Lakeside Hospital is a division of Superior Healthcare that is organized as an investment center. In the

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Lakeside 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 $3,500,000. Total interest expense was $1,650,000, and the hospital's tax rate was 35 percent. Hospital assets totaled $35,000,000, and noninterest-bearing current liabilities were $11,400,000. Superior has established a required rate of return equal to 18 percent of invested capital.

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Calculate the residual income/EVA of Lakeside Hospital. Exercises 485

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