Problem 4-3 Measuring Performance (LO2) Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in s millions) $882.00 742.00 32.00 et sales Cost of goods sold Depreciation Earnings before interest and taxes (EBIT) $108.00 Interest expense Income before tax Taxes Net income 13.00 95.00 33.25 61.75 BALANCE SHEET (Figures in millions) End of Start Year of Year Assets 370 314 223 Current assets Long-term assets 260 S 630 537 Total assets Liabilities and shareholders' equity Current liabilities Long-term debt Shareholders' equity 195 158 122 257 S 630 537 109 326 Total liabilities and shareholders' equity The company's cost of capital is 8%. a. Calculate Watervan's economic value added (EVA) (Do not round intermediate calculatlons. Enter your answer in millions rounded to 2 decimal places.) Economnic value added million 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.) Return on capital 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.) Return on equity