With this casebook, students have the opportunity to apply finance principles and concepts to a setting that simulates an actual work environment. Thus, this book creates a bridge between academic learning and applied practice. Each of the 30 finance cases presents a comprehensive picture of the organization, along with a relevant financial-management challenge that you must solve.
The majority of cases are accompanied by spreadsheet models to help you perform analysis and calculations. Also provided are six mini ethics cases to provoke thought about financial situations with ethical implications. Changes to this edition: # The marginal cost pricing analysis case now includes both underlying cost structure and current profitability # information. The pay-for-performance case now includes the three areas of performance (productivity, financial, and quality.) # The clinic valuation case now includes the use of free operating cash flow as a valuation approach in addition to valuations based on free cash flow to equityholders, number of physicians, and revenues. Also, debt financing has been added to the clinic's capital structure. # The receivables management case includes two additional customers each with a different receivables pattern. Also, the cost of carrying receivables has been added to the model. # The organization in this capitation and risk sharing case has been recast as a new Physician Hospital Organization (PHO.)
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