Calculate watervan economic value added

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Reference no: EM132515557

BALANCE SHEET (Figures in $ millions)

End of Year Start of Year

Assets

Current assets $ 386 $ 346

Long-term assets $ 292 $ 239

Total assets $ 678 $ 585

Liabilities and shareholders' equity

Current liabilities $ 211 $ 174

Long-term debt $ 125 $ 138

Shareholders' equity $ 342 $ 273

Total liabilities and shareholders' equity $ 678 $ 585

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?

Reference no: EM132515557

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