Problem 12-7 Duffy Dog 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 Residential Waste Waste $15,248,800 $86,927,000 3,311,300 13,327,800 1,896,000 6,618,600 1,416,000 7,930,500 10% 40% 40% 13% Calculate ROI for both subsidiaries. (Round answers to 2 decimal places, e.g. 15.32%.) Hazardous Waste Residential Waste ROI % LINK TO TEXT LINK TO TEXT 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 $ Which subsidiary has added the most to shareholder value in the last year? has added the most to shareholder value. Residential Waste Hazardous Waste LITR TU TERTLINK TO TEXT Based on the limited information, which subsidiary is the best candidate for expansion? is the best candidate for expansion. Residential Waste Hazardous Waste ke to Show Work for this question: Open Show Work