Question
CinrichHospital 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
CinrichHospital 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 $3,640,000. Total interest expense was $1,716,000, and the hospital's tax rate was20percent. Hospital assets totaled $36,400,000, and noninterest-bearing current liabilities were $11,856,000. Superior has established a required rate of return equal to18percent of invested capital.
Calculate the residual income/EVA ofCinrichHospital.(Enter negative answers preceding either - sign, e.g. -45 or in parentheses, e.g. (45).)
RESIDUAL INCOME/EVA= $
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