Question
ForessHospital 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
ForessHospital 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 $4,130,000. Total interest expense was $1,947,000, and the hospital's tax rate was20percent. Hospital assets totaled $41,300,000, and noninterest-bearing current liabilities were $13,452,000. Superior has established a required rate of return equal to18percent of invested capital.
Calculate the residual income/EVA ofForessHospital.(Enter negative answers preceding either - sign, e.g. -45 or in parentheses, e.g. (45).)
Residual income/EVA $________________________
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