Physicians Who Accept Assignment on Their Medicare Patients

question 2

Multiple Choice

Physicians who accept assignment on their Medicare patients

• A) bill patients for 80 percent of the allowable fee.
• B) agree to forego balance billing.
• C) accept the allowable fee for all services.
• D) agree to charge private insurance patients the same fees as Medicare patients.
• E) Both b and c.

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Definitions:

Common Equity

The amount of money that would be returned to shareholders if all the assets were liquidated and all the company's debt was paid off.

WACC

Weighted Average Cost of Capital, a measure used to estimate the average rate a company pays to finance its assets, factoring in both debt and equity.

DCF Approach

The Discounted Cash Flow (DCF) approach is a valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for the time value of money.

Cost of Equity

The return a company theoretically pays to its equity investors to compensate them for the risk of investing in the company's stock.