Question: Answer questions A, B, C and D BALANCE SHEET Figures in $ millions) End of Start of Year Year Assets Current assets $ 376 $

Answer questions A, B, C and D

BALANCE SHEET Figures in $ millions) End of Start of Year Year Assets Current assets $ 376 $ 326 Long-term assets 272 229 Total assets $ 648 $ 555 Liabilities and shareholders' equity Current liabilities $ 201 $ 16 Long-term debt 115 128 Shareholders' equity 332 263 Total liabilities and shareholders' equity $ 648 $ 555 The company's cost of capital is 8.5%. Required: a. Calculate Watervan's economic value added (EVA). Note: 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.) Note: 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.) Note: Enter your answer as a percent rounded to 2 decimal places. d. Is the company creating value for its shareholders? Pre.v. 2 of 8 Next search BIG |Address 74'F hp

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