Here are simplified financial statements for Watervan Corporation:

INCOME STATEMENT
(Figures in $ millions)
Net sales	$	901.00
Cost of goods sold		761.00
Depreciation		51.00
Earnings before interest and taxes (EBIT)	$	89.00
Interest expense		32.00
Income before tax	$	57.00
Taxes		11.97
Net income	$	45.03

BALANCE SHEET
(Figures in $ millions)
	End of Year				Start of Year
Assets
Current assets	$	389			$	352
Long-term assets		298				242
Total assets	$	687			$	594
Liabilities and shareholders equity
Current liabilities	$	214			$	177
Long-term debt		128				141
Shareholders equity		345				240
Total liabilities and shareholders equity	$	687			$	558

The companys cost of capital is 8.5%.

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.)

d. Is the company creating value for its shareholders?