RiverSide Hospital's year-end financials are as follows:

RiverSide Hospital reported a fair market value of assets of £1,800,000, total liabilities of £900,000, shareholder's equity of £700,000, and net income of £200,000 for the year.

Requirements:

1. Calculate the Return on Equity (ROE) for RiverSide Hospital for the year ended 31 December 2021.
2. Discuss how the fair market value of assets influences the hospital’s financial health.
3. Draft the equity section of RiverSide Hospital’s balance sheet as of 31 December 2021.