Saved 12 Here are simplified financial statements for Watervan Corporation 0.5 points INCOME STATEMENT (Figures in 5 millions) Net sales Cost of goods sold Depreciation Earnings before interest and taxes (EBIT) Interest expense Incone before tax Taxes Net Income 5889.00 749.ee 39.00 $101.00 2e.ee $ 81.00 17.01 $ 63.99 eBook Print BALANCE SHEET (Figures in Millions) References End of Year Start of Year $ 377 274 $ 651 $ 328 230 $ 558 Assets Current assets Long-term assets Total assets Liabilities and shareholders equity Current liabilities Long-term debt Shareholders' equity Total liabilities and shareholders' equity $ 202 116 $ 165 129 264 $ 558 $ 651 The company's cost of capital is 85% 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 startof-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 decimal places.) d. Is the company creating value for its shareholders? M Graw liabilities and shareholders' equity $ 651 264 $ 558 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.) 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? a. b. million % Economic value added Return on capital Return on equity is the company creating value for its shareholders? % C. d.