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AE12-11 Evaluating Investment Centers with Residual Income [LO 6] Lakeside Hospital is a division of Superior Healthcare organized as an investment center. In the past
AE12-11 Evaluating Investment Centers with Residual Income [LO 6] Lakeside Hospital is a division of Superior Healthcare organized as an investment center. In the past year, the hospital reported an after-tax income of $2,210,000. Total Interest expense was $2,000,000 and the hospital's tax rate was 38 percent. Hospital assets totaled $33,900,000 and noninterest-bearing current liabilities were $9,390,000. Superior has established a required rate of return equal to 19 percent of invested capital. Calculate the residual income/EVA of Lakeside Hospital. (For negative numbers use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45).) Residual income/EVA $ Click here if you would like to Show Work for this
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