Unformatted text preview: being double the annual revenues that is $1,136,000 also the adjusted book value that is the owners' equity is $7,900,000, by means of the discounted cash flow of $655,000,000. This specifies that the high range is roughly six times greater than the low range plus this allows a broad opening among the figures that is tough to conclude the worth of the hospital. I believe the discounted cash flow is the finest method to show a further correct image of the assessment of the Arcadia Hospital in the year of 2005, since adjusted book value is to wide-ranging for it to be precise. HCA 270 Cash Flow amount Capitalization Rate Value $655,000,000 6% $39,300,000 8% $52,400,000 10% $65,500,000 12% $78,600,000...
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- Winter '10
- Generally Accepted Accounting Principles, Rule of thumb