1) The companys cost of capital is 7.50%. a. Calculate Watervans economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

2)What is the companys 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.)

Here are simplified financial statements for Watervan Corporation INCOME STATEMENT (Figures in S millions) Net sales Cost of goods sold Depreciation $ 892 752 42 Earnings before interest and taxes (EBIT) Interest expense $98 23 Income before tax Taxes $75 36 Net income $39 BALANCE SHEET (Figures in S millions) End of Year $ 380 $ 660 Start of Year Assets $ 334 Current assets Long-term assets 280 233 Total assets $ 567 Liabilities and shareholders' equity Current liabilities Long-term debt Shareholders' equity $ 205 119 336 $168 132 267 Total liabilities and shareholders' equity 660 $ 567