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2. The following data summarize the operating performance of your company's wholly owned Canadian subsidiary for 2009 to 2011. The cost of capital for this

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2. The following data summarize the operating performance of your company's wholly owned Canadian subsidiary for 2009 to 2011. The cost of capital for this subsidiary is 10 percent. ($000,000) 2009 2010 2011 Subsidiary net income $14.0 $14.3 $14.4 Total assets in subsidiary 125 130 135 Return on net investment* in subsidiary 20% 22% 24% *Net investment is calculated as total assets less all liabilities. Required: Critically evaluate the performance of this subsidiary

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