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Problem 12-7 Toy Co Waste Management has a subsidiary that disposes of hazardous waste and a subsidiary that collects and disposes of residential garbage. Information
Problem 12-7 Toy Co 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 $15,264,700 $86,786,000 3,286,900 13,354,000 1,957,100 6,638,300 1,393,600 7,978,300 10% 13% 40% 40% 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 EVAS LINK TO TEXT LINK TO TEXT
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