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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

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:

Hazardous Waste

Residential Waste

Total assets

$15,606,000

$88,740,000

Noninterest-bearing current liabilities

3,366,000

13,464,000

Net income

1,903,000

6,732,000

Interest expense

1,397,000

8,184,000

Required rate of return

10%

13%

Tax rate

40%

40%

(a)

Calculate ROI for both subsidiaries. (Round answers to 2 decimal places, e.g. 15.32%.)

Hazardous Waste

Residential Waste

ROI

(please put answer here) %

(please put answer here) %

Can you please show your work?

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