Penny Worth Waste Management has a subsidiary that disposes of hazardous waste and a subsidiary...
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Penny Worth Waste Management has a subsidiary that disposes of hazardous waste and a subsidiary that collects and disposes of residential garbage. Information related to the two subsidiaries follows: Residential Waste Hazardous Waste $15,606,000 3,366,000 Total assets Noninterest-bearing current liabilities $88,740,000 13,464,000 Net income 1,903,000 6,732,000 1,397,000 8,184,000 Interest expense Required rate of return 10% 13% Tax rate 40% 40% (a) Your answer is correct Calculate ROI for both subsidiaries. (Round answers to 2 decimal places, es. 15.32%) Hazardous Waste Residential Waste ROI 22.4 % 15.47% (b) Your answer is incorrect. Calculate EVA for both subsidiaries. Note that since no adjustments for accounting distortions are being made, EVA is equivalent to residual income. (Enter negative answers preceding either - sign, eg, -45 or in parentheses, e.g. (45).) Hazardous Waste Residential Waste EVA $ e Textbook and Media Save for Later Attempts: 1 of 3 used Submit
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