- Capital Budgeting
- Net Present Value (NPV)
Aggressive Working Capital Policy
An aggressive working capital policy, may increase the entity's return, but it also increases the risk.
1. Please solve this Net Income Problem.
A firm has the following accounts:
Net patient revenue = $1,500,000
Supply expense = $200,000
Depreciation expense = $100,000
Salaries and benefits = $700,000
Other expenses = $200,000
Net accounts receivable = $150,000
What is the net income for the period?
Hint: Net accounts receivable is not an expense it is a income.
2. Targeted debt to equity ratio problem: A hospital issues $20 million in bonds and $60 million in equity to finance a new project. Its targeted debt to equity ratio is?