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KennelHospital 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
KennelHospital 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 $2,940,000. Total interest expense was $1,386,000, and the hospital's tax rate was20percent. Hospital assets totaled $29,400,000, and noninterest-bearing current liabilities were $9,576,000. Superior has established a required rate of return equal to18percent of invested capital.
Calculate the residual income/EVA ofKennelHospita
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