Here are simplified financial statements for Watervan Corporation INCOME STATEMENT (Figures in s 1111ans) Net sales Cost of goods sold Depreciation Earnings before Interest Cake (EBIT) Tnterest Expense Incone before tax 5893.00 751. 43.ee $97.00 24.00 $79.00 15:33 3 57:07 NE inci BALANCE SHEET (Figures in 5 millions) End of Start of 13 5381 282 Assets Current assets Looters Total asset Libilities and shareholders equity Current limits oten dat Shareholder mit Total Itatistiholders! Equity 1.0 332 28 37 The company's cost of capitalis 8.5% a. Calculate Watervan's economic value added IEVA (Do not round Intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) b. What is the company's return on cella? (Use start of year rather than average captal(Do not round Intermediate calculations Enter your answer as a percent rounded to 2 decimal places.) LULAR Long ter debt Shareholders equity Total liabilities and shareholders' equity F 120 337 5 663 133 268 5570 The company's cost of capital is 85% 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 15 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? minion Economic value added Relum on capital b G. is the company crengue for its shareheiders? 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 (Figures in $ millions) End of Year Start of Year $ 381 282 $ 336 234 Assets Current assets Long-term assets Total assets Liabilities and shareholders' equity Current liabilities Long-term debt Shareholders' equity Total liabilities and shareholders' equity $ 663 $570 $ 206 120 337 $ 663 $ 169 133 268 $ 570 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 I b. Economic value added Return on capital Return on equity Is the company creating value for its shareholders? milion 55 c. d. 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 (Figures in $ millions) End of Year Start of Year $ 381 282 $ 663 $ 336 234 $ 570 Assets Current assets Long-term assets Total assets Liabilities and shareholders' equity Current liabilities Long-term debt Shareholders' equity Total liabilities and shareholders' equity $ 206 120 337 $ 169 133 268 $ 663 $ 570 11. 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? million a 02 b Economic value added Return on capital Return on equity Is the company creating value for its shareholders? % C d