Here are simplified financial statements for Watervan Corporation: 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 $893.00 753.00 43.00 $ 97.00 24.00 $ 73.00 15.33 $ 57.67 BALANCE SHEET (Pigures in $ millions) End of Year Start of Year $ 381 282 $ 336 234 $ 570 $ 663 Assets Current assets Long-term assets Total assets Liabilities and shareholders' equity Current liabilities Long-term debt Shareholders' equity Total liabilities and shareholdere equity $ 206 120 337 $ 663 $ 169 133 268 $ 570 The company's cost of capital is 8.5% 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 b. Return on capital Return on equity d. Is the company creating value for its shareholders? million % % . Yes Here are simplified financial statements for Watervan Corporation: 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 $893.00 753.00 43.00 $ 97.00 24.00 $ 73.00 15.33 $ 57.67 BALANCE SHEET (Pigures in $ millions) End of Year Start of Year $ 381 282 $ 336 234 $ 570 $ 663 Assets Current assets Long-term assets Total assets Liabilities and shareholders' equity Current liabilities Long-term debt Shareholders' equity Total liabilities and shareholdere equity $ 206 120 337 $ 663 $ 169 133 268 $ 570 The company's cost of capital is 8.5% 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 b. Return on capital Return on equity d. Is the company creating value for its shareholders? million % % . Yes