Question: During Case Analysis Two, your CFO may have been impressed by the responses you provided to his questions aimed at helping him to understand the

 During Case Analysis Two, your CFO may have been impressed by

During Case Analysis Two, your CFO may have been impressed by the responses you provided to his questions aimed at helping him to understand the company's financial statement and how to use same to make appropriate decisions for your health care organization. To that end, he wants to make some decisions for the organization, and he gave you the following scenario, which could have been largely hypothetical but geared towards your understanding of the materials during the Module: i. First, he wants you to describe just in time (JIT) inventory? What are some of the costs and benefits? ii. He knew that the cost of capital is central to evaluating a project. Not sure of its meaning, he wants you to explain what does the cost of capital mean? iii. Following up on (ii) above, he assumes that a not-for-profit company has $20 million of long-term tax- exempt debt with an interest rate of 6.0%. The organization has $3 million of unrestricted net assets, with an estimated cost of capital of 7.5%, and $9 million in an endowment with an estimated 5.0% return on assets (cost of capital). What is its weighted average cost of capital? Present your responses to the questions in a memo format to the CFO. Your Area Comptroller, Ms. Smith, informed you that the CFO will reward you graciously with 100 points towards your promotion and that those points will be allocated to each of the three areas of expectations above as follows: i. 40 points ii. 30 points iii. 30 points To appropriately guide you so that you can take full advantage of the point incentives/reward system, Ms. Smith advised you to follow the company's document titled Paper Writing Rubric, as the HR Director would use that document to score your memo. In addition to the Paper Writing Rubric, you are aware that the Organization always encourages you to feel free to contact other relevant materials that you may deem fit. You must cite and provide references for all materials used as appropriate

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