For 2011, Everyday Electronics reported $22.5 million of sales and $18 million of operating costs (including depreciation). The company has $15 million of investor-supplied operating capital. Its weighted average cost of capital is 9% and its federal-plus-state income tax rate was 35%. What was the firm\'s Economic Value Added (EVA), that is, how much value did management add to stockholders\' wealth during 2011? Solution EVA = [$22500000 - 18000000] * {1 - 0.35} - [$15000000 *0.09] = 2925000 - 1350000 = $1575000.