Principles of Corporate Finance

EVA of US firms - 1997

Walt Disney - 347 30 , 702 11. 0 12. 6

UAL 298 13 , 420 9. 8 7. 2

Safeway 335 4 , 963 15. 7 8. 5

Philip Morris 3,119 42 , 885 20. 1 12. 5

Microsoft 1,727 5 , 680 47. 1 11. 8

Merck 1,688 22 , 219 23.0 14. 5

Johnson & Johnson 1,327 18 , 138 21.8 13. 3

IBM -2,743 67,431 7.8 11. 8

Hewlett -Packard - 99 24,185 15.2 15. 7

General Motors -3,527 82,887 5.9 9. 7

General Electric 2,515 53,567 17.7 12. 7

Ford Motor 1,719 58,272 12.1 9. 1

Dow Chemical 6,81 23,024 12.2 9. 0

Coca Cola $2,442 $10,814 36.0% Capital9.7%

Cost of

Capital

Return on

Invested

$ in millions) EVA Capital