Problem 4-3 Measuring Performance (LO2) Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes Net income $891.00 751.00 41.00 $ 99.00 22.00 $ 77.00 26.95 $ 50.05 BALANCE SHEET (Figures in $ millions) End of Year Start of Year $ 379 278 $ 657 $ 332 232 $ 564 Assets Current assets Long-term assets Total assets Liabilities and shareholders' equity Current liabilities Long-term debt Shareholders' equity Total liabilities and shareholders' equity $ 204 118 335 $ 657 $ 167 131 266 $ 564 The company's cost of capital is 8%. a. Calculate Watervan's economic value added (EVA). (Do not round Intermediate calculations. Enter your ans rounded to 2 decimal places.) The company's cost of capital is 8%. a. Calculate Watervan's economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Economic value added million b. What is the company's return on capital? (Use start-of-year rather than average capital.) (Dorot 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