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Chapter 4 Problem 3 3. Measuring Performance. Here are simplified financial statements for Watervan Corporation: The company's cost of capital is 8.5%. ( LO42) a.

Chapter 4 Problem 3

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3. Measuring Performance. Here are simplified financial statements for Watervan Corporation: The company's cost of capital is 8.5%. ( LO42) a. Calculate Watervan's economic value added (EVA). b. What is the company's return on capital? (Use start-of-year rather than average capital.) c. What is its return on equity? (Use start-of-year rather than average equity.) d. Is the company creating value for its shareholders

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