Saved Here are simplified financial statements for Bluesome Corporation: Income Statement (figures in $ millions) Net Sales $881 Cost of goods sold 741 Depreciation 31 Earnings before interest and taxes (EBIT) 109 Interest Expense 12 Income before tax 97 Taxes 34 Net Income 63 Balance Sheet (figures in Smillions) End of Year Assets Start of Year Current assets $369 $312 Long-term aseets 258 222 Total assets $627 $534 Liabilities and Shareholders' equity Current liabilities $194 $157 Long-term debt 108 121 Shareholders' equity 325 256 Total liabilities and shareholders' equity $627 $534 The company's cost of capital is 7.5% a. Calculate Bluesome's economic value added. b. What is the company's return on capital? (use start of year rather than average capital) c. What is its return on equity? (Use start of year rather than average equity) d. Is the company creating value for its shareholders? e. How to mitigate shareholders' concern for agency problem? Give at least one example, Short Answer Toolbar navigation B TV5 A2