Time Value of Money SL4 Essay Example | Topics and Well Written Essays - 750 words

Time Value of Money SL4 - Essay ExampleI. Surge of economic challenges. In the recent past there has been an increase in the economic challenges that makes borrowing of dandy a enceinte tussle. Most lending institutions have to put it hard since there is much of economic crunch. This makes health direction to merge so as to increase the trust for borrowing.II. High concerns that are charged. There is high invade charged in borrowing that makes many health care industries to merge so as to reliance their resources. The fees that banks are charging for letters-of- source associated with multivariate rate debt structures have doubled or even tripled in cost.IV. Lack of plan of attack to capital. Therefore lack of current capital accelerates consolidation in the industry through mergers, acquisitions, and closures. Hospitals making study improvements to their facility prior to the credit market disruptions will have a competitive advantage. In addition, hospitals with stronger c redit profiles will have easier access to capital than hospitals with weaker credit profiles. (Giddy, 2014).Many hospitals are finding themselves unable to access capital at a reasonable cost while at the same time their existing variable rate capital structures are impaired due to credit downgrades with bond insurers, commercial banks, or interest rate swap