St$.$ John$$s Hospital has the following annual financial data and operational metrics. $($Use a

$365-$day year in all calculations,$)$

$$ Number of beds $350$

$$ Total Inpatient Admissions $16,500$

$$ Total Outpatient Visits $98,456$

$$ Outpatient Mix $16\mathrm{.}2\%$

$$ Medicare Payment Percentage $($Revenues$)32\mathrm{.}0\%$

$$ Average Length of Stay $($ALOS$)5\mathrm{.}2$ days

$$ Net price per discharge $$12,143$

$$ Cost per discharge $ $8,943$

$$ Total Patient Revenues $$120,861,390$

$$ Net Patient Service Revenues $ $90,646,043$

Required:

Using the data from above, calculate letters A$-$J$.($Note: if you show your calculations, you can possibly receive partial credit. However, if you just enter the final answer and it is incorrect, then the whole problem is wrong.$)$

A$.$ Using the receivables information, what is St$.$ John$$s average collection period?

$20\%$ of receivables paid in $30$ days

$50\%$ of receivables paid in $60$ days

$30\%$ of receivables paid in $90$ days

B$.$ What is the hospital$$s current receivables balances?

C$.$ What is the hospital$$s profit per discharge?

D$.$ Using the Outpatient Mix, what are the hospital$$s Total Outpatient and Total

Inpatient Revenues?

E$.$ What are the hospital$$s total revenues from Medicare Patients?

F$.$ What are the total number of inpatient days?

G$.$ What are the total number of available bed days in a year, assuming $365$ days in a

year?

H$.$ What is the hospital$$s Occupancy Rate?

I. What is the after$-$tax $($effective$)$ cost of debt if the tax rate is $25\%?$ If the tax rate is

$35\%?($Note: The interest rate or the before$-$tax cost$/$BT on the hospital debt is set at $12\%.)$

J$.$ Using the following information, what is St John$$s Hospital$$s Corporate Cost of

Capital $($CCC$)?$

Targeted Capital Structure:

$40\%$ debt financing and $60\%$ equity financing

$$ Cost of equity estimate $18\%$

$$ Cost of tax$-$exempt debt estimate $8\%$

$$ Tax Rate $22\%$