User Account

All Pages

Which subsidiary is the best candidate for expansion

Assignment Help Financial Accounting
Reference no: EM13339240

Jackie Chin 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

Waste Waste
Total assets $12,000,000 $72,000,000
Noninterest-bearing current liabilities 3,000,000 12,000,000
Net income 1,700,000 6,000,000
Interest expense 1,250,000 2,300,000
Required rate of return 8% 10%
Tax rate 35% 40%

Based on the limited information, which subsidiary is the best candidate for expansion? Answer

A. Hazardous waste, because it has a higher residual income.

B. Hazardous waste, because it has a higher return on investment

C. Residential waste, because it has a higher residual income.

D. Residential waste, because it has a higher return on investment

Reference no: EM13339240

Questions Cloud

Write a single statement that prints a number : Write a single statement (in C++ language) that prints a number at random from each of the following set.
Define a function hypotenuse that calculates the hypotenuse : Define a function hypotenuse that calculates the hypotenuse of a right triangle when the other two sides are given. The function should take two arguments and return the hypotenuse as a double.
What is the sound intensity level right in front of trumpet : When playing fortissimo (very loudly), a trumpet emits sound energy at a rate of 0.750 W out of a bell (opening) of diameter 13.2 cm. What is the sound intensity level right in front of the trumpet
Find the radius of planet x in terms of that of earth : The period of a pendulum is 0.215 s on Earth. The period of the same pendulum is found to be 0.467 s on planet X, whose mass is equal to that of Earth.
Which subsidiary is the best candidate for expansion : Jackie Chin Waste Management has a subsidiary that disposes of hazardous waste and a subsidiary that collects and disposes of residential garbage
Write a function integerpower : Write a function integerPower(base, exponent) that returns the value of base^exponent. For example, integerPower(3, 4) = 3* 3 * 3* 3. Do not use any math library functions.
Estimate fraction of total emission from incandesent light : The filament of an incandescent light bulb typically has a temp of 2,850K. Find lamda max. Is this the wavelength within the visible band? Plot B lamda for this temp, using linear axes.
At what speed do the waves travel on the string : A musician plays a string on a guitar that has a fundamental frequency of 330.0 Hz. The string is 65.2 cm long and has a mass of 0.268 g. At what speed do the waves travel on the string
How far does the block slide during final leg of journey : The block of mass M slides back along the horizontal surface with a coefficient of kinetic friction mk and eventually comes to a rest. In terms of v4, how far does the block slide during this final leg of its journey

Reviews

Write a Review

Financial Accounting Questions & Answers

  Determine sue''s variable costs

Determine Sue's variable costs

  Show the cash flow classifications

Cash Flow Classifications:For each of the following items, indicate whether it would be classified and reported under the operating activities (OA), investing activities (IA), or financing activities (FA) section of a statement of cash flows:

  Determine amount of morley itemized deduction

During the year, Morley, a single taxpayer, had an AGI of $30,000 before considering the following items: Determine amount of Morley itemized deduction

  What is net present value of the project

An investment of $100,000 promises returns of $40,000 per year for each of the next three years. If taxes are ignored and the required rate of return is 14%, what is net present value of the project?

  Find out the amount of bond interest expense for first yr

Determine the amount of discount to be amortized for the first semiannual interest payment period, using the interst method. Find out the amount of bond interest expense for the first year.

  How external financial audit can assist to find fraud

"Corporate Malfeasance" Please respond to the following: Evaluate the difficulties companies are faced in implementing a control framework against fraud under Sarbanes-Oxley (SOX). In your evaluation, discuss how the external financial audit can a..

  Compute the break-even point in total sales dollars

Compute the break-even point in total sales dollars and in units for 2014 and what effect would Paul's plan have on the profits and the break-even point in dollars of the partnership?

  Discuss the significance of alternative forms

In a report for the attention of James Brennan discuss the significance of alternative forms of finance available to him and the importance of the nature of the business entity in the process. Your report should relate to aspects considered in the..

  How much would the materials division income

How much would the Materials Division's income from operations increase? If the negotiated price approach is used, what would be the range of acceptable transfer prices and why?

  Prepare the journal entry to record the impairment loss

Prepare the required journal entry to record the purchase of the equipment by the non-interest bearing note and prepare the required journal entries to record the government grant using the 2 methods acceptable by MRS on the date when the grant is ..

  What effect would purchase of the new machine

Mueller can buy a newer production machine that will increase fixed costs by $8,000 per year, but will decrease variable costs by $0.40 per unit. What effect would purchase of the new machine have on Mueller's break-even point in units?

  Find the lozier''s income from continuing operations

What was Lozier's gross profit, What was Lozier's income from operations, What was Lozier's income before income tax and What was Lozier's income from continuing operations

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd