Here are simplified financial statements for Watervan Corporation:

INCOME STATEMENT(Figures in $ millions)Net sales$900.00

Cost of goods sold760.00

Depreciation50.00

Earnings before interest and taxes (EBIT)$90.00

Interest expense31.00

Income before tax$59.00

Taxes12.39

Net income$46.61

BALANCE SHEET(Figures in $ millions)End of YearStart of YearAssetsCurrent assets$388

$350

Long-term assets296

241

Total assets$684

$591

Liabilities and shareholders' equityCurrent liabilities$213

$176

Long-term debt127

140

Shareholders' equity344

256

Total liabilities and shareholders' equity$684

$572

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?