Here are simplified financial statements for Watervan Corporation:

INCOME STATEMENT (Figures in $ millions) Net sales $ 886.00

Cost of goods sold 746.00

Depreciation 36.00

Earnings before interest and taxes (EBIT) $ 104.00

Interest expense 17.00

Income before tax $ 87.00

Taxes 18.27

Net income $ 68.73

BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets $ 374

$ 322

Long-term assets 268

227

Total assets $ 642

$ 549

Liabilities and shareholders' equity Current liabilities $ 199

$ 162

Long-term debt 113

126

Shareholders' equity 330

261

Total liabilities and shareholders' equity $ 642

$ 549

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?

A Economic Value added________________Millions

B Return on Capital _________________%

C Return on Equity _________________%

D Is the company creating value for its share holders____________