Question: please do it in one hour will upvote 5. Perform sensitivity analysis by creating a series of DCF analysis changing the following parameters: a. Reimbursement

 please do it in one hour will upvote 5. Perform sensitivity

please do it in one hour will upvote

analysis by creating a series of DCF analysis changing the following parameters:

a. Reimbursement growth rate - Include -1%, 2%, and 5%. b. Inpatient

Hospital effect on profits - $300,000 and $700,000 c. Procedures per year

5. Perform sensitivity analysis by creating a series of DCF analysis changing the following parameters: a. Reimbursement growth rate - Include -1%, 2%, and 5%. b. Inpatient Hospital effect on profits - $300,000 and $700,000 c. Procedures per year - 2000 and 2600 d. 2030 salvage value - $7 million. 6. Display your sensitivity analysis in a summary table and any appropriate graphs. : Page H 1 B C D E F G Exhit 2 Caiawash Community Hospital Financial Data on Comparable Companies (financial statement data from 2018) 2. 3 4 COOUAWN 5 Tenet Healthcare Description: Operates 475 outpatient centers, 255 ambulatory surgery centers, 68 hospitals, 23 surgical hospita Revenue $18.3 billion 9 Enterprise value $21.4 billion 10 Market equity value $6.8 billion 11 Total debt $14.6 billion 12 Operating margin 11.0% 13 Return on assets 5.5% 14 Beta 0.75 15 Bond rating Ba 16 17 Surgery Partners 18 Description: Operates 108 ambulatory surgical centers and 15 surgical hospitals in 31 states. 19 20 Revenue $1.8 billion 21 Enterprise value $4.7 billion 22 Market equity value $2.4 billion 23 Total debt $2.3 billion 24 Operating margin 14.7% 25 Return on assets 3.5% 26 Beta 0.80 27 Bond rating B 28 29 Sources: Descriptions and company data are from Yahoo! Finance; bond ratings are from Moody's; Beta estimates a 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 A B D 1 Exhibit 3 2 Calabash Community Hospital 3 Capital Markets Information (December 2019) 4 5 6 10-Year Government Bond Yields 7 8 Australia 1.19% 9 Brazil 6.82% 10 Canada 1.44% 11 France -0.05% 12 Germany -0.35% 13 Hong Kong 1.47% 14 India 6.47% 15 Italy 1.28% 16 Japan -0.04% 17 Mexico 7.12% 18 South Korea 1.71% 19 United Kingdom 0.67% 20 United States 1.72% 21 22 23 24 25 US Corporate Bond Yields 26 2.32% 27 A 2.81% 28 Baa 3.42% 29 Ba 4.32% 30 B 5.55% 31 32 Note: The bond rating represented the creditworthiness of the boi A B D E F G H 1 J K L M Calabash Community Hospital Discounted Cash Flow Analysis Model Discount rate 1 2 3 4 Assumptions: 5 Procedures per year 6 Current avg net reimbursement per procedure Annual rate of change for 7 reimbursment 8 9 Fixed cost 10 Annual inflation rate 11 Variable cost 12 Impact on hospital 13 14 Years 15 Procedures per year 16 Avg reimbursement rate Net reimbursements/ Incremental 17 Revenue 18 19 Fixed cost 20 Variable cost 21 Depreciation 22 Net effect on inpatient profits 23 Total Expenses Capital expenditure Salvage value Value of land Account receivable days 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 24 Operating profit/ Net Cash Flow 25 Capital expenditure 26 Free cash flow 27 28 Net present value (NPV) 29 29 30 su 31 32 34 33 34 35 36 37 38 39 40 41 42 7 43 44 45 46 70 48 49 50 52 58 60 62 63 64 65 66 67 68 70 72 79 80 OU 81 o 82 02 83 0 84 85 00 86 00 87 01 88 00 89 02 90 20 91 92 22 93 20 94 95 96 90 97 98 90 99 100 101 102 103 104 105 106 5. Perform sensitivity analysis by creating a series of DCF analysis changing the following parameters: a. Reimbursement growth rate - Include -1%, 2%, and 5%. b. Inpatient Hospital effect on profits - $300,000 and $700,000 c. Procedures per year - 2000 and 2600 d. 2030 salvage value - $7 million. 6. Display your sensitivity analysis in a summary table and any appropriate graphs. : Page H 1 B C D E F G Exhit 2 Caiawash Community Hospital Financial Data on Comparable Companies (financial statement data from 2018) 2. 3 4 COOUAWN 5 Tenet Healthcare Description: Operates 475 outpatient centers, 255 ambulatory surgery centers, 68 hospitals, 23 surgical hospita Revenue $18.3 billion 9 Enterprise value $21.4 billion 10 Market equity value $6.8 billion 11 Total debt $14.6 billion 12 Operating margin 11.0% 13 Return on assets 5.5% 14 Beta 0.75 15 Bond rating Ba 16 17 Surgery Partners 18 Description: Operates 108 ambulatory surgical centers and 15 surgical hospitals in 31 states. 19 20 Revenue $1.8 billion 21 Enterprise value $4.7 billion 22 Market equity value $2.4 billion 23 Total debt $2.3 billion 24 Operating margin 14.7% 25 Return on assets 3.5% 26 Beta 0.80 27 Bond rating B 28 29 Sources: Descriptions and company data are from Yahoo! Finance; bond ratings are from Moody's; Beta estimates a 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 A B D 1 Exhibit 3 2 Calabash Community Hospital 3 Capital Markets Information (December 2019) 4 5 6 10-Year Government Bond Yields 7 8 Australia 1.19% 9 Brazil 6.82% 10 Canada 1.44% 11 France -0.05% 12 Germany -0.35% 13 Hong Kong 1.47% 14 India 6.47% 15 Italy 1.28% 16 Japan -0.04% 17 Mexico 7.12% 18 South Korea 1.71% 19 United Kingdom 0.67% 20 United States 1.72% 21 22 23 24 25 US Corporate Bond Yields 26 2.32% 27 A 2.81% 28 Baa 3.42% 29 Ba 4.32% 30 B 5.55% 31 32 Note: The bond rating represented the creditworthiness of the boi A B D E F G H 1 J K L M Calabash Community Hospital Discounted Cash Flow Analysis Model Discount rate 1 2 3 4 Assumptions: 5 Procedures per year 6 Current avg net reimbursement per procedure Annual rate of change for 7 reimbursment 8 9 Fixed cost 10 Annual inflation rate 11 Variable cost 12 Impact on hospital 13 14 Years 15 Procedures per year 16 Avg reimbursement rate Net reimbursements/ Incremental 17 Revenue 18 19 Fixed cost 20 Variable cost 21 Depreciation 22 Net effect on inpatient profits 23 Total Expenses Capital expenditure Salvage value Value of land Account receivable days 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 24 Operating profit/ Net Cash Flow 25 Capital expenditure 26 Free cash flow 27 28 Net present value (NPV) 29 29 30 su 31 32 34 33 34 35 36 37 38 39 40 41 42 7 43 44 45 46 70 48 49 50 52 58 60 62 63 64 65 66 67 68 70 72 79 80 OU 81 o 82 02 83 0 84 85 00 86 00 87 01 88 00 89 02 90 20 91 92 22 93 20 94 95 96 90 97 98 90 99 100 101 102 103 104 105 106

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