Applying the EVA® Performance Measure to a Large Company Rockwell International is a multinational company with the following financial results for 2009:

The effective tax rate for Rockwell is 40%. The weighted average cost of capital (WACC) forthe company is computed to be 10%.
Required:
Compute the Economic Value Added for Rockwell International.

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Rockwell International Income Statement (in millions) Revenue .... Cost of goods sold Gross margin Operating expenses Operating income* *Before interest and taxes $ 800 (450) $ 350 (210) $ 140