Question: sipacore hospital is a division of superior healthcare that is...
Sipacore 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 $1,700,000, and the hospital’s tax rate was 35 percent.
Hospital assets totaled $35,300,000, and noninterest-bearing
current liabilities were $11,100,000. Superior has established a
required rate of return equal to 17 percent of invested
Calculate the residual income/EVA of Sipacore Hospital. (Enter negative answers preceding either - sign, e.g. -45 or in parentheses, e.g. (45).)