6 Here are simplified financial statements for Watervan Corporation: 5 points $894.ee 754.ee INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes Net income $ 96.ee 25.ee $71.00 14.91 $ 56.99 BALANCE SHEET (Figures in $ millions) End of Start of Year Year $ 382 284 $ 666 $ 338 235 $ 573 Assets Current assets Long-term assets Total assets Liabilities and shareholders' equity Current liabilities Long-term debt Shareholders' equity Total liabilities and shareholders' equity $ 207 121 338 $ 170 134 269 $ 666 $ 573 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? Answer is not complete. a. IS 69.00 x million b. 96 Economic value added Return on capital Return on equity Is the company creating value for its shareholders? c. 9.25 X % % % d. Yes