Item1 1points eBook Print References Check my workCheck My Work button is now enabled Item 1 Here are simplified financi

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Item 1
Here are simplified financial statements for Watervan
Corporation:
894.00
754.00
44.00
96.00
25.00
71.00
14.91
56.09
382
338
284
235
666
573
207
170
121
134
338
269
666
573
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?