Calculate the residual income and eva of beca hospital

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Question - Beca 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 $4,410,000. Total interest expense was $2,079,000 and the hospital's tax rate was 20 percent. Hospital assets totaled $44,100,000, and non-interest-bearing current liabilities were $14,364.000. Superior has established a required rate of return equal to 18 percent of invested capital. Calculate the residual income and EVA of Beca Hospital.

Reference no: EM133068175

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