Need help with b

Homework: Measuring Corporate Performance Assignment 0 Saved Here are simplified nancial statements for Watervan Corporation: INCOME STATEMENT 2.5 (Figures in $ millions) Net sales $835.60 polnm Cost of goods sold 745.00 Depreciation 35.60 Earnings before interest and taxes (EBITJ $185.60 El Interest expense 16.00 Income be'Fore tax 5 39.60 EBk Taxes 13. 69 Net income 5 7331 U | an BALANCE SHEET [Figures in $ millions) End of Start Year of Year Assets Current assets $ 373 5 320 Long-term assets 266 226 Total assets 5 639 5 546 Liabilities and shareholders' equity Current liabilities 5 1'38 5 161 Long-term debt 112 125 Shareholders' equityr 329 260 Total liabilities and shareholders' equity 5 539 5 546 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 startofyear 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 sta n-ofyear rather than average equity.) [Enter your answer as a percent rounded to 2 decimal places.} cl. Is he company creating value for its shareholders? a. Economic value added b. Return on capital . _ _ _ ... __ _