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
22.40...