Here are simplified financial statements for Watervan Corporation: Net sales Cost of goods sold Depreciation Earnings before interest and taxes (EBIT) Interest expense INCOME STATEMENT (Figures in $ millions) 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 BALANCE SHEET (Figures in $ millions) a. b. C. d. $883.00 743.00 33.00 $107.00 14.00 $93.00 19.53 $73.47 End of Year Economic value added Return on capital Return on equity Is the company creating value for its shareholders? $ 371 262 $ 633 $ 196 110 327 $633 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.) $ Start of Year 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? $ 316 224 $ 540 $ 159 123 258 $540 > Answer is complete but not entirely correct. Yes 25.37 1.40 38.00 % million %