Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales $ 895.00 Cost of goods sold Depreciation 17:04 Income before tax Taxes Net income Earnings before interest and taxes (EBIT) Interest expense 755.00 45.00 $ 95.00 26.00 $ 69.00 14.49 $ 54.51 ok nt Assets Current assets Long-term assets Total assets BALANCE SHEET (Figures in $ millions) End of Year Start of Year $ 383 286 $ 576 $ 340 236 $ 669 Liabilities and shareholders' equity Current liabilities. Long-term debt Shareholders' equity $ 208 122 339 $ 171 135 270 Total liabilities and shareholders' equity $ 669 $ 576 The company's cost of capital is 8.5%. Required: a. Calculate Watervan's economic value added (EVA). Note: 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.) Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. < Prev 2 of 8 Mout 2 Assets Current assets Long-term assets Total assets Liabilities and shareholders' equity $ 669 $ 383 286 $ 340 236 $ 576 5 Current liabilities $ 208 $ 171 ints Long-term debt 122 135 Shareholders' equity 339 270 Total liabilities and shareholders' equity $ 669 $ 576 03:16:48 The company's cost of capital is 8.5%. Required: eBook Print a. Calculate Watervan's economic value added (EVA). Note: 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.) Note: 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.) Note: Enter your answer as a percent rounded to 2 decimal places. d. Is the company creating value for its shareholders? a. Economic value added million b. Retum on capital % c. Return on equity % d. Is the company creating value for its shareholders?