Would you mind checking my work? Thank you .

Homework 3

1)Shoreline Hospital has the following financials. What is Shoreline's Return on Equity (1.5 points)?

Operating Income

$5,982,087

Nonoperating Income

$2,308,792

Revenue

$1,793,766

Assets

$2,681,008

Equity

$3,892,018

ROE = Operating Income + Non-operating income x Revenue x Assets

RevenueAssetsEquity

ROE = $5,982,087 + $2,308,792 x $1,793,766 x $2,681,008

$1,793,766$2,681,008$3,892,018

ROE = $8,290,879 x $1,793,766 x $2,681,008

$1,793,766$2,681,008$3,892,018

ROE = 4.62 x $1,793,766 x $2,681,008

$2,681,008$3,892,018

ROE = $4.62 x $0.67 x $0.69

ROE = $3.10 x $0.69

ROE = $2.14

2)Shoreline's service intensity (cost per encounter) is an important driver of cost. Compute it using this data (1.5 points).

Services

127

Encounters

509,120

Inputs

5

Prices of resources

$72

Cost per encounter = Services xInputs xprices of resources

Encounters Services

CPE = 127 x5 x$72

509,120127

CPE =(0.00024945 x 0.03937008 ) x $72

CPE = 0.00000982 x $72

CPE = 0.0007071