Calculate the residual income-EVA of Foress Hospital

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Question - Foress 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 $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 of Foress Hospital.

Reference no: EM133036331

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