1.8 billion 21 Enterprise value $4.7 billion 22 Market equity value $2.4 billion 23 Total debt $2.3 billion 24 Operating margin 14.7% 25 Return on assets 3.5% 26 Beta 0.80 27 Bond rating B 28 29 Sources: Descriptions and company data are from Yahoo! Finance; bond ratings are from Moody's; Beta estimates a 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 Title Page Exhibit 2 Exhibit 3 DCF Model ... A B D 1 Exhibit 3 2 Calabash Community Hospital 3 Capital Markets Information (December 2019) 4 5 6 10-Year Government Bond Yields 7 8 Australia 1.19% 9 Brazil 6.82% 10 Canada 1.44% 11 France -0.05% 12 Germany -0.35% 13 Hong Kong 1.47% 14. India 6.47% 15 Italy 1.28% 16 Japan -0.04% 17 Mexico 7.12% 18 South Korea 1.71% 19 United Kingdom 0.67% 20 United States 1.72% 21 22 23 24 25 US Corporate Bond Yields 26 2.32% 27 A 2.81% 28 Baa 3.42% 29 Ba 4.32% 30 B 5.55% 31 nn Mata. The band din naaa A B D E F G H 1 J L M Calabash Community Hospital Discounted Cash Flow Analysis Model Discount rate 1 2 3 4 Assumptions: 5 Procedures per year Current avg net reimbursement per 6 procedure 7 Annual rate of change for reimbursment 8 9 Fixed cost 10 Annual inflation rate 11 Variable cost 12 Impact on hospital 13 14 Years 15 Procedures per year 16 Avg reimbursement rate 17 Net reimbursements/ Incremental Revenue 18 19 Fixed cost 20 Variable cost 21 Depreciation 22 Net effect on inpatient profits 23 Total Expenses Capital expenditure Salvage value Value of land Account receivable days 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 24 Operating profit/ Net Cash Flow 25 - Capital expenditure 26 Free cash flow 27 28 Net present value (NPV) 29 29 30 SU 21 32 23 24 25 26 SO 22 28 so 20 40 * 41 2 72 13 43 49 64 72 72 13 24 14 25 13 26 70 72 17 79 78 20 19 on ou 81 81 22 04 93 83 84 OE 83 86 87 87 88 88 ga 89 an 90 01 91 02 94 03 93 94 94 Q5 95 96 97 98 99 100 101 102 103 104 necessary to perform a DCF analysis? Why or why not? 3. Emily Tang is suggesting a discount rate (MARR) of 7%. Is that appropriate? Why or why not? Determine what rate should be used for the analysis. 4. Using the information in the case study and the excel template provided on Blackboard, conduct a DCF analysis. Title Page Exhibit 2 Exhibit 3 DCF Model A B D E F G . 1 1 Exhit 2 2 Caiavash Community Hospital 3 Financial Data on Comparable Companies (financial statement data from 2018) 4 5 Tenet Healthcare 6 Description: Operates 475 outpatient centers, 255 ambulatory surgery centers, 68 hospitals, 23 surgical hospita 7 8 Revenue $18.3 billion 9 Enterprise value $21.4 billion 10 Market equity value $6.8 billion 11 Total debt $14.6 billion 12 Operating margin 11.0% 13 Return on assets 5.5% 14 Beta 0.75 15 Bond rating Ba 16 17 Surgery Partners 18 Description: Operates 108 ambulatory surgical centers and 15 surgical hospitals in 31 states. 19 20 Revenue $1.8 billion 21 Enterprise value $4.7 billion 22 Market equity value $2.4 billion 23 Total debt $2.3 billion 24 Operating margin 14.7% 25 Return on assets 3.5% 26 Beta 0.80 27 Bond rating B 28 29 Sources: Descriptions and company data are from Yahoo! Finance; bond ratings are from Moody's; Beta estimates a 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 Title Page Exhibit 2 Exhibit 3 DCF Model ... A B D 1 Exhibit 3 2 Calabash Community Hospital 3 Capital Markets Information (December 2019) 4 5 6 10-Year Government Bond Yields 7 8 Australia 1.19% 9 Brazil 6.82% 10 Canada 1.44% 11 France -0.05% 12 Germany -0.35% 13 Hong Kong 1.47% 14. India 6.47% 15 Italy 1.28% 16 Japan -0.04% 17 Mexico 7.12% 18 South Korea 1.71% 19 United Kingdom 0.67% 20 United States 1.72% 21 22 23 24 25 US Corporate Bond Yields 26 2.32% 27 A 2.81% 28 Baa 3.42% 29 Ba 4.32% 30 B 5.55% 31 nn Mata. The band din naaa A B D E F G H 1 J L M Calabash Community Hospital Discounted Cash Flow Analysis Model Discount rate 1 2 3 4 Assumptions: 5 Procedures per year Current avg net reimbursement per 6 procedure 7 Annual rate of change for reimbursment 8 9 Fixed cost 10 Annual inflation rate 11 Variable cost 12 Impact on hospital 13 14 Years 15 Procedures per year 16 Avg reimbursement rate 17 Net reimbursements/ Incremental Revenue 18 19 Fixed cost 20 Variable cost 21 Depreciation 22 Net effect on inpatient profits 23 Total Expenses Capital expenditure Salvage value Value of land Account receivable days 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 24 Operating profit/ Net Cash Flow 25 - Capital expenditure 26 Free cash flow 27 28 Net present value (NPV) 29 29 30 SU 21 32 23 24 25 26 SO 22 28 so 20 40 * 41 2 72 13 43 49 64 72 72 13 24 14 25 13 26 70 72 17 79 78 20 19 on ou 81 81 22 04 93 83 84 OE 83 86 87 87 88 88 ga 89 an 90 01 91 02 94 03 93 94 94 Q5 95 96 97 98 99 100 101 102 103 104

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