Question
Accustart Hospital is a division of Superior Healthcare that is organized as an investment center. In the past year, the hospital reported an after-tax income
Accustart Hospital is a division of Superior Healthcare that is organized as an investment center. In the past year, the hospital reported an after-tax income of $ 3,780,000. Total interest expense was $ 1,782,000, and the hospital's tax rate was 20percent. Hospital assets totaled $ 37,800,000, and noninterest-bearing current liabilities were $ 12,312,000. Superior has established a required rate of return equal to 18 percent of invested capital.
Calculate the residual income/EVA of Accustart Hospital. (Enter negative answers preceding either - sign, e.g. -45 or in parentheses, e.g. (45).)
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