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Paver Waste Management has a subsidiary that disposes of hazardous waste and a subsidiary that collects and disposes of residential garbage. Information related to the
Paver 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 Interest expense Required rate of return Tax rate Hazardous Waste $13,464,000 2,904,000 1,644.000 1,208,000 10% 35% Residential Waste $76,560,000 11,616,000 5,808,000 7,064,000 13% 35% (a) Calculate ROI for both subsidiaries. (Round answers to 2 decimal places, e.g. 15.32%.) Hazardous Waste Residential Waste ROI % % (b) 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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