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Business, 13.10.2019 06:30 alex5560

Pegasus recycling has a subsidiary that recycles yard waste and another that recycles paper. information related to the two subsidiaries follows. yard recycling paper recycling total assets $8,000,000 $15,000,000 noninterest-bearing current liabilities 500,000 1,000,000 net income 1,500,000 2,600,000 interest expense 600,000 800,000 required rate of return 8% 11% cost of capital 7% 9% tax rate 30% 32% based on the limited information, which subsidiary is the best candidate for expansion?

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