e. HCA is the largest private operator of health care facilities in the world with...

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e. HCA is the largest private operator of health care facilities in the world with hundrd of facilities in over 20 states. In 2006, private equity buyers took the company private in a $31.6 bilion acquisition. In broad terms how costly do you think financial distress would be to HCA if it began to appear the company might be having difficulity servicing its 6 debt? Why? f. In late 2010 HCA announced an intended dividend recapitalization in which it would pay a $2 bilion dividend to shareholders financed in large part by a $1.53 bilion bond offering. At an interest rate of 6 percent, how would the 7 added debt have affected HCA's times-interest-earmed ratio in 2009? HCA INC ANNUAL INCOME STATEMENT S MILLIONS, EXCEPT PER SHARE) Dec07 Dec09 S 30,052 S 28,374 S 26,858 S 25,477 Dec08 Dec06 24,455 ANNUAL BALANCE SHEET Dec08 Long Term Debt Due In One Year (9,213) (10,42) 0,631) ,375) 57 TOTAL LIABILITIES & EQUITY S 24,131 24,280 S 24,025 S 23,675 S 22,225 20 9-11, 2, 2, 13 9 8 431 6516-0 791 459 3387 0.5 43481 2.5 4 1 9 10 11 12 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 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 en

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