Here are simplified financial statements for Watervan Corporation: Net sales Cost of goods sold Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes Net income Assets Current assets Long-term assets Total assets Liabilities and shareholders' equity Current liabilities Long-term debt Shareholders' equity Total liabilities and shareholders' equity INCOME STATEMENT (Figures in $ millions) a. b. BALANCE SHEET (Figures in $ millions) C. d. $891.88 751.00 41.00 $99.00 22.00 $ 77.00 16.17 $ 60.83 Economic value added Return on capital Return on equity Is the company creating value for its shareholders? End of Year $ 379 $ El 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.) 278 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? Yes $ 657 $ 284 118 335 $ 657 start of Year $ 332 232 $ 564 $ 167 131 266 $ 564 Answer is complete but not entirely correct. 39.71 x million 17.26 x % 18.16 x %