What is the equity value of the hospital

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Question - Briarwood's cost of equity is 16 percent. The best estimate for 18.4 Briarwood's long-term growth rate is 4 percent.

a. What is the equity value of the hospital?

b. Suppose that the expected long-term growth rate was 6 percent. What impact would this change have on the equity value of the business? What if the growth rate were only 2 percent?

Reference no: EM131812201

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