Net sales Cost of goods sold Depreciation (Figures in $ millions) Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes Net income Assets Current assets Long-term assets b. BALANCE SHEET (Figures in $ millions) Total assets Liabilities and shareholders' equity Current liabilities Long-term debt Shareholders' equity Total liabilities and shareholders' equity $881 741 31 $109 12 $ 97 20 Economic value added Return on capital Return on equity Is the company creating value for its shareholders? $ End of Year Yes $369 258 $ 627 $ 194 108 325 $ 627 Start of Year The company's cost of capital is 8.5%. Required: a. Calculate Watervan's economic value added (EVA). (Do not round intermediate calculations. Enter your a 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 inte 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 percen places.) d. Is the company creating value for its shareholders? $ 312 222 $534 $ 157 121 256 $534 million % %

The company's cost of capital is 8.5%. Required: a. Calculate Watervan's economic value added (EVA). (Do not round intermediate calculations. Enter your rounded to 2 decimal pleces.) b. What is the company's return on capital? (Use start-of-year rather than average capital.) (Do not round int 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 percer places.) d. Is the company creating value for its shareholders? The company's cost of capital is 8.5%. Required: a. Calculate Watervan's economic value added (EVA). (Do not round intermediate calculations. Enter your rounded to 2 decimal places.) b. What is the company's retum on capital? (Use start-of-year rather than average capital) (Do not round int 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 percer places.) d. Is the company creating value for its shareholders