ROI and economic value added using the Internet. Select one of the following companies (or any company of your choosing) and use the Internet to explore the company's most recent annual report.

American Airlines (www.americanair.com)

Intel (www. mtel.com)

IBM (www.ibm.com)

W a 1 - M art ( w vv w . w a 1 - i n a r t . c o m )

a. Calculate the company's overall return on investment (ROI). Also, calculate the company's overall economic value added amount. (Assume a weighted-average cost of capital of \0c/c. Calculate the tax rate from the company's income statement by t aking the tax expense divided by income before taxes.) List and explain any assumptions you make.

b. Does the company include a calculation of ROI in its online annual report? If it does, do your calculations agree w ith those of the company? If not, what would be some possible explanations'.1