HS440 Unit 8 Discussion

 

Cost of Capital

The following Discussion will help you to prepare for the part of your Unit 9 Quiz.

Explain the calculation and interpretation of the cost of capital. In your response, consider how this cost impacts a health care manager’s decision on expansion of services, etc.

 

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SMART ANSWER

The cost of capital is essential for a business to be able to do anything economically. A business could not fund services or new programs without having the capital to spend from. To rent space, or buy supplies and any other overhead cost uses financial capital. Without enough capital, you cannot move forward with making a decision that involves money.