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Weighted average cost of capital model (WACC) ✔Correct Answer-Method to measure the costs of
various service of capital and the impact of the capital structure
Weighted average cost of capital model (WACC) ✔Correct Answer-The relative amount of debt and
equity in the capital structure and the cost of WACC source in the marketplace are used to determine
weighted costs
Evaluation techniques ✔Correct Answer-Economic evaluation techniques & accounting evaluation
tecchniques
Net present value & internal rate of return ✔Correct Answer-Economic evaluation techniques
(adjusted for he time value of money)
Accounting rate of return & pay back ✔Correct Answer-Accounting evaluation techniques (not
adjusted for the time value of money)
Net working capital ✔Correct Answer-On the balance sheet, what does the difference between
total current assets and total current liabilities indicate?
Infrastructure ✔Correct Answer-Budgets for new capital expenditures include requests for...
Capital asset pricing model (CAPM) ✔Correct Answer-An equilibrium model that describes the
relationship between market risk and required rate of return
Full-time equivalents per adjusted averaged daily census ✔Correct Answer-The most common
operating indicator used to measure overall staff productivity
The following are considered part of the labor budget ✔Correct Answer-Staff salaries, hourly
wages, employee benefits
Contract staff expenses ✔Correct Answer-Are NOT considered part of the labor budget
claim denial ✔Correct Answer-Claim denial is a major impediment to prompt payment in the
revenue cycle process
FTE ✔Correct Answer-20.8
Expense ratio ✔Correct Answer-Best indicator of operating leverage when evaluating capital
budgeting performance
Analysis of proposed capital investment includes ✔Correct Answer-Cost of capital, cash flow
projections, rush assessment