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Unless otherwise specified, all required returns, interest rates, etc. are nominal. Case Based Questions: Faced with increased demand, the local outpatient surgery center (Cardinal Health)
Unless otherwise specified, all required returns, interest rates, etc. are nominal. Case Based Questions: Faced with increased demand, the local outpatient surgery center (Cardinal Health) is looking to expand to accommodate more patients. The center currently has four operating rooms but would like to add two more. The following working capital, accumulated depreciation, and property plant and equipment investment will allow Cardinal Health to expand over the next year. 1. Given Cardinal Health's Balance Sheet, determine how much of the $2.19M should be financed with short-term debt, long-term debt, and equity? The firm is already at the optimal capital structure for their environment and would like to maintain their existing capital structure ratios moving forward. (10 points) Unless otherwise specified, all required returns, interest rates, etc. are nominal. Case Based Questions: Faced with increased demand, the local outpatient surgery center (Cardinal Health) is looking to expand to accommodate more patients. The center currently has four operating rooms but would like to add two more. The following working capital, accumulated depreciation, and property plant and equipment investment will allow Cardinal Health to expand over the next year. 1. Given Cardinal Health's Balance Sheet, determine how much of the $2.19M should be financed with short-term debt, long-term debt, and equity? The firm is already at the optimal capital structure for their environment and would like to maintain their existing capital structure ratios moving forward. (10 points)
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