1. Conduct research and find an example of a capital investment in a health care organization.
Answer the following questions regarding the example you found:
a. Provide a summary of the capital investment project.
b. Explain the four stages of capital decision making. As far as you can tell, did the
health care organization follow these stages? Explain.
c. Who was involved in the capital investment decision process? (Include position titles
and/or descriptions rather than names from your research.)
d. What kinds of decisions had to be made in the capital investment decision analysis?
e. What kinds of information did the health care organization need to evaluate a capital
investment project?
2. Research an example of a consolidation, merger, or acquisition in a health care organization
and answer the following questions:
a. What are some possible reasons consolidations, mergers, and acquisitions occur?
b. From your research, why did the consolidation, merger, or acquisition occur in that
health care organization?
c. What are some common methods for valuation of a potential target firm?
d. As far as you can tell, were any of the methods used for the consolidation, merger, or
acquisition in this health care organization?
3. Explain the difference between debt and equity finance.
4. Explain the factors that influence the desirability of alternative sources of finance.
5. Explain what an investor banker does.
