Rate of return on investment OBJ. 4 The Walt Disney Company has four profitable business segments, described
Question:
Rate of return on investment OBJ. 4 The Walt Disney Company has four profitable business segments, described as follows:
Media Networks: The ABC television and radio network, Disney channel, ESPN, A&E, E!, and Disney.com Parks and Resorts: Walt Disney World Resort, Disneyland, Disney Cruise Line, and other resort properties Disney recently reported sector income from operations, revenue, and invested assets (in millions) as follows:
Income from Operations Revenue Invested Assets Media Networks $6,818 $20,356 $28,627 Parks and Resorts 2,220 14,087 22,056 Studio Entertainment 661 5,979 14,750 Consumer Products 1,112 3,811 7,506
a. Use the DuPont formula to determine the rate of return on investment for the four Disney sectors. Round whole percents to one decimal place and investment turnover to two decimal places.
b. How do the four sectors differ in their profit margin, investment turnover, and return on investment?
Step by Step Answer:
Financial And Managerial Accounting
ISBN: 9781305267831,9781305267848
13th Edition
Authors: Carl S. Warren , James M. Reeve , Jonathan Duchac