11 Here are simplified financial statements for Watervan Corporation: 1.13 points INCOME STATEMENT (Figures in 5 millions) Net sales Cost of goods sold Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes Net income eBook $896.ee 756.ee 46.ee $ 94.00 27.09 $ 67.ee 14.07 $ 52.93 Print References BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets Long-term assets Total assets Liabilities and shareholders' equity $ 384 288 $ 672 $ 342 237 $ 579 VE 11 of 22 H Me Graw HAN Oo O Type here to search ligi Saved Help Sai 1 (Figures in 3 millions) End of Year Start of Year Assets Current assets Long-term assets Total assets Liabilities and shareholders' equity Current liabilities Long-term debt Shareholders' equity Total liabilities and shareholders' equity $ 384 288 $ 672 $ 342 237 $ 579 Book $ 209 123 340 $ 672 $ 172 136 271 $ 579 Print ferences 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? E MC Graw 00 o Type here to search Lule ali dveldge capital.) (Do not ro 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 places.) d. Is the company creating value for its shareholders? Book million a. % b. Print Economic value added Return on capital Return on equity Is the company creating value for its shareholders? % c. ferences Yes d. Next > 11 of 22 !!!