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: Total assets Noninterest-bearing current liabilities Net income Hazardous Waste $15,606,000 3,366,000 1,903,000 1,397,000 10% Residential Waste $88,740,000 13,464,000 6,732,000 8,184,000 13% Interest expense Required rate of return 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 % % (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 $ $ (c) Which subsidiary has added the most to shareholder value in the last year? has added the most to shareholder value. Hazardous Waste Residential Waste 1. (d) Based on the limited information, which subsidiary is the best candidate for expansion? is the best candidate for expansion. Hazardous Waste Residential Waste