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Here are simplified financial statements for Watervan Corporation: $ 881 741 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 31 $ 109 12 BALANCE SHEET (Figures in $ millions) End of Year Start of Year $369 258 $ 312 222 $627 $ 534 Assets Current assets Long-term assets Total assets Liabilities and shareholders' equity Current liabilities Long-term debt Shareholders' equity Total liabilities and shareholders' equity $ 194 $ 157 108 $ 627 S534 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.) 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.) (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 %

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