Here are simplified financial statements for Watervan Corporation:

INCOME STATEMENT
(Figures in $ millions)
Net sales	$	896.00
Cost of goods sold		756.00
Depreciation		46.00
Earnings before interest and taxes (EBIT)	$	94.00
Interest expense		27.00
Income before tax	$	67.00
Taxes		23.45
Net income	$	43.55

BALANCE SHEET
(Figures in $ millions)
	End of Year				Start of Year
Assets
Current assets	$	384			$	342
Long-term assets		288				237
Total assets	$	672			$	579
Liabilities and shareholders equity
Current liabilities	$	209			$	172
Long-term debt		123				136
Shareholders equity		340				271
Total liabilities and shareholders equity	$	672			$	579

The companys cost of capital is 9%.

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?

Yes

No