Case | HBS Case Collection | 1988 (Revised from original 1983 version)

Hospital Corp. of America (B)

by W. Carl Kester

Abstract

Focuses on HCAs financing options for reaching its target capital structure. The options include new equity conversion of convertible debentures, a debt-for-equity swap, the sale of assets, and fixed-rate debt. Students must address the problem of market timing and signaling in their choice of financing vehicles.

Keywords: Assets; Capital Structure; Cash Flow; Equity; Debt Securities; Credit Derivatives and Swaps; Health Industry; United States;

Citation:

Kester, W. Carl. "Hospital Corp. of America (B)." Harvard Business School Case 283-054, February 1988. (Revised from original January 1983 version.)