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

Time Value of Money SL4 - Essay ExampleI. spate of economic challenges. In the recent past there has been an increase in the economic challenges that makes borrowing of capital a hard tussle. Most lending institutions take over to put it hard since there is much of economic crunch. This makes health care to merge so as to increase the trust for borrowing.II. High interests that are charged. thither is high interest charged in borrowing that makes many health care industries to merge so as to combine their resources. The fees that banks are charging for letters-of-credit associated with variable aim debt structures have doubled or even tripled in cost.IV. Lack of attack to capital. Therefore lack of current capital accelerates consolidation in the industry by dint of mergers, acquisitions, and closures. Hospitals making major improvements to their facility prior to the credit market disruptions will have a competitive advantage. In addition, hospitals with stronger credit profile s 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 season their existing variable rate capital structures are impaired due to credit downgrades with bond insurers, commercial banks, or interest rate swap