Things that the United States Government should Cut Spending
Every year, the United States government spends vast amounts of money on unnecessary
ventures or issues. One main area where the United States should cut spending is on foreign a
Chapter 18 Part 3
Consolidated CFs and
$12.65 = Equity value.
Cost of Equity Rates
The cost of equity as measured by the
CAPM is based on the riskiness of the
stock of large
Chapter 16 Part 3
Supply Chain (Inventory)
Although important, supply chain (inventory)
management is not as important for
providers (service firms) as it is for
manufacturers, wholesalers, or retailers.
Inventories consist of base stocks
Finance Chap 2 Part 2
Taxable Versus Muni Bonds (Cont.)
Assume NFP Healthcare can issue
similar-risk municipal bonds with an 8%
interest rate. Should Jane buy the NFP
bond rather than the FP bond?
At what rate on the FP bond would Jane
be indifferent betw
The Role of Ethics in Rnance
The role of ethics in the financial communihf tocky seems to be limited to its role in
financial-economic theory. Contemporary financial economists view ethics in the context of
ohjsctive wealth maximization. In th
The Income Statement and Statement
of Changes in Equity
This chapter begins our discussion
of financial accounting. In addition
to providing the fundamentals of
financial accounting, it covers two
important financial statements: the
14 - 1
The Basics of Capital Budgeting
Capital budgeting decisions, which involve the
acquisition of land, buildings, and equipment,
are among the most important decisions made
by healthcare managers. First, they often
involve large sums of mon
17 - 1
Financial Condition Analysis
One of the most important characteristics of
a healthcare organization is its financial
condition. Does it have the financial capacity
to perform its mission? A providers
financial condition is of great impor
nExpenses represent the resources used to
create revenues-they are the costs of
doing business. Like revenues, under
accrual accounting expenses do not
necessarily reflect cash outlays.
nExpenses may be categorizes by:
Ethics in Finance II
The best way to approach professional ethics, whether in the finance profession or
elsewhere, is from the perspective of virtue-ethics theory. This theory places
particular emphasis on the character and motivations of an i
Ch 11 Part 2
Yield to Maturity
The yield to maturity (YTM) on a bond
is the expected rate of return assuming
the bond is held to maturity and no
default is expected.
Mathematically, it is the discount rate
that forces the present value of the
cash flows f
Office hours: BT 961
Inro and Logistics, Overview LEcture
She will give partial credit on excel midterms.
She doesnt rely on book. Return that shit. Take pictures of it.
Mentions the european c
a corporation that operates in two or more countries
Goal of management differences
shareholder wealth maximization
stakeholder wealth maximizati
Chapter 18 Part 2
Residual Value (RV) Risk
The discount rate applied to the residual
value cash flows could be increased to
account for the higher relative risk.
All other cash flows should be discounted
at the original 6 percent rate.
If we use a 10 perc
Chapter 17 Part 2
margin turnover multiplier
= ROE .
2010: 2.22% x 0.73 x 1.50 = 2.43%.
2011: 7.30% x 0.78 x 1.41 = 7.98%.
Ind: 5.00% x 0.97 x 1.73 = 8.39%.
?What does it all mean?
Note that the Du Pont eq
Chapter 16 Part 2
Cash Budget (Cont.)
The example shows monthly cash
budgets for two months. An actual
cash budget would probably contain
?Should depreciation expense appear
on the cash budget?
?How can uncertainty be incorporated?
?What is the
Chapter 1 Part 22
Integrated delivery systems
Copyright 2011 by the Foundation of the American College of Healthcare Executives
A holding compa
Chapter 2 Part 2
Part A: Hospital and some nursing home care
Part B: Physician, ambulatory surgery,
outpatient services, and other care
Part C: Managed care coverage (Medicare
Advantage plans, which combine Parts A and B
and sometimes D)
Chapter 1 Part 2
Taxable Versus Muni Bonds
Assume FP Healthcare must offer a 10
percent interest rate on its new bonds.
Jane Green, an individual investor with a
28 percent tax rate, buys one $1,000 bond:
AT$ = (0.10 $1,000) (1 0.28)
= $100 0.72 = $72
At the Intersection of Health, Health Care and Policy
Cite this article as:
Mark McClellan, Aaron N. McKethan, Julie L. Lewis, Joachim Roski and Elliott S.
A National Strategy To Put Accountable Care Into Practice
Health Affairs, 29, no.5 (2010):98
The Third-Party-Payer System
The provision of healthcare services takes
place in a unique way. For one, payment to
providers is not normally made by users of the
services but by a third-party payer. In this
chapter, we discuss the elements o
Chapter 8 Part 2
Conventional Vs. Zero-Based
nTraditionally, health providers have used
the conventional approach to budgeting.
lThe old budget is the starting point.
lTypically, only minor changes are made.
lChanges often are applied equally.
Introduction to Healthcare Financial
The first two chapters provide background
information that creates the framework for
financial decision making in healthcare
organizations. Chapter 1 focuses on the
institutional setting for th
Chapter 13 Part 2
n The Capital Asset Pricing Model
(CAPM) is a equilibrium model that
relates market risk to required rate
n The equation used is the Security
Market Line (SML):
R(Re) = RF + [R(RM) - RF] x b.
CAPM Method (Cont.)
Chapter 12 Part2
Rate of Return Form
of the Constant Growth Model
The constant growth model can be
rearranged as follows:
D0 x [1 + E(g)]
+ E(g) .
If P0 = $33.33, E(D1) = $2.00,
E(g) = 10%, what is the
stocks expected rate
Chapter 15 Part 2
-10 Base +10 +20 +30
Interpretation of Sensitivity
Steeper lines show greater risk, because
small forecasting error