The following data summarize the operating performance of your company’s wholly owned Canadian subsidiary for 2009 to 2011. The cost of capital for this subsidiary is 10 percent.
| 2009 | ($000,000) 2010 | 2011 | |
| Subsidiary net income | $14.0 | $14.3 | $14.4 |
| Total assets in subsidiary | 125 | 130 | 135 |
| Return on net investment in subsidiary | 20% | 22% | 24% |
Required:
Critically evaluate the performance of this subsidiary.
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