Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales $ 887 Cost of goods sold 747 Depreciation 37 Earnings before interest and taxes (EBIT) $ 103 Interest expense 18 Income before tax $ 85 Taxes 28 Net income $ 57 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets $ 375 $ 324 Long-term assets 270 228 Total assets $ 645 $ 552 Liabilities and shareholders equity Current liabilities $ 200 $ 163 Long-term debt 114 127 Shareholders equity 331 262 Total liabilities and shareholders equity $ 645 $ 552 The companys cost of capital is 8.50%.

a.

Calculate Watervans economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

b.

What is the companys 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.)