1. What types of hospital payment systems can be described as retrospective? What effects do retrospective payment systems have on hospital incentives to provide treatment? Tell if you are agree or not, explain in fully details please.
2. Summit Builders has a market? debt-equity ratio of 0.85?, a corporate tax rate of 35%?, and pays 8% interest on its debt. By what amount does the interest tax shield from its debt lower? Summit's WACC?