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 16.17 $ 60.83 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets Long-term assets Total assets $ 379 278 $ 657 $ 332 232 $ 564 Liabilities and shareholders' equity Current liabilities Long-term debt Shareholders' equity $ 204 118 335 $ 167 131 266 Total liabilities and shareholders' equity $ 657 $ 564 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?