Here are simplified financial statements for Watervan Corporation:

INCOME STATEMENT(Figures in $ millions)Net sales$892.00

Cost of goods sold752.00

Depreciation42.00

Earnings before interest and taxes (EBIT)$98.00

Interest expense23.00

Income before tax$75.00

Taxes15.75

Net income$59.25

BALANCE SHEET(Figures in $ millions)End of YearStart of YearAssetsCurrent assets$380

$334

Long-term assets280

233

Total assets$660

$567

Liabilities and shareholders' equityCurrent liabilities$205

$168

Long-term debt119

132

Shareholders' equity336

267

Total liabilities and shareholders' equity$660

$567

The company's cost of capital is 8.5%.

a.Calculate Watervan's economic value added (EVA).(Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

b.What is the company's return on capital? (Use start-of-year rather than average capital.)(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

c.What is its return on equity? (Use start-of-year rather than average equity.)(Enter your answer as a percent rounded to 2 decimal places.)

d.Is the company creating value for its shareholders?