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Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT ( Figures in $ millions ) Net sales $ 8 9 7 . 0 0

Here are simplified financial statements for Watervan Corporation:
INCOME STATEMENT
(Figures in $ millions)
Net sales $ 897.00
Cost of goods sold 757.00
Depreciation 47.00
Earnings before interest and taxes (EBIT) $ 93.00
Interest expense 28.00
Income before tax $ 65.00
Taxes 13.65
Net income $ 51.35
BALANCE SHEET
(Figures in $ millions)
End of Year Start of Year
Assets
Current assets $ 385 $ 344
Long-term assets 290238
Total assets $ 675 $ 582
Liabilities and shareholders equity
Current liabilities $ 210 $ 173
Long-term debt 124137
Shareholders equity 341272
Total liabilities and shareholders equity $ 675 $ 582
The companys cost of capital is 8.5%.
Required:
Calculate Watervans economic value added (EVA).
Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.
What is the companys return on capital? (Use start-of-year rather than average capital.)
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
What is its return on equity? (Use start-of-year rather than average equity.)
Note: Enter your answer as a percent rounded to 2 decimal places.
Is the company creating value for its shareholders?

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