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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
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: Hazardous Residential Total assets Noninterest-bearing current liabilities Net income Interest expense Required rate of return Tax rate Waste $15,227,70o0 3,255,700 1,911,300 1,403,000 10% 40% Waste $86,305,000 13,205,200 6,624,400 8,111,400 13% 40% Calculate ROI for both subsidiaries Hazardous Waste Residential Waste ROI Calculate EVA for both subsidiaries. Note that since no adjustments for accounting distortions are being made, EVA is equivalent to residual income Hazardous Waste Residential Waste EVA
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