Question: Given the following information, determinethe Return on Equity (ROE)and the driver for the higher ROE of GreenvaleHospital relative to the industry. Greenvale Hospital Net Income$110,000,000

Given the following information, determinethe Return on Equity (ROE)and the driver for the higher ROE of GreenvaleHospital relative to the industry.

Greenvale Hospital

Net Income$110,000,000

Revenues$950,000,000

Assets$4,500,000,000

Equity$1,500,000,000

Industry Statistics:

Total Margin = 15%

Total Asset Turnover = 21%

Equity Multiplier = 2

Industry ROE = 6.3%

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