Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Capital Structure Decisions

21/10/2020 Client: visedh Deadline: 10 Days

 


Case Study: Capital Structure Decisions (100 points)


Consider the following scenario:


XYZ Health Organization has a division that currently uses zero debt financing. Assume that the operating income (EBIT) is 1,000,000 SAR. Assume that the firm has 5,000,000 SAR in Assets with an equal amount in equity (because it currently has no debt). The firm wants to expand its product offerings and is considering replacing half of its equity financing with debt financing at an interest rate of 8%. The corporate tax rate is 20%. Assume that you are the Chief Financial Officer of the organization.



  1. Determine how the new capital structure would impact the firm’s net income, total dollar return to investors, and ROE?

  2. Conduct the analysis again but assume that the cost of debt has risen to 15%?

  3. Then using the original 8% interest rate, assume that annual EBIT has dropped to 500,000 SAR or could go as high as 1.5 million SAR (both with a probability of 20%). While there is a 60% chance that EBIT will remain 1,000,000 SAR. Redo the analysis for each level of EBIT and determine the expected values for the division’s net income, total dollar return to investors, and ROE.


After you have conducted all the calculations, make recommendations to the company as to which avenue the company should take. Consider what you have learned about the healthcare needs under SV2030 as well as your knowledge of the healthcare industry.


Discuss the considerations for risk and return for western investors who will be entering into Islamic financing arrangements. How will those investors consider the risk of this business endeavor?



  1. Issue sukuk for the debt financing (make calculation in accordance with the principles of debt financing so that you may conduct the financial analysis).

  2. Using equity for financing and some borrowing (your project would be financed in accordance with Murabaha principles but for the convenience of calculations, you will use the processes of a conventional loan and/or issuing equity in the organization).


Make recommendations to the organization as to the course of action that they should follow considering all risk factors. Please make certain that you show your calculations. Submit your findings in a proposal to the hospital.



  • You must show all your calculations for credit. Your calculations for this assignment must be submitted as an Excel file, identified as Appendix A, and included as part of the Word document submission.


Your paper should meet the following structural requirements:



  • The paper should be 4–5 pages in length, not including the cover sheet and reference page.

  • The paper should be formatted according to APA and Saudi Electronic University writing standards.

  • Provide support for your financial statements with in–text citations from a minimum of four scholarly articles.

  • Two of these sources may be from the class readings or textbook, but the others must be external and come from peer–reviewed journals.

  • The Saudi Digital Library is a good place to find these references.

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Top Grade Essay
Quality Homework Helper
Buy Coursework Help
Top Writing Guru
Helping Hand
Online Assignment Help
Writer Writer Name Offer Chat
Top Grade Essay

ONLINE

Top Grade Essay

Working on this platform from a couple of time with exposure of dynamic writing skills gathered with years experience on different other websites.

$102 Chat With Writer
Quality Homework Helper

ONLINE

Quality Homework Helper

Hi dear, I am ready to do your homework in a reasonable price.

$102 Chat With Writer
Buy Coursework Help

ONLINE

Buy Coursework Help

Hi dear, I am ready to do your homework in a reasonable price.

$102 Chat With Writer
Top Writing Guru

ONLINE

Top Writing Guru

I am an Academic writer with 10 years of experience. As an Academic writer, my aim is to generate unique content without Plagiarism as per the client’s requirements.

$100 Chat With Writer
Helping Hand

ONLINE

Helping Hand

Hello, I an ranked top 10 freelancers in academic and contents writing. I can write and updated your personal statement with great quality and free of plagiarism as I am a master writer with 5 years experience in similar ps and research writing projects. Kindly send me more information about your project. You can award me any time as I am ready to start your project curiously. Waiting for your positive response. Thank you!

$95 Chat With Writer
Online Assignment Help

ONLINE

Online Assignment Help

Hi dear, I am ready to do your homework in a reasonable price.

$95 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

What is dcpip solution - Environmental ethics in the contemporary moment - Write a 3-paragraphs about the assignment. - Impact of television on students essay - Fios hbo channel number - Persuasive speech outline on social networking - Testout 4.4 7 - Frimley park hospital departments - Think Globally - Act Locally! - Discussion - A silver thorn a bloody rose - Mrp is most effective at managing independent demand items - Infotech Import and Strategic Planning - Case problem 1 pelican stores managerial report - Fin 370 week 1 - Cloudy with a chance of meatballs food storm - Give me liberty eric foner chapter 15 outline - Impression management examples in sociology - Huish leisure summer activities - This I Believe Essay - Data visualisation a handbook for data driven design andy kirk - Hiragana song genki japan - Av jennings home designs packages - Week 3 - Final Paper - Explain the evolution of cchit - Fuyao glass case study solution - Hamlet acts 1 3 - What is the role of the trna - Association of radical midwives - Presidential Agenda - Diles a los voluntarios que vengan también - 99 new soul problems newcomers mashup - 210 kg gas bottle price - Antibodies - Kibbutz lotan green apprenticeship - How to make an archimedes screw - Ecgc premium rates country wise - Http www caustik com xbox - Gray oral reading test free download - Oliver and company pursuit through the subway - Ghi hmo with carveout rider - Australian computer society acs code of ethics - Management - Discussion - Expansion strategy and establishing a reorder point excel - Art history research paper outline - Emil nolde crucifixion 1912 - Lauren blair direct shopping network - Ethel in the underground railroad - How to leave the world that worships should poem analysis - Minimum time an nhs fire door will contain fire - Radiointernetowe.online - My Journey to Online Radio Success! - Cascade dry ginger ale coles - Implementing a Public Health Program - Kovaaks best visual settings - Which of the following scenarios is most similar to desmosomes - Race class & gender in united states edition 9th - Glossary of poetry terms - A rigid tank contains water vapor at - Week one discussion fund of data systems - Lección 3 la familia answers - Decimal to binary java code - Bus 100 assignment 3 step 6 - 4/8-10 malcolm crescent doncaster - Non consumable items in science lab - Adapting early childhood curriculum 9th edition pdf - Discussion 2 ,250 words and reply 1 and 2 ,150 words each one by 10/29/2020 at 6: 00 pm,please add references - Words ending in j - When the fed conducts open market sales - Literature homework - Applied finance centre mq - How did william win the battle of hastings - Research - Hcs 235 week 2 health care services worksheet - Antisocial Personality Disorder - Diablo 2 act 5 quest - Nurses personal communication devices impact patient care - Chapter 3 Discussion - Bank of america's consumer spending survey collected data - Ecosmart water heater problems - Its legal ethical and global environment - Waste water management mauritius - Final project - Mcq on fluorescent in situ hybridization - +91[]*9414601882 lOvE prOblEm sOlutiOn mumbai vashikaran - Political science Week 5 Discussion - Watch movie too big to fail - The proverbs tell us how to live life successfully - Actron air run flashing - Dissertation topic - Design principles underlying the operating system - My father began as a god - 82.4 kg in pounds - Discussion - Knorr pyrrole synthesis mechanism - Dbs ideal bank statement - Faces in the crowd valeria luiselli pdf - First experimental laboratory in psychology - Risks associated with servant leadership