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Kennel Waste Management has a subsidiary that disposes of hazardous waste and a subsidiary that collects and disposes of residential garbage. Information related to the
Kennel 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: Total assets Noninterest-bearing current liabilities Net income Hazardous Waste $12,852,000 2,772,000 1,570,000 1,154,000 10% Residential Waste $73,080,000 11,088,000 5,544,000 6,744,000 Interest expense Required rate of return Tax rate 13% 25% 25% Calculate ROI for both subsidiaries. (Round answers to 2 decimal places, e.g. 15.32%.) Hazardous Waste Residential Waste ROI 24.16 % 17.10 % 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, e.g. -45 or in parentheses, e.g. (45).) Hazardous Waste Residential Waste EVA $
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