Calculate the residual income of golden hospital

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Point 1: Golden 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 $3,600,000. Total interest expense was $1,660,000, and the hospital's tax rate was 35 percent. Hospital assets totaled $34,400,000, and non-interest-bearing current liabilities were $11,200,000. Superior has established a required rate of return equal to 17 percent of invested capital.

Question 1: Calculate the residual income/EVA of Golden Hospital. (Enter negative answers preceding either - sign, e.g. -45 or in parentheses, e.g. (45).)

Reference no: EM132529983

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