Investment Analysis & Cost of Capital
Investment Analysis & Cost of Capital
Order Description
Sin" rel="nofollow">ince you are employed as a Fin" rel="nofollow">inance Consultant at a not-for-profit company, you are aware the company has $20 million of long-term tax-exempt debt with an in" rel="nofollow">interest rate of 6.0%. The organization also has $3 million of unrestricted net assets, with an estimated cost of capital of 7.5%, and $9 million in" rel="nofollow">in an endowment with an estimated 5.0% return on assets (cost of capital).
Prepare a 10 slide PPT with speaker notes (excludin" rel="nofollow">ing cover and references) you will use in" rel="nofollow">in your meetin" rel="nofollow">ing with the Chief Executive Officer (CEO) and the Chief Fin" rel="nofollow">inancial Officer (CFO) describin" rel="nofollow">ing how capital structures differ between for-profit and not-for-profit health care organizations. Include an evaluation of the weighted average of the cost of capital in" rel="nofollow">in your analysis and the actions the executives should take to lower the weighted average.
Please in" rel="nofollow">include speaker notes for student to do JING Simulcast.