This probiem asks you to analyze the capital structure of HCA, thc, the largent private operator of heath care facities in the world. In 2006 , a syndieate of private equily firms acquired the firm for $31.6 billien and tock it privaen. in Neventer 2010 , as interest rates ht rocord lows, the company announced a dividend recaptalzation in which it would distibute an extraortinary $2 bellion dividend franced in large part by a $1,53 billion bond oflering a. What were HCA debt-to-assets ratios and tmes interest-oamed ratios in the years 2005 frough 2009 ? b. What percentage decline in EBIT could HCA have sulfered each year between 2005 and 2009 belore the company would tave been unable to make internst payments out of operating earnings, where cperating earnings is defned as EBrT? c. How volatele have HCA's cash flows been over the period 2005 through 20007 4. Calculate HCA's retum on invested capital (ROIC) in the years 2005 through 2009 e. HCA is the largest private operator of heath care tacintes in the wond with hundrd of taclises in over 20 states. In 2006, private equity buyers took the company private in a $31.6 bilion acquistion. In broad terms how cosby do you think financial distress would be to HCA if it began to appear the company might be having difficuly servicing te deter why? 1. In late 2010HCA arnounced an intended dividend recaptalization in which it would pay a 52 tilion dividend to shareholders financed in laige part by a $1.53 billion bond offering. At an interest rate of 6 percent how would the adsod debt have affected HCA's times-interestearned ratio in 2009 ? 9. Please comment on HCA's capital structure. Is its 2009 debt level perdent? is a smart to add another 51.53 tilion to this totar? Why, or why not? Sales Cest on Coods sold Gross Prowt Depreciation Operating Profit Interest Expense Non-Operating IncomeE Expense Pretax lncome Total income Taxes Minonty interest Net inoome This probiem asks you to analyze the capital structure of HCA, thc, the largent private operator of heath care facities in the world. In 2006 , a syndieate of private equily firms acquired the firm for $31.6 billien and tock it privaen. in Neventer 2010 , as interest rates ht rocord lows, the company announced a dividend recaptalzation in which it would distibute an extraortinary $2 bellion dividend franced in large part by a $1,53 billion bond oflering a. What were HCA debt-to-assets ratios and tmes interest-oamed ratios in the years 2005 frough 2009 ? b. What percentage decline in EBIT could HCA have sulfered each year between 2005 and 2009 belore the company would tave been unable to make internst payments out of operating earnings, where cperating earnings is defned as EBrT? c. How volatele have HCA's cash flows been over the period 2005 through 20007 4. Calculate HCA's retum on invested capital (ROIC) in the years 2005 through 2009 e. HCA is the largest private operator of heath care tacintes in the wond with hundrd of taclises in over 20 states. In 2006, private equity buyers took the company private in a $31.6 bilion acquistion. In broad terms how cosby do you think financial distress would be to HCA if it began to appear the company might be having difficuly servicing te deter why? 1. In late 2010HCA arnounced an intended dividend recaptalization in which it would pay a 52 tilion dividend to shareholders financed in laige part by a $1.53 billion bond offering. At an interest rate of 6 percent how would the adsod debt have affected HCA's times-interestearned ratio in 2009 ? 9. Please comment on HCA's capital structure. Is its 2009 debt level perdent? is a smart to add another 51.53 tilion to this totar? Why, or why not? Sales Cest on Coods sold Gross Prowt Depreciation Operating Profit Interest Expense Non-Operating IncomeE Expense Pretax lncome Total income Taxes Minonty interest Net inoome