In the scenario, the board member who worked at the hospital is trying to determine whether the
Question:
In the scenario, the board member who worked at the hospital is trying to determine whether the hospital should consider a bond to finance a major hospital renovation. The board member needs to prepare a position on this critical financial determination for an upcoming board meeting. The hospital's long-term financial goal is sustainable growth, and its primary financial objective of the hospital is equity growth.
The board member reviewed financial data on ROE related to the assets and the primary determinants of value, including profit, investment, cost of capital, working capital, capital expenditure, etc. In addition, the board member also reviewed the hospital's current performance using data in financial statements to compute financial ratios and compare its current performance to competitors and the industry benchmark.
What would be some "pros" behind assuming the renovation bond?