Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) $ 881 Net sales Cost of goods sold Depreciation 741 31 $ 109 Earnings before interest and taxes (EBIT) Interest expense 12 $ 97 Income before tax Taxes 34 Net income 63 BALANCE SHEET (Figures in $ millions) End of Start of Year Year Assets $ 312 222 $ 369 Current assets 258 Long-term assets $ 627 $ 534 Total assets Liabilities and shareholders' equity Current liabilities $ 194 $ 157 Long-term debt Shareholders' equity 108 121 325 256 $ 627 $ 534 Total liabilities and shareholders' equity %24 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.) Answer is complete and correct. Economic value added $ 38.77 million 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.) Answer is not complete. Return on capital 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.) Answer is complete and correct. Return on 24.60 equity