Healthcare Finance - Speech or Presentation Example

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Healthcare Finance

Southwest physicians, a medical group practice, are just being formed. It will need $3,000,000 of total assets to generate $ 5,000,000 in revenues. Furthermore, the group expects to have a profit margin of 5 percent. The group Is considering two financing alternatives. First, it can use all-equity financing by requiring each physicians to contribute his or her pro rata share. Alternatively, the practice can finance up to 50% of its assets with a bank loan. Assume that the debt alternate has no impact on the expected profit margin. ...
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Summary

It will need $3,000,000 of total assets to generate $ 5,000,000 in revenues. Furthermore, the group expects to have a profit margin of 5 percent. The group Is considering two financing alternatives…
Author : trevavonrueden
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