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Runner Hospital is a division of Superior Healthcare that is organized as an investment center. In the past year, the hospital reported an after-tax
Runner Hospital 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 $3,150,000. Total interest expense was $1,485,000, and the hospital's tax rate was 20 percent. Hospital assets totaled $31,500,000, and noninterest-bearing current liabilities were $10,260,000. Superior has established a required rate of return equal to 18 percent of invested capital. Calculate the residual income/EVA of Runner Hospital. (Enter negative answers preceding either-sign, eg-45 or in parentheses, eg. (45)) Residual income/EVA $
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