Calculate and show the debt service coverage ratio for these two hospitals. Which would be more likely to get a loan using debt financing? Why? Which would be more likely to use equity financing? Why?...


Calculate and show the debt service coverage ratio for these two hospitals.


Which would be more likely to get a loan using debt financing?  Why?


Which would be more likely to use equity financing?  Why?


 Hospital 1Hospital 2


Current Liabilities                               $145,685,000          $224,790,000


Excess of Revenue over Expenses     $33,000,000              $3,500,000


Depreciation and Amortization            $4,010,101                $7,645,000


Annual Debt Service Payments          $6,435,000              $13,000,000


Current Assets                                   $184,500,000         $223,400,000


Interest                                                    $2,750,000           $4,125,000


Principal Payments                               $10,000,000         $15,000,000



Jun 08, 2022
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