The following table gives abbreviated balance sheets and income statements for Este Lauder Companies.

	($ in millions)
	End of Year	Start of Year
Balance Sheet
Assets
Current assets:
Cash and marketable securities	$1,253	$1,121
Accounts receivable	946	746
Inventories	996	827
Other current assets	492	428
Total current assets	3,687	3,121
Fixed assets:
Property, plant, and equipment	2,862	2,525
Less accumulated depreciation	1,719	1,501
Net fixed assets	1,143	1,024
Other long-term assets	1,444	1,191
Total assets	$6,274	$5,336
Liabilities and Shareholders Equity
Current liabilities:
Debt due for repayment	$ 138	$ 23
Accounts payable	1,805	1,549
Total current liabilities	1,943	1,572
Long-term debt	1,080	1,205
Other long-term liabilities	621	610
Total liabilities	3,627	3,370
Total shareholders' equity	2,629	1,948
Total liabilities and shareholders equity	$6,274	$5,336
Income Statement
Net sales	$8,810
Cost of goods sold	1,937
Selling, general, and administrative expenses	5,486
Depreciation	298
Earnings before interest and taxes (EBIT)	1,089
Interest expense	64
Taxable income	1,025
Tax	322
Net income	$ 703
Dividends	148
Addition to retained earnings	555

At the end of fiscal 2011 Este Lauder had 197 million shares outstanding²¹ with a share price of $105. The companys weighted-average cost of capital was about 10%.

a.	Calculate the market value added. (Enter your answer in millions.)

Market value added

$ million

b.	Calculate the market-to-book ratio. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Market-to-book ratio

c.	Calculate the economic value added. (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place.)

Economic value added

$ million

d.	Calculate the return on capital. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Return on capital

%