Question
Golden Waste Management has a subsidiary that disposes of hazardous waste and a subsidiary that collects and disposes of residential garbage. Information related to the
Golden 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:
| Hazardous Waste | Residential Waste | |||
|---|---|---|---|---|
| Total assets | $17,442,000 | $99,180,000 | ||
| Noninterest-bearing current liabilities | 3,762,000 | 15,048,000 | ||
| Net income | 2,125,000 | 7,524,000 | ||
| Interest expense | 1,559,000 | 9,144,000 | ||
| Required rate of return | 10% | 13% | ||
| Tax rate | 40% | 40% |
Calculate ROI for both subsidiaries. (Round answers to 2 decimal places, e.g. 15.32%.)
| Hazardous Waste | Residential Waste | |||
|---|---|---|---|---|
| ROI | enter percentages rounded to 2 decimal places % | enter percentages rounded to 2 decimal places % |
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Managerial Accounting
Authors: John Wild, Ken Shaw
5th edition
978-1259176494, 1259176495, 978-1259347641, 1259347648, 978-0078025600
